Accession Number : ADA309901

Title :   Defense Logistics Agency (DLA) Fiscal Year 1998-2003 Program Objectives Memorandum (POM).

Corporate Author : DEFENSE LOGISTICS AGENCY ALEXANDRIA VA

PDF Url : ADA309901

Report Date : 24 MAY 1996

Pagination or Media Count : 198

Abstract : Throughout our POM 1998-2003 effort, warfighter readiness support, cost reduction, and overall performance improvement were the primary DLA objectives for both our Defense Business Operating Fund (DBOF) and appropriated fund business areas. In addition, we felt that it was important that DLA provide early forecasting of its DBOF prices-prices that remain substantially below forecasted inflation--to our customers. We proposed early price projections in a letter of February 9, 1996 to OSD(A&T), with an update to OSD(C) reflecting our current proposals on May 6, 1996. In that regard, our POM 98 supply management DBOF rates maintain our commitment from POMs 96 and 97 to provide a customer price change well below the rate of inflation, ensuring an average price increase that is less than 1 percent per year. Through reduced infrastructure, streamlined operating costs, and product cost-cutting initiatives, we have exceeded that commitment and built 'no growth' prices from now to FY 2003. In addition, our distribution depot business area rates sustain our POM 97 commitment. As a result, the potential savings to our military service customers are $2.2 billion when DLA rates are compared to the rates that our customers would use if they programmed with OSD inflation rates against an FY 97 President's Budget price baseline. Moreover, DoD customers will benefit from $1.1 billion in fuel savings from the fuel prices reflected in this submission. In addition, we expect that our Defense Reutilization and Marketing Service (DRMS) operations will generate $668 million in revenue during the POM 98 time frame, which could be reinvested by DoD if these funds can be retained by the department. Thus, the total potential savings from our DBOF POM 98 program is $4.0 billion.

Descriptors :   *FINANCIAL MANAGEMENT, *LOGISTICS MANAGEMENT, *SAVINGS, *PLANNING PROGRAMMING BUDGETING, *MILITARY BUDGETS, MILITARY FORCES(UNITED STATES), COMMERCE, MARKETING, DEFENSE SYSTEMS, COMBAT READINESS, GROWTH(GENERAL), FORECASTING, RATES, OPERATIONAL EFFECTIVENESS, REDUCTION, COSTS, FUELS, BASE LINES, INFLATION(ECONOMICS), INFRASTRUCTURE.

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE