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Defense Logistics Agency Seeks Assistance with Tire Supply Chain Privatization

Filed in archive Market Overview by ehsan on February 24, 2006

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Recently, I have heard a series of news regarding emphasis in supply chain improvement in U.S. Department of Defence and its related organizations.

Among them, Defence Logistics Agency (DLA) has announced that in accordance with the 2005 Base Realignment and Closure (BRAC) statute, it will host a "Tire Privatization Industry Day" on Thursday, March 9, 2006, at the Defense Supply Center, Columbus (DSCC), in Columbus, Ohio.

As stated in a news release, the purpose of this Industry Day is to discuss establishing a "performance-based logistics" (PBL) approach for the supply chain management of tires for the Department of Defense. Under the Base Realignment and Closure Act of 1990, the BRAC Commission's recommendation to privatize the supply, storage and distribution for tires (Federal Supply Classes 2610, 2620, and 2630) became law on November 8, 2005. This recommendation is intended to create a more responsive supply support to organizations and deployment of forces when deployed worldwide.

Privatization will reportedly enable the Department of Defense to take advantage of the latest technologies, expertise, and business practices, which translate into improved support to customers at less cost. This recommendation disestablishes the wholesale supply, storage, and distribution functions for all tires used by the Department of Defense, retaining only the supply contracting function. The Department will privatize these functions and will rely on private industry for the performance of supply, storage, and distribution of these commodities. By doing so, the Department expects to divest itself of inventories and eliminate infrastructure and personnel associated with these functions.

This Industry Day is for informational purposes only. The Government will present several briefings to broadly address BRAC requirements, the Army and Air Force Tire programs, distribution, disposal and the acquisition strategy for the privatization of tires. DLA is interested in receiving industry comments, recommendations, and ideas regarding this initiative. The agenda includes a time for questions and answers as well as informal discussions.

Final registration is due by Thursday, March 2, 2006, 2:00 p.m. EST. To register, send an email to kathylinks Manley (614)692-2258, at DSCC.Tires@dla.mil with your company name and address, CAGE code, names of attendees, and a primary point of contact to include telephone number and e-mail address. A return email will confirm your registration.


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