FISC

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Fleet & Industrial Supply Center Norfolk, Virginia Ready. Resourceful. Responsive! FISC Norfolk Contracting Department

Our Vision . . . : 

Our Vision . . . “We are dedicated to providing world-class procurement services to support Fleet, Industrial and Regional customers. Customer satisfaction is our primary measure of success. We will realize this goal through a trained and motivated professional workforce obtaining best value supplies and services efficiently and effectively from quality vendors.” The Navy Field Contracting System

Our Guiding Principles: 

Our Guiding Principles Spend Naval funds like taxpayer dollars – seeking to continuously reduce cost and conserve the taxpayers’ capital Continuously remove government bureaucracy barriers Survey the market for joint or lower cost solutions constantly Use metrics and management tools to achieve results Know the likely outcome of a contract – cost and schedule – when we sign the contract Construct contracts which hold people accountable to a realistic cost target and schedule, recognizing risk

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Over 200 strong and growing! Washington Norfolk Site Norfolk Naval Shipyard Philadelphia Site Charleston – PPMAP only Mechanicsburg Portsmouth Naval Shipyard FISC Norfolk Contracting Department

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DoN CONTRACTING AUTHORITY ASSISTANT SECRETARY OF THE NAVY (RD&A) Hon. John J. Young, Jr. FIELD CONTRACTING 11 HCA’s SYSTEMS ACQUISITION POLICY & OVERSIGHT CONSTRUCTION SPECIALIZED TRANSPORTATION

The NFCS: 

The NFCS 1 Navy Regional Contracting Center 7 Fleet Industrial Supply Centers 1 Inventory Control Point (own HCA) 3 Specialized… - NAVMEDIACEN $500K - NAVOCEANO $10M, - NAVMEDLOGCOM SAP / Unlimited for Medical Personal Services & Medical Supplies 32 SAP 1200(+) Others with only PC & ordering, including afloat units NFCS Activities 65 476 217 150 55 Activities with contracting authority greater than PC/Ordering 53 49 Activities 92% reduction since FY97 Enablers: Purchase Card SPS Regionalization Ordering 44

NAVSUP Contracting : 

NAVSUP Contracting NFCS manages world-wide buying 210,000 Contracting Actions per Year...Value $8.6B* * NFCS Statistics Total DoN actions 413,541 Total DoN dollars $56B Source:PMRS Note: Excludes Marine Corps

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NFCS…What we Buy Ship Repair & Maintenance IAW NAVSEA Technical Authority ~ Supplies and Services ~ Approved Centrally Managed Spares & Repairs

Our Customers: 

Reserves Our Customers

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NAVSUP CONTRACTING FY04 Top 10 Customers Customers with >$1M SPEND (excl SUP & no cust ID) $M HCAs Note: Top 10 excludes contracts for which no customer identification was provided ($802M) Top 10 customers represent 85% of total spend

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Enterprise Business Initiatives Cell Phones SEAPORT-e Commodity Councils

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Navy Enterprise Cell Phone Contracts GAO Telecommunications Audit DoD Commodity Team – wireless communication Commander Naval Installations / NAVSUP Contracts

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CNI approach – new Solicitation for consolidated buying & centralized management Limit number of providers to obtain quantity discounts Original Solicitation: Mandatory use for CNI Optional use for others Solicitation modified for mandatory Navy-wide use Cell Phone Contracts - Approaches Take Advantage of Technology and Leverage the Marketplace! Estimated Annual CNI Savings AT&T Contract $24.29 AT&T GSA Schedule $49.99 Monthly Savings $25.70 x12 Months = $308.40 x9000 CNI Phones = $2.8M

Strategic Sourcing: 

Strategic Sourcing Base Level Ordering Vehicle for Many Customers Local Ordering Vehicle for Single Customer One-Time Individual Contract for Specific Customer DOD Commodity Councils Service Councils Air Force Army Navy Region-Wide Multi-Customer Commodity Specific Contract Region-Wide Single-Customer Commodity Specific Contract Region Level Local Level Large Potential for Redundancy Dept-Wide Service-Wide DON Strategic Sourcing Kicked off Office Supply and Office Furniture Commodity Councils (31 Mar) Reviewing Opportunities with Space Warfare Command Participating in DOD wide Commodity Council for Administrative Support Engaged in Commodity Council for Naval Training Services Very difficult to resource in today’s environment

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Ethics

New Navy General Counselfor Procurement Integrity : 

New Navy General Counsel for Procurement Integrity Being established to direct and coordinate procurement integrity-related matters Will investigate, detect and deter procurement fraud cases Will assist with prosecution of those that commit procurement fraud

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Our Work Force

Acquisition Workforce Issues: 

Acquisition Workforce Issues NSPS Moving from contract specialists to strategic buyers? Are we seeing more mistakes? If so, are they a result of downsizing too far or losing so much experience to commercial sector? Hiring process: slow and cumbersome Composition, Size, Expertise, Future

Contingency Contracting : 

Contingency Contracting USAF has programmed for a force to perform its mission; USA has not Navy has relatively little need to be able to perform a land-based mission Fifty-one Navy Supply Corps Officers presently deployed in the war on terrorism Contracting Operational Logistics Contracting being rolled into Joint Theater Logistics

Take Aways: 

Take Aways Pressure to reduce budgets reinforces need for clear contracting alignment Consequence of fuzzy swim lanes is a mismatch between resources and mission...and a failure to meet customer expectations Our Human Capital Strategy is paramount Our next step is to project out five years and design the structure of tomorrow's NFCS

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Questions?