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Defense Logistics Agency Clothing and Textile Supply Chain
Update
March 16, 2007
Defense Logistics Agency
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Agenda
• Overview of Clothing and Textiles (C&T) Supply Chain
• Make up of the Industrial Base
• Investment Plan for FY 07
• Recent Outreach Efforts
• Virtual Vendor Management
• ACU Update
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The Big Picture
Customers / ItemsCustomers: 14,000 Orders: 3,600,000 / year Items: 31,000
SalesFY 01 - $1.0BFY 02 - $1.3BFY 03 - $1.7BFY 04 - $2.2BFY 05 - $2.2BFY 06 - $1.9B
ObligationsFY 01 - $1.1BFY 02 - $1.6BFY 03 - $2.8BFY 04 - $2.0BFY 05 - $2.0BFY 06 - $1.6B
PersonnelEmployees: 302 civilian
+ 8 Military + 2 Europe
+ 50 internsSuppliers: 858
Clothing & Textiles Supply Chain
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Sized items Example, Combat Boot – 133 sizes Men’s Army Dress Coat – 65 sizes Airman Battle Uniform – 155 sizes
Military unique Most clothing on a specification Service driven requirements Simple garments to complex protective clothing (Chem Suits)
Industrial Base – Strategic Supplier Issues Small Business driven Mandatory Sources
National Industry for the Blind (NIB) National Industry for the Severely Handicapped (NISH) Federal Prisons (UNICOR)
Socioeconomic Obligations (Hub Zones, 8(a), Set-Asides) Best Value Long Term Contracts
During peacetime, over 95% of our contracts are long term / best value contracts
Clothing & TextilesA Unique Commodity
Small Business $1011.24M
Large $386.69M
NIB $51.9M
UNICOR $93.3M
NISH $143.7M
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C&T Investment Plan FY07By Major Grouping
• Expenditure History– FY 05 = $2.088B– FY 06 = $1.613B– FY 07 = $1.70 B (planned)
– Anticipated that expenditures will level at $1.4B-$1.5B over the next 5 years
• Plan adjustments:– Based on actual sales– Customer collaborative
forecasts– New item introductions
FY07
Plan
Dress Clothing $165.1M
Field Clothing $492.9M
Individual Equipment
$581.6M
Organizational Clothing
$481.8M
Total $1,721.4M
Adjustments made thru the use of automated demand and supply tools
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C&T Investment Plan FY 07By Minor Grouping
• Dress Uniforms– Shirts & Headwear $29.0M– Outerwear $76.5M– Dress Uniforms $59.9M
• Field Uniforms– Accessories $126.1M– Camo uniforms $239.6M– Footwear $127.2M
• Individual Equipment– Heraldics $9.4M– Equipment Items $305.9M– Safety Items $127.9M– Tentage $138.4M
• Organizational Clothing– Chemical Protective $189.8M– Cold Weather Gear $117.6M– Gloves $69.7M– Special Purpose $104.6M
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• Meeting with Member Military Liaison Assistants 12 February 2007
• Working Group partnering with American Apparel & Footwear Association (AAFA)– Recurring Meeting approximately every 60 days. – Objectives of the effort:
• An assessment of specific C&T industry skill sets in jeopardy• The impact of those diminishing skills sets on the readiness • Once assessments complete, a timeline and a path forward
for preserving domestic production capability
• Summit with Industry and the Services to discuss requirements will convene in the next 60 days.
Recent Outreach Efforts
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Continuing the Dialogue
• Potential topics include:– Timeliness of contract awards & delivery orders– Protection against uncontrollable cost increase in
multiyear contract– IDIQ Min-Max ranges– Providing forecasts to Industry– Source Sampling and Shade Evaluation– Use of Supply Chain Manager– Review System for Better and Prompt Payment
Options– Continued support of domestic manufacturing laws
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Virtual Prime Vendor (VPV)• VPV is a logistics management system
• In operation since 1998 - excellent track record• Establishing a new Virtual Vendor Manager (VVM) at each Recruit Center
VPV Site
RTC/CIIP
Usechart
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1 MC San Diego2 MC Parris Island3 NTC Great Lakes4 Lackland AFB5 Ft. Jackson6 Ft. Sill7 Ft. Len Wood8 Ft. Knox9 Ft. Benning
1 Lion Vallen – All Army2 Travis NIB – AF& MC3 Peckham NISH – Navy
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2
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2
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7 8
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On Time99.2%
Late0.8%Not shipped
On time = No pay!
* Chart Represents 35.5 Months Of Operation
Travis VPV
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DLA continues to manage contracts with C&T Industrial Base
VPV Objective: Linking Supply and Demand