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News | Nov. 8, 2022

Contracting sees increase in revenue and industry engagements in 2022

By Jason Shamberger DLA Disposition Services

The Defense Logistics Agency contracting office’s main goal is to provide the best value contacting services to support the warfighter. During 2022 the contracting office achieved this goal through increasing revenue, industry engagement and cost avoidance.

One of the positive outcomes from the past year is the fact that contracting division was able to generate $89.43 million in revenue. While this amount doesn’t allow Disposition Services to turn a profit, the money still helps the agency’s bottom line as well as the American public.

“The advantage to us getting to sell things to the public is that every dollar we make off a public sale offsets our budget,” said Director Mike Cannon. “We actually save the taxpayer about $250 million a year because of the money generated off of sales which then offset our business costs. This is a way we try to work effectively and efficiently for the support of the warfighter.”

Yet another means of cost avoidance was the completion of a public sale for towing, dismantling and recycling five retired U.S. Navy vessels. The ships were transported to Brownsville, Texas, where they are dismantled, and the scrap is then sold by Disposition Services. Through this ship recycling project, the agency saved the Navy $20 million.

Additionally, the agency held the first Industry Day in November – welcoming current and potential industry partners from around the world to the Hart-Dole-Inouye Federal Center in Battle Creek, Michigan. The event introduced new and innovative methods of tackling challenges as well as helped the contracting team develop better quality contracts.

“We’re very pleased with the turnout,” said Director of Contracting Tracy Hart. “We have a good mix of experienced and inexperienced contractors, large and small, hitting several states and countries. And we have representatives from different industry sectors whether it be hazardous waste disposal service contracts, operational or public sales contracts.” 

During 2022 the newly developed Requirements Branch grew in scope and efficiency. Through multiple efforts with Disposition Services regional contracting officers, contracting officer representatives and sales points of contacts the agency reduced the overall lead time for processing – allowing the completion of 124 public sales referrals.

The contracting division plays an integral role in DLA accomplishing its mission of remaining America’s combat logistics support agency through its operational, sales and hazardous waste offices.

“I see [the contracting team] as enablers of the organizational mission,” said Roxanne Banks, deputy director of the Defense Logistics Agency Acquisition. “When it is determined that they need to contract something out they turn to the requirements owners and work to put sound packages together in accordance with compliance rules. They have oversight of the entire process and see it through execution.”

For the contracting team, compliance and requirements are two things they will continue to oversee and focus their efforts into the new year.