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Powerful Example: Air Force uses data driven decision making to improve enterprise sourcing

Powerful Example: Air Force uses data driven decision making to improve enterprise sourcing

Powerful Example: Air Force uses data driven decision making to improve enterprise sourcing
BJ Miller, AFICA
Air Force Installation Contracting Agency’s (AFICA) use of a structured data driven methodology called Enterprise Sourcing is highlighted in this excellent short five minute video in the Defense Acquisition University (DAU) media library. Enterprise Sourcing is the application of sound business analytic practices, strategic sourcing and category management processes, and business acumen by operational acquisition units. Its purpose is to reduce costs and improve mission effectiveness, with the goal to be effective stewards of taxpayer resources and gain full value from every taxpayer dollar spent on defense.

The Fire and Emergency Services Personal Protective Equipment, also known as FES PPE, is the enterprise solution that provides firefighting gear to the Air Force firefighter. Our mission partner, the Air Force Civil Engineering Center (AFCEC), levied requirements to save money on overall procurements, provide increased safety standards, and streamline the acquisition time it takes to order and receive Fire PPE. As a byproduct of this enterprise sourcing effort, we baselined the safety standards of the gear that is utilized by all firefighting personnel within the United States Air Force ensuring our firefighters had the right gear to safely do their mission.

To execute an Enterprise Sourcing effort a multi-functional team uses the strategic sourcing 7-Step Wheel process that is a tailored version of the Services Acquisition Model taught at DAU. Following this deliberate process provided insight into how USAF fire departments were currently procuring fire equipment, at what rate, and the overall spend they were allocating towards their purchases. After analyzing the data and historical spend patterns, the team proceeded to gather market intelligence. Through much collaboration, the overall configuration for the collective US Air Force firefighter was determined based upon specification and the gathered market intelligence. To emphasize the benefits of enterprise sourcing in acquisition, the FES PPE program reduced the number of contracts by 35%, the CLIN structure by 87%, and the number of vendors by 86%. These actions resulted in $1.1M dollars of total savings in FY18; without enterprise sourcing, this would not have been possible! Through critical thinking and innovative solutions, excess funds can be redistributed to other vital warfighting capabilities that ultimately keep our nation safe.

For additional information regarding the Fire Personal Protective Equipment program, the Program Manager, BJ Miller, can be reached at [email protected]. Enterprise Sourcing questions can be addressed to AFICA’s Director of Enterprise Sourcing Support, Roger Westermeyer at [email protected].