RICHMOND, VA –
Defense Logistics Agency Aviation Engineering Directorate’s Engineering and Technology Division was recently recognized by the Department of Defense for its outstanding contributions to this nation’s warfighters through cost savings or avoidances, quality improvements and efficiencies.
The division won three prestigious DoD Value Engineering Achievement Awards for fiscal 2015. DLA Aviation representatives received the awards during a ceremony at the Pentagon June 28.
Tom Kennedy, Value Management program manager, said winning the awards was a testament to the hard work of the more than 40 government workers and contractors who work within the Engineering and Technology Division.
“Every one of them, in one way or another, is responsible for the success of this division,” said Kennedy.
DLA Aviation won in three of the five DoD VE categories:
•Project: Aviation Engineering Breakout Project. These efforts resulted in newly expanded competition for 884 national stock numbers managed by DLA Aviation as well as savings of just under $16 million.
•Team: Should Cost/Price Challenge Team. Direct cost savings accumulated by the Should Cost and Price Challenge Project for fiscal 2015 totaled $15.45 million. Improvements developed during the course of providing valuable information to DLA Aviation’s acquisition and finance division flow directly to customers in the form of lower unit pricing and align with the DLA Headquarters’ goals of decreasing direct material costs. These savings, based on focused efforts to provide effective Should Cost and Price Challenge recommendations, resulted in reduced prices from contract negotiations.
•Special Achievement. DLA Aviation initiated 1,321 and completed 1,419 VE projects and 2,750 Should Cost and Price Challenge analyses. This resulted in savings of $98.6 million, $42 million of these savings were directly related to reduced procurement prices that resulted from projects focused on increasing competition for supply contracts through reverse engineering and other negotiated price reductions based on results from the application of value engineering methodology.
Kennedy said in addition to the $98.6 million saved during fiscal 2015, DLA Aviation saved DoD roughly $152 million the year before, achieving VE savings in excess of $250 million in a two-year timeframe.
“We saved the Department of Defense and taxpayers a lot of money,” said Kennedy.
Altogether, the DLA enterprise won a total of five fiscal 2015 Value Engineering Awards.