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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1. MANAGING NAVY MEDICINE’S CONTRACTING CAPABILITY Resource, Logistics & Analytics
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.
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.
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
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
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