Changing Disposal Service

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Changing Disposal Service DRMS A-76
Competition DLA EXPOJACKSONVILLE, FL22-23
March 2005 Presented by Lonnie Curtsinger
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AGENDA
Improved Support At Reduced Cost

• DRMS is changing
• What is a DRMO?
• What is in the future?

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WHEN YOU THINK DRMO
GET IT OFF MY RECORDS
DONT GET ME IN TROUBLE
GET IT OUT OF MY WAREHOUSE
PROVIDE SERVICES AT A REASONABLE COST
DRMO
IT IS ALL ABOUT THE LEVEL OF DISPOSAL SERVICE!
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WHAT IS A DRMO?

• The Demilitarization Program
• The Precious Metals Program
• Customer Service Center
• The Foreign Military Sales Program
• The Scrap Program

• Disposal Planning Services
• The Hazmat/Hazwaste Program
• The Reutilization Program
• The Trade Security Control Program
• The Sales Program

If these Services are provided in a timely and
efficient manner
Then a warehouse is not required
IT IS ALL ABOUT THE LEVEL OF DISPOSAL SERVICE!
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HOW DRMS WORKS TODAY
DEMIL
OFFSITE GENERATORS
DRMOs
RTD
CV
Haz Waste
Scrap Yard
DEMAN/ UNICOR
GENERATOR PAYS TRANSPORTATION MULTIPLE
HANDLING ALL BUSINESS DECISIONS HANDLED AT
DRMO ALL SKILLS ARE INSIDE THE DRMO EXCESS
INFRASTRUCTURE
Precious Metals
RIP/RCP
Scrap
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DRMS FOCUS is CHANGING

• Reorganization for a Customer Focus
• Customer Support Specialists
• Service Level
• MAJCOM
• Disposal Service Representatives
• Transactional
• Geographically Based

• Service Delivery Focus
• What is needed when it is needed
• Volume
• Complexity
• Urgency

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DISPOSAL SERVICEREPRESENTATIVE
GENERATOR STORAGE
GENERATING CUSTOMERS
FPI
SCRAP
HW DISPOSAL
DEMAN
RTD CUSTOMERS
DSR
RCP
PM
PA STORAGE

• Optimized Infrastructure
• Disposal Decisions By DRMS
• Electronic or Physical Review of Property at
  Point of Generation

CENTRALIZED DEMIL
CSF
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SERVICE FOCUS
GENERATOR CHARACTERISTICS WILL DRIVE DRMS
SERVICE APPROACH
EXAMPLES OF GENERATOR CHARACTERISTICS...
WHICH MIGHT DETERMINE...
DRMS SERVICE RESPONSE

• VOLUME OF PROPERTY GENERATED
• COMPLEXITY OF DISPOSAL ISSUES
• PREDICTABILITY OF PROPERTY VOLUME TYPE
• URGENCY OF DISPOSAL NEED
• IN-HOUSE DISPOSAL CAPACITY (KNOWLEDGE,
  STORAGE)
• AMOUNT OF PROPERTY INFORMATION AVAILABLE

• PICKUP FREQUENCY, STORAGE
• REQUIREMENTS
• ONSITE EXPERTS
• CONTRACT FLEXIBILITY, OVERSIGHT REQUIREMENTS
• PICKUP FREQUENCY
• PICKUP FREQUENCY, STORAGE
• REQUIREMENTS, STAFFING,
• CONTRACTING REQUIREMENTS
• OVERSIGHT REQUIREMENTS,
• E-PROCESS APPLICABILITY

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DRMS FUTURE
DEMIL
RCP
GENERATING CUSTOMERS/ PROPERTY
GENERATOR STORAGE
RTD
HAZWASTE
Optimized Infrastructure
DRMO REVIEWS ELECTRONICALLY OR PHYSICALLY MAKES
DECISION
Precious Metals
PA Pays transportation from impacted
co-located installations Optimized
infrastructure Property handled once Disposal
Decisions by DRMS Electronic or Physical
review of property at point of generation
DEMAN/ UNICOR
Performing Activity
Logistics
SCRAP
CV
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DRMS ENVIRONMENT FOR CHANGE
External Influences
Internal Influences

• Declining Turn-Ins
• OSD recommendation on infrastructure reduction
• OMB Guidance
• President's Management Agenda
• Reduce Service Level Billing

• New Business Model
• Imbalanced workload
• Realized savings by DLA from other competitions
• Potential for efficiencies
• DoD goals to reduce cost and FTEs

OPPORTUNITY
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WHY CHANGE DRMS

• To comply with OMB circular A76 competition
  requirements
• To address declining workload and excess
  infrastructure
• To achieve significant savings for DoD
• To continue to provide world class disposal
  service

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WHAT IS A76

• Tools to save
• A-76 is a Federal Government wide program
  created during the Eisenhower Administration. It
  provides a fair, open and orderly method to
  manage a competition for services, whether the
  government offeror or the private sector wins the
  award.
• A-76 encourages competition as a way of bringing
  efficiency and cost effectiveness to services
  provided by DRMS.

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A76, A TOOL for CHANGE
A-76 is a tool like any business would use to
gain efficiencies and cut costs Preliminary
planning and ongoing communications are critical
to the success Agency commitment is imperative
DRMS will provide updates and status of your
particular storage situation as the Results Of
The A-76 Are Announced
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SCOPE OF DRMS A-76

• Logistics Functions- Warehouse Stock, Store,
  Issue
• All DRMS useable property storage in the U.S.
  including Hawaii (Excludes Guam, Alaska and
  Guantanamo Bay)
• Performing Activity is allowed to select which
  sites in which to operate (Trading facility
  dollars for transportation dollars)
• Performing Activity will discontinue storage
  functions for at least 15 locations (DRMS
  personnel will be present but not DRMS storage
  locations)
• Performing Activity will design logistics network
  consisting of transportation and storage
  facilities

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WAREHOUSE CLOSES (IMPACTED SITE)
Potential Changes for a Co-Located Generator

• 2 pick-up locations per base Cross-Docking
  Method
• Scheduled pick-ups (2 hour window)
• DRMS (Performing Activity) will transport
  property to remaining storage locations (no cost
  to generating customer)
• A Disposal Specialist Representative assigned to
  customer based upon requirement

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WAREHOUSE CLOSES (IMPACTED SITE)
Potential Changes for a Generator NOT Co-Located

• DRMS receives property in-place
• Customer transports property to the same base as
  always (PA cross-docking point)
• Customer transport property to any open site
• DRMS Disposal Representative presence as needed

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BASELINE FOR COMPARISON
Average Unload Time (hours)
Average Time To Schedule an Appointment (days)
Required time to be unloaded after arrival at
facility
PA will schedule an appoint within 10 days or
less of notification
Required time to be unloaded at the Cross-dock
station after arrival
PA must schedule and pick-up within 7 days or
less of notification
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PROPERTY RECEIVED IN PLACE?
Taking to a DRMO
100 Line Items
Transport to DRMO/PA
Costs Resources
Received in Place
TRANSFER DONATE
DEMIL CENTER
SCRAP
DRMS or Recipient Pays
REUT
35 Line Items to Sales (Received in Place)
DEMAN
FPI
100 Line Items 65 Line Items Processed
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A76 MILESTONES
FY 05
FY 06
3RD QTR
4TH QTR
1ST QTR
2ND QTR
3RD QTR
Tentative Decision Announced
Final Decision
Post Award Conference
Transition Begins
First Sites Transition Complete
All Sites Transitioned (NON RCI)
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A76 TRANSITION
End State
Award
Phase-In
Transition
Establish deadlines and plan of action
Implementation
Rapid and low-risk process
Put new architecture in place
Develop next generation of services
Performance of Services
Meet todays standards on Day 1
Process to introduce changes
Monitor, control, and improve
Establish interim MOAs
Cost Management
Adjust costs downward over time
Manage transition costs
Emphasis on lower costs
Analyze overall costs
People
Recruitment or retention of resources
Establish a learning organization
RIFs and/or consolidation
Training
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AIR FORCE DRMOs UNDER A76

• 27 Air Force Sites
• Cannon Cape Canaveral Colorado Springs
• Duluth Dyess Elgin
• Ellsworth Fairchild Great Falls
• Hill Holloman Homestead
• Kirtland Minot Mountain Home
• Nellis Offutt Oklahoma City
• San Antonio Selfridge Shaw
• Tampa Travis Tucson
• Vandenburg Warner Robins Wright-Patterson

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ARMY DRMOsUNDER A76

• 22 Army Sites
• Anniston Benning Bragg
• Campbell Drum Hood
• Huntsville Jackson Knox
• Letterkenny Lewis Meade
• Polk Riley Aberdeen
• Sill Rock Island Sierra
• Sparta Stewart Texarkana
• Tobyhanna

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NAVY DRMOs UNDER A-76

• 12 Navy Sites
• Crane Mechanicsburg
• Corpus Christi Norfolk
• Groton Port Hueneme
• Great Lakes Portsmouth
• Jacksonville San Diego
• Hawaii St. Juliens Creek

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MARINE DRMOs UNDER A-76

• 5 Marine Sites
• Barstow Cherry Point
• Lejuene Pendleton
• San Diego

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CONCLUSION

• DRMS is committed to a high level of disposal
  service
• DRMS has a comprehensive transition plan to
  ensure continuous disposal inventory flow
• DRMS is committed to decreasing the Service Level
  Billing
• DRMS is reducing infrastructure not the level of
  disposal service support

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DRMS POCs

• DRMS A76 Communication Center
• A76Communications_at_dla.mil
• 1-888-352-9333