Results of the Defense Logistics Agency Strategic Supplier Alliance for Catalog Items

摘要

Over the past 4 years, the Office of the Inspector General, DoD, has worked closely with the Defense Logistics Agency (DLA) and other DoD Components to achieve fair pricing for sole-source items. We have issued a series of reports involving pricing of both commercial and noncommercial spare parts. Two of the reports addressed sole-source commercial and noncommercial spare parts procured from Allied Signal Incorporated. In June 1999, (in response to the reports) the Director, DLA and the Deputy Under Secretary of Defense (Acquisition Reform) chartered a rapid improvement team for the development of a new 'Strategic Supplier Alliance' relationship between DLA and Allied Signal. Instead of placing spare parts into either commercial or noncommercial categories, the DLA-Allied Signal strategic supplier alliance segregated the sole-source spare parts into three distinct purchasing environments: catalog, replenishment, and rapid build-to-order. Each purchasing environment was designed to salsify different customer needs and demands by fully leveraging customer buying power and taking advantage of the capabilities of both the supplier and DLA. In December 1999, Allied Signal, Incorporated, and Honeywell, Incorporated, merged forming a new company, Honeywell International, Incorporated (Honeywell).