DLA gives out gold stars to suppliers

Forty vendors now have a leg up in bidding on contracts with the Defense Logistics Agency.

DLA became the second major Defense Department agency or service to publicly announce its superior supplier list.

DoD officially launched the program in June when the Navy announced the results of its pilot program highlighting nine vendors. The idea of a superior supplier program first came from the Better Buying Power version 2.0.

The Navy plans to reward the nine companies by inviting them to examine their existing Navy contracts and propose how best to eliminate bureaucratic processes that add cost and reduce profit.

DLA’s list is much larger, 40 total companies, who were given ratings of gold, silver and bronze.

“Given DLA’s mission to support our warfighters around the world, it’s important to recognize those companies with proven track records for superior performance in government contracting,” said Matthew Beebe, head of DLA’s acquisition directorate, in a release. “At the same time, we hope it stimulates a conversation within companies that didn’t make the list on how to do better.”

DLA stated it considered 153 of its parts and commodity suppliers with the largest contracts with the agency in fiscal 2013 and 2014.

The agency says it selected 40 companies based on federal Contractor Performance Assessment Reporting System (CPARS) ratings, along with several companies that have partnered with DLA on recent significant cost savings initiatives.

Contractor Performance Assessment Reporting System (CPARS) ratings, along with several companies that have partnered with DLA on recent significant cost savings initiatives.

DLA says the selected companies represent eight of its major supply chains and includes 13 small businesses.

Among those who received a gold rating are:

• The Boeing Company
• United Technologies Aircraft Systems
• Lockheed Martin Corporation
• U.S. Foodservice Inc.
• American Apparel Military Uniform Company

Alan Chvotkin, senior vice president and general counsel for the Professional Services

Council, said DoD needs to explain several things about how the superior supplier program works.

“There is still some lack of transparency on what CPARS ratings were ‘good enough’ to get to gold, silver or bronze status and, more importantly, what tangible benefits inure to the designated companies beyond bragging rights,” he said. “We have had previous concerns about how the selection process is made and how the benefits would be obtained — and those concerns remain even under the Navy’s and DLA’s program.”

The Army and Air Force continue to work on superior supplier programs and are expected to announce their lists in the coming months.

Chvotkin said DoD has targeted the superior supplier program only at commodities or products so far and not services so it’s not affecting their membership to a great degree. But PSC continues to work with the military departments and agencies on the Better Buying Power initiative.

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