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2012 DIRECTOR’S GUIDANCE
WARfIGhTER-fOCUSED, GlObAlly RESpONSIvE, fISCAlly RESpONSIblE SUpply ChAIN lEADERShIp
DeFenSe LOGIStICS AGenCY
Fiscal Year 2012 Director’s Guidance


Intent
Fiscal year (FY) 2012 poses many challenges for America’s
Warfighters and all who support them. We are a country
at war, dealing with multiple security interests worldwide
in an evolving and increasingly complex economic and
political environment. Our customers face numerous issues
related to these factors, including emerging resource
constraints and the need to reconstitute key assets that
were heavily used over the past decade.
In turn, the Defense Logistics Agency (DLA) just reached
50 years of providing increasingly expansive supply and
distribution services, both across the Defense Department
and to select customers outside the Department. As DoD’s
only logistics Combat Support Agency, we provide direct
support and play a major role across DoD’s global supply
chain. We expect significant change in our environment
in the coming year and will use this guidance to steer our
preparations and measure our progress in the three main
focus areas of our FY 2012 Director’s Guidance: Warfighter
Support, Stewardship Excellence, and Workforce Development.

Mission
As America’s Combat Logistics Support Agency, we provide
effective and efficient worldwide support to Warfighters
and our other customers. We receive guidance from the
Assistant Secretary of Defense (Logistics and Materiel




DEFENSE LOGISTICS AGENCY
2012 DIRECTOR’S GUIDANCE
50 Years of Combat Logistics Excellence
                                                              |1
Readiness), and as a statutory Combat Support     and other logistics information, and supplying
Agency we report to the chairman, Joint           a wide range of document services. We support
Chiefs of Staff and the Combatant Commands        U.S. allies through Foreign Military Sales and
in providing worldwide logistics support to       are a vital contributor whenever this country
deployed forces.                                  undertakes humanitarian relief efforts at
                                                  home or abroad. We provide human resources
DLA is responsible for sourcing and providing
                                                  management and workforce development
most of the repair parts and virtually all fuel
                                                  services to other DoD components.
and troop support consumable items used by
our military forces. We also procure Service-     Overall, our nearly 27,000 military and civilian
managed depot-level reparables. In addition,      personnel operate a global logistics enterprise
DLA provides a broad array of supporting          worth more than $40 billion in 28 countries,
supply chain management services, including       managing nearly 5 million items in eight
storage and distribution, reutilization or        supply chains.
disposal of surplus military assets, managing
Defense strategic materiels, providing catalogs




                       DEFENSE LOGISTICS AGENCY
                       2012 DIRECTOR’S GUIDANCE
2|
Vision                                           StrAteGIC FOCuS AreAS
Warfighter-focused, globally responsive,         Our three strategic focus areas continue to
fiscally responsible supply chain leadership.    define our principal thrusts. They are:

Values                                           n Warfighter Support: Deliver agile and
Our values are DLA’s foundation for all we do,     responsive logistics solutions to Warfighters.
our basic guiding principles:                    n Stewardship Excellence: Manage DLA
■ Warfighter needs guide us.                       processes and resources to deliver effective
■ Integrity defines us.                            Warfighter support at optimal cost.
■ Diversity strengthens us.                      n Workforce Development: Foster a diverse
■ Excellence inspires us.                          workforce, supporting culture and related
                                                   personnel practices to deliver sustained
                                                   mission excellence.




50 Years of Combat Logistics Excellence

                                                                                               |3
DLA’S FY 2012 InItIAtIveS
WArFIGhter SuppOrt


                     Warfighter Support                                     ◗ DLA Energy
                     In FY 2012, as in every year, DLA’s top priority       ◗ DLA Land and Maritime
                     is Warfighter Support. This includes logistics         ◗ DLA Troop Support
                     support of the readiness and sustainment
                                                                        Warfighter Support (WS) FY 2012 Initiatives:
                     of America’s Warfighters themselves, and of
                     industrial activities and others whose efforts     WS-1: Support operational requirements
                     are critical to preserving and enhancing our       and force drawdown / equipment reset
                     nation’s and our allies’ defense postures.         processes in the Southwest Asia theater.
                                                                        OPR: J3
                     DLA Offices of Primary Responsibility (OPR)
                     coordinate with other DLA offices and, as          ■ Enhanced support in Afghanistan.
                     appropriate, with partners and stakeholders          ◗ Meet current and emergent
                     external to the DLA enterprise. An OPR                   critical weapons systems readiness
                     glossary is provided below.                              requirements.
                     ■ DLA’s Headquarters Organizations:                  ◗ Optimize DLA’s use of the Northern
                          J1, DLA Human Resources
                          ◗                                                   Distribution Network (NDN).
                       ◗ J3, DLA Logistics Operations                     ◗ Support the “South Caucasus/Central
                                                                              and South Asian States (SC/CASA)
                       ◗ J5, DLA Strategic Plans and Policy
                                                                              First” policy for acquisition of supplies
                       ◗ J6, DLA Information Operations                       in theater.
                       ◗ J7, DLA Acquisition                              ◗ Enhance outcomes at Defense Depot
                       ◗ J8, DLA Finance                                      Kandahar, Afghanistan, (DDKA) and
                       ◗ JCASO, Joint Contingency Acquisition                 through the Theater Consolidation
                          Support Office                                      and Shipping Point (TCSP) initiative.
                       ◗ DO, Equal Employment Opportunity                 ◗ Sustain forward disposal support.
                     ■ DLA’s Primary Level Field Activities             ■ Establish the foundation for controlled
                       (PLFAs):                                           and expeditious redistribution and
                       ◗ DLA Aviation                                     retrograde of materiel aligned to troop
                                                                          employment in Afghanistan for FY 2012.
                       ◗ DLA Disposition Services
                                                                        ■ Support operations in Iraq that include
                       ◗ DLA Distribution
                                                                          responsible drawdown in the Iraqi theater



                                             DEFENSE LOGISTICS AGENCY
                                             2012 DIRECTOR’S GUIDANCE
                     4|
WArFIGhter SuppOrt
  and the in-country transitioning effort from
  Defense Department to State Department (DoS).
■ Provide right-sized logistics support in areas
  adjacent to Iraq.
WS-2: Improve DLA’s support performance at
Service industrial sites and prepare to meet
additional equipment reset-driven requirements.
OPR: J3
■ Pursue improvement in key customer-oriented
  metrics to reflect DLA’s role in logistics support of
  industrial maintenance.
■ Implement Inventory Management and Stock
  Positioning (IMSP), Distribution Standard System
  (DSS) and associated process improvements at
  industrial sites to support enhanced operations.
■ Participate directly in planning for and supporting
  Service asset reset actions at industrial sites
  (retrograde, reset and redistribution).
WS-3: Engage with customers and external
stakeholders to drive additional DLA support
improvements worldwide. OPR: J3
■ Energize the DLA Customer Relationship
  Management process.
■ Continue development of DLA’s role and outreach
  in the whole of government logistics support
  process in humanitarian crises and other situations.
■ Effectively leverage observations from the 2010
  Joint Staff Combat Support Agency Review Team
  (CSART) to enhance COCOM support.




50 Years of Combat Logistics Excellence

                                                          |5
WArFIGhter SuppOrt

                     ■ Continue involvement in Joint Staff J4           ■   Provide acquisition support for the
                       (Logistics) efforts to enhance coordination of       2012 Navy Green Fleet local operations
                       joint supply actions and processes.                  demonstration.
                     ■ Conduct annual survey of customers and
                                                                        WS-6: Enhance DLA Strategic Materials
                       other stakeholders to pursue additional          program to meet emerging support
                       performance improvements.                        requirements. OPR: J7
                     WS-4: Provide a portfolio of best-value            ■ Complete the implementation plan for
                     product support strategies. OPR: J3                  transformation of the DLA Strategic Materials
                     ■ Develop cross-Service opportunities to             program and obtain congressional approval
                       apply Performance Based Logistics (PBL)            to streamline select National Defense
                       and DLA organic solutions to provide               Stockpile processes.
                       best-value support.                              ■ Complete the rare earth study to identify
                     ■ Engage with acquisition weapons system             critical items warranting strategic
                       programs to ensure DLA participation in            inventory support.
                       their product support strategies.                ■ Partner with other departments and
                     ■ Align DLA’s processes and leverage DLA’s           agencies to address additional strategic
                       capabilities to better support customer            materials issues and develop risk-
                       outcomes in PBL and other contractor               mitigation strategies.
                       support logistics scenarios.                     WS-7: Continue efforts in partnership
                     WS-5: Support the Department’s Operational         with the Military Services to upgrade the
                     Energy strategy to enhance warfighter              Technical Data Exchange process to enhance
                     agility. OPR: DLA Energy                           weapon systems support processes. OPR: J3

                     ■ Support DoD efforts in alternative fuel policy   ■ Enhance Technical Data Exchange practices
                       development and supply chain integration.          and finalize related functional requirements
                     ■ Support the Title III Biorefinery Development
                                                                          for initial prototyping with the Army’s TACOM
                       initiative co-led by the Department of             Life Cycle Management Command (LCMC).
                       the Navy, Department of Energy and               ■ Incorporate Technical Data Exchange system
                       Department of Agriculture.                         requirements into planning for the Product
                                                                          Development Management Initiative (PDMI)
                                                                          upgrade project.




                                            DEFENSE LOGISTICS AGENCY
                                            2012 DIRECTOR’S GUIDANCE
                     6|
WArFIGhter SuppOrt
50 Years of Combat Logistics Excellence

                                          |7
SteWArDShIp exCeLLenCe




                         Stewardship Excellence
                         DLA continues to assess current and potential      Stewardship Excellence (SE) FY 2012
                         roles and related processes to ensure we deliver   Initiatives:
                         maximum payoff from taxpayer resources
                                                                            SE-1: Implement comprehensive cost
                         while effectively supporting Warfighters. This
                                                                            analysis capabilities that help drive
                         includes due consideration of risk management
                                                                            improved resource utilization for major
                         factors such as ensuring spare parts conform
                                                                            internal DLA cost drivers. OPR: J8
                         to established standards and preventing the
                         compromise of critical information.                ■   Extend the DLA financial metric scorecard
                                                                                pilot across the agency to improve
                                                                                awareness of related metrics and determine
                                                                                strategies for potential cost reductions.




                                                DEFENSE LOGISTICS AGENCY
                                                2012 DIRECTOR’S GUIDANCE
                         8|
Implement a DLA-developed “financial impact on




                                                                     SteWArDShIp exCeLLenCe
■
  performance model” to support key decision steps
  regarding significant resource investments in the
  Program Budget Review (PBR) 14 process.
■ Implement an enhanced business case analysis capability
  – which comprehensively ensures that investment
  alternatives include all applicable end-to-end costs – to
  enable the most effective investment decisions.
SE-2: Achieve significant price reductions across DLA’s
materiel and services acquisitions. OPR: J7
■ Focus engagements with industry partners.
■ Apply innovative acquisition approaches, such as
  optimizing the use of reverse auctions across DLA.
SE-3: Implement a more efficient and effective global
supply support network for storage and distribution
across all materiel classes of supply. OPR: J3
■ Reduce dormant or unserviceable materiel levels,
  optimize DLA’s related storage posture, and coordinate
  disposition of surplus facilities with the host activity in
  areas such as:
  ◗ Departmental process and policy assessments
     regarding retention stocks, war reserves and
     reimbursable support pricing for related storage.
  ◗ Alternative approaches to ensure adequate supply
     availability via contracting for related capabilities,
     host-nation support and other techniques as
     applicable to the particular class of supply.
■ Capitalize on synergies between DLA’s disposal,
  distribution and strategic material storage processes
  and facilities.




50 Years of Combat Logistics Excellence

                                                                |9
Synchronize above actions with related             Identify and implement training needed to
SteWArDShIp exCeLLenCe

                         ■                                                    ■
                             ongoing strategic initiatives such as:             improve acquisition practices.
                             ◗ DLA’s Strategic Network Optimization           ■ Assess potential expansion of the Joint
                                (SNO) project.                                  Contingency Acquisition Support Office
                             ◗ The U.S. Transportation Command and              (JCASO) role in contingency and other forward
                                DLA-led, Joint Staff-sponsored Consolidated     support environments.
                                Materiel Response Program (CMRP).             ■ Achieve small-business objectives in
                                                                                support of departmental goals and related
                         SE-4: Implement DLA-driven post-Base
                                                                                customer benefits.
                         Realignment and Closure (BRAC) support
                         efficiencies at the Service industrial sites.        SE-6: Implement information technology
                         OPR: J3                                              enhancements to facilitate improved customer
                                                                              support and process efficiency. OPR: J6
                         ■ Define and baseline existing Service and
                           DLA processes.                                     ■ Deploy enterprise applications to include
                         ■ Define opportunities for optimization                EProcurement, Energy Convergence,
                           in collaboration with stakeholders, both             Reutilization Initiative and Supply, Storage
                           in functional realignments and process               and Distribution (SS&D) / Inventory Process
                           improvements.                                        Optimization (IPO) in accordance with
                         ■ Identify and execute “quick-win”
                                                                                negotiated schedules.
                           opportunities for early implementation.            ■ Continue the sustained focus on preventing

                         ■ Develop a plan of actions and milestones to
                                                                                cybersecurity issues while including expanded
                           pursue longer-term optimization efforts.             mobile devices into the inventory.
                                                                              ■ Standardize and integrate sustainment
                         SE-5: Identify and implement improved                  processes and management tools to ensure
                         acquisition execution practices across all DLA         minimal disruption when implementing
                         supply chains. OPR: J7                                 new capabilities.
                         ■ Complete a comprehensive analysis of recent        ■ Identify and execute Continuous Process
                           audit findings, establish plans, and address         Improvement projects to reduce lead
                           deficiencies in priority order.                      times required to implement key system
                         ■ Improve acquisition execution accountability         change requests.
                           standards, practices and outcomes across
                           the Agency.




                                                DEFENSE LOGISTICS AGENCY
                                                2012 DIRECTOR’S GUIDANCE
                         10 |
SteWArDShIp exCeLLenCe
SE-7: Mitigate significant known or potential          ◗  Sustain heightened cybersecurity
risks to mission accomplishment and efficiency.           awareness and issue prevention. (OPR: J6)
OPR: J5 with support across DLA                        ◗ Capitalize on various review processes
■ Execute DLA’s annual Enterprise Risk                    to prevent potential procurement fraud
  Management (ERM) process to help identify               and other risks to effective acquisition
  significant risks and influence related planning        performance. (OPR: J7)
  for audits, attestations, crime vulnerability        ◗ Implement enhanced planning processes to
  assessments, and various other management               improve investment decisions. (OPR: J3)
  reviews. (OPR: J5)                                   ◗ Include appropriate consideration
■ Continue focused vulnerability mitigation               of Warfighter risks associated with
  efforts in areas such as:                               infrastructure and inventory reductions
  ◗ Pursue additional tools and techniques                pursued under initiative SE-3. (OPRs: J3
      to identify and prevent receipt of non-             and the PLFAs)
      conforming or counterfeit parts, to include    ■ Leverage DLA Inspector General (OIG)
      using additional sampling techniques and         capabilities in support of enhanced risk
      DNA marking. (OPR: J3)                           management and mission outcomes.
                                                       (OPR: OIG)




50 Years of Combat Logistics Excellence

                                                                                                | 11
WOrKFOrCe DeveLOpMent




                               DEFENSE LOGISTICS AGENCY
                               2012 DIRECTOR’S GUIDANCE
                        12 |
WOrKFOrCe DeveLOpMent
Workforce Development
DLA’s workforce is vital to our current and long-term     ■   Identify and implement best practices that support
success in effectively supporting Warfighters at              improvement in participation rates among key
optimal cost. We must further enable employees to             under-represented groups.
capitalize on their skills, experience and potential to   ■   Assess Equal Employment Opportunity complaints
support DLA’s mission.                                        and findings to facilitate changes to hiring and
                                                              selection practices.
Workforce Development (WD) FY 2012 Initiatives:
                                                          ■   Use targeted recruitment to increase the diversity
WD-1: Assess and improve hiring and selection                 of the applicant supply.
policies and practices to ensure a diverse, high-         ■   Enhance training provided to hiring managers and
performing workforce. OPR: J1                                 selecting officials.
■   Review current policies on selection                  ■   Assess and refine the agency’s executive
    authorities across the Agency and implement               development practices.
    appropriate changes.




50 Years of Combat Logistics Excellence

                                                                                                            | 13
WOrKFOrCe DeveLOpMent

                                                WD-2: Improve DLA’s
                                                organizational and individual
                                                performance management
                                                practices. OPR: J1
                                                ■ Implement refresher
                                                  training on all aspects of the
                                                  performance management
                                                  process for supervisors
                                                  and managers.
                                                ■ Review rewards and
                                                  recognition policies
                                                  and practices to ensure
                                                  alignment of organizational
                                                  performance, individual
                                                  achievement and
                                                  employee recognition.
                                                ■ Use the beneficial suggestion
                                                  program and performance
                                                  management process to
                                                  increase employees’ focus on
                                                  achieving possible process
                                                  improvements and
                                                  cost reductions.




                               DEFENSE LOGISTICS AGENCY
                               2012 DIRECTOR’S GUIDANCE
                        14 |
Staying the Course
FY 2012 will clearly be another demanding year for DLA      our business performance, assess other critical issues,
and all we serve. We must sustain our commitment to the     and guide implementation of the initiatives in the
above 16 initiatives to help meet desired outcomes in our   Director’s Guidance for FY 2012. The Executive Board
three strategic focus areas.                                will track status and help remove obstacles that might
                                                            prevent effective progress on these initiatives. We will
The DLA Executive Board, representing the Agency’s most
                                                            periodically post developments on DLA’s public website
senior leadership, meets monthly to oversee
                                                            at www.dla.mil.




50 Years of Combat Logistics Excellence

                                                                                                                  | 15
DEFENSE LOGISTICS AGENCY AGENCY
              DEFENSE LOGISTICS
       2012 DIRECTOR’S GUIDANCE
       50 Years of2012 DIRECTOR’S GUIDANCE
                  Combat Logistics Excellence
16 |
Doing What is Right for the Armed Forces and DoD


www.dla.mil

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Dla 2012 dg_web final

  • 1. 2012 DIRECTOR’S GUIDANCE WARfIGhTER-fOCUSED, GlObAlly RESpONSIvE, fISCAlly RESpONSIblE SUpply ChAIN lEADERShIp
  • 2.
  • 3. DeFenSe LOGIStICS AGenCY Fiscal Year 2012 Director’s Guidance Intent Fiscal year (FY) 2012 poses many challenges for America’s Warfighters and all who support them. We are a country at war, dealing with multiple security interests worldwide in an evolving and increasingly complex economic and political environment. Our customers face numerous issues related to these factors, including emerging resource constraints and the need to reconstitute key assets that were heavily used over the past decade. In turn, the Defense Logistics Agency (DLA) just reached 50 years of providing increasingly expansive supply and distribution services, both across the Defense Department and to select customers outside the Department. As DoD’s only logistics Combat Support Agency, we provide direct support and play a major role across DoD’s global supply chain. We expect significant change in our environment in the coming year and will use this guidance to steer our preparations and measure our progress in the three main focus areas of our FY 2012 Director’s Guidance: Warfighter Support, Stewardship Excellence, and Workforce Development. Mission As America’s Combat Logistics Support Agency, we provide effective and efficient worldwide support to Warfighters and our other customers. We receive guidance from the Assistant Secretary of Defense (Logistics and Materiel DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 50 Years of Combat Logistics Excellence |1
  • 4. Readiness), and as a statutory Combat Support and other logistics information, and supplying Agency we report to the chairman, Joint a wide range of document services. We support Chiefs of Staff and the Combatant Commands U.S. allies through Foreign Military Sales and in providing worldwide logistics support to are a vital contributor whenever this country deployed forces. undertakes humanitarian relief efforts at home or abroad. We provide human resources DLA is responsible for sourcing and providing management and workforce development most of the repair parts and virtually all fuel services to other DoD components. and troop support consumable items used by our military forces. We also procure Service- Overall, our nearly 27,000 military and civilian managed depot-level reparables. In addition, personnel operate a global logistics enterprise DLA provides a broad array of supporting worth more than $40 billion in 28 countries, supply chain management services, including managing nearly 5 million items in eight storage and distribution, reutilization or supply chains. disposal of surplus military assets, managing Defense strategic materiels, providing catalogs DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 2|
  • 5. Vision StrAteGIC FOCuS AreAS Warfighter-focused, globally responsive, Our three strategic focus areas continue to fiscally responsible supply chain leadership. define our principal thrusts. They are: Values n Warfighter Support: Deliver agile and Our values are DLA’s foundation for all we do, responsive logistics solutions to Warfighters. our basic guiding principles: n Stewardship Excellence: Manage DLA ■ Warfighter needs guide us. processes and resources to deliver effective ■ Integrity defines us. Warfighter support at optimal cost. ■ Diversity strengthens us. n Workforce Development: Foster a diverse ■ Excellence inspires us. workforce, supporting culture and related personnel practices to deliver sustained mission excellence. 50 Years of Combat Logistics Excellence |3
  • 6. DLA’S FY 2012 InItIAtIveS WArFIGhter SuppOrt Warfighter Support ◗ DLA Energy In FY 2012, as in every year, DLA’s top priority ◗ DLA Land and Maritime is Warfighter Support. This includes logistics ◗ DLA Troop Support support of the readiness and sustainment Warfighter Support (WS) FY 2012 Initiatives: of America’s Warfighters themselves, and of industrial activities and others whose efforts WS-1: Support operational requirements are critical to preserving and enhancing our and force drawdown / equipment reset nation’s and our allies’ defense postures. processes in the Southwest Asia theater. OPR: J3 DLA Offices of Primary Responsibility (OPR) coordinate with other DLA offices and, as ■ Enhanced support in Afghanistan. appropriate, with partners and stakeholders ◗ Meet current and emergent external to the DLA enterprise. An OPR critical weapons systems readiness glossary is provided below. requirements. ■ DLA’s Headquarters Organizations: ◗ Optimize DLA’s use of the Northern J1, DLA Human Resources ◗ Distribution Network (NDN). ◗ J3, DLA Logistics Operations ◗ Support the “South Caucasus/Central and South Asian States (SC/CASA) ◗ J5, DLA Strategic Plans and Policy First” policy for acquisition of supplies ◗ J6, DLA Information Operations in theater. ◗ J7, DLA Acquisition ◗ Enhance outcomes at Defense Depot ◗ J8, DLA Finance Kandahar, Afghanistan, (DDKA) and ◗ JCASO, Joint Contingency Acquisition through the Theater Consolidation Support Office and Shipping Point (TCSP) initiative. ◗ DO, Equal Employment Opportunity ◗ Sustain forward disposal support. ■ DLA’s Primary Level Field Activities ■ Establish the foundation for controlled (PLFAs): and expeditious redistribution and ◗ DLA Aviation retrograde of materiel aligned to troop employment in Afghanistan for FY 2012. ◗ DLA Disposition Services ■ Support operations in Iraq that include ◗ DLA Distribution responsible drawdown in the Iraqi theater DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 4|
  • 7. WArFIGhter SuppOrt and the in-country transitioning effort from Defense Department to State Department (DoS). ■ Provide right-sized logistics support in areas adjacent to Iraq. WS-2: Improve DLA’s support performance at Service industrial sites and prepare to meet additional equipment reset-driven requirements. OPR: J3 ■ Pursue improvement in key customer-oriented metrics to reflect DLA’s role in logistics support of industrial maintenance. ■ Implement Inventory Management and Stock Positioning (IMSP), Distribution Standard System (DSS) and associated process improvements at industrial sites to support enhanced operations. ■ Participate directly in planning for and supporting Service asset reset actions at industrial sites (retrograde, reset and redistribution). WS-3: Engage with customers and external stakeholders to drive additional DLA support improvements worldwide. OPR: J3 ■ Energize the DLA Customer Relationship Management process. ■ Continue development of DLA’s role and outreach in the whole of government logistics support process in humanitarian crises and other situations. ■ Effectively leverage observations from the 2010 Joint Staff Combat Support Agency Review Team (CSART) to enhance COCOM support. 50 Years of Combat Logistics Excellence |5
  • 8. WArFIGhter SuppOrt ■ Continue involvement in Joint Staff J4 ■ Provide acquisition support for the (Logistics) efforts to enhance coordination of 2012 Navy Green Fleet local operations joint supply actions and processes. demonstration. ■ Conduct annual survey of customers and WS-6: Enhance DLA Strategic Materials other stakeholders to pursue additional program to meet emerging support performance improvements. requirements. OPR: J7 WS-4: Provide a portfolio of best-value ■ Complete the implementation plan for product support strategies. OPR: J3 transformation of the DLA Strategic Materials ■ Develop cross-Service opportunities to program and obtain congressional approval apply Performance Based Logistics (PBL) to streamline select National Defense and DLA organic solutions to provide Stockpile processes. best-value support. ■ Complete the rare earth study to identify ■ Engage with acquisition weapons system critical items warranting strategic programs to ensure DLA participation in inventory support. their product support strategies. ■ Partner with other departments and ■ Align DLA’s processes and leverage DLA’s agencies to address additional strategic capabilities to better support customer materials issues and develop risk- outcomes in PBL and other contractor mitigation strategies. support logistics scenarios. WS-7: Continue efforts in partnership WS-5: Support the Department’s Operational with the Military Services to upgrade the Energy strategy to enhance warfighter Technical Data Exchange process to enhance agility. OPR: DLA Energy weapon systems support processes. OPR: J3 ■ Support DoD efforts in alternative fuel policy ■ Enhance Technical Data Exchange practices development and supply chain integration. and finalize related functional requirements ■ Support the Title III Biorefinery Development for initial prototyping with the Army’s TACOM initiative co-led by the Department of Life Cycle Management Command (LCMC). the Navy, Department of Energy and ■ Incorporate Technical Data Exchange system Department of Agriculture. requirements into planning for the Product Development Management Initiative (PDMI) upgrade project. DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 6|
  • 9. WArFIGhter SuppOrt 50 Years of Combat Logistics Excellence |7
  • 10. SteWArDShIp exCeLLenCe Stewardship Excellence DLA continues to assess current and potential Stewardship Excellence (SE) FY 2012 roles and related processes to ensure we deliver Initiatives: maximum payoff from taxpayer resources SE-1: Implement comprehensive cost while effectively supporting Warfighters. This analysis capabilities that help drive includes due consideration of risk management improved resource utilization for major factors such as ensuring spare parts conform internal DLA cost drivers. OPR: J8 to established standards and preventing the compromise of critical information. ■ Extend the DLA financial metric scorecard pilot across the agency to improve awareness of related metrics and determine strategies for potential cost reductions. DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 8|
  • 11. Implement a DLA-developed “financial impact on SteWArDShIp exCeLLenCe ■ performance model” to support key decision steps regarding significant resource investments in the Program Budget Review (PBR) 14 process. ■ Implement an enhanced business case analysis capability – which comprehensively ensures that investment alternatives include all applicable end-to-end costs – to enable the most effective investment decisions. SE-2: Achieve significant price reductions across DLA’s materiel and services acquisitions. OPR: J7 ■ Focus engagements with industry partners. ■ Apply innovative acquisition approaches, such as optimizing the use of reverse auctions across DLA. SE-3: Implement a more efficient and effective global supply support network for storage and distribution across all materiel classes of supply. OPR: J3 ■ Reduce dormant or unserviceable materiel levels, optimize DLA’s related storage posture, and coordinate disposition of surplus facilities with the host activity in areas such as: ◗ Departmental process and policy assessments regarding retention stocks, war reserves and reimbursable support pricing for related storage. ◗ Alternative approaches to ensure adequate supply availability via contracting for related capabilities, host-nation support and other techniques as applicable to the particular class of supply. ■ Capitalize on synergies between DLA’s disposal, distribution and strategic material storage processes and facilities. 50 Years of Combat Logistics Excellence |9
  • 12. Synchronize above actions with related Identify and implement training needed to SteWArDShIp exCeLLenCe ■ ■ ongoing strategic initiatives such as: improve acquisition practices. ◗ DLA’s Strategic Network Optimization ■ Assess potential expansion of the Joint (SNO) project. Contingency Acquisition Support Office ◗ The U.S. Transportation Command and (JCASO) role in contingency and other forward DLA-led, Joint Staff-sponsored Consolidated support environments. Materiel Response Program (CMRP). ■ Achieve small-business objectives in support of departmental goals and related SE-4: Implement DLA-driven post-Base customer benefits. Realignment and Closure (BRAC) support efficiencies at the Service industrial sites. SE-6: Implement information technology OPR: J3 enhancements to facilitate improved customer support and process efficiency. OPR: J6 ■ Define and baseline existing Service and DLA processes. ■ Deploy enterprise applications to include ■ Define opportunities for optimization EProcurement, Energy Convergence, in collaboration with stakeholders, both Reutilization Initiative and Supply, Storage in functional realignments and process and Distribution (SS&D) / Inventory Process improvements. Optimization (IPO) in accordance with ■ Identify and execute “quick-win” negotiated schedules. opportunities for early implementation. ■ Continue the sustained focus on preventing ■ Develop a plan of actions and milestones to cybersecurity issues while including expanded pursue longer-term optimization efforts. mobile devices into the inventory. ■ Standardize and integrate sustainment SE-5: Identify and implement improved processes and management tools to ensure acquisition execution practices across all DLA minimal disruption when implementing supply chains. OPR: J7 new capabilities. ■ Complete a comprehensive analysis of recent ■ Identify and execute Continuous Process audit findings, establish plans, and address Improvement projects to reduce lead deficiencies in priority order. times required to implement key system ■ Improve acquisition execution accountability change requests. standards, practices and outcomes across the Agency. DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 10 |
  • 13. SteWArDShIp exCeLLenCe SE-7: Mitigate significant known or potential ◗ Sustain heightened cybersecurity risks to mission accomplishment and efficiency. awareness and issue prevention. (OPR: J6) OPR: J5 with support across DLA ◗ Capitalize on various review processes ■ Execute DLA’s annual Enterprise Risk to prevent potential procurement fraud Management (ERM) process to help identify and other risks to effective acquisition significant risks and influence related planning performance. (OPR: J7) for audits, attestations, crime vulnerability ◗ Implement enhanced planning processes to assessments, and various other management improve investment decisions. (OPR: J3) reviews. (OPR: J5) ◗ Include appropriate consideration ■ Continue focused vulnerability mitigation of Warfighter risks associated with efforts in areas such as: infrastructure and inventory reductions ◗ Pursue additional tools and techniques pursued under initiative SE-3. (OPRs: J3 to identify and prevent receipt of non- and the PLFAs) conforming or counterfeit parts, to include ■ Leverage DLA Inspector General (OIG) using additional sampling techniques and capabilities in support of enhanced risk DNA marking. (OPR: J3) management and mission outcomes. (OPR: OIG) 50 Years of Combat Logistics Excellence | 11
  • 14. WOrKFOrCe DeveLOpMent DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 12 |
  • 15. WOrKFOrCe DeveLOpMent Workforce Development DLA’s workforce is vital to our current and long-term ■ Identify and implement best practices that support success in effectively supporting Warfighters at improvement in participation rates among key optimal cost. We must further enable employees to under-represented groups. capitalize on their skills, experience and potential to ■ Assess Equal Employment Opportunity complaints support DLA’s mission. and findings to facilitate changes to hiring and selection practices. Workforce Development (WD) FY 2012 Initiatives: ■ Use targeted recruitment to increase the diversity WD-1: Assess and improve hiring and selection of the applicant supply. policies and practices to ensure a diverse, high- ■ Enhance training provided to hiring managers and performing workforce. OPR: J1 selecting officials. ■ Review current policies on selection ■ Assess and refine the agency’s executive authorities across the Agency and implement development practices. appropriate changes. 50 Years of Combat Logistics Excellence | 13
  • 16. WOrKFOrCe DeveLOpMent WD-2: Improve DLA’s organizational and individual performance management practices. OPR: J1 ■ Implement refresher training on all aspects of the performance management process for supervisors and managers. ■ Review rewards and recognition policies and practices to ensure alignment of organizational performance, individual achievement and employee recognition. ■ Use the beneficial suggestion program and performance management process to increase employees’ focus on achieving possible process improvements and cost reductions. DEFENSE LOGISTICS AGENCY 2012 DIRECTOR’S GUIDANCE 14 |
  • 17. Staying the Course FY 2012 will clearly be another demanding year for DLA our business performance, assess other critical issues, and all we serve. We must sustain our commitment to the and guide implementation of the initiatives in the above 16 initiatives to help meet desired outcomes in our Director’s Guidance for FY 2012. The Executive Board three strategic focus areas. will track status and help remove obstacles that might prevent effective progress on these initiatives. We will The DLA Executive Board, representing the Agency’s most periodically post developments on DLA’s public website senior leadership, meets monthly to oversee at www.dla.mil. 50 Years of Combat Logistics Excellence | 15
  • 18. DEFENSE LOGISTICS AGENCY AGENCY DEFENSE LOGISTICS 2012 DIRECTOR’S GUIDANCE 50 Years of2012 DIRECTOR’S GUIDANCE Combat Logistics Excellence 16 |
  • 19.
  • 20. Doing What is Right for the Armed Forces and DoD www.dla.mil