Better Buying Power in Practice
As part of the Better Buying Power 3.0 initiative, the Defense Logistics Agency is applying strategic sourcing methods to drive down acquisition times and costs and provide faster service to the agency’s customers at a lower cost. The DLA Land and Maritime Strategic Acquisitions Program Directorate has long-term contracts covering 52,000 items representing more than $650 million in annual spending.
“With such a large number of our items and spend covered on long term contracts, it’s imperative that we aggressively manage these contracts to ensure our suppliers consistently perform at the necessary level to meet warfighter needs,” DLA Land and Maritime Commander Navy Rear Adm. John King said.
King explained that DLA Land and Maritime has used this strategy on recent long-term contracts for tires. The average price per tire decreased by 5.2 percent, and prices decreased on 75 percent of the impacted items. At current demand levels, this equates to about $8 million in annual savings.
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