As the major buyer of repair parts for the Department of Defense (DOD), Defense Logistics Agency (DLA) can leverage their buying power and get the best price on thousands of spare parts. These parts are often used across multiple weapon systems. When a military services makes the decision to maintain a weapons system with a Performance Based Logistics or Contractor Logistic Support (PBL/CLS) contract, DLA is often the best value source of parts. Many PBL/CLS contracts contain clauses authorizing the use of DLA as a source for either Government Furnished Materials (GFM) or Contractor Furnished Materials (CFM).
DOD EMALL is a valuable tool used by prime contractors and responsible Government officials to perform market research, price analyses and researching inventory levels of these repair parts within DLA. In a May 3, 2011 DOD IG Report No. D-2011-061, the Inspector General (IG) recommended that the Principal Deputy Assistant Secretary of Defense (Logistics and Materiel Readiness) “develop and issue policy that requires the Services to use the DOD EMALL to determine whether DLA has excess inventory for all consumable items being procured from sources other than DLA under either contractor logistics support or performance-based logistics support sustainment strategies. The policy should also require the Services to quantify the excess inventory and develop a plan to use any excess inventory identified.” [Recommendation A.2.b.(2) – Internal Control]
The report also found that the DOD EMALL is a valuable pricing tool and can stimulate competition between DLA and PBL/CLS contractors. In the IG Report, the auditors compared the prices for the Army CLS follow-on contract between the DOD EMALL prices (DLA standard unit prices) and the CLS contractor prices. Of the 1,600 parts on the follow-on contract which had sufficient DLA inventory to cover the annual requirement, over 50% of the DLA prices were lower, for a potential savings to the government of $8M.
This example demonstrates the potential cost savings of using the DOD EMALL as an on-line research tool. Such research as a standard procedure could reveal thousands of parts in DLA inventory that could satisfy PBL/CLS contract requirements at significantly lower prices.
Contractors working under a DOD PBL/CLS contract can request access to the DOD EMALL to support price analysis and DLA inventory level research on the website at www.dod-emall.dla.mil.
Partnet, Inc. is proud to be a primary developer on the DOD EMALL.