News & Announcements
|Base Realignment, Closure 2005 garners major savings|
|Department of Defense & Federal Agency Documents|
|Tuesday, 08 November 2011 01:00|
Defense Logistics Agency - November 8, 2011, By Sara Moore
The 2005 Base Realignment and Closure legislation required the Defense Logistics Agency to change some of its business practices and take on new missions, but it also saved a lot of money and set the stage for future efficiencies.
For DLA, the largest BRAC 2005-related effort was implementing the three BRAC supply and storage recommendations: commodity management privatization; depot-level reparable procurement management consolidation; and supply, storage and distribution management reconfiguration. These initiatives focused on integrating supply chains through the realignment and consolidation of similar logistics operations across the Defense Department.
From fiscal 2006 to fiscal 2011, DLA, in collaboration with the military services, implemented 109 actions related to BRAC 2005 supply and storage and saved more than $1 billion, said Louise Terrell, executive director of strategic programs and initiatives in DLA Logistics Operations. That savings breaks down to $634 million in inventory-related savings, $274.7 million in facilities savings, $75.1 million in personnel savings and $36.5 million in other savings, she said, adding that the Defense Department is projected to continue saving $257.4 million annually. A lot of these savings came from reducing inventory and consolidating warehouse space throughout the agency, she noted.
Beyond the money savings, BRAC 2005 supply and storage accomplishments include: a new mission in depot-level reparable procurement management and responsibilities in industrial depot maintenance, the transfer of more than 2,500 full-time positions from the military services to DLA in support of the new missions, the privatization of supply support for certain items, the transfer of additional consumable items from the military services to DLA, inventory consolidation and changes in support to military industrial customers, and the reconfiguration of DoD’s U.S. distribution network.
To view the full document at the source publication, go to http://www.dla.mil/dla_media_center/Pages/newsarticle201111080851.aspx.
The information above is for general awareness only and does not necessarily reflect the views of the Office of Economic Adjustment or the Department of Defense as a whole.