MANAGING NAVY MEDICINE S CONTRACTING CAPABILITY

MANAGING NAVY MEDICINE S CONTRACTING CAPABILITY PowerPoint PPT Presentation


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TOPICS. Contracting AuthorityWhat does NAVSUP do for us?Who contracts for Navy Medicine requirements?Contracting versus orderingWhat is a Lead Contracting Executive?. FOR OFFICIAL USE ONLY. 2. CONTRACTING AUTHORITY. Inherent in the Constitution (Section VIII . . .

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MANAGING NAVY MEDICINE S CONTRACTING CAPABILITY

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1. MANAGING NAVY MEDICINE’S CONTRACTING CAPABILITY Resource, Logistics & Analytics Symposium 2011 Gilbert Hovermale Director, Acquisition Management Naval Medical Logistics Command

2. TOPICS Contracting Authority What does NAVSUP do for us? Who contracts for Navy Medicine requirements? Contracting versus ordering What is a Lead Contracting Executive? FOR OFFICIAL USE ONLY 2

3. CONTRACTING AUTHORITY Inherent in the Constitution (Section VIII . . . “To provide and maintain a Navy . . .) Authority vested in head of the agency Within DOD: Secretary of Defense, Secretaries of the Army, Navy, Air Force Assistant Secretary of the Navy for Research, Development, and Acquisition – ASN (RDA) executes contracting authority on behalf of SECNAV Policy arm – Deputy Assistant Secretary of the Navy for Acquisition and Logistics Management – DASN (A&LM) FOR OFFICIAL USE ONLY 3

4. FOR OFFICIAL USE ONLY 4 CONTRACTING AUTHORITY (2) ASN (RDA) delegates contracting authority to Heads of Contracting Activities (HCAs). Commander, Naval Supply Systems Command is BUMED’s HCA COMNAVSUPSYSCOM delegates contracting authority to Chiefs of Contracting Offices (CCOs) within COMFISC and the Navy Field Contracting System. CCOs appoint individuals who have been selected and trained as contracting officers.

5. What Does Our HCA Do For Us? Receives, interprets, and issues policy and guidance Provides reports and information to ASN (RDA) Maintains a system of monitoring and inspection of BUMED acquisition offices Reviews and approves individual actions above designated thresholds Represents BUMED’s interests on ASN (RDA) policy councils and in decisions regarding contract writing and reporting systems FOR OFFICIAL USE ONLY 5

6. Should BUMED Be Its Own HCA? Does a seat at the ASN table make us an equal? What will the infrastructure (analysts, lawyers, systems, travel) cost? What will the investment in infrastructure buy us? The key question: Would being our own HCA give us the opportunity to write procurement rules that recognize the unique challenges associated with the commodities we buy? FOR OFFICIAL USE ONLY 6

7. FY09 & FY10 EQUIPMENT, SUPPLIES & SERVICES TOTAL SPEND (All Appropriations)

8. DMLSS SPEND TREND

9. CONTRACT SUPPORT TREND

10. CONTRACTING DISTRIBUTION

11. FY10 FISC SUPPORT

12. TOP 8 CONTRACTED PRODUCT & SERVICES

13. NMLC GROWTH IN OBLIGATIONS

14. ORDERING – AN IMPORTANT CAPABILITY Ordering against DLA e-Commerce vehicles Ordering against GSA and VA schedules Distributed ordering as part of Strategic Sourcing initiatives FOR OFFICIAL USE ONLY 14

15. NAVY MEDICINE STRATEGIC SOURCING Goal: Conduct Strategic Sourcing studies and analysis that will lead to strategies that yield cost savings, purchasing efficiencies thru distributed ordering from NMLC, and improved quality of care thru standardization. Process: Commodity Profile Market Analysis Develop Commodity Strategy Implement Commodity Strategy Enterprise IDIQ contracts with distributed ordering

16. NAVY MEDICINE STRATEGIC SOURCING Outcome of FY10 Spend Analysis: Endoscopy Equipment Requirements 3 current vendors – may be consolidated to one Savings possible from aggregating demand, consolidating vendors, negotiating maintenance up front Laboratory Equipment, Supplies & Testing Services Equipment + reagents + maintenance or cost-per-test Potential savings through demand aggregation easily 20% Sterilizer Equipment Requirements Highest maintenance cost in the hospital Savings possible from negotiating maintenance costs up front, aggregating demand and consolidating vendors Medical Equipment Maintenance Negotiate maintenance up front when buying equipment Issue enterprise-wide maintenance contracts when not buying equipment. Implants Most frequently demanded commodity purchased via direct contracting for 3 consecutive years Objective is to consolidate from 12 vendors to 3 or 4

17. BUMED LEAD CONTRACTING EXECUTIVE An Echelon 2 function Objectives: Help make BUMED Contracting Capability more robust by adopting an Enterprise perspective to what is currently a collection of individually managed elements Help the HCA by providing analysis, recommendations, and assisting with oversight FOR OFFICIAL USE ONLY 17

18. BUMED LCE FUNCTIONS DAWIA Program Manager Collect and analyze Enterprise metrics Authority recommendations Collect and promulgate procurement best practices Lead strategic sourcing commodity management FOR OFFICIAL USE ONLY 18

19. FINAL TAKE AWAYS BUMED’s contracting capability is really a network of support provided organically and by mission partners outside Navy Medicine. Contracting capability can be effectively augmented by robust ordering authority, utilizing existing DLA, GSA/VA vehicles and planned strategic sourcing enterprise IDIQ contracts. BUMED LCE will attempt to serve the Enterprise and assist the HCA by tying the disparate pieces together. FOR OFFICIAL USE ONLY 19

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