WARFIGHTERFOCUSED GLOBALLY RESPONSIVE FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DLA Prime Vendors and MIPR Replacement WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 1

Deliver the right solution on time, every time Special Operational Equipment Tailored Logistics Support • Life Vests • Life Rafts • Sights and • Sonar Devices Mounts • Assault Ladders • Search Lights • Tactical Lights • Eyewear Major Customers Suppliers • PEO Soldier • NAVSUP • USA Rapid Equipping Force • Naval Special Forces • ADS Inc • Source One Distributors • Tactical & Survival Specialties • WS Darley & Co • Federal Resources • Quantico Tactical • Masks • Diving Helmets • Regulators • Dry/Wet Suits • Cylinders • Umbilical Lines FY 14 Army MIPR Sales $243. 87 M 2

Deliver the right solution on time, every time Maintenance Repair & Operations (MRO) Supplies Tailored Logistics Support Major Customers Suppliers • AMC • ARCENT • NAVFAC • • Graybar Supply Core SAIC Theodor Wille Intertrade • ADS • Noble Supply • Electrical • Plumbing • HVAC • Paint • Lumber • Tools • Hardware • Building Supplies • Incidental Services FY 14 Army MIPR Sales $175. 6 M 3

Deliver the right solution on time, every time Heavy Equipment Long Term Contracts Major Customers Suppliers • Warner Robins ALC • Navy Gulfport • Navy Port Hueneme • TACOM • • • Caterpillar Terex John Deere Oshkosh Link-Belt • Construction Equipment • Material Handling Equipment • Fire Fighting & Rescue Vehicles • Environmental Products • Agriculture • Cranes • Trucks and Trailers FY 14 Army MIPR Sales $57. 1 M 4

Deliver the right solution on time, every time Fire & Emergency Services Equipment Tailored Logistics Support Major Customers Suppliers • Shaw AFB • US NORTHCOM • Wright Patterson AFB • Navy Expeditionary Combat Command • Fort Bliss • • • ADS Inc WS Darley & Co L. N. Curtis & Sons Mallory Co Federal Resources Unifire • Fire alarm systems • Suppression, Surveillance, Emergency Station Vehicle Exhaust & Vent Systems • Breathing Apparatus • Hoses • Nozzles • Thermal imaging equipment • Ladders • Extinguishers • First Responder Training • Repair & Overhaul of items provided FY 14 Army MIPR Sales $90. 7 M Equipment Systems Training 5

Deliver the right solution on time, every time Metals Program Tailored Logistics Support Major Customers Suppliers • USA Afghanistan • Metals USA • Rock Island • TW Metals • Norfolk Naval Shipyard • Puget Sound Naval Shipyard • USA Depot Letterkenny • Ferrous, nonferrous and specialty metals • Angle, Bar, Extrusions, Related incidental Sheet, Strip, Screen, Plate services: Cutting, shearing, testing, scrap removal and salvage FY 14 Army MIPR Sales $2. 7 M 6

WARFIGHTER-FOCUSED, GLOBALLYRESPONSIVE, FISCALLYRESPONSIBLESUPPLYCHAINLEADERSHIP Basic TVR Order MIPR Process 1. Customer submits order request. 2. DLA reviews request for price/scope. Delays 4. Customer requests funding from their Finance who prepares MIPR. 5. Customer submits MIPR with order to DLA. 6. DLA accepts MIPR. Customer Finance obligates MIPR. 7. DLA ERP assigns MIPR code to use on sales orders. 8. Vendor submits 855 EDI order w/MIPR code to DLA – creates sales order, purchase order. 9. Vendor ships material, invoices DLA. Error Risks 10. DLA pays vendor. 11 DLA records a bill to the customer; 12. DFAS IPACS customer funds against MIPR number transferring funds to DLA to clear bill. WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 7

WARFIGHTER-FOCUSED, GLOBALLYRESPONSIVE, FISCALLYRESPONSIBLESUPPLYCHAINLEADERSHIP DLA’s Audit Concerns and Goals • Military Interdepartmental Purchase Requests (MIPRs) - Issue: Reliance on the manual MIPR process allows for errors and slows Customer Order close out and DLA cash collection - Goal: Eliminate customer use of MIPRs to the fullest extent • Material Receipt Acknowledgements (MRAs) - Issue: Lack of consistent Material Receipt Acknowledgements - Goal: Achieve 99%? MRA rate • Accountability - Issue: Customers billed generic non-NSN - Goal: Improve Asset Visibility and accountability WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 8

WARFIGHTER-FOCUSED, GLOBALLYRESPONSIVE, FISCALLYRESPONSIBLESUPPLYCHAINLEADERSHIP Way Ahead • DLMS Solution • 511 R - Allows additional information to be sent from Army systems to DLA • Data requirements are commercially based EDI transactions and DLA needs information on orders to make the buy; • Examples: Vendor name; commercial P/N; item description; any additional identifying information; colors; MFG POC's/websites; special product data; special delivery instructions (Bill of Materials), etc. • DLA internal and system processes will require modification to support Army prior to implementation WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 9