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Presentation on theme: "NMLC’S NEW HEAD OF CONTRACTING ACTIVITY (HCA) RESPONSIBILITIES"— Presentation transcript:

Gilbert Hovermale Director, Acquisition Management NAVMEDLOGCOM

2 Background NAVSUP N7, BUMED M8 and M4, NMLC meeting of 04 Jan 2012
NAVSUP asked BUMED to assume greater responsibility for medical contracting Aligned with Supply Chief’s “Let Commander’s Command” philosophy Revised NAVSUP Instruction G issued 27 Jan 2012 Authorized NMLC to redelegate procurement authority to Navy Medicine activities Authorized NMLC to establish a PPMAP program NAVSUP ltr to CO, NMLC dated 29 Feb 2012 Granted Head of Contracting Activity (HCA) authority for Navy Medicine Directed NMLC to establish PPMAP and Government Purchase Card (GPC) programs

3 Plan of Action and Milestones
Establish manpower requirements Define positions and structure 1 June 12 FTE Control relief and authority to hire 1 Oct 12 Execute hiring actions 1 Jan 13 Establish a budget Estimates by 1 Jun 12 Program Budget Decision supporting functional transfer executed 1 Oct 13 Negotiate mission/function transfer resources with NAVSUP by 1 Sep 12 Establish PPMAP procedures in accordance with NAVSUP Inst Current PPMAP capability by 1 Jun 12 Establish enhanced PPMAP procedures Additional capability by 1 Nov 12 Perform PPMAP Ride-Alongs during transition year Issue new authority letters and assume responsibility by 31 Mar 13 BPAs contain basic terms and conditions that form the overall agreement between the parties. Services are ordered by issuing task orders (sometimes called call orders) under the BPA. BPAs are useful vehicles because they don’t contain minimum guaranteed quantities. Commercial BPAs are limited to $550,000 per year, so we may need to issue new ones every year if they are successful. The national BPAs that ride on VA schedules are only limited by the maximum order limitation on the schedule itself, which is usually quite high.

4 PPMAP Responsibilities
CURRENT Grant procurement authority Assess Simplified Acquisition compliance with NAVSUP Instruction Assess ordering compliance with NAVSUP Ordering Officer Guide Assess GPC compliance with NAVSUP Instruction Provide training, advice, and acquisition research support for cognizant procurement offices. ENHANCED Assess compliance with BUMED FIP SOPs related to contracting Assess compliance with Prime Vendor/ECAT ordering guidance Assess effectiveness of COR function Assess effectiveness of audit readiness Key Control Activities Provide sourcing optimization recommendations

5 Key Takeaways NMLC has been granted Head of Contracting Activity (HCA) authority for Navy Medicine. HCA authority means NMLC can delegate and/or rescind procurement authority for Navy Medicine contracting offices. This is a function previously performed by Fleet Logistics Center Procurement Performance Management Assessment Program (PPMAP) Offices. This initial phase pertains to CONUS activities only. With the authority comes the responsibility to set up a Navy Medicine PPMAP program. Navy Medicine can leverage this capability to accomplish related goals, including audit readiness and sourcing optimization. NAVSUP and NMLC will work together to execute this plan by mid-FY13

6 But wait, there’s more . . . An additional mission/function transfer
Medical non-personal services requirements previously awarded by the Fleet Logistics Centers (primarily FLC Norfolk – Philadelphia Office) will be transitioned to NMLC What will the system of acquisition support look like for BUMED activities after this mission/function transfer? FOR OFFICIAL USE ONLY

7 The Basics – Medical Equipment
Capital Investment Equipment Equipment/system unit cost >/= $250,000 NMLC funded (OP) and managed Capital Expense Equipment Equipment/system cost $100,000 - $249,999 NMLC or Command funded (OM) NMLC managed Expense Equipment Equipment/system cost < $100,000 Command funded (OM) NMLC tech review required over $25,000

8 The Basics – Medical Services
Personal Medical Services 90% of all contract medical services Employer/employee relationship with contract providers Integrated care delivery model Must be in support of the MTF Non-personal Medical Services Contract providers supervised by contractor Usually a segregated care delivery model Non-personal Medical Support Services Medically unique non-clinical services Records and appointment clerks, transcription, coding, etc.

9 BUMED’s Acquisition Support System
Local MTF Purchasing Limited ordering authority (PV, ECAT, GSA schedules) Regional NMC Contracting Medical commodities $150k open market, $1 mil ordering NMLC (contracting and technical/analytical support) All personal medical services All capital investment equipment Expense equipment not sourced elsewhere Non-personal medical services after September 2013 Non-personal medical support services after September 2013

10 BUMED’s Acquisition Support System
FLC Norfolk – Philadelphia Office Non-personal medical services until October 2013 Non-personal medical support services until October 2013 Servicing FLC Non-medical goods and services above local authority Note for OCONUS activities: Local FLC supports locally sourced requirements (medical and non-medical)






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