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. 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.
The Performance Based Logistics 2010 Conference was held last week in Arlington, VA. It made me think about how much defense logistics has changed over the last ten years.
Performance Based Logistics (PBL) goes beyond traditional acquisition of contractor good and services. PBL guarantees contractor performance and system capability based on declared performance-based agreements between the Department of Defense (DOD) and the contractor.
Before PBL, defense contractors simply provided a product or service. A contractor would develop a weapons system, for instance, and DOD would subsequently assume complete responsibility for its storage and maintenance.
DOD advocated PBL in the 2001 Quadrennial Defense Review and called for the evaluation of a PBL approach for all new acquisition programs and systems.
As a result, a defense contractor awarded a PBL contract for aviation services, for instance, is required to provide more than just an aircraft, but all the services, support, and maintenance required to keep that aircraft mission-ready for a specified period of time.
In many cases, however, DLA’s bulk purchasing capability allows it to acquire common repair parts at a lower cost than individual PBL contractors.
With the advent of PBL support contracts, DOD needed a way to allow defense contractors to purchase parts from DLA under PBL contracts. The easiest way to support this capability was to enable PBL contractors with access to DOD EMALL. Using DOD EMALL, contractors can purchase repair parts directly from the DLA and at lower cost to the government.
Today, Lockheed Martin, Boeing, Honeywell, and dozens of other defense contractors s are participating in this DLA program.
As the primary developer of the DOD EMALL, Partnet is pleased to support this innovative strategic sourcing initiative.