ExComm Functions

1
HME StandardizationExecutive Steering
CommitteeWorking Group Three 15 JULY 2005
2
Working Group Three
HME EXCOMM
Executive Steering Committee
COMMODITY MGMT Improved Supply Chain

ICP (M) 02 Co-Chair
SEA 05 Co-Chair
DASN (L)
SEA 04L
RMC
ICP (M) 84/05
PEOs
DASN (ACQ)
SUP 04
NSLC
DLA
Commodity Team

• Deliverables
• Identify Initial Commodities to Pursue
• Establish Commodity Teams
• Establish DVD Contracts
• Results
• Contractual Vehicles Accessible by Private
  Shipbuilders, Private Repair Yards RMCs/FISCs
  that will provide Standard HME Components at a
  Lower Unit Cost

Carriers
Pumps
Motors
Ships
Hydraulic Equip
Subs
TOTS Valve
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Working Group Three

• WG Mission/Goals
• Recommend commodity groups and establish
  commodity contracts.
• Draft policy changes
• Conduct analysis and recommend equipment
  standardization candidates to ESC
• Collect supporting metrics
• Collect contracting requirements from WGs 1 and 2
  for approved standardized equipment
• Execute acquisition strategies for commodities

GOAL Award long-term commodity contracts to be
used by industry and government that will drive
standardization into the fleet.
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Current InitiativeThe Commodity Standardization
Team
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DATA SOURCES/ DATA MINING
TIER 2 APPLICATIONS ORACLE database duplication
of the Weapons System File5yr historyNAVSEALOG
PQ34 UICP demand forecasting tool..10 yr
historyNAVICP 043M Actual demand recorded
in the 3M database5 yr historyNAVSEALOGCDMD-OA
- Configuration Data Mangers Database
Used the above databases to identify common
items. repeated demands and multiple applications
for potential standardization candidates. Still
a work in process
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ANALYSIS METHODOLOGY FOR PROPOSED COMMODITY
CONTRACTS
HP Motor, Hydraulic Cylinder/Actuator, and
Axial/Rotary Pump
YES
IDENTIFY DISTINCT GROUPINGS
YES
SPECS STANDARD ID
CONDUCT DEMAND ANALYSIS
YES
FIT UNDER SINGLE LINE ITEMS CONTRACT DESC
SPECS ALIGN IN GRP
NO
NO
ID PART
NO
NON-CANDIDATE NIIN
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ANALYSIS METHODOLOGY FOR PROPOSED COMMODITY
CONTRACTS (Cont.)
Composite Pump
NAVSESS REQUIREMENT ID
EVALUATE MEET SPECS
YES
CONDUCT DEMAND ANALYSIS
YES
FIT UNDER SINGLE LINE ITEMS CONTRACT DESC
SIZES ID
NO
ID PART
NO
NON-CANDIDATE NIIN
Composite Pump will replace Centrifugal Pump
Triple Offset Valve
STANDARDIZED CANDIDATE CHOSEN
DECIDED ON SOLE-SOURCE CONTRACT
TOTS Valve will replace certain (not all)
High-Performance Butterfly Valve
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Working Group Three

• WG Metrics (proposed)
• Simple Metric tracking number of proposed
  standardization candidates/ compared with number
  of commodity contracts awarded.
• Will also track qualitatively reasons for not
  going to contract if no contract is awarded
• After some time will need to assess the use of
  commodity contracts put in place.

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Working Group Three

• WG Issues/Risks/Barriers
• (1)Need to have funding identified and used to
  support Engineering Analysis and continued
  identification of standardization candidates
• Reimbursable activities cannot support level of
  effort required
• Need to continue to pursue buy-in from industry
  and identify how industry will participate on
  commodity contracts
• Policy issues and directions for use of commodity
  contracts over other contract vehicles that would
  have more ease of use.

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Current Schedule of Initiatives
A Plan for Standardized HME Commodity Contracts
31 Jan 05 Form Commodity Councils (CCs) and
Leads for the three Designated Equipment
Groups 31 Jul 05 CCs Complete Following
Acquisition Phases
Requirements Determination STATUS NEARLY
COMPLETE
Where we need to be to Standardized HME Commodity
Contracts
31 Aug 05 - Market Analysis/Source Selection
Plan Acquisition Plan/JA 30 Sept 05 RFP
Release/Closure by NAVICP 02 30 Dec 05 CCs
Complete Following Acquisition Phases
Source Selection Evaluation/Negotiation
Source Selection Approval 31 Jan 06 First
Commodity Contract Awarded by NAVICP 02
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Summary

• This has been a new process for all involvednew
  territory without a map
• Lessons Learned to Date Many
• New Processes Developed and Being Refined
• New Relationships Established

GOAL Award long-term commodity contracts to be
used by Industry and Government that will drive
standardization into the fleet.