One Defense Logistics Agency employee and four DLA teams received fiscal 2017 Department of Defense Value Engineering Achievement Awards at a June 28 Pentagon ceremony.
Value engineering analyzes cost, value and quality to improve DoD systems, equipment, facilities, procedures and supplies. For more than 35 years, the value engineering awards have recognized employees’ pursuit of innovation in cost savings for DoD.
“Value engineering plays an integral and enduring role in accomplishing the DoD mission to provide a lethal joint force, to defend the security of our nation and sustain American influence abroad,” said Kristen Baldwin, acting deputy assistant secretary of defense for systems engineering, the keynote speaker.
Winners were chosen from each DoD component in five categories: program/project, individual, team,
organization and contractor. Special awards recognize outstanding contributions to the VE program that demonstrate innovative approaches and applications and expand the benefits of VE.
DLA’s winners were:
Individual: Donald O’Flaherty, an equipment specialist in DLA Land and Maritime’s Value Management and Engineering Division. As a key member of the organization’s “should cost” program, O’Flaherty addressed supply chain submissions on excessively high contractor quotes. He provided value analysis, established criteria and offered assistance in developing a standard operating plan. For fiscal 2017, the “should cost” program review of 1,355 national stock number quote submittals resulted in $16.6 million in savings. O’Flaherty processed 930 claims that resulted in $8.7 million in additional savings.
Team: DLA Aviation, Source Approval Request Team. The team played a pivotal role in the acquisition process and performed technical and quality reviews on items procured through corporate, strategic and long-term contract initiatives. In fiscal 2017, the team received, reviewed and approved 275 source approval request packages from suppliers seeking to do business with DLA Aviation. They also had an average processing time of nine days for approved packages and realized $3.6 million in direct and indirect cost savings.
Special Achievement Project: DLA Aviation, Aviation Engineering Flaps Project. The Aviation Engineering Flaps Project is touted as an outstanding example of value engineering’s and value management’s key role in garnering savings. In fiscal 2017, the flaps project resulted in a savings of $8.6 million.
Organization: DLA Aviation, Engineering and Technology Division. The DLA Aviation, Engineering and Technology Division initiated 738 VE projects and completed 1,043 in fiscal 2017. They increased competition for supply contracts through reverse engineering and other negotiated price reductions based on results achieved through VE methodology. The division’s efforts led to reduced procurement prices and fiscal year savings of $129.5 million — representing 3.1 percent of DLA Aviation materiel fiscal 2017 obligation.
Special: DLA Land and Maritime, Reverse and Sustaining Engineering Team. The team was tasked with improving supply availability of hard to get NSNs for multiple weapons systems. Through value analysis, they focused on offering alternative solutions of support, keeping items active within the supply chain and available for warfighter support. In fiscal 2017, the team generated savings of $10 million.