nswc centralized range procurement for the us army srp pmr as of 1515 3 sep 2014 with notes

Centralized Range Procurement Project

Naval Special Warfare Command (NSWC)

9 SEP 2014

Presented by LTC Marshal Oller, US Army Operations Liaison to CDR, NSWC

Agenda

• NSWC Range Enterprise

• Problem Statement

• Current Range Supply Process

• Data Collection Plan

• Cost of Price Variation

• Voice of the Business

• Analysis of IMPACT Credit Card Transactions

• Future Range Supply Process

• Proposed End State

• Collaborative Way Ahead

2 Centralized Range Procurement

Project

NSWC Range Enterprise


3

Problem Statement

4

Problem Statement Provide a multiyear centralized material acquisition contract that standardizes range enterprise procurement actions. The process to improve begins with a Range Manager identifying a material requirement and ends with delivery of the required item accompanied by the transactional data transmission. Improving this process will increase the Range Enterprise’s collective buying power, improve procurement responsiveness and reduce the Range Managers workload. Benefits to Business • Improved transactional visibility • Increased material consistency • Decreased workload on contracting officials • Reduced fraud, waste and abuse

Benefits to Customers • Automated ordering process • Reduced order cycle time • Simplified procurement process • Improved reporting and visibility


SIPOC –Centralized Range Procurement Process (VOP)

• Home Depot

• Lowes

• Dixeland

• SAIC

• Grainger

• USN FISC

• GSA

• DOD Emall

• Range

Request

• Supply request

• Items

consumed in

training

• On hand

Supply Inventory

• Supply request

• Purchase

document

• Bill / Bill of

Lading

• Receipt

• Inventory list

• Monthly

statement

• Transaction

report

• Range

Manager

• Range Director

• NSWC N31 /

N3

• SEAL /

SWCCs teams

• Automated

process > 30

minutes

• Standard item

pricing and

delivery costs

• Transactional

visibility < 75%

• Reduced order

cycle time > 5

days

• Monthly

financial and

transactional

reports

Step 1: Range

Complex event

(Item expended)

Step 2:

Replenishment

stock depleted

(Requirement

identified)

Step 3: Shopping

list created,

validated

(procurement

method

determined)

Step 4: Orders <

$3K purchased

by KO; Orders >

$3K procured

using a supply

GPC

Step 5: Order

picked up /

shipped /

received and

inventoried at

supply hub

Step 6: Items

stored at

warehouse,

delivered to local

range complex or

transshipped to

another range

complex

Suppliers Inputs Process Outputs Customers Requirements

Data Collection Plan


Performance Measure

Operational Definitions

Data Source How will the data be collected?

Who will collect data?

When will data be collected?

Sample size

How will data be used?

VOC Internal Customer Requirements

Range Directors input

Email / Verbal

Project Leader

Biweekly

100% Drive goals of project

VOB Internal Business Requirements

IMPACT CC reports, Transactional reports, Budget execution data

Automated reporting

Project Leader

Biweekly 100%

Drive goals of project

Procurement Efficiency

Reduction of price variability


Automated reporting

Team Member

Biweekly 100%

Assess procurement efficiency

Procurement Compliance

Reduction of IMPACT CC use


Automated reporting

Team Member

Biweekly 100%

Assess procurement compliance

Procurement Effectiveness

Evaluation of the BPA, the catalog list and vendor metrics

BPA, IMPACT CC reports, Transactional reports, Budget execution data, customer evals, COR evaluations

Email / Verbal, Automated reporting

Project Leader / Team Members

Quarterly 100% Assess procurement methodology and process variation


7

Cost of Price Variation

Shopping Cart CATEGORY NOMENCLATURE AVERAGE LOW HIGH AVERAGE LOW HIGH Spread % of variation Cost of Price Variation

1 Wood Products 15/32 in plywood 318 60 576 16.46$ 12.82$ 20.10$ 7.28$ 44% 2,314.29$

2 Wood Products 23/32 in plywood 155.5 23 288 22.12$ 15.00$ 29.25$ 14.25$ 64% 2,215.57$

3 Wood Products 1x2x8 lumber 107.5 100 115 89.29$ 76.91$ 101.66$ 24.74$ 28% 2,659.94$


5 Wood Products 2x4x16 220 120 320 66.41$ 5.16$ 127.66$ 122.50$ 184% 26,950.77$

6 Wood Products 2x4x92 ¼ 1101 1067 1135 2.64$ 1.92$ 3.35$ 1.44$ 54% 1,580.78$




10 Doors 32" X 80" 1-3/8" SLAB 185 70 300 27.87$ 21.45$ 34.28$ 12.83$ 46% 2,373.55$

11 TARGETS 25 Meter Zeroing Target M4 Carbine 1325 1090 1560 0.79$ (0.10)$ 1.67$ 1.77$ 225% 2,340.60$

12 TARGETS 25m Zero Target MK17 Mod 0 SCAR-H SCAR-H (M80)5780 5520 6040 0.25$ 0.07$ 0.42$ 0.35$ 143% 2,038.76$

13 TARGETS operator standards 42840 33360 52320 0.32$ 0.21$ 0.43$ 0.22$ 69% 9,325.95$

15 TARGETS Trans II targets 32040 24120 39960 0.30$ 0.14$ 0.45$ 0.31$ 103% 9,801.13$

16 DOOR KNOBS Door knob 450 40 860 5.79$ 3.92$ 7.65$ 3.73$ 64% 1,678.39$

17 Locks privacy lock 397.5 350 445 7.97$ 5.86$ 10.07$ 4.21$ 53% 1,671.76$

18 MISC Batteries12 Volt, PS-121000U 200 200 200 154.00$ 118.00$ 190.00$ 72.00$ 47% 14,400.00$

19 MISC Filters20 X 25 X 1 750 500 1000 10.50$ 3.00$ 18.00$ 15.00$ 143% 11,250.00$

20 MISC HEPA FilterLRG 34 4 64 154.50$ 112.00$ 197.00$ 85.00$ 55% 2,890.00$

118,004.32$

$13 spread across the range enterprise for (1) door $33 $46

Voice of the Business


• Improve procurement efficiency • Reduce price variation • Decrease staff work load • Ensure regulatory compliance • Increase range operations effectiveness

Shopping cart range of $203.91

Location Store Distance Cart Price

JEBLC, VA Lowes 10.2 544.15$

JEBLC, VA Home Depot 6.8 577.37$

JEBLC, VA Servemart / GSA / UNICOR43.0 671.84$

JEBLC, VA Grainger 12.3 746.30$

LA Posta, CA Lowes 43.3 560.16$

LA Posta, CA Home Depot 27.5 594.94$

LA Posta, CA Servemart / GSA / UNICOR44.2 736.85$

LA Posta, CA Grainger 28.3 748.06$

Stennis, MS Lowes 21.2 545.27$

Stennis, MS Home Depot 9.3 579.02$

Stennis, MS Servemart / GSA / UNICOR41.2 676.19$

Stennis, MS Grainger 40.9 746.22$

PCP, HI Lowes 5.5 572.35$

PCP, HI Home Depot 3.6 607.12$

PCP, HI Servemart / GSA / UNICOR7.5 745.57$


10

Control Chart

11 Centralized Range Procurement Project

Before Project Item

OPS STD TGT

TRANS II TGT

Steel Door

Slab Door

After Process Change

Control Chart


Before Project After Process Change Item

Door Knobs

Privacy Locks

1X2X8

2X6X8

Control Chart


Before Project After Process Change Item

2X12X8

1X4X8

2X4X8

15X32


NSWG1 FY14 Q1-Q3 IMPACT Credit Card Transactions


NSWCEN FY14 Q1-Q3 IMPACT Credit Card Transactions


FY14 Q1-Q3 IMPACT Credit Card Transactions Histograms

19

Voice of the Process (To Be)



Proposed Centralized Range Procurement Vehicle (End state)

Collaborative Way Ahead


Proposed End State – a Centralized Range Supply contract that services US Army, US Army Reserve, US Army NGB and Naval

Special Warfare Command Ranges in CONUS + Alaska and Hawaii

• Does the US Army, US Army Reserve and US Army NGB have the same problem? • Who is the initiative owner?

• What is the project scope?

• When - project timeframe?

• Define • Measure • Analyze • Improve • Control

• Where do we start?

• Component (USA, USAR, NGB) • Geographically (CONUS, IMCOM Region, State) • Complexity (Large, Medium or Small SRP Locations)

• How do we proceed?

• Working group • Tiger team • MBB / BB LSS project


Naval Special Warfare Command (NSWC)

9 SEP 2014

Presented by LTC Marshal Oller, US Army Operations Liaison to CDR, NSWC

nswc centralized range procurement for the us army srp pmr as of 1515 3 sep 2014 with notes

Documents

local range complex

range managers workload

procurement responsiveness

transactional reports

validated procurement

supply hub step

supply gpc step

reduced order cycle