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Warfighter Supplier Brig. Gen. Steven A. Shapiro Commander Defense Logistics Agency Troop Support
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June 2014 Volume 8, Issue 5
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Cases & Containers O Signals Retrograde Commercial Transport Options
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MILITARY LOGISTICS FORUM Features
June 2014 Volume 8, Issue 5
Cover / Q&A
Defense Logistics Agency Special Pull-Out Supplement
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Exclusive interview with
Vice Admiral Mark D. Harnitchek
DLA’s 100 Top Contractors FY13
Director Defense Logistics Agency
14 Brigadier General Steven A. Shapiro
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Rapid deployment anywhere, anytime, by any transport mode and under any conditions, has been the watchword of U.S. expeditionary forces for more than a decade. To ensure warrior gear gets where it needs to be in one piece, it needs to be packed properly. By Henry Canaday
For troop and cargo movement, among other needs, the U.S. military greatly relied on commercial transport companies during the buildup to the wars in Afghanistan and Iraq. Military logisticians and their commercial counterparts revisit priorities and plans after Afghanistan and Iraq. By William Murray
In One Piece
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Commercial Options
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Signal Retrograde in Afghanistan The logistics of retrograding the theater communications network infrastructure, which had at its peak expanded to 23 strategic technical control facilities along with hundreds of tactical extensions, without interrupting critical network services to support the remaining mission. By Colonel Linda Jantzen and Lieutenant Colonel Jeffrey Thompson
Industry Interview
2 Editor’s Perspective 4 People 12 Supply Chain 23 Resource Center
Commander Defense Logistics Agency Troop Support
Red Hoover Vice President and Engineering and Technology Services Division Manager ManTech
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EDITOR’S PERSPECTIVE
Military Logistics Forum Volume 8, Issue 5 • June 2014
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Where can a logistician or maintainer make use of Google Glass—or a Google Glass-like device? With funding from DARPA, Applied Research Associates (ARA) developed ARC4, a not-so-hip-looking version of GG delivering augmented reality (AR) to the operator. These AR devices share similar characteristics in that they place a clear screen in front of one or both of the wearer’s eyes. Data and symbology are wirelessly overlaid onto the wearer’s real-world view from an operator-worn user interface device. To maximize versatility, ARA developed ARC4 to be compatible with any see-through display Jeff McKaughan technology—including night vision goggles. It is also customizable and Editor configurable for a wide range of mission profiles; the device supports common protocols for network communication and information sharing. Neither Google nor ARA is working in a vacuum. BAE Systems, for example, has developed its own version called Q-Warrior. Like other systems, it offers a head-up display allowing complete situational awareness for the wearer while at the same time providing information and cues without having to take eyes off of the environment. Like many new technologies, sometimes the technology of how to do something gets out in front of what you need it for and how you get it to do something you need done. Like many new gadgets, special operations will be at the front of the line. Logisticians and maintainers will be next, as soon as SOF needs a supply chain to support the new eyes they have. So back to the original question: How can this help a logistician or a maintainer? For the logistician, warehouse and inventory management come to mind right away. With the ability to integrate an AR device with an asset tracking and visibility network, the possibilities are obvious as the camera scans and reads barcodes, interfaces with a database and provides real-time updates. Even in its simplest form, maintainers could equally benefit from having information up in front of them hands-free. Having maintenance manuals with illustrations and instructions in front of them— not balanced on their leg or off to the side—so they don’t have to take their eyes off of what they are working on is huge. They would also have the ability to troubleshoot with a higher echelon and have them see exactly what the maintainer is seeing—and have the solution pushed right back down to them. Heads-up AR solutions are just waiting for logisticians and maintainers to ask how they can help.
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PEOPLE Major General Kevin G. O’Connell, deputy chief of staff, G-4, U.S. Army Forces Command, Fort Bragg, N.C., has been assigned to commanding general, U.S. Army Sustainment Command, Rock Island Arsenal, Ill. Yvette Burke has been assigned as the acquisition executive, Defense Logistics Agency-Acquisition, Defense Logistics Agency, Richmond, Va. Burke previously served as the executive director, Aviation Contracting and Acquisition Management, Defense Logistics Agency, Richmond. Air Force Major General Carlton D. Everhart II has been nominated for appointment to the rank of lieutenant general and for assignment as commander, Eighteenth Air Force, Air Mobility Command, Scott Air Force Base, Ill. Everhart is currently serving as vice commander, Third Air Force, U.S. Air Forces in Europe, Ramstein Air Base, Germany.
Major Gen. John F. Thompson
Air Force Major General John F. Thompson has been nominated for appointment to the rank of lieutenant general and for assignment as commander, Air Force Life Cycle Management Center, Air 4 | MLF 8.5
Compiled by KMI Media Group staff
Force Materiel Command, Wright-Patterson Air Force Base, Ohio. Thompson is currently serving as Air Force program executive officer for tankers, Tanker Directorate, Air Force Life Cycle Management Center, Air Force Materiel Command, WrightPatterson Air Force Base. Air Force Brigadier General Warren D. Berry has been nominated to the rank of major general. Berry is currently serving as director of logistics, Headquarters Air Mobility Command, Scott Air Force Base, Ill. Air Force Colonel Walter J. Lindsley has been nominated to the rank of brigadier general. Lindsley is currently serving as director of staff, Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio. Navy Reserve Rear Admiral (lower half) Althea H. Coetzee has been nominated for appointment to the rank of rear admiral. Coetzee is currently serving as contingency contracting deputy director, Office of the Under Secretary of Defense for Acquisition, Technology and Logistics, Washington, D.C. Navy Reserve Rear Admiral (lower half) Martha E.G. Herb has been nominated for appointment to the rank of rear admiral. Herb is currently serving as reserve deputy commander, Navy Installations Command, Washington, D.C.
Navy Reserve Rear Admiral (lower half) Valerie K. Huegel has been nominated for appointment to the rank of rear admiral. Huegel is currently serving as commander, Navy Expeditionary Logistics Support Group, Williamsburg, Va. Navy Reserve Captain Keith M. Jones has been nominated for appointment to the rank of rear admiral (lower half). Jones is currently serving as commanding officer, U.S. Pacific Fleet Logistics Readiness Center, Headquarters 120, San Diego, Calif.
Major Gen. H. Brent Baker Sr.
Major General H. Brent Baker Sr., commander, Ogden Air Logistics Complex, Air Force Materiel Command, Hill Air Force Base, Utah, has been assigned to director, logistics and sustainment, Headquarters Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio. Brigadier General Carl A. Buhler, director, logistics, Headquarters Pacific Air Forces, Joint Base Pearl Harbor-Hickam, Hawaii, has been assigned to commander, Ogden Air Logistics Complex, Air
Force Materiel Command, Hill Air Force Base, Utah. Brigadier General Evan M. Miller, vice superintendent, U.S. Air Force Academy, Colorado Springs, Colo., has been assigned to director, logistics, Headquarters Pacific Air Forces, Joint Base Pearl Harbor-Hickam, Hawaii. Brigadier General Duke Z. Richardson, director, logistics and sustainment, Headquarters Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio, has been assigned to Air Force program executive officer for tankers, Tanker Directorate, Air Force Life Cycle Management Center, Air Force Materiel Command, WrightPatterson Air Force Base. Brigadier General Mark A. Brown, who has been selected for the grade of major general, director, financial management, Headquarters Air Force Materiel Command, Wright-Patterson Air Force Base, Ohio, has been assigned to commander, Second Air Force, Air Education and Training Command, Keesler Air Force Base, Miss. Brigadier General James C. Johnson, director for logistics, Headquarters U.S. Africa Command, Stuttgart, Germany, has been assigned to commander, Air Force Recruiting Service, Air Education and Training Command, Joint Base San AntonioRandolph, Texas.
Brigadier General James C. Vechery, director, U.S. Forces-Afghanistan Liaison to the U.S. Embassy, Kabul, Afghanistan, has been assigned to director for logistics, Headquarters U.S. Africa Command, Stuttgart, Germany.
Rear Adm. (lower half) James R. McNeal
Rear Admiral (lower half) James R. McNeal will be assigned as commander, Naval Supply Global Logistics Support, San Diego, Calif. McNeal is currently serving as deputy commander, Global Logistics Support Command, San Diego.
Rear Adm. (lower half) Cynthia M. Thebaud
Rear Admiral (lower half) Cynthia M. Thebaud will be assigned as commander, Expeditionary Strike Group Two, Virginia Beach, Va. Thebaud is currently serving as commander, Logistics Group, Western Pacific/Commander, Task Force 73/Commander, Navy Region Singapore.
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To ensure warrior gear— weapons, communications, electronics, etc.— gets where it needs to be in one piece, it needs to be packed properly.
By Henry Canaday, MLF Correspondent Rapid deployment anywhere, anytime, by any transport mode and under any conditions, has been the watchword of U.S. expeditionary forces for more than a decade, and that’s not going to change. Getting all the gear to remote locations, fast and in fighting shape, is a huge challenge. But vendors have developed a wide range of containers and cases to do the job reliably. AAR Mobility Systems leads the world in making air-transportable containers, stressed Jeannine Taylor of AAR. It is the sole manufacturer of the ISU Container, whose design meets or exceeds Department of Defense standards for air transportation of equipment and supplies. With over 40 different configurations available, AAR containers can be easily customized for any mission, including armories, laundries, refrigeration, dog kennels, gun rooms, maintenance, all terrain vehicle storage, and more. ISUs can be delivered by land, sea or air in any cargo aircraft in the world. AAR ISUs are now in their third generation, the 56000 series or Gen X Container. The latest ISUs enable fast load and off-load speeds and lock into aircraft cargo-restraint systems with no pallets or tiedown chains. On arrival, many ISUs convert into workspaces for using equipment. “Non-militarized or unproven containers require additional pallets or tie-downs to be loaded safely,” Taylor noted. This increases loading man-hours and costs. Some alternatives have locking rails, but have not been tested and certified, posing safety questions. ISUs have certified lifting rings and rigid space frames so they can be slung externally under rotary wing aircraft. Uncertified rings and frames could cause catastrophic damage to aircraft, container contents and anything beneath them. The AAR containers keep military goods dry by meeting MILSTD-810 for water tightness, and they are painted with chemical agent resistant coatings according to MIL-DTL-53039. AAR’s newest ISU, the 90 FC, is a full cube with the center wall removed to allow for storage and transport of larger items. Seabox is the military’s largest supplier of smaller modular containers, the bicons, tricons and quadcons that can be linked together on a ship up to 20 feet in length, said Sales Vice President Nick Catanzariti. These customized shipping solutions come with tracks on walls, shelving, modular cabinets and special doors to suit each shipping need. Doors can be opened and the entire container or one of its inserts, for example a cabinet, can be installed at destination shops. Seabox racks use a special glide technology so drawers can slide easily in and out, with no ball bearings to get clogged with dirt or grime. Inside drawers have partitions that can be moved to yield different configurations, and foam inserts are shaped in outlines of tools and components. Container modules can be lifted by 10,000-pound forklifts and stacked with dimples matched to prevent sliding. “Each module has www.MLF-kmi.com
a locking point for a forklift. You do not have to worry about how to stock at the destination; it is all organized at base and just moved to stockrooms,” Catanzariti summarized. There are shelves for larger items such as batteries and engines and special racks for weapons. Seabox containers can have doors on both sides or roll-up doors if there is no room for swinging a door open—for example, for midair access inside a C130. The standard footprint of Seabox containers allows them to ship on affordable commercial vessels without wasting space or paying overage fees for extra room. The inter-modal containers can move by sea, land or air. Tim Smith, Vidmar sales engineer, sees the Army facing big challenges in sorting out containers and their contents after return from theater. And he sees military shipments as moving increasingly away from ships to air for rapid deployment. To assist that shift, Vidmar specializes in inserts that go inside containers, even if there are no hard points to support them. Vidmar’s Rapid Deployment Container Insert can handle small tools, bench stock, test equipment, weapons and a wide variety of other equipment. “It fits in many different kinds of containers,” Smith said. “You put it in and then you can pull it out and the container returns to its original configuration.” The Vidmar Insert provides ready access to its contents, yielding faster retrieval times for mission-critical equipment. It fits any tricon, quadcon or 20-foot container without welds or modification. It can be deployed with either a pallet jack or a forklift and handles up to 4,000 pounds. Vidmar inserts can hold anything from generators to toolboxes, cabinets or drone units. Pelican Products offer two brands, Pelican Classic and Pelican Hardigg, a company acquired five years ago. Chief Executive Officer Lyndon Faulkner said all Pelican cases are designed to protect gear in extremely demanding environments. The company offers hundreds of cases built to military specifications. “These can carry missiles, footlockers or trunks for soldiers, helicopter blades, almost anything,” said Faulkner. Customers could buy similar-looking Chinese or knock-off aluminum cases, but these may break, crack or admit water, the Pelican CEO said. Pelican cases are made of very robust, injection-molded plastic, are waterproof and airtight, and will not break or crack. The firm makes cases sized and shaped for special uses and others in standard sizes that are configured for special uses. Examples of Pelican flexibility are two new cases. The first uses Pelican’s standard tough technology for a line of cases, BioPharma, that can keep contents at the same temperature for up to five days. This would be useful in carrying food, a number of chemicals, blood, vaccines and other temperature-sensitive materials. Pelican has also introduced tough cases for consumer electronic devices such as iPods, iPhones and Samsung Galaxies. Defense MLF 8.5 | 5
personnel—especially pilots and aircraft maintenance workers, but soon probably more—are starting to use these devices. The Pelican design lets soldiers use the devices while still in the case. Faulkner, who came from Microsoft, understands how fast personal computing tools can spread. SKB makes injection-molded, single-lid cases; rotationallymolded, single-lid cases; rotationally-molded, double-end, shock-andvibration isolation rack-mount cases; and thermo-formed, single-lid cases. Robert Wilkes, senior vice president of global operations, said this suite of SKB cases is suitable for protecting any type of gear that needs to be either stored or moved for deployment. “All U.S. military branches, as well as special forces and NATO partners, currently use and deploy with SKB cases.” SKB manufactures its cases in Orange, Calif. Wilkes said SKB’s rotationally-molded cases are the only ones on the market that have lifetime unconditional warranties. The company’s line of injectionmolded cases features a patented trigger-release latch that Wilkes called “undisputedly the best latch available.” SKB has developed a co-polymer polypropylene for its 3i series of injection-molded cases that Wilkes said is far superior to anything on the market in impact strength. “Because of this special polymer, the SKB case is typically 10 to 15 percent lighter than [that of] our competition and has over 2.8 times the impact strength.” All SKB standard cases come fully loaded with stainless-steel hardware, pressure-relief valves and other items that other manufacturers sell as options or upgrades, Wilkes noted. “Another big advantage is that SKB stocks all products, so we are a true commercial off-the-shelf case company.” SKB constantly releases new case sizes and designs. It currently has five new case sizes in the tooling stage and, right behind them, five more in the design stage. “SKB Corporation is the true alternative to all other case companies and provides a better product to users,” Wilkes argued. Thermodyne has made rugged military cases since 1958. “We offer over 600 sizes and have over 50 years of tooling on-hand,” noted Product Manager Josh Ackerman. The company offers complete foam customization with no minimums and no cutting cost. It manufactures rugged MIL-SPEC-compliant containers and cases from 8 inches all the way up to 20 feet in length. “We’ve worked on everything from sensitive electronic parts for the space shuttle to rugged training stations for the MILES and Javelin programs.” Thermodyne’s most rugged line of traditional containers is its ShokStop models. These are fully ruggedized containers and offer what Ackerman called “the best hardware protection in the industry.” Thermodyne also offers a line of Slimline rolling cases with retractable handle and wheels for easy transport. For rack-mount equipment, Thermodyne makes a complete line of 19-inch Electronic Industries Association shipping racks for 1RU to 32RU (rack units). All Thermodyne racks are built and sealed to military specifications, feature fully shock-isolated frames and are manufactured in the U.S. to International Standardization Organization quality standards. Thermodyne also offers ToroCase gun cases in over 25 sizes. These can hold single guns or, in larger models, sets of 10, 15 or 20 guns. Ackerman said his firm makes custom shipping cases for nearly every application. These cases are built and tested for all modes of shipment, from truck and cargo handling to airline check-in and freight. “Every single container is engineered and manufactured for specific customer requirements. We ask our customers how the container 6 | MLF 8.5
will be used and in what environment. Our engineers work with the customer to determine what is the best solution for them and we build it.” Then every aspect of the build is handled in-house, which allows Thermodyne to keep tight control over lead time and quality. The company uses a thermoforming process that allows customers to customize the size of their containers without extra charges. “This process also allows us to manufacture a case that is more rugged, yet weighs 20 to 30 percent less,” Ackerman said. All Thermodyne containers are made with military-grade polyethylene, which flexes to mitigate shocks from impact and vibration. Polyethylene is also impervious to gasoline, moisture and aviation fuel. Thermodyne containers also use aircraft-quality aluminum for reliability and protection. Closure systems use an aluminum tongue and groove to compresses a neoprene gasket seal for an uncompromising hold. Latches are made of zinc-coated or stainless steel based on customer needs. Unused latches spring back to a flat position to prevent damage. Ackerman emphasized that every single Thermodyne case is fully customizable. There are no minimum orders for customization. “Thermodyne will fully customize one single container if needed.” These fully customized cases take just a week or two to build. Thermodyne has just introduced comfort-grip ergonomic handles to reduce stress and increase grip. It has also launched a line of handheld cases with contoured shoulder straps. Weighing only 4 to 5 pounds, these are rugged enough to be shipped through common carriers. Ameripack makes and distributes watertight cases, military cases and hundreds of other cases for a wide variety of applications. It also offers custom foam inserts and standard cubed foam and divider systems. The firm builds its own tools for its rotation-molded packing cases, noted Chief Executive Officer Peter Margin. “We design and engineer for specific customer needs, for military customers and for specific applications.” Typical uses are for electronics, weaponry, radar and satellite-communication equipment. In addition to its own cases, Ameripack also offers injectionmolded cases made by other firms such as SKB. “We are a hybrid,” Margin said. “We build our own rotation-molded cases and sell other manufacturers’ injection-molded models.” Indeed, Margin said his firm is the largest U.S. distributor of injection-molded cases except for the manufacturers themselves. Ameripack maintains a large inventory of case in its inventory so it can deliver fast, within 24 hours. It also has packing engineers on staff. “Tell us how many Gs you need to withstand on the drop and we can design for that,” Margin said. “We don’t need to go outside.” The firm also does its own 3-D modeling, so it can share 3-D files with customers and accept 3-D files from customers. Every six weeks, Ameripack builds tools to make a new case. It has two new shock-mounted rack systems that will come out in a few months. “A lot of work for electronics is coming our way now,” Margin said. “Military customers like these. They are becoming the preferred choices.” Margin added that Ameripack is also a philanthropic company, both raising and donating to funds to veterans’ groups. O
For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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Military logisticians and their commercial counterparts revisit priorities, plans after Afghanistan and Iraq. By William Murray, MLF Correspondent For troop and cargo movement, among other needs, the U.S. military greatly relied on commercial transport companies during the buildup to the wars in Afghanistan and Iraq. The U.S. military tapped into the fleets of aircraft, ships, trucks and ground vehicles that logistics companies operate to meet a rising need from the Air Force Air Mobility Command (AMC), Air Force Materiel Command, Defense Logistics Agency, U.S. Transportation Command and other organizations. Now, with the war in Iraq ended and U.S. military troops greatly reduced in Afghanistan, commercial transport companies are arguing that they can still provide a vital service to the military in areas such as continental U.S. training and disaster relief, in addition to their bread-and-butter service—third party logistics service when an “orphan” cargo, a single container, is destined for a location not served by the military’s transport. Smaller logistics companies that are more dependent on military business appear to be scrambling to overcome current and anticipated revenue shortfalls. Logistics 8 | MLF 8.5
detail to ensure onward movement through leaders in the military are finding more critical nodes and intermodal operations.” sophisticated means to evaluate vendor perSupreme routinely coordinates with U.S. formance, such as in-transit visibility, and flag carriers in the DTS to move its products they are trying to use commercial-like conand supplies to U.S. forces around the globe. tracting means, such as GSA Schedule con“Supreme has employed U.S. air and surtracts and blanket purchasing agreements. face carriers, freight forwarders, and ground As a prime vendor for the Defense Logistransport providers to execute its supply chain tics Agency (and their largest contractor; see from sources in the continental United States the chart on page 10 of the DLA Who’s Who and other overseas locations to frontline Supplement in this issue), Supreme sources units in remote combat areas, as well as locaproducts from locations all around the globe. tions in the Pacific, Central America, Africa “Possessing a global view of the entire supply and Europe,” said Dail. “Further, we have chain, it is positioned to offer transportation partnered as a third party logistics provider solutions for the agency and military services with multiple U.S. surface carriers in the past when the Defense Transportation System decade to provide end-to-end transportation (DTS) can’t meet the demands of time defiservices delivering multiple nite delivery,” said company commodities from the United Chief Commercial Officer Bob States to Afghanistan. Dail. “Supreme has booked “As both a customer of and coordinated transportathe DTS, and a provider, we tion for the timely delivery of are constantly looking for food, fuel, construction equipbetter and more economical ment and other commodities ways to support military and to frontline troops employing U.S. government clients.” The both DTS assets and non-U.S. recently completed ground capability, when required. transport route operation Our supply chain experts plan Dave Lange from Riga, Latvia to Kabul, these movements in great www.MLF-kmi.com
IT’S NOT A JOB, IT’S A MISSION. The battle I wage is against time. And in defense of efficiency. Whether I am operating in support of a strategic deployment or moving materials to a forward militarized zone, I will persevere. I will improvise, adapt, and overcome. I will deliver. Every time. It’s not just my duty. It’s my privilege. It’s my honor. I am
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Afghanistan (a distance equivalent from Boston to San Diego) was a great example of out-of-the-box thinking that ensured the uninterrupted support to U.S. forces in the face of the worst weather in over 100 years. “It was accomplished by the close collaboration of many players in the DTS,” said Dail. Commercial transport companies argue that they can provide a cost-effective, justin-time service through agility and the ability to overcome obstacles, such as Customs requirements. The advantage seems to be with the global logistics companies that are not highly dependent on DoD work and that can therefore better survive the current downturn in DoD logistics business. Such large commercial logistics companies have the ability to provide strong service with relatively low prices, since they’ve built their logistics networks not for exclusively military use but for a broader audience, which gives the network economies of scale. FedEx, for example, provides DoD customers the same services as its commercial customers to ship packages from Fort Benning, Ga., to Fort Lewis, Wash., or from Aviano Air Base, Italy, to Kadena Air Base, Japan, according to Dave Lange, managing director for the FedEx Express/Aircraft Charters Program. FedEx offers this service through a blanket purchase agreement for domestic air express written with discounted rates off the company’s GSA Multiple Award Schedule contract and the U.S. Transportation Command Worldwide Express 5 contract. FedEx provides both the use of commercial items and exclusive use aircraft to DoD, according to Lange. “DoD benefits by using the existing infrastructure and services we provide to our entire customer base,” Lange said. “Using an established network lowers the cost to DoD as the contractor doesn’t have to build a unique solution only for DoD.” A disadvantage to using such a company, one would think, is that military customers probably have less leverage in influencing the enterprise network’s integration of emerging needs. Another disadvantage is that DoD will likely see less competition for its logistics business, as a result of the market pressure on smaller companies that have more of a pronounced reliance on the military market. Less competition in business usually leads to higher prices. While it’s easy for the military to tap into the commercial logistics industry in times of military buildup and war through means such as the AMC’s Civil Reserve Air Fleet 10 | MLF 8.5
against Muammar Gaddafi in Libya’s second (CRAF) program, it’s less clear during times largest city. UPS airlifted 197,000 pounds of of military drawdown how military leaders humanitarian meals to the Mediterranean can best leverage the commercial transport coastal city on short notice from the United industry. Arab Emirates, according to Lloyd Knight, “The CRAF carriers, both passenger and director of global government operations for cargo, provide DoD with a global reach and UPS in Alpharetta, Ga. He sees existing networks, passendisaster relief as a potential ger and cargo, that would logistics military need that be impossible to duplicate,” could grow with time. Lange said. He sees the CRAF Knight, who focuses on program as offering a treUPS’s freight forwarding opermendous advantage to DoD ations, predicted hard times officials. “This allows DoD to for logistics companies that leverage our capabilities to have a high dependence on support the warfighter anythe U.S. military, given the where in the world with the drawdowns in Afghanistan same level of service and reliLloyd Knight and Iraq and corresponding ability we offer our commerU.S. military budget cutbacks. cial customers. “It will be a fight for survival,” “The use of FedEx Priorhe said. “We have a very viable ity Overnight, International commercial business,” makPriority or a charter aircraft ing UPS more immune from allows DoD to focus on their military industry downturns core flying capabilities, which and better able to respond to private industry does not posany emerging military needs, sess. Thus, DoD is able to have he said. fewer aircrews and airplanes Similarly, FedEx proand still maintain its readiness vides customers and business level,” he added. worldwide with a deep portfoFedEx and UPS have air Col. Edward Koharick lio of business, e-commerce fleets that are in the top 10 and transportation services, worldwide, and DoD officials according to Lange. “The power and effihave the advantage of being able to tap ciency of the FedEx air and ground system into the aerial resources when they need allows us to flex our network in order to them. “The CRAF carriers fill a vital role in maintain high-level service to our customsupporting national security and are a key ers,” he said. “While DoD may be decreasing component of DoD’s rapid global mobility,” their transportation needs, we’re growing Lange said. with other customers in the health care, aero“One of the biggest challenges going space, high tech and e-commerce segments.” forward will be maintaining a level of readiNot only are commercial transport comness for the CRAF carriers in times of ‘severe panies feeling the need to look for other peace’ or low operating tempo,” he said. “DoD markets to help them make up for shortfalls and [U.S. Transportation Command] must in DoD business, so are military planners. balance the AMC training requirements while Air Force Colonel Edward Koharick, chief of maintaining a viable and ready CRAF prothe Enterprise Readiness Center for the U.S. gram. AMC and [U.S. Transportation ComTransportation Command at Scott Air Force mand] need to take a holistic look at the Base, Ill., has been preparing for a lower combined commercial and military networks workload for some time, which has the potenand provide solutions that are the best value tial to lead to a reduction in force. “You have for their customers without sacrificing readito have the workload” to justify the workforce ness or the reserve fleet. The cost advantage and corresponding overhead at U.S. Transporof commercial aircraft is quite pronounced, tation Command, he said. especially when the long-term costs of mainAs a result, U.S. Transportation Comtenance, overhaul and reduced service life for mand officials are looking into new opportuthe organic fleet are fully considered.” nities, including responding to contingency The unique capabilities of commercial needs, such as disaster relief and humanitransport companies were on full display tarian missions not just in the U.S. but two years ago in Benghazi, Libya, in the also abroad, perhaps in accord with foreign chaos following the February 2011 uprising www.MLF-kmi.com
partners, according to Koharick, who has served at the U.S. Transportation Command for nearly three years. These opportunities could benefit U.S. Transportation Command’s organic logistics fleet and its commercial partners. “They are central to our mission,” Koharick said of commercial transportation companies. There is even a private sector representative at the U.S. Transportation Command’s Enterprise Readiness Center, he said. In addition to improving customer service across the enterprise, U.S. Transportation Command officials are using technology to better assess the performance of contractors. “We’ve adjusted our performance metrics over time,” Koharick said. U.S. Transportation Command officials monitor in transit Soldiers from the 4th Stryker Brigade Combat Team, 2nd Infantry Division walk out of a 747 airliner at McChord Field. [Photo courtesy visibility of containers on a daily basis, and of U.S. Army/by Spc. Loren Cook, 20th Public Affairs Detachment] they also review the reliability of air carriers, and a decrease in bomb detection equipment full aircraft charter user requirements and he explained. logistics orders due to the drawdown from commercial carrier schedule efficiencies and Koharick, who has been in the Air Force Iraq, which led to a lower threat level from availability,” Lange said. “Small changes in for 22 years, sees a great deal of competition improvised explosive devices. Pilot Freight charter schedule dates or times could proand collaboration in the civilian supply chain Services has increased its revenues by focusvide improved scheduling efficiency overall, that the Air Force can leverage. With some ing on meeting the logistics needs of conlower costs, and prevent unnecessary delays.” commercial logistics companies that U.S. tractors, such as Boeing, Lockheed Martin Both organizations “can look to industry Transportation Command has worked with and Raytheon. scheduling best-practices to improve effipreviously going out of business, he anticiFounded in 1970, Pilot Freight Services ciencies between the organic network and pates the military working with a “right-sized is a freight forwarding company with over 75 the commercial passenger and cargo netair fleet,” or smaller fleet over time, since locations in North America that offers local works,” he said. carriers will seek greater efficiencies in their pickup and delivery and holds lease space A retired Air Force aircraft load master operations, including lower overhead costs. agreements with freight air shipping comand flight test personnel, Knight argued “The government needs to manage the panies to keep its infrastructure costs down, that the government should be cautious requirements and not the process,” UPS’s as opposed to companies such as FedEx and about cutting conference travel spending Knight said. “The more efficient the [requests UPS, which own and operate large aircraft in its budgets, since conferences are a good for proposals] are, the better the cooperafleets. Wenrich has served in his position at means for industry and the government to tion” between industry and the military, he Pilot Freight Services for eight years, and the work together effectively. “It’s important to said. He pointed to one RFP that was 1,889 company claims to be the largest privatelyhave the right people at the right place,” he pages long as a case point in inefficiency and held U.S. freight forwarding company. said, and teleconferencing technology does said that some applications of the federal “We’re also shipping a lot more to the U.S. not suffice. Knight also sees industry partacquisition regulations can stand in the way Africa Command,” Wenrich said, a reflection ners doing well partnering of innovation. of increased U.S. military focus on Africa, together on initiatives such as “When purchasing comwhich involves quelling internal disputes, multi-modal contracts, where mercial items, it’s best not to fighting Islamic fundamentalist terrorists, one company is hard-pressed mandate requirements which training with friendly nations and nation to meet all the military’s add cost,” FedEx’s Lange said. building in a continent where traditional needs with its internal logis“In a recent solicitation, DoD alliances such as NATO aren’t applicable. tics network for air, ground, initially wanted an earlier “Our domestic business with DoD is also and sea transport. delivery time than the express increasing,” he said. Pilot Freight Services A logistics company industry offered. During the holds a contract with the Army’s Program doesn’t have to be as large pre-proposal conference, Executive Officer Soldier to ship gear and as FedEx and UPS to weather industry and DoD discussed Larry Wenrich uniforms for individual soldiers from East the storm. Larry Wenrich, the commercial capabilities Lansing, Mich. O vice president of government and it was agreed that DoD services for Pilot Freight Services of Lima, would use the existing services and industry Pa., said that since April, his company’s busiwould not have to build a separate service for For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com ness has rebounded from the drastic loss DoD. This is a win-win for all parties.” or search our online archives for related stories of Stryker armored vehicle-related logistics The U.S. Transportation Command and at www.mlf-kmi.com. funding from the Army and Marine Corps AMC “should also look for ways to balance www.MLF-kmi.com
MLF 8.5 | 11
SUPPLY CHAIN
Compiled by KMI Media Group staff
DoD’s Traffic Engineering Program
Largest Military Installation Solar Array
Military Surface Deployment and Distribution Command’s Transportation Engineering Agency (SDDC TEA) manages the Department of Defense Transportation Engineering Program, under responsibilities outlined by the DoD Transportation Engineering Program, for military installations worldwide. One of SDDC TEA’s responsibilities is to provide engineering analyses and guidance to reduce congestion along with improving safety and efficiency on DoD installation road networks and access control points. SDDC TEA’s Traffic Engineering, or TE branch, works closely with installation staff to analyze their traffic problems. The branch then develops and provides solutions to improve access control point design and operation, lane capacity, intersection design, signal operation, traffic management, signing, marking, road safety, crosswalks and pedestrian safety, sign management, parking capacity, and other traffic engineering matters. The TE branch has completed the development of two new active vehicle barrier safety schemes: high efficiency presence detection and stop control. These schemes provide additional options to installations and can reduce the length of the response zone requiring less real estate and thereby reducing the overall cost of construction and operation of access control points.
The Army recently hosted a groundbreaking for the largest solar array on a U.S. military installation at Fort Huachuca, Ariz. The array is expected to provide about 25 percent of the annual electricity requirement for the installation, which is nestled in the mountains of southeast Arizona, about 15 miles from the Mexican border. Katherine Hammack, assistant secretary of the Army for Installations, Energy and Environment, said the post is a role model for other installations. Fort Huachuca will receive the green energy under an existing contract through General Services Administration with Tucson Electric Power, Hammack said. The Army is providing an easement for the solar array to be built on the base, she said. Since the energy is part of an existing contract, the change from brown to green power will be at no incremental cost to the Army, Hammack said, noting that all around, this is a “smart decision” for the Army and the nation. “We’re doing the right thing for the mission, enhancing mission effectiveness; it’s the right thing for the environment, it’s the right thing for the community and it’s the right thing for the utility,” Hammack said. The Fort Huachuca Renewable Energy Project is a joint effort between the U.S. Army Energy Initiatives Task Force , Fort Huachuca, General Services Administration, Tucson Electric Power, and developer E.ON Climate and Renewables. The project leverages private financing and is expected to exceed 18-megawatts of clean power. The solar panels are to be installed on a 155-acre parcel of land on base. The panels are expected to offset 58,000 tons of carbon annually, while saving Tucson Electric Power 2 million gallons of water, said Major General Robert P. Ashley, Fort Huachuca commanding officer. By Lisa Ferdinando
Product Director Automated Movement and Identification Solutions Support DoD has awarded Savi a fiveyear contract as the sole provider to the RFID-IV program. This RFID-IV award follows the $204 million solicitation issued by DoD in September 2013 to support the Product Director Automated Movement and Identification Solutions (PD AMIS) mission. As the initial RFID-IV contract, it establishes a $102 million ceiling for Savi to provide DoD and other agencies with a comprehensive array of hardware and software products including active radio frequency identification (aRFID) sensors, readers, real-time location
12 | MLF 8.5
systems (RTLS), satellite communication (SATCOM) and related solutions for global asset planning and tracking of personnel, equipment and sustainment cargo worldwide. “Throughout our 25-year history, Savi has maintained a strong partnership with the U.S. Department of Defense and the dedicated personnel responsible for the sophisticated tasks of automatic identification, transportation and logistics tracking across the armed services around the globe,” said Bill Clark, president and chief executive officer, Savi. “Being selected to fulfill the requirements of RFID-IV reflects
Savi’s long-standing history as the pioneer, innovator and inventor of technologies, products and protocols that facilitate the use of sensors to improve operational analysis, efficiency and insight—and reaffirms our leadership status as the premier provider of both military RFID systems and the enabler of critical asset tracking capabilities on an enormous scale.” Savi is the only company to be selected as a prime contractor on all four of the RFID-named contracts (RFID-I, -II, -III) and has now been named the sole provider twice (RFID-II and -IV). Over the course
of the first three RFID contracts— which had a combined ceiling of more than $1 billion—Savi won more than 97 percent of all awards, totaling more than 61 percent of the combined ceiling. There are a number of technology and services providers that have partnered with Savi as subcontractors on the RFID-IV award. Hardware providers include Identec Solutions AG, Intermec by Honeywell, Orbcomm and Ubisense. Technical engineering service providers include Northrop Grumman and Evanhoe and Associates.
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Supply Chain Mover Vice Adm. Mark D. Harnitchek Director Defense Logistics Agency
2014
Defense Logistics Agency
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Supply Chain Mover
Q& A
Managing Inventory and Costs for a Global Supply Network
Vice Admiral Mark D. Harnitchek Director Defense Logistics Agency Vice Admiral Mark Harnitchek became director of the Defense Logistics Agency in November 2011. As such, he is responsible for providing the Army, Navy, Air Force, Marine Corps and other federal agencies with a variety of logistics, acquisition and technical services in peace and war. These services include logistics information, materiel management, procurement, warehousing and distribution of spare parts, food, clothing, medical supplies and fuel, as well as reutilization of surplus military materiel and document automation and production. This worldwide mission is performed by nearly 27,000 civilian and military personnel. He previously served as deputy commander, U.S. Transportation Command, Scott Air Force Base, Ill. Harnitchek, a native of Philadelphia, received a Bachelor of Arts degree from Penn State University in 1977 and was commissioned through the Navy ROTC program. In 1987, he received a master’s degree in management from the Naval Postgraduate School, Monterey, Calif. Harnitchek has served in a variety of sea tours including two submarines, USS Will Rogers (SSBN 659) and USS Buffalo (SSN715); two ships, USS Holland (AS-32) and USS Proteus (AS-19); and the aircraft carrier, USS Theodore Roosevelt (CVN-71). His shore tours include commander, Submarine Group 7, Yokosuka, Japan; the Navy Ships Parts Control Center, Naval Air Station Oceana, Va.; and the Chief of Naval Operations Staff. Flag assignments include commanding officer, Naval Inventory Control Point; vice director for logistics, the Joint Staff; Director, Strategy, Policy, Programs and Logistics, USTRANSCOM; and director, U.S. Central Command Deployment and Distribution Operations Center in operations Iraqi and Enduring Freedom. Q: Last fall, you announced that you updated your “10 in five” strategy to reduce cost while improving support to the warfighter. The new goal is $13 billion savings in six years. What are the major aspects of this strategy, and how does it build on the original “10 in five” approach? A: It’s actually exactly the same as the original approach—the savings number has just gotten bigger by $3 billion. We were very mindful that the message, and our approach, remain consistent year over year. So, other than increasing our goal to save the department $13 billion over the next six years, the strategy to www.MLF-kmi.com
significantly improve our performance to the warfighter while dramatically reducing costs has not changed. We are doing this by focusing on five core priorities: improve customer service; decrease material costs; right-size our inventory and infrastructure; decrease operating costs; and achieve audit readiness. Q: Much of your budget is dependent on spending by the services—your customers. How would you characterize your budget and how do you expect spending to affect operations, upgrades, staffing and your day-to-day operations? A: We have two big costs here. First is the cost of material, that’s the stuff we buy. The other is our cost of operations. About a year ago we were around $40 billion in sales, and that includes our cost of operations and our cost of materials, so it’s about $35 billion in material and $5 billion for operations. A real direct effort here is to reduce both, and we’re projecting $35 billion for FY14. As our projected sales come down from the highs we saw in FY11 and 2012, one of our challenges is to drive out costs so we can keep our surcharge rate constant. I’ve committed to our customers that we’ll make this happen. Defense Logistics Agency | MLF 8.5 | 1
Defense Logistics Agency Headquarters
Vice Adm. Mark D. Harnitchek SC, USN, Director
2014
Brig. Gen. Steven A. Shapiro USA, Commander DLA Troop Support
Brig. Gen. Mark K. Johnson USAF, Commander DLA Aviation
Corporate Staff
David Rodriguez Director DLA Installation Support
Col. Allen W. Kiefer USA, Director DLA Office of Inspector General
Fred T. Pribble DLA General Counsel (DG)
Brad B. Bunn Director DLA Human Resources (J1)
Rear Adm. Vincent Griffith SC, USN, Director DLA Logistics Operations (J3)
Bobbi L. Collins Acting Commander DLA Pacific
Col. Joseph E. Ladner IV USA, Commander DLA Europe and Africa
Col. Mark A. McCormick USA, Commander DLA Central
Rear Adm. Ron J. MacLaren USN, Director Joint Contingency Acquisition Support Office
Command Sgt. Maj. Sultan A. Muhammad, USA Senior Enlisted Leader
Renee L. Roman Chief of Staff
Edward J. Case Vice Director
Rear Adm. David R. Pimpo SC, USN, Commander DLA Land and Maritime
Brig. Gen. Richard B. Dix USA, Commander DLA Distribution
Brig. Gen. Giovanni K. Tuck USAF, Commander DLA Energy
Col. Michael O. Cannon USAF, Director DLA Disposition Services
Phyllisa Goldenberg Director, DLA Strategic Plans and Policy (J5)
Kathy Cutler Director, DLA Information Operations (J6)
Matthew R. Beebe Director DLA Acquisition (J7)
J. Anthony Poleo Director DLA Finance (J8)
Raymond Zingaretti Director DLA Logistics Information Services
Stephen T. Sherman Director DLA Document Services
Ronnie Favors Administrator DLA Strategic Materials
Rear Adm. Ron J. MacLaren USN, Director Joint Reserve Force (J9)
Amy Sajda Director DLA Small Business (DB)
defense logistics agency We feel a lot of pressure to reduce the cost of material and we work closely with our customers and industry to make informed projections about the future demand for DLA goods and services. Q: Driving cost comes partly from being efficient and maximizing what you do. Part of it comes from negotiating with industry to make sure you can get the best product at the lowest price. Is there a concern within DLA and DoD in general that industry could be pushed to a point where it’s not reasonable to do business with the government because they’ve driven the cost down so low? A: When we talk to industry, one of the things we discuss is that none of what we do is an attack on their profit or the industrial base—it’s a joint government/industry attack on cost. You’ve heard of our Captains of Industry meetings. We lay out the strategy, chapter and verse with them in terms of what our goals are, and make them our strategic partners in achieving those savings. The lion’s share of the costs of materials that we’ve taken out have come from suggestions by industry—in fact, I would say that this figure is probably 50 percent and we expect to save about $1.4 billion through FY18. When you make your partners part of the strategy and the execution, you can achieve really miraculous things. Some of our methods are acquisition-centric; for example, we make heavy use of reverse auctions. If we have an acquisition that is $150,000 or more, we go through the normal acquisition strategy, whether that is a best-value or a low-price/technically acceptable [acquisition], and instead of using final negotiations and a best and final offer sealed in an envelope, if you will, we use the reverse auction process. It does put a little more pressure on the industry, but if you’re an industry leader, would you want to lose a $10 billion contract over a 2 percent difference in price? If a company is able to see what the competition is bidding, and they know what their margins are, their costs, and they know exactly how high or low they can go, it allows them to intelligently price their offer. We use reverse auctions across all of our supply chains. However, we found that for our Clothing and Textile Supply Chain, reverse auctions were not an appropriate pricing tool. In this particular supply chain, we realized that its industrial base is very fragile since most of it has moved offshore. So we met with our partners, our Captains of Industry for the clothing and textile sector, and we had a disinterested third party look at reverse auctions. They came back to us and said, ‘You may be getting a great deal on a $70 service dress coat, but you’re putting a tremendous amount of cost pressure on an industry that’s already right at the margins here.’ In the interest of getting great products at a great price but maintaining a robust industrial base, they recommended that reverse auctions probably are not the best pricing strategy for that sector. As a result, we’ve gone back to all best value and we price it using final negotiations and a best and final offer. This is an example of working with industry—listening to our industry partners, valuing their feedback, and when we don’t get it exactly right we do something different. We’ve probably saved about $2.2 billion in reverse auctions alone—that’s about 18 months of reverse auctions, between 5,0006,000 reverse auctions. They’ve been great. But most of the other savings, frankly, have come from industry. 4 | MLF 8.5 | Defense Logistics Agency
For example, we have an OCONUS food service Captains of Industry with our subsistence prime vendors. When we had all of our prime vendors in here a few years ago, one of the things they told us was, ‘You have way too many products in your catalog.’ Here’s a great example: We had 154 different kinds of chicken. So, looking at chicken, are there really 154 ways to describe the parts of a chicken? You might think the answer to that question was no, but we were doing exactly that. We had “wings-spicy,” “wings-peppery,” “wings-Buffalo,” and so on. And while it sounds sort of silly, buying and stocking 154 different kinds of chicken from 26 vendors makes for some expensive chicken! So, with industries’ suggestion and working with the services, we went from 154 different descriptions of chicken parts to 30, and we went from 26 suppliers to two suppliers. That has saved us, and the services, 20 percent. And each year we spend $121 million on chicken, so 20 percent is significant. If we do this across all our food items—beef, pork, seafood, canned fruits and vegetables—you name it, soup to nuts, we can save a lot of money and get great food to the crew. Q: That was a Captains of Industry suggestion? A: That’s right, it came directly from industry and it was free advice. Another suggestion as a result of the Captains of Industry was that we were spending way too much money on military packaging. They used the example of a Fram oil filter—it’s the typical orange filter that comes in an orange box—you can go to almost any auto parts supplier and grab one off the shelf—just like the ones we use. However, we were requiring Fram to take their oil filter out of their box, put it in bubble wrap and pack it in a larger cardboard box. That cost the government about 80 cents more per filter. We use a lot of oil filters and 80 cents per filter over a year is real money. Extrapolate that across all of our products that are re-packaged, you’re talking about cost saving of up to $120-150 million a year. What we’ve done—not for all of our products, but most of them—is go with good old commercial packaging. What industry tells us is that any time you ask them to do something that isn’t done for their commercial customers, it costs more money. Sometimes that’s okay, but many times, it’s not. Using commercial packaging also helps us become more green. By not introducing a lot more cardboard and bubble wrap into the waste stream we become more environmentally friendly. We have really hit a lot of homers with regard to cost of material—just with ideas from industry. Q: Let’s talk about acquisition reform. Much of that seems to come from the length of time it takes to award a contract, from whenever that starts to whenever it’s awarded. You talk about a goal of 270 days or less for the process. What are the challenges to that? Can those challenges realistically be overcome in the environment that DLA has to work within? A: I will tell you, across the board, and not just at DLA but everywhere within DoD, it takes us too long to award a contract. This has also been a continuing theme with all of our Captains of Industry, in all of our nine supply chains. So in response, we’re reducing our acquisition timelines by about 66 percent. To accomplish this our goal for automated www.MLF-kmi.com
defense logisitcs agency
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Defense Logistics Agency | MLF 8.5 | 5
defense logistics agency small purchases is 10 days, manual small purchases is in 35 days, large contracts in less than 110 days, long-term contracts for less than $10 million in 140 days or less, and long-term contracts for more than $10 million in less than 190 days. We looked at the contracting process and split the activities of that process between non-value-added and value-added. Our goal is to pull as much of the white space out of the process—the time waiting for something else to happen. If you take a hard look at the process in terms of real value-added activity, meaning something which results in a contract, it’s a fraction of the total time. Almost all of the time is wait time. We’ve set very aggressive goals, we’re taking a little risk—not a lot—and we’re going to hold ourselves accountable to reduce our acquisition timeline. There’s really no cosmic solution here; it all boils down to basic busiAdm. Mark Harnitchek and his son Army 1st Lieutenant Kyle Harnitchek greet one another at Bagram Air Base, Afghanistan in April ness and leadership. And it’s necessarily all Vice 2013. [Photo courtesy of DoD] about speed for the sake of speed, but a faster needs of your customers, what they’re going to want at whatever process is more responsive to customer needs and it requires us to time. Are the services and DLA on the same page about how to carry far less inventory. Like Ben Franklin said, “Time is money.” forecast? Do you speak the same language about forecasting, and how do you communicate with everyone about inventory control? Q: Are the contract administrators being given any more authority to push this along? Is there more of an individual mandate that each A: We are masters of forecasting. The problem is in military logistics, step of the process needs to move more efficiently? about half the items we manage are not forecastable. The demand is very infrequent, or it is demanded frequently but in highly variable A: One of things we found was we had volumes of regulations—interamounts. So, we may have a demand for 10 one quarter, 100 the next nal rules that went well beyond what was required by the Federal quarter, then none for two quarters. Those types of items are just Acquisition Regulation and the department—that were slowing hard to predict. Add to that the age of our systems, and you’ve got a down fully empowered, hard-working and smart DLA contracting tough problem. officers. On the other hand, half of our items are highly forecastable, and So with this mandate to streamline the processes, I trust our conDLA and the services do a great job forecasting them. The problem tracting officers to make the right call with not a lot of oversight and is that, with all our items, it takes too long to buy them. The point “mother may I” permissions. They will unequivocally do the right is that forecasts, unlike wine, don’t get better with age. So it’s thing and they are fully empowered to do a bang-up job. important that the procurement processes support the forecasting processes when those forecasts are relatively fresh and as accurate Q: We talked about Captains of Industry; I’d like to go back to that. as possible. You gave some great examples of how that’s worked and what the Rand Corporation did some great work and essentially said we’ll results of that have been. Are you holding more Captains of Indusget much better inventory performance by spending more time try than you did last year? Do you expect the numbers to grow based reducing contracting lead times and less time trying to forecast the on the successes you’ve had? unforecastable. And they’re right. The key in terms of buying the right amount of inventory—no A: We host a Captains of Industry meeting about every six to eight more, no less—and having it when customers need it is not all about months with senior industry leaders from one of the supply chains. more and better forecasting. This surprised many who thought, “If These executives are all ferocious competitors for our business so we could just forecast better, life would be great—if we just had better they don’t let a lot of secrets out, but we do talk about issues that metrics, if our models had more arithmetic in them, we’d be much are common across the supply chains between the government and better.” Not so. The real key is a system that is responsive, flexible industry. Then we write down what it is that we have committed to and fast. So, the key, for DLA anyway, is speed—speed, speed, speed. do. And when we have the next meeting, the first things we talk about are things we have fixed—tangible actions we’ve taken to make the Q: And the cycle is not predictable? relationship better. Q: To be masters of inventory control supply chain management means you have to be a master of forecasting, understanding the 6 | MLF 8.5 | Defense Logistics Agency
A: Right. That’s for our forecastable inventory. For the stuff that’s tough to forecast, rather than continuing to chase the forecast, www.MLF-kmi.com
defense logisitcs agency we’re going to buy a level of inventory and keep it there—and that’s it. So we’ve actually “de-mathed” the difficult-to-forecast items. That’s the nature of our business and no amount of forecasting goodwill and intent is going to fix it. About half of what we manage here is extremely difficult to forecast, not for lack of trying. That’s just the way it is. Q: A growing concern, both in and out of the military, is health care cost. Can, and how can, DLA help impact the health care cost to the military? A: That is our second biggest supply chain, right after fuel, at about $5 billion. One of the biggest changes that has just been wonderful in terms of our ability to drive down cost is the standup of the Defense Health Agency with Lieutenant General Vice Adm. Harnitchek addresses the Kentucky Air National Guard, 123rd Airlift Wing, May 19, 2011. [Photo courtesy of DoD] Doug Robb in charge. Here you have a physician who understands both the patient one pill. Instead of awarding multiple contracts, we have one concare side of the equation and medical logistics as well. tract for one drug. You export that across all of the medical comWe are General Robb’s agent to help reduce those logistics modities that we use, the savings there are enormous. costs. For instance, we recently awarded a 10-year, $19 billion pharmaceutical distribution contract that includes a discount of 9 Q: Right now, most logisticians in the military have cut their percent—that’s about $800 million in real savings over the life of teeth in a wartime environment. There’s talk about resetting the contract. equipment—what needs to be done to reset the mindset and the Another thing we’re going to do is award a similar contract on framework that a logistician operates within now? a global, vice regional basis. So you’re going to have major health care providers competing for 10 years’ worth of global medical A: That’s a great question. There are folks that have grown up logistics business. I’ll tell you—folks will get their pencils pretty since 9/11 in a fully-funded budget and pretty big supplementals, sharp for a 10-year global contract. and they’ve become pretty used to that. My service chief, Admiral Other ones are simply national contracts for pharmaceuticals. Greenert, said everybody needs to be much more judicious. That’s a We wrote a contract for one pill and saved almost $2 million. That’s
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Defense Logistics Agency | MLF 8.5 | 7
defense logistics agency big thing and an all-hands effort. So before we spend that next nickel, is that a nickel we ought to spend, or is that a nickel we ought to save or spend somewhere else? If we’re going to make an investment, what is better operationally? Does that investment take cost out somewhere else? If it doesn’t, you probably shouldn’t do it. Some of this is also education. As you know, in logistics everything touches everything else and there are lots of players in the log nation. So to ensure our folks understand the integrated nature of logistics, we are requiring our folks attain a Defense Acquisition University life cycle logistics certification. This means that we’re transforming our logistics workforce from logistics technicians to logistics professionals. The intent is to train people to understand the big system in which they operate and know how to think their way through complex problems where there is no easy solution. Our workforce reset will increase their understanding of the entire Vice Adm. Harnitchek visiting the geographic South Pole on January 27, 2011. [Photo courtesy of DoD] acquisition and product support processes; What I tell folks here is that these are pivotal times and the increase the cost-consciousness of the workforce; help us to expectations of them are exactly the same as they have been. The reduce redundancy; and enable us to build stronger relationships only problem is we’re going to have to do with a lot less money. with our customers to better understand their requirements to So we’ve simply got it figure out how to do that, and that’s going control costs. to require everybody in this big log enterprise to be bold, be So whether someone is in contracting, supplier or customer confident and hold themselves accountable for delivering the operations or product specialist work, understanding the big results. picture of acquisition lifecycle logistics is important for them So my advice to young logisticians is the same guidance to effectively do their job and execute our mission. I want DLA I give to our folks at DLA. In fact, it’s the same guidance that professionals to understand the whole logistics forest—not just General McNabb gave us at TRANSCOM when I was his deputy. their trees. Q: Talking about the individual logisticians, especially the young logisticians coming through the chain now, what advice do you have for them to be better logisticians, to be better servicemembers in general? A: I’m heartened by the amazing feats of logistics that the big enterprise has done over the last 12 years, especially in Iraq and Afghanistan. They have worked hard, solved tough problems, achieved miracles, and frankly, made it look easy. Everywhere in Iraq, everywhere in Afghanistan, time and time again: numerous surges in OEF/OIF; the speedy acquisition and movement of mine resistant ambush protected vehicles in the thousands into Iraq and Afghanistan; the closure of the Pakistan ground lines of communication; the establishment of the Northern Distribution Network; multimodal operations; supply chains in Iraq and Afghanistan that are exclusively commercial. Add to that a litany of natural disasters—the earthquake in Haiti, the tsunami and the earthquake in Japan, Hurricane Sandy in the States—and you’re talking about a group of young logisticians that are unstoppable in terms of intellect, hard work, leadership and the intestinal fortitude to just get things done. There has never been a better or more combat-tested group of logisticians than we have today. 8 | MLF 8.5 | Defense Logistics Agency
• We are living in historic times … doing things we’ve never done before … make some history yourself. • Push for smart things to do … don’t wait for the requirement … or for folks to ask. • No one knows this stuff better than you … so act like it. • I trust you to do the smart thing … prioritize, do it your own way but get it done or ensure it gets done. • This is your time … do big things and make the system better … if not you, who? If not now, when? • Relationships are key. • Take care of one another. • Keep promises. Q: Is there anything else you’d like to add? A: This has been a pivotal time in military logistics and I want give special recognition to our civilian logisticians. When you look at the big DoD logistics organizations, it’s our great civil servants, the civilians who really know the business, understand it and are the backbone making great things happen. So BZ to our civilian shipmates throughout the DoD log nation. Thanks and good on you! O www.MLF-kmi.com
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defense logistics agency
SUPREME FOODSERVICE AG
$1,956,723,601
WESTERN REFINING COMPANY L.P.
$170,741,388
KAMPI COMPONENTS CO. INC.
$65,637,399
MCKESSON CORPORATION
$1,722,525,515
FEDERAL PRISON INDUSTRIES INC.
$161,238,493
GENERAL DYNAMICS LAND SYSTEMS
$64,783,494
AMERISOURCEBERGEN DRUG CORPORATION
$1,462,873,648
BAE SYSTEMS
$153,079,483
BELL HELICOPTER TEXTRON INC.
$64,415,730
OWENS & MINOR DISTRIBUTION INC.
$150,118,129
THE BOEING COMPANY
$64,369,648
REFINERY ASSOCIATES OF TEXAS INC.
$1,340,110,462
LOCKHEED MARTIN CORPORATION
$135,954,999
$1,119,196,201
SEVEN SEAS SHIPSCHANDLERS LLC
$130,479,884
COASTAL PACIFIC FOOD DISTRIBUTORS
$63,941,937
WORLD FUEL SERVICES CARDINAL HEALTH INC.
$1,068,075,862
$129,886,640
PRATT & WHITNEY
$62,338,058
NATIONAL FUEL INC.
$912,696,351
NATIONAL INDUSTRIES FOR THE BLIND
ROLLS-ROYCE CORPORATION
$62,079,461
ATLANTIC DIVING SUPPLY INC.
$838,596,881
MAXCOM PETROLI SPA
$122,671,009
$750,648,559
CFM INTERNATIONAL INC.
$122,119,162
CANADIAN COMMERCIAL CORPORATION
$61,907,207
TOTAL RAFFINAGE MARKETING COMPANIA ESPANOLA DE PETROLEOS SA
$709,307,544
PETROLEUM TRADERS CORPORATION
$109,149,156
LABATT INSTITUTIONAL SUPPLY COMPANY
$60,596,602
VALERO MARKETING AND SUPPLY COMPANY
$672,455,775
MANSFIELD OIL COMPANY OF GAINESVILLE INC.
$104,957,459
W.S. DARLEY & CO.
$59,931,259
BURLINGTON INDUSTRIES LLC
$59,662,065
SUPREME FUELS TRADING FZE
$612,197,292
GS CALTEX CORPORATION
$104,034,838
$59,334,599
CHEVRON
$610,551,842
AHNTECH INC.
$102,293,036
KUWAIT AVIATION FUELLING COMPANY KSC (KAFCO)
MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.
$595,966,008
PAPCO INC.
$102,106,401
NORTHROP GRUMMAN SYSTEMS CORPORATION
$58,651,525
AMERIQUAL GROUP LLC
$101,527,282
SCIENCE APPLICATIONS INTERNATIONAL
$582,778,720
PARKER-HANNIFIN CORPORATION
$56,435,562
PROTECTIVE PRODUCTS ENTERPRISES
$97,634,865
GT GLOBAL SERVICES S.A.
$55,658,500
S-OIL CORPORATION
$578,105,145
HYUNDAI OILBANK CO. LTD.
$55,419,750
KUWAIT PETROLEUM CORPORATION
$557,808,235
EXXON MOBIL CORPORATION MOBIL OIL GUAM INC.
$503,006,106
THE BAHRAIN PETROLEUM COMPANY B.S.C.
$502,963,851
ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION
$436,601,280
EQUILON ENTERPRISES LLC
$433,390,953
GAZPROMNEFT-AERO KYRGYZSTAN LLC
$358,322,382
HUSKY MARKETING AND SUPPLY COMPANY
$269,282,981
GENERAL ELECTRIC CO.
$244,745,158
AM GENERAL LLC
$242,520,727
HANJIN TRANSPORTATION CO. LTD.
$206,657,127
GRAYBAR ELECTRIC COMPANY INC.
$96,445,461
CARTER ENTERPRISES LLC
$95,207,288
HAMILTON SUNDSTRAND CORPORATION
$53,081,231
THE WORNICK COMPANY
$92,320,439
AAR CORP.
$52,214,286
U.S. OIL TRADING LLC
$91,777,433
I-SOLUTIONS DIRECT INC.
$51,859,150
DMS PHARMACEUTICAL GROUP INC.
$89,660,057
WILLE THEODOR INTERTRADE GMBH
$51,844,340
PETROMAX LLC
$89,653,803
MITAN HANDELS AG
$51,197,315
TENNIER INDUSTRIES INC.
$82,297,320
OSHKOSH CORPORATION
$50,759,988
PETRO STAR INC.
$79,823,971
THEODOR WILLE INTERTRADE GMBH
$50,097,466
SOURCE ONE DISTRIBUTORS INC.
$79,751,343
JACKSONVILLE JETPORT LLC
$48,823,762
HONEYWELL INC.
$74,129,960
$48,139,243
EATON CORPORATION
$73,148,822
AMERICAN PURCHASING SERVICES INC.
SOPAKCO INC.
$71,904,765
NACCO MATERIALS HANDLING GROUP INC.
$47,356,694
NISH
$70,997,872
KOVATCH MOBILE EQUIPMENT CORP.
$46,626,425
NORDIC CAMP SUPPLY APS
$70,416,882
AMERICAN APPAREL INC.
$45,930,953
SIKORSKY AIRCRAFT CORPORATION
$69,619,195
ENERSYS ENERGY PRODUCTS INC.
$45,655,186
SUPPLYCORE INC.
$68,112,150
AVFUEL CORPORATION
$45,357,712
GOODRICH CORPORATION
$68,036,320
PROPPER INTERNATIONAL SALES INC.
$44,405,947
$68,034,408
GENTEX CORP.
$43,251,183
$66,254,292
PHILLIP INDUSTRIES INC.
$42,984,387
U.S. FOODSERVICE INC.
$205,440,352
SYSCO CORP.
$194,656,482
VITOL INC.
$193,749,384
ANHAM LLC
$183,258,347
BRAD HALL & ASSOCIATES INC.
$176,307,927
BAHRAIN MARITIME AND MERCANTILE
SK ENERGY CORPORATION
$173,493,762
FOSTER FUELS INC.
C4 | MLF 8.5 | Defense Logistics Agency
www.MLF-kmi.com
SUPPLY CHAIN
Compiled by KMI Media Group staff
Advanced Battery Manufacturing Technologies The Defense Logistics Agency has recently issued a small business innovative research solicitation seeking to develop manufacturing and logistics solutions that improve the industrial capability to deliver batteries to the warfighter in a ready to use state with better shelf life, increased safety, and lower cost and lead-time. These solutions must apply innovations to improve the manufacturing or production of batteries, reduce costs associated
with the battery manufacturing process, advance standardization in the battery supply chain, or reduce the environmental impact of battery manufacturing and disposal. Technology solutions must include advancements in processes or equipment used in the production of batteries or their components, such as the anode, cathode, electrolyte, separator material, cell, and battery management system.
Non-Skid Deck Surface SNSS LLC has developed SilvaGrip, a patent-pending non-skid, peel and stick surface for walkways and decks. The material has been approved for application to U.S. Navy ships. Silvagrip weighs 3 ounces per square foot and offer a friction coefficient of 1, the highest possible. The material is fabricated with sophisticated technical alloys that hold a matrix of sharp ceramic abrasives, with hardness just under diamonds. Silvagrip is very ductile and capable of being shaped or bent, but at the same time gives a strong non-skid wear surface. The non-skid material is an aluminum/ceramic blend of molten metal and ceramic, applied to a backing with adhesive and a protective paper liner. By pulling the paper liner away, the non-skid material can be applied to decks or walkways.
Proposed solutions must apply to one or more of the following technical thrust areas: diminishing manufacturing sources and material shortages; reduction of acquisition costs; surge and sustainment; shelf life; technology transition/insertion; automation; and/or Lithium battery safety. These solutions must result in an improvement in the affordability of battery products and services to DLA and its customers,
the sustainment of existing defense systems, and the potential effects on the next generation of defense systems. The DLA is clear that it is only interested in a revolution in the reduction of unit cost metrics and battery product availability. Incremental advancements will receive very little consideration. They are also only interested in projects the private sector considers too risky for ordinary capital investment.
DLA Finishes its Work in Iraq American forces left Iraq more than two years ago, but the Defense Logistics Agency’s job there is just now ending. On May 15, the agency stopped providing supplies to the State Department officials who assumed responsibility for U.S. operations in Iraq on December 31, 2011. DLA agreed to supply food, fuel and disposal services until the State Department established its own contract, which was awarded in July 2013. “The new vendor has come on board in phases, and DLA has been gradually transferring logistics
support to the new vendor since early this year,” said Navy Captain Jim Liberko, who served six months as commander of the DLA support team in Kuwait, which supports everything in the U.S. Central Command area of responsibility except Afghanistan. DLA stopped providing fuel at the end of February, followed by property disposal and demilitarization at the end of March. “The turnover for fuel was pretty seamless, but before ending our disposal services mission we spent 30 days working side by side with the new contractor, training them on the
equipment and processes,” Liberko said. In food support, the agency stopped providing fresh produce and nonfood items such as paper plates in March. Dry food items ended in April, and all logistics support to the State Department is scheduled to end in May when DLA stops providing frozen food. DLA’s support was originally scheduled to end in March 2013, but was extended so the agency could provide State Department officials with operational logistics planning as well as acquisition and financial management assistance.
Air Cargo Container TenCate Advanced Armor USA has signed a teaming agreement with Air Cargo Containers LLC to manufacture lightweight air cargo containers. The fully-certified, lightweight, composite air cargo carriers have a tare weight of 480 pounds, or about 350 pounds less than competing aluminum containers, a 42 percent weight savings. In addition, it incorporates a
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proprietary and patented roll-up door with destruction proof side glides and lock down features for safety in operation. Air Cargo Containers LLC was granted Technical Standard Order certification for its lightweight-composite AMJ model Unit Load Device in December 2013. It is the first allcomposite container to receive this certification
by the U.S. Federal Aviation Administration. It is constructed of proprietary composite side panels and floor panel, built around an aerospace grade aluminum frame, for lightness and durability as well as improved maintenance characteristics and flame retardant capability. The composite material and assembly of the entire container will be done by TenCate Advanced Armor in Ohio.
MLF 8.5 | 13
Warfighter Supplier
Q& A
Managing Diverse Supply Chains for the Global Warfighter Brigadier General Steven A. Shapiro Commander Defense Logistics Agency Troop Support Brigadier General Steven A. Shapiro became commander, Defense Logistics Agency Troop Support, on August 1, 2013. DLA Troop Support annually procures more than $13 billion worth of food, clothing and textiles, construction and equipment, pharmaceuticals, medical supplies and equipment, as well as industrial hardware items for America’s warfighters and other customers worldwide. He leads this global mission, which is performed by approximately 2,400 civilian and military personnel. Shapiro entered the United States Army as a commissioned officer on May 24, 1985, at the rank of second lieutenant. His military education includes the Ordnance Officer Basic and Advanced Course, the Army Command and General Staff College, and the Army War College. Prior to coming to DLA Troop Support, Shapiro served as the deputy commander of the 1st Theater Sustainment Command at Fort Bragg, N.C. While assigned to the 1st TSC, he was forwarddeployed with the unit to Kabul, Afghanistan. Shapiro’s previous assignments include: director of the Materiel Enterprise Integration and Retrograde Operations Center, Afghanistan; deputy chief of staff, G4, United States Army Europe and Seventh Army, Germany; chief of staff, United States Army Materiel Command, Fort Belvoir, Va.; commander, Letterkenny Army Depot, United States Army Aviation and Missile Command, Chambersburg, Pa.; G3, 3rd Corps Support Command, V Corps, United States Army Europe and Seventh Army, Germany; commander, Combat Equipment Battalion, Luxembourg; chief, Ground Maintenance Branch, later chief, Readiness Operation Division, Materiel Management Center; support operations officer, 1st Corps Support Command; support operations officer, 51st Maintenance Battalion, 21st Theater Army Area Command, United States Army Europe and Seventh Army; Germany logistics operations officer, later support operations officer, 29th Support Group (Forward); chief, Supply and Maintenance Division, later logistics operations officer, later support operations officer, 29th Support Group, United States Army Europe and Seventh Army, Germany; support operations officer, 1st Corps Support Command; support operations officer, 51st Maintenance Battalion, 21st Theater Army Area Command, United States Army Europe and Seventh Army, Germany; logistics operations officer, later support operations officer, 29th Support Group (Forward); chief, Supply and Maintenance Division, later logistics operations officer, later support operations officer, 29th Support Group, United States Army Europe and Seventh Army, Germany; S1, 46th Support Group (Corps), 1st Corps Support Command; commander, 14 | MLF 8.5
659th Maintenance Company, 189th Maintenance Battalion, 1st Corps Support Command; logistics support officer, later adjutant, 189th Maintenance Battalion, 1st Corps Support Command; maintenance platoon leader, 15th Engineer Company, later battalion maintenance officer, 536th Engineer Battalion, United States Army South, Fort Kobbe, Panama. Shapiro’s decorations and badges include: the Legion of Merit, Bronze Star Medal with Oak Leaf Clusters, the Meritorious Service Medal with 3 Oak Leaf Clusters, the Army Commendation Medal with 4 Oak Leaf Clusters, the Army Achievement Medal with Oak Leaf Clusters, and the Parachutist Badge. Q: Tell me about the organization, about the diversity in the product lines you carry, the diversity in the clients and the types of missions you support. Give us a baseline understanding. A: DLA has five distinct supply chains, each very unique. When DLA was organizing, they had to find a PLFA (primary level field activity) to do what I would term ‘other,’ and that became Troop Support. We have Subsistence Class I, everything from MREs and first strike rations up through the unitized group ration and A-rations that you’re used to seeing at your dining room table. www.MLF-kmi.com
In a war fought with stealth fighters, smart bombs, and night vision, the most important weapon could well be thermal socks. For more than 160 years, APL has been working to ensure our service men and women always have what they need to get the job done. Our unparalleled experience in ocean transportation and in-country logistics sets us apart from the competition. APL’s successful, long-standing relationship with the military proves that we have the resources and know-how to deliver when it counts. We won’t let you down, and more importantly, we won’t let down the troops who rely on the supply chain. We pride ourselves on being the mission critical link to success for our military yesterday and today, and we’ll be there for our troops tomorrow. To learn more about how we serve those who serve, visit www.apl.com/usflag.
U.S. Flag Services
We support dining facilities, both in CONUS and OCONUS. In Afghanistan, for instance, we support approximately 100 separate dining facilities with deliveries of fresh food, vegetables and hot rations. We handle clothing and textiles, meaning we buy the uniforms and all the OCIE (organizational clothing and individual equipment) that goes along with that for the services. We’re very heavy into the cut-and-sew industry and have built some very strong relationships with fabric manufacturers. We are always talking with them and looking for innovation. Running the gamut from sandbags, force protection items, metals, lumber, bulldozers and trucks is our construction and equipment supply chain. Again, we handle these items across all of the services. Within Class VIII, medical supplies, we buy everything from bandages to MRI equipment. One item might cost under a dollar while another can cost millions of dollars. Under Class VIII, we also acquire all pharmaceuticals for the services. The nuts and bolts of our business are in the industrial hardware we manage. There are almost a million different stock numbered items, including nuts, bolts, washers and other fasteners. In addition to our five supply chains, we have two forward presence sites, one the Pacific in Hawaii, where we work with PACOM, and a forward site in Germany, where we work both with the EUCOM and with AFRICOM. Q: As commander of DLA Troop Support, what’s the measure of success? How do you stand up and measure success and the areas where you might need improvement? A: In a recent presentation I gave the workforce, I have a slide entitled “What Winning Looks Like.” I think it’s important that we have this conversation with them. The number one thing that we remind ourselves of every time we have the chance is that the units are customers all over the globe, and we need to make sure that they are getting what they need, when they need it and where they need it. That’s number one. Then after that is quality and schedule. We have to either get it at cost or below cost from what we told the customer. It has to be the highest quality, and it has to be there on time. Something else of great importance is for us to shorten the amount of time it takes to procure items. We buy about $14 billion worth of goods for the services. The longer we take to contract for the needed items, the longer our customers deal without it and the higher our inventory costs are. We’re doing what we can to reduce the amount of time it takes to award contracts. Another success measure that’s very foundational here, something that cuts across everything, is that when I leave here I’d like to have a bench of professionals who are sitting on the bench waiting to replace the person above them. I want to build the bench here, so when we get into executing our succession plan we have qualified people who are ready and qualified to manage the next job. Q: How are you doing that? Are you doing that with in-house education, in-house training, skills development in how to be better contractors and logisticians? A: There are two parts to that. On one hand, there are the hard skills; we do quite a lot of training for those in-house. We have acquisition and logistics 16 | MLF 8.5
forums where our acquisition workforce or logistics workforce attend classes to stay current with our processes or hear guest speakers. These usually happen quarterly. We’re also looking externally for training, not necessarily for the contracting expertise or logistic expertise, but for those leadership attributes that are necessary to raise young leaders to take over in this organization—not just in five months or five years, but 10-20 years from now. There are a lot of executive training opportunities that OSD and DoD have, and we are looking to take advantage of those. We are also looking for other opportunities like partnering with universities—again, not necessarily in the technical aspect of our mission, but in those leadership skills, softer skills that folks need so they can run and lead an organization. Q: Especially with an eye on the current budget climate and what’s anticipated to be the budget climate for several years, what are some of the initiatives that you have going on to help you reduce your customers’ expenses and, as you said, time on delivery and so on? A: We’re doing several things to help our customers in that regard. For example, we’re working national contracts, which are contractual pricing agreements with manufacturers, so that when our vendors go out looking for products, they’re getting the best price available. For instance, we recently competed for chicken that resulted in a set of pricing contracts. What this does is when our subsistence prime vendors are told to deliver chicken to a specific location, we guarantee that they’re getting the lowest price. We’re doing the same thing for pharmaceuticals. Before a brand-name drug goes from brand name to generic, we actually have a national contract in place so that we can get the best generic price out there. This is the kind of thing that is going to save our customers hundreds of millions of dollars over the next five to 10 years. A few other things that we’re working on—again going back to medical, we’re working with the Defense Health Agency on standardization. Right now, doctors have a large menu of items to choose from, but working with the medical professionals in DHA, we’re helping them narrow that list. So instead of buying 15 different types of syringes we can narrow it down maybe to five, and for those five get a better price because we can buy in bulk. We recently worked with one of our medical partners to help us with standardizing what we buy, and then we’re hoping to come back and get better pricing because of that. Reverse auctions are huge. It’s almost like that loan commercial you see where the banks come after you, instead of you going out and looking for the banks. We’ll put a product line out there and announce a reverse auction. When the bidding starts, the offered price will move downward as companies bid what they provide the product for. The price will continue to move down until we reach the point where we award the contract—to the lowest bidder. And these companies are already pre-screened for quality and capability. Over the last several years, we probably done over 150 reverse auctions and this has saved us tens of millions of dollars. Q: What are the core requirements that you expect of your suppliers when they deal with you? www.MLF-kmi.com
A: Just a few things, but first and foremost are ethical standards. You want to have cost, quality and scheduling when dealing with your suppliers, but if a supplier can’t meet the ethical standards as outlined by the government in the FAR, or in normal business practices, we don’t want to do business with them. With that at the top level, then it really becomes a conversation about cost, quality and schedule. Can they do it for the cost advertised or below cost at the quality in the specification, and can they do it on time? The last thing is communications and innovation. We rely on commercial solutions here for some of what we do; if a commercial partner has a better idea on how to do business, we bring them in. There’s a program run up at DLA headquarters called Captains of Industry, and when the focus is on subsistence or our other supply chains, we help run those events. Industry leaders are invited to come in and talk to us about the innovative ways they are approaching business in their particular fields. From those interactions we hope to be able to incorporate what we learn into future solicitations and improve our processes with each and every transaction. Q: Looking out from where you sit right now, what do you see on the horizon for DLA Troop Support? What are the next steps from where you are right now? A: Again, number one for me personally is the continuation of the building of the bench. I have an off-site here in early June, and one of our main topics will be the next generation of leaders. Above and beyond that, it’s the integration of new ideas. Some of these have come from Captains of Industry and some directly from our commercial partners. One example is what we call integrated food service. Our subsistence supply chain works rations for the services. They deliver to the dining facilities, and then the dining facilities feed the soldiers, sailors, airman and Marines, here in CONUS, overseas and certainly in Afghanistan. The integrated food service concept would be a contract vehicle where we don’t just contract the food, but we contract the food preparation and service to the servicemembers. This will combine food delivery with food preparation, so instead of having one contractor hand to another contractor handing to a soldier, we will streamline the entire process. Another great example is GSA. DLA took over about 5,000 stock numbers from the GSA, and all but a handful came to Troop Support. With this, GSA and the USDA Forest Service became two new big customers of ours. The net result is that more customers help flatten out the cost recovery rate. Another big issue on our plate is the Afghanistan drawdown. I have a conversation scheduled every week to discuss this. Our challenge there is [figuring out] how to build down what we provide there so there is not a pile of excess at the end of the process. There was some NDAA language about going to a more common utility or combat uniform; we assume the decisions will be made at OSD within the next year. This would be a pretty big deal for us. But for now, we wait like everyone else. Q: Tell me what happens at the command when you’re called on to react to something that is unplanned, that is out of the norm—such as a humanitarian disaster like the typhoon in the www.MLF-kmi.com
Philippines, or when there is a manmade event that the U.S. responds to, like the events in Ukraine recently. A: I’ll talk about each of those a little bit separately. I have an operations center here with an operations officer, currently a Navy captain. Normally he works his regular shift, but when there’s a disaster, we man our ops center 24 hours a day. We most recently did that for the typhoon in the Philippines. When DLA headquarters deploys a forward team we will embed LNOs with that team. That keeps the communications very open and it’s a status that we can pull back from quickly as the requirement dictates. We did that for the Philippines, we did that for Hurricane Sandy. We have a fairly wide breadth of products that allows us to support any emergency, either through FEMA or directly, depending on the chain of command. We have MREs, we have humanitarian daily rations, bottled water, fresh fruits and vegetables, blankets, cots, gloves, coveralls, to name a few. We had to load up the USNS Mercy team after the Philippines with Class VIII medical supplies. Hurricane Sandy was different. There we provided a lot of water pumps and power generation. Because of what happened along the eastern seaboard, we were powering buildings up. Not only did we send generators to New York, we sent people with them, so it was almost a power generation kit. We were able to bring the generator there and hook it up to the building’s power and light the building. For Ukraine, again we do have a team in Europe which helped when the requirement came in to ship MREs to Ukraine. The day after receiving the requirement, we had trucks with 25,000 cases of MREs on their way. About three days later they arrived at their destination. Q: Does that mean that with your suppliers, there surge capabilities you have as opposed to having things sitting on a warehouse stock room? Is there also surge capability you can draw on from them? A: Just last week we had 18 of our suppliers up here in Philadelphia, and we were doing a ROC—rehearsal of concept—drill. We were rehearsing what would happen if a natural disaster happened in the United States and how it would affect our suppliers. How would they be able to react in the affected area, and then how would they support a large humanitarian operation right here in America? What I had found out is that contractually we have surge requirements in those contracts where we’re supposed to have surge requirements. With those contracts, we have the capabilities and duplication that we need. Our suppliers have things like mobile pharmacies, warehouses and access to all sorts of inventory. The food people, you have U.S. Foods here and Sysco, and they both talked about their distribution warehouses throughout the continental United States and the relationships they have with the food producers of America. It’s amazing the access that we have to multiple supply chains, to thousands, if not tens of thousands, of suppliers. Q: You’ve referred in the past to the Seven Deadly Sins of Sustainment. Can you go into a little bit of detail for that? MLF 8.5 | 17
A: It goes back almost 10 years ago when, as a colonel, I went to a manufacturing conference in Florida. A speaker got up and talked about the Seven Deadly Sins of Manufacturing. That was the kind of catchphrase that I remember—Seven Deadly Sins stuck with me. When we were in Afghanistan getting ready for the drawdown and it became central to our effort, we had to deal with turning down the spigot of things coming in so we could reach that tipping point of where more is leaving Afghanistan than coming in. It took us three to four months to get to that tipping point. During that time there was a lot of conversation about what was needed and what wasn’t, so that we could start pushing things back, and I remembered back to the manufacturing conference. I sat down with my boss and talked about Seven Deadly Sins of Sustainment: We shouldn’t lust after capabilities that we no longer need, we should be turning that off. We shouldn’t envy what the other guy has in the next FOB over; we should set a common standard so that across the board it’s equal. We have great young soldiers and servicemembers with great ideas and we have to have mechanisms and forums for them to come in and talk and share their ideas. Some won’t be used, but some will. But it’s that communication. If you have a level of wrath inside you and you don’t want to listen to folks, you’ll never get it done. Gluttony: Always wanting more and more is not the way to go. You want reverse gluttony, you want less and less. So that’s how we set up for Afghanistan—it was really for my people to have a prism to think about certain things, how do you think about things. When I got here to Troop Support, I had a town hall and gave my Seven Deadly Sins speech, if you would, and basically when you talk to your contract workforce here, to me it went back to looking at the requirements across the board, and a little bit about ethics. What I told them was that they’re out there buying things for the customer, but they could be more informed. Nobody knows more about our business than the people in this room do. When you see something wrong you’ve got to say something. I talked about the Seven Deadly Sins and that you just have to be able to wake up in the morning, look in the mirror and be happy with what you see. The Seven Deadly Sins aren’t hard-fast rules—they’re just a prism that I ask employees to look through when they’re thinking about their next purchase, or how much of the next purchase they want to buy. That’s all that is. And hopefully they’ll remember it because people get the Seven Deadly Sins. It’s more than a pep talk, and I hope it will stick with them. Q: An interesting aside, what’s something interesting or something that most people don’t know about Troop Support and what they do? A: A couple of different things actually. First of all, we have the flag room, and we have ladies in there who are known as the “flag ladies.” Every presidential and vice presidential flag used by the White House is hand-embroidered here in Philadelphia. We’ve been doing this for years. They also make unit colors and pennants; some are hand-sewn, some are machine-made. We do all things flag for the government. We have a very large ecclesiastic requirement, so inside our clothing and textiles supply chain, not only do we do uniforms, but we do Bibles, Qurans, and rosary beads, for example. I just received final word that everything for Passover is now in the hands of units 18 | MLF 8.5
in Afghanistan, and that’s not just the food portion, but it’s the Seder kit, if you would, including all the books and plates that go along with that. The last thing I’ll say, and I found this one to be the most fascinating, is uniform shade. It’s important that the uniforms we provide are within shade tolerances set by the services—that way, all the uniform components match, and present a professional appearance. You wouldn’t have thought it would be that complex—some of the most complex conversations I’ve had since I’ve been here about the shade and the digital uniform. You can go to the shade room, and we have about a one-hour tour, and you sit in a room that’s probably about 10 feet by 15 feet and you do nothing but look at different shades and talk shades, a one-hour conversation to get the 30,000-foot view of all things shade. When you look at a soldier’s tan T-shirt, or a Marine’s brown or green T-shirt, there may or may not be shade variation in that uniform or in the digital uniform that we wear over that. Our people run a shade council, and so when we’re talking about the color of the uniform, it’s not just what you see with the eye, but it’s how it’s measured by the machines that make the fabric. We are the “keepers of the shade” for Department of Defense, perhaps more precisely, “keepers of the right shade.” Q: Working with industry, you talked about Captains of Industry and your everyday dealings with industry. Why is that critical? How has what you’re doing succeeded and where can you go from here with that concept? A: Whenever possible, I like to give credit to our industry partners, so when somebody says, “Hey, we had a great Christmas meal,” first of all I say, “Thank you, we appreciate the accolades, and I’d like to thank our industry partners who actually made that possible.” We do a solicitation, we write the contracts and we monitor, but our suppliers are out there really making it happen. They’re out there just as much, hooking and jabbing to make it happen for our customers. Having that open line of communication with our vendors is very critical, and the closer you are to the pointy end of the spear, the more critical that becomes. So, like our vendors in Afghanistan, I make it a point to [contact] them weekly. While nobody knows our business better than us here in DLA Troop Support, in many respects our vendors have that same level of understanding. Another for example is, with our fabric manufacturers who are making the fabric that is in the military uniforms that our soldiers, sailors, airmen and Marines are going to wear. I will often go to them and look at the innovations in the material from a flameresistant perspective, or from making it lightweight, or maybe we could have two different digital patterns on a uniform. Could we make a reversible jacket that will go with each pattern? But I also listen to those manufacturers, hearing what they have to say in how they approach the manufacturing process, which might help drive costs lower. So I think that whole innovation piece would not happen without free and open communication, not just between us and the suppliers, but bringing these customers into the conversation. Q: You mentioned the drawdown and your Afghanistan drawdown meetings that you have weekly. In general, how does that affect your day-to-day operations with this drawdown, the intensity that www.MLF-kmi.com
it’s going at, and the intensity that could come about sometime later this year? A: Our biggest commodity in Afghanistan is rations, and they’re going to be consumed in place. It’s incumbent upon us to keep a close watch on this. Tracking the current head count, the number of base camps closing and the number still remaining is important so we don’t have too much food sitting in a camp that is closing or has been reduced in size. We look at the numbers for the next week, but also are projecting one and two months out. For us, it’s more of a planning thing and it’s staying ahead. I think that we’re doing quite well with that right now—we’re talking to the right folks. The theater has a very good retrograde plan, and all we’re doing is staying linked. As the drawdown advances, it will make our subsistence workload go down over the next several months, and that goes back to the integrated food service conversation: How do we keep some of that work on board, and again, save the services money at the same time? Q: You had talked about how important ethics are when you’re dealing with your industrial suppliers, and that reminded me of some other conversations I’ve had with Admiral Harnitchek and some others about counterfeit parts; that scenario in the electronics field is a very big deal. Is counterfeit products, ones that aren’t
up to standard but are delivered as being up to standard, is that an issue that’s of concern to you and an issue that you have to spend a fair amount of time monitoring and keeping track of? A: I actually had a meeting about that last week, and I’ll tell you, from our perspective, we don’t see that as a problem in Troop Support. There are other supply chains in DLA, and you talked to Admiral Harnitchek about it, he does watch that fairly closely. We watch it, but right now, we don’t see it as a problem here in Troop Support. Of course, our folks are monitoring quality and contract performance in their normal course of business and that plays into it. Q: Is there anything else you’d like to add in closing about the men and women of DLA troop support or anything else about its mission? A: We have some great professionals who come in every day; they know their job, they understand the customers, they understand the warfighter, they understand the suppliers, and they do a fantastic job for all those parties, for the government and the taxpayers and the customers. I’m very proud to be here. Last year, with the sequestration, was rough. What I don’t see is any lasting effect of that right now. I think the workers here in Philadelphia and throughout DLA, and probably throughout DoD, come in every day and just try to do the right think for the warfighter. It’s been a great year for me to be here. O
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Keeping warfighters connected during phase 4 operations. By Colonel Linda Jantzen and Lieutenant Colonel Jeffrey Thompson United States Forces-Afghanistan (USFOR-A) is in the midst of a massive retrograde and redeployment effort as combat operations in Afghanistan are transitioned from U.S. and NATO forces to Afghan security forces. As forward operating bases close or are transferred to Afghan or other government agency control, the theater communications network infrastructure, which had at its peak expanded to 23 strategic technical control facilities along with hundreds of tactical extensions, has to be scaled back without interrupting critical network services to support the remaining mission. With lessons learned from Iraq and recent experience de-commissioning and moving a modular technical control facility from Afghanistan to Kuwait, the 160th Signal Brigade and their mission partners in Afghanistan began the planning process to successfully retrograde the network. The term “retrograde in contact” has been used to describe maneuver forces transitioning from combat operations to train, advise and assist roles, even as the enemy continues to engage them on a regular basis. From a network perspective, the term describes the Signal community’s efforts to dismantle the infrastructure while ensuring communications remains live and accessible wherever it is required to continue to support the maneuver plan. At the same time, high value information technology (IT) equipment has to be accounted for throughout the packing, shipping, 20 | MLF 8.5
receiving and storing process, and people with the right skill sets have to be on hand to accomplish the myriad of tasks needed to migrate services, and de-commission and dismantle a modular technical control facility. All of this, collectively called Signal Retrograde Operations, requires input and cooperation between communications providers and integrators, IT engineers, battalion/brigade/regional command and corps signal staff, property technicians, resource managers, and contracting officer’s representatives, transporters, customers, commanders and battlespace owners. A review of lessons learned from Iraq in 2011 refreshed everyone’s memory, but the situation in Iraq in 2011 and Afghanistan today is different in many important ways. In Iraq, unanticipated political events forced tens of thousands of U.S. personnel to leave the country in a short period of time, giving communications providers very little time to shut down gracefully. Compounding the problem was the fact that there were multiple communications providers, including multiple tactical signal elements, with user-owned servers and connectivity under the control of different units, and an expeditionary signal battalion under the 160th Signal Brigade that was operating and maintaining the theater S-Iraq network. Many users in Iraq did not know how their communications was provided, nor how or with whom to coordinate for continued service throughout the retrograde. www.MLF-kmi.com
USFOR-A started the planning process early, triggered by the president’s announcement of a reduction in boots-on-the-ground to 34,000 by February 2014. III Corps led the effort upon its arrival in April 2013, bringing maneuver units and all functional task forces together to produce a retrograde operations order, Operation Drumbeat. Meanwhile, CENTCOM authorized ARCENT to establish the CENTCOM material readiness element as the lead for retrograde logistics in Afghanistan. Ultimately, the details of how to collapse the network, de-commission and ship strategic signal assets like modular technical control facilities and deployable KU-band earth terminals (DKETs) back to Kuwait were left up to the Signal community. Early in 2013, the 335th Signal Command (Theater)(Provisional) convened a TCF closure planning session in Bagram. 335th SC engineers had published a notional communications architecture based upon decisions made by CENTCOM and USFOR-A as to the geographic footprint, operational and sustainment forces, and other functions that would endure following Operation Enduring Freedom (OEF) transition to Resolute Support Mission (RSM) by the end of 2014. The signal planning session brought together the Regional Command CJ6s (1ID and 3ID at the time) along with CENTCOM, ISAF Joint Command and USFOR-A CJ6 and the 160th Signal Brigade’s headquarters element in Afghanistan known as Task Force Signal. Discussions at the TCF Closure session made it clear that a single focal point would be needed to continue to plan, coordinate, execute, track and provide a common operational picture of network retrograde operations. Because no amount of planning could prevent the inevitable changes and conflicting information from various headquarters, staffs, mayors, battlespace owners, contractors, etc., there had to be one place to receive the information coming from all levels at higher headquarters down to the lieutenant or sergeant first class on the ground at the TCF, de-conflict it, garner decisions, issue orders and inform the appropriate stakeholders. That “one stop shop” was the Signal Retrograde Operations Center-Afghanistan (SROC-A), stood up at and staffed by task force signal headquarters in Bagram. Upon being briefed on the signal retrograde concept for Afghanistan, Major General Steve Smith, then commanding general of 335th SC(T)(P), asked Colonel Linda Jantzen, 160th Signal Brigade and task force signal commander, “Who is your BRAC coordinator?” The term BRAC, for base realignment and closure, was a vivid analogy to the congressionally mandated process of closing and transferring DoD bases, which last occurred in 2005-6. The choice was clear for who soon would be known as the Signal Retrograde Operations Center-Afghanistan (SROC-A) Director. As the former Joint Network Control Center-Afghanistan (JNCC-A) Director, Lieutenant Colonel Jeffrey Thompson had expertise in all of the technical and logistical lines of effort that the SROC-A would be managing. His task was to centralize control of the signal retrograde process, create templates and TTPs, and apply lessons learned to make the process effective, efficient and repeatable as personnel constantly flowed in and out of theater. SROC-A established a future operations capability that freed up the JNCC-A to focus on operations and maintenance and optimization of the remaining network. The specific lines of effort (LoE) established for the SROC-A are: • Battle Tracking LoE provides asset visibility, identifies decision points and priorities for shared resources. Maintains master battle rhythm calendar to deconflict the various coordination meetings and working group sessions. www.MLF-kmi.com
Careful planning means that the collapse of the Afghan communication network will be a controlled and deliberate process under a single C2 structure. [Photo courtesy of DoD]
• Network Transition LoE ensures continuity of network capabilities for customers remaining on a FOB after the TCF is shut down, migration of services to enduring hubs, and an orderly transition to the objective RSM architecture. Uses on-location joint site surveys to identify user requirements and the right contingency package for sites in which a TCF will have to be de-commissioned and removed. This LoE ensures maximum use of existing infrastructure while phasing out excess capacity for use elsewhere. • Property Accountability LoE ensures all unit and contract property is accounted for and properly transferred from the shipper to the receiver, whether the asset goes into storage in Kuwait or is re-purposed to another unit or elsewhere in the network. This is a complex process given all the property types TF Signal has to deal with, from organizational (organic or deployed unit property) to theater-provided to governmentfurnished to “found on installation” equipment. All equipment had to first be placed on the correct property book based upon its final disposition. • Shipping LoE involves multiple personnel, from the direct signal support team on the ground to the contractors responsible for operating and maintaining the facility, and still other contractors who have the ability to dismantle a modular TCF. This line of effort is also responsible for container management, blocking and bracing material, and transportation movement requests. • Logistics and Sustainment LoE ensures life support is in place throughout the de-commissioning and migration timeline. It also coordinates for force protection, class I support, material handling equipment, fuel and power support, etc., as necessary. Coordination with mayors/garrison staff is critical to ensure support for each of the other LoEs is available. • Contract Management LoE has oversight of information technology personnel and services contracts managed by Task Force Signal. Each contract has different rules of engagement. For example, all strategic TCFs are operated and maintained by the 160th Signal Brigade’s OMDAC-SWACAA contract. When a TCF comes out of system, the slots for personnel who operate and maintain that facility must be cut from the contract. Smaller sites are supported by soldier teams or another contract, which allows the O&M personnel to be re-allocated to another site or mission. Leased transmission services such MLF 8.5 | 21
as microwave line of sight (MLoS) from Afghan Wireless Communications Company, fiber circuits from Afghan Telecom and satellite links from Salvare must be terminated in a timely manner to avoid additional cost to the government. Key to the success of signal retrograde operations in Afghanistan thus far have been several factors that were lacking or nonexistent during the Iraq retrograde, the most salient one being time to plan and prepare. But other factors are perhaps even more important to understand, because they may influence how we build, operate and maintain operational base communications networks in the future. 1. Robust transmission pipes. Instead of each site hosting its own data and services, users can pull from neighboring sites with little latency due to the large bandwidth of fiber and MLoS between sites. The user experience is critical on an operational network. Remote hosting of network services such as DHCP, DNS, directory services, etc., provides the foundation to begin migration of application services. Transparency to the user is created by maintaining network services without changing or reconfiguring user desktop settings. Robust transmission paths enable greater bandwidth throughput, alternate pathways (e.g., fiber, MLoS and SATCOM), and traffic shaping to give precedent to higher priority traffic. Migration of remote network services is phased over time to ensure dependable delivery before reaching end of mission on local services. Phasing of network service begins with a small pilot group from the signal community. After testing and validation from the pilot group is completed, the remaining user community on the local FOB is usually migrated overnight. Local networks services remain running in a warm status during migration but the services are provided off site by a neighboring enduring location. The applications (i.e., email, SharePoint) that are dependent on a solid network can now be migrated off site. Migration of applications is determined by user precedent (i.e., general officers or VIPs), alphabetic grouping of common user group and finally the enclave to be migrated. The larger user community migrates first in alphabetical order to control any misconfiguration impact at a manageable level. The VIP community is migrated last after all the “bugs” have been worked through and mitigated. Migration of applications off site creates an enterprise service environment to centralize services and reduce hardware and personnel at local TCFs. The operational environment drives all scheduled network changes. The operational environment will also dictate which network enclave (e.g., NIPR, SIPR or CX-I) is migrated first or last. Overall, the robust and redundant paths in Afghanistan enable enterprise service delivery and remote network management that will allow a huge reduction in the signal footprint. 2. Centralize, standardize and optimize. Task Force Signal is the sole signal command and control element for all echelon above division (EAD) signal units supporting USFOR-A, combining resources provided by USFOR-A, ARCENT and NETCOM under one signal brigade. This consolidation of network O&M allows for sharing of scarce resources and flexibility to shift those resources to where they are needed. It 22 | MLF 8.5
also ensures unity of effort and a single point of contact for the majority of, if not all, communication issues and actions within Afghanistan. A single point of contact to coordinate large retrograde efforts with multiple lines of effort is critical on an operational network. The reduction of personnel manning levels is a forcing function to streamline C2 across all war fighting functions. Communications support under one command structure creates the conditions for equitable and informed decision resource disposition. Sharing of resources enables fewer “have-nots” with regards to communications capabilities. This decreases or eliminates the “have-nots” with regards to communications capabilities, and the ability to cover gaps in service created by departing units, end of contract period of performance, etc. Simultaneously, the more the network can be standardized and optimized for remote management, the smaller the footprint required to maintain it. As Task Force Signal headquarters in 2012, the 11th Signal Brigade created the Network Transition and Optimization Plan, NTOP, to do just that. It is a process whereby signal planners and engineers come up with network optimizing objectives, tasks are assigned through the orders process, and progress is reviewed through regular NTOP sessions hosted by the JNCC-A. 3. One network versus two. The afghan.swa network is a child domain of the SWA theater network, not a completely separate domain like the S-IRAQ network. With the departure of the JNCC-I, the SWA Cyber Center and the 54th Signal Battalion had to quickly absorb responsibility for an entirely separate network. S-IRAQ served its customers well, so long as there was a robust NetOps and O&M capability dedicated to running it. But it could not easily be scaled down or gracefully handed off to a separate provider. The top level architecture stack for S-IRAQ had to be physically relocated to Kuwait and turned over to the 54th Signal Battalion. In Afghanistan, customers can be seamlessly migrated from a strategic node to a tactical extension of the SWA network, and NetOps functions continue uninterrupted even as the regional network control centers and eventually the JNCC collapse into one regional network operations and security center operated by the 25th Signal Battalion. The already strong NetOps working relationship with the SWA Cyber Center (SWACC) under the 11th TTSB grew tighter with both SWACC and JNCC-A under the 160th Signal Brigade. The collapse of the Afghan communication network will be a controlled and deliberate process under a single C2 structure. The retrograde lines of effort created within SROC-A and TF SIGNAL ensure a controlled and repeatable process giving predictability to users, and transparency to stakeholders in Afghanistan. The TF Signal commander, Colonel Linda Jantzen, stated, “Signal retrograde operations represents successful collaboration and cooperation of the entire signal community in Southwest Asia. The SROC-A simply provides a rally point for that collaboration. We have a process that has been ‘Forged in Fire’ and have an outstanding team to implement it!” O For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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The advertisers index is provided as a service to our readers. KMI cannot be held responsible for discrepancies due to last-minute changes or alterations.
MLF RESOURCE CENTER Advertisers Index AAR Mobility Systems................................................................................ 7 www.aarmobilitysystems.com
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Calendar July 29-30, 2014 Military Vehicles Exposition Detroit, Mich. www.militaryvehiclesexpo.com August 22-25, 2014 NGAUS Chicago, Ill. www.ngausconference.com September 15-17, 2014 Air & Space Conference National Harbor, Md. www.afa.org September 23-25, 2014 Modern Day Marine Quantico, Va. www.marinecorpsexpos.com October 13-15, 2014 AUSA Washington, D.C. www.ausa.org
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October 20-22, 2014 Logistics Officers Association Conference Washington, D.C. www.loanational.org/ conference/ October 28-30, 2014 NDTA-USTRANSCOM Fall Meeting St. Louis, Mo. http://ndtahq.com/events_cal_ events.htm
NEVER STOP LEARNING Considering a new degree? Advising your troops on their education options? You need Military Advanced Education’s 2014 Guide to Military-Friendly Colleges & Universities! Check out the searchable database at www.mae-kmi.com for the details prospective students and commanders are looking for! •
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October 30-November 2, 2014 Annual Tanker Association Conference Nashville, Tenn. www.atalink.org December 3-5, 2014 Defense Logistics Alexandria, Va.
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INDUSTRY INTERVIEW Military Logistics Forum Red Hoover Vice President and Engineering and Technology Services Division Manager ManTech Red Hoover is vice president and division manager of ManTech’s Engineering and Technology Services Division (Mission Solutions and Services Group). Hoover is a retired U.S. Navy captain who was commanding officer of Space and Naval Warfare Systems Center (SSC) Atlantic during the period when all mine resistant ambush protected vehicle C4I integration was conducted by the command. Q: How would you describe your company’s focus, goals and abilities to meet the needs of the military customer? A: ManTech’s investment in people, processes, tools and facilities demonstrates our commitment to providing quality services to our military customers. For example, ManTech University offers employees free professional development courses to expand their technical knowledge and has coordinated accreditation for the Project Management Institute (PMI) professional development. ManTech also maintains CMMI ML3 and ISO 9001 certifications and has infused these frameworks into our engineering processes. ManTech recently opened a 12,000square-foot facility just minutes from Joint Base Charleston. This facility hosts a software integration lab, conference spaces, antenna test area, and high bay integration lab to accommodate MRAP-size vehicles, small watercraft and tactical operations gear. Q: What innovations do you expect to bring online that will make your operations more efficient and better position you to compete in today’s military marketspace? A: Efficiency is essential to competing in a challenging marketplace. Our innovative processes have helped realize cost and schedule efficiencies for the acquisition community while maintaining exceptional performance. ManTech’s ConstantView tool provides program and project managers with near real-time cost and schedule information and a customer-facing portal to enhance project status communications. 24 | MLF 8.5
In the military marketplace, traceability to requirements is a priority. Our systems engineering process, known as Architecture Supported Systems Engineering Technique (ASSET), streamlines multiple tasks, leverages requirements and reduces development schedules by as much as 70 percent. AgileTek, our innovative approach to software development, combines CMMI and Agile as best practices to prioritize requirements supporting software development and testing. Q: What do you do to better understand logistical requirements from the military’s perspective to be able to deliver a solution that takes into account best industry practices and meets the stated needs of the military? A: Our processes ensure we define operational requirements from the warfighter’s perspective, including all phases of logistics. Human factors, manpower and training are all crucial in systems engineering during the requirements phase. We collaborate with requirements officers to ensure these details are accounted for. Sometimes, we go onboard the ship or in the field, interview sailors and Marines, observe exercises, and ask questions that help define and validate requirements are accurate. We focus on the user and what they need to accomplish the mission. Q: What challenges have you forecasted for the coming 12 months and how have you positioned yourself to address those?
A: Our approaches help provide solutions more efficiently. Though military budgets are shrinking, the job still needs to get done. Our processes define ways to meet the needs of our acquisition community in a challenging fiscal environment. From a contracts perspective, ManTech holds several large prime vehicles combined with various small business partnerships. We are successful in the multiple award contract environments, and our processes have helped define solutions that work well in our markets. We have great collaboration with our small business team members—providing them significant opportunity for success. Our processes are not just specific to Navy or DoD; they can be tailored for other federal and state agencies. Our work helps PMOs justify their system solutions and procurement decisions. For making purchases or developing a system or application, our processes document and justify the action. Q: Are there examples that illustrate your capabilities in meeting the needs of the defense customer? A: Our ASSET and AgileTek processes have been implemented and proven on several projects. Leveraging our MRAP vehicle integration experience, we support the U.S. Navy’s SSC Atlantic Digital Integration Facility. We are defining a common C4I architecture for the family of amphibious vehicle platforms for the Marine Corps. By looking at specifications for the entire family of vehicles, we can leverage requirements, architecture and trade studies across multiple platforms. Each platform will be tailored, but ASSET has helped define common architecture and requirements up front and avoid repeating similar efforts across the vehicle platforms. The architecture will document measurable and testable requirements, human factors, and design specifications and encourage reuse and leveraging of common data elements. O www.MLF-kmi.com
NEXTISSUE
July 2014 Vol. 8, Issue 6
The Publication of Record for the Military Logistics Community
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Exclusive Interview with
Jeff Burbach Director Directorate of Logistics U.S. Army Corps of Engineers Special Section Quad Cities Chamber of Commerce Features (RHP-Rock Island Profile)
Dump Trucks, Construction and Material Handling Equipment Important for infrastructure development and supply movement, these specialty vehicles are critical.
Life Cycle Optimization The maritime environment is harsh on heavy steel and delicate electronics. Managing product life cycle is a challenge.
U.S. Army Sustainment Command A special pull-out supplement featuring:
• Exclusive interview with U.S. Army Sustainment Command senior leadership • Two-page organizational profile of U.S. Army Sustainment Command and its programs and offices • Command’s top contracts for 2013 • LOGCAP update
Educating the Logisticians Good logisticians are smart logisticians. A strong curriculum is the foundation.
A handy reference guide with a long shelf life.
Renewable Energy Goals What will it take for DoD to reach its efficient and renewable energy goals, and do so affordably?
Bonus Distribution Defense Energy Summit
Insertion Order Deadline: July 2, 2014 • Ad Materials Deadline: July 7, 2014