WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY .

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WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPDEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCYDLA Troop SupportClothing & TextilesSupply ChainWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT1

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPClothing & Textiles MissionProvide dress and field uniforms, field gear,tentage, and personal chemical protective items tothe Armed Forces in peace and in war End items and components Fire resistant items Body Armor Testing and evaluation WARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT2

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPClass II Products & ServicesEcclesiastical ItemsBody ArmorWARFIGHTER SUPPORT ENHANCEMENTFlight SuitsChem SuitsSTEWARDSHIP EXCELLENCEClass AUniformsGo-to-WarCamouflageTentsWORKFORCE DEVELOPMENT3

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPClothing & TextilesCustomers / Items43210Customers: 20,000Orders:7.3M annuallyaverage 600k monthlyItems:48,000SalesBillions 2.2 2.0 2.4 2.5 2.1FY06FY07FY08FY09FY10FY11 Forecast 2.479BThe Big PictureInventory3210 1.5FY07Personnel / VendorsBillions 1.4FY08 1.5FY09 1.6FY10WARFIGHTER SUPPORT ENHANCEMENTEmployees (auth):*333 civilian 10 militarySuppliers:604*includes 2 DLA Troop Support Europe & Africa positionsSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT4

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPClothing & Textiles SalesFY10 Service Breakout MillionsHistorical Trend 3,0002.6B 2.5BAir TER SUPPORT ENHANCEMENT 2,5002.1B2.4B2.2B2.5B2.0B 2,0001.6B 1,5001.2B 1.3BFY10 2.1B 1,000 500 0FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10STEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT5

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPClothing & TextilesStrategic ConditionsCurrent StateService spiral developmentstrategies tionsEarlyinvolvementin product lifecycle to enhancea balancedprogram mgmtfocusStrategicpresenceEnsurescommunication andexecution fromService conceptsthru warehousingand distributionWARFIGHTER SUPPORT ENHANCEMENTWay AheadTimely funding processthat minimizes impacts onServices, DLA and ourindustry partnersSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT6

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPClothing & Textiles A Unique Commodity Sized items– Combat boot 140 sizes– Men’s Army dress coat 65 sizes– Airman battle uniform 155 sizesDemand Planningcritical due to leadtimeand sizing issues Military unique– Most clothing on a specification– Service driven requirements– Simple garments to complex protective clothing (e.g., chem suits) Industrial base strategic supplier issues– Small Business driven– Socioeconomic obligations– Mandatory sources National Industry for the Blind (NIB),National Industry for the Severely Handicapped (NISH),Federal Prisons (UNICOR) Best value long term contracts– Over 95% of our contracts during peacetimeWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT7

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPNot Just End ItemsT ShirtTapesHooks& LoopsButtonsDress ShirtWeaverFinisheror FastenersEnd Item KtrGlovesThreadSnapsFlight SuitCoverallsWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT8

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPC&T Industrial Base CapacityBerry Amendment and the Domestic IndustryBerry Amendment Restricts US DoD to domestic sources for C&T items In existence in some form since 1941 1994 permanent by Public Law 103-139 Readiness concerns– Goes down to low level components and processes– Waiver requires Domestic Non-Availability DeterminationEmployment Levels1000ImportsThousands of Employees35900Billions of Square Meter Equivalents (SMEs)308007002560020500400153001020051000090 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10* Data source: American Apparel & Footwear Association (AAFA), May 2011WARFIGHTER SUPPORT ENHANCEMENT90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10ApparelTextilesSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT9

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPOrganizational Clothing & Individual EquipmentManagement ChallengeExamples20012011 Body Armor Helmets Uniforms Boots Fire ResistantClothing Eye WearTrend is toward a more complicated andexpensive Kit with a rapid improvement cycleWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT10

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPSupply Chain ManagementVirtual Prime Vendor - KYLOCUnit# of SvcMembersArmy National Guard360,000Air National Guard107,000Navy Reserve67,000Marine Reserves40,000Navy Seabees24,000Navy Coastal Warfare4,000Navy Amphibs3,000Naval Special WarfareCommand (SEALs)4,000Naval ELSF10,000Naval InstallationCommand10,000Army Direct OrderingArmy ReserveOver 130,000207,000WARFIGHTER SUPPORT ENHANCEMENTCustomersdon’t have to carryinventory!KYLOCKentucky Logistics Operation Center (KYLOC) Acts as DLA Troop Support’s subcontractorDLA Troop Support pushes stock to KYLOC warehouseCustomers order via web, email, phone, faxPatches and name tags are sewn onOrders are kitted & shipped direct to customerKYLOC electronically tied to DLA Troop SupportFY10 sales exceeded 182MSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT11

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPHow to do Business with Us DLA Troop Support Web site– http://www.dscp.dla.mil– Points of contact– Product lines Small Business Office Web site– http://www.dscp.dla.mil/sbo/socio.asp– General guidance concerning how to do business with DSCP Central Contract Registration (CCR)– http://www.ccr.gov– Required validation contractors working with Government Federal Business Opportunities (FEDBIZOPPS)– https://www.fbo.gov DLA Internet Bid Board System (DIBBS)– https://www.dibbs.bsm.dla.mil– Solicitations, drawings, specifications and standards listed can be downloadedWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT12

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPDLA Troop SupportSmall Business Office FY10 900M total small business contract dollars––––HUBZone small business Women-owned small business Small Disadvantaged business Veteran-owned small business 260M 112M 240M 103M Small businesses are vital components of the domesticindustrial base– In 2010 over 49% of C&T items were from domestic small businesses(30% DLA Troop Support)– Many small businesses met the rapidly escalating demand for OIF/OEFMichael McCallDirector, Small BusinessJoann GaticaC&T Small Business Rep(215) 737-2321 (800) 831-1110Michael.McCall@dla.mil(215) 737-5910Joann.Gatica@dla.milWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT13

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPBest Value StrategyEvaluation of source(s) whose proposal offers thegreatest (best) value to the Government in termsof quality, performance, risk management, cost orprice and other factors Delinquencies reduced Long term relationships built Defaults virtually eliminated95% of C&T contracts are awarded via Best ValueWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT14

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPSucceeding at Best Value Check your PDM against the patterns andspecifications to ensure accuracy Your Past Performance rating is critical If issues arise, seek to mitigate quickly you can recover Explain any problems in your proposal including how you recovered Offer competitive pricing we may award oninitial offersWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT15

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPThe Elements of Best Value(in relative order of importance) Product Demonstration Model Past Performance Technical Proposal Socio-economic Factor ( 500k) Price ProposalContracts normally consist of a base year with options for1 to 4 additional yearsWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT16

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPStages in a Best Value Buy Synopsis in FEDBIZOPsSolicitation opening to closingEvaluation of initial offersCompetitive range determination*Discussions*Final Proposal revisions*Award* Does not apply if we award on initial offersWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT17

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPSucceeding at Best Value Check your PDM against the patterns andspecifications to ensure accuracy Your Past Performance rating is critical If issues arise, seek to mitigate quickly you can recover Explain any problems in your proposal including how you recovered Offer competitive pricing we may award oninitial offersWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT18

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWhat’s Coming Next?Navy Working UniformType IIUSMC Running SuitArmy OCPECWCS ParkaArmy OEFCamouflage Pattern (OCP)WARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEArmy Service UniformUSMC Rugged AllTerrain (RAT) BootWORKFORCE DEVELOPMENT19

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWho to Contact?POCPhone No.Sharon Piecyk(215) 737-3257Dress Clothing Field Clothing Footwear Accessories (T-Shirts,Fitness Uniforms,Utility Clothing)Steve Merch(215) 737-2401OrganizationalClothing Cold Weather & FlightClothing Gloves Chemical ProtectiveItemsKevin Peoples(215) 737-5657Equipment &Tentage Terri Scheetz(215) 737-3274Strategic MaterialSourcing Group 3PLs Industrial Base PlanningDonna Pointkouski(215) 737-4290Dress UniformsHeraldicsShirtsHeadwearOuterwearBody ArmorEquipmentTentsHelmetsSafety ItemsWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT20

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWhat We Want to Leave You With Collaboration with Servicesand industrial base Professional,dedicated workforce Aggressive supply chainexecutionFocused on providing the war fighters what they need,when they need it, wherever they need itWARFIGHTER SUPPORT ENHANCEMENTSTEWARDSHIP EXCELLENCEWORKFORCE DEVELOPMENT21

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KYLOC Unit # of Svc Members Army National Guard 360,000 Air National Guard 107,000 Navy Reserve 67,000 Marine Reserves 40,000 Navy Seabees 24,000 Navy Coastal Warfare 4,000 Navy Amphibs 3,000 Naval Special Warfare Command (SEALs) 4,000 Naval ELSF 10,000 Naval Installation Command 10,000 Army Direct Ordering Over 130,000 Army Reserve 207,000 .