1. DLA Troop Support C&E Tailored Vendor Relationship Process Improvements
4 March 2015
Elaine Applegate

2. DLA’s Audit Issues, Concerns and Goals
Military Interdepartmental Purchase Requests (MIPRs)
Issue: Reliance on the manual MIPR process allows for errors and may effect order placement time
Goal: Reduce customer use of MIPRs to the maximum extent possible
Material Receipt Acknowledgements (MRAs)
Issue: Insufficient information for TVR customers to post MRAs
Goal: Provide customers with line-by-line order data to facilitate MRA posting; improve C&E TVR MRA rate from approx. 13% to 100%
Accountability
Issue: Delayed billing to customers, high unliquidated obligations (ULOs), little oversight or documentation of material ordered at the detail level
Goal: Streamline billing by moving from IPAC to Interfund; provide evidential matter to Customers’ Finance and Supply POCs on material ordered with line-by-line detail

3. Current Bidwiser Order Process Flow
Order Request
Customer submits order on spreadsheet to C&E
C&E Loads and Evaluates All Offers
C&E Selects Winning Offers
Vendor Submits Quote to C&E via to a predetermined address
C&E Receives/Loads the Customer Order Request
Winning Vendor(s) Are Notified via with a Spreadsheet of Order Items
3 day response
Vendor Researches Item(s), Establishes Pricing
C&E Approves the Order Request Lines
2 days to submit
Vendor Submits EDI-855 to DAASC for Final Processing and Award
Vendor Receives RFQ Spreadsheet via
C&E Sends RFQ via to Vendors

4. C&E Modified BidWiser Order Process Flow
to Address Audit Readiness Concerns
1. FOPOC receives KO selected offers and pricing, requests approval.
2. FOPOC is notified when C&E notifies vendor to initiate 855 process. (MILS AE)
3. FOPOC is notified when PO Obligation occurs within EBS. (MILS BV)
4. FOPOC is notified when shipments are observed against the PO. (MILS SS)
1. Customer Registration must include Finance Office POC (FOPOC)
2. Customer/FOPOC receives ordering template/guidance
3. Customer submits order request (unfunded)
4. DLA reviews order request; coordinates with customer on any issues and notifies customer of scope approvals and/or denials.
5. DLA competes order, makes best value decision and notifies Customer and FOPOC of pricing on Price Acknowledgement Spreadsheet. notification goes to Customer and FOPOC. 1
6. Customer updates Price Acknowledgement Spreadsheet and FOPOC s approval for DLA to order with required funding information (MILS-like format, i.e. requisition number and fund code, or MIPR)
7. DLA receives funding information and processes accordingly (3 methods: Customer Provided Requisition, Requisition Generated by DLA System using Customer Provided LOA, or MIPR); KO processes order and generates award notice with line-by-line detail to Customer and FOPOC. 2
This process only impacts MIPRs to C&E Special Operations Profit Center at present. No impact to other Troop Support Supply Chains or DLA ICPs at present.
During this presentation we will be covering a number of topics including:
Read Slide
Now let’s discuss the bottom line up front regarding Audit Readiness and Employee Impact
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8. DLA EBS obligates funds; Customer and FOPOC receive notification to acknowledge that order has been obligated by DLA and order has been placed with vendor with final prices and delivery dates provided 3
9. Customer receives notification that material ordered has been shipped by vendor with instruction to post MRA in DOD EMALL upon receipt 4
= New Process
= Modified Process
10. Customer submits MRA in EMALL, which generates Goods Receipt in DLA system. Vendor submits invoice, DLA pays the vendor, DLA records a bill to the customer and DFAS collects via Interfund billing (or IPAC for MIPR).

5. IMPROVED CUSTOMER SERVICE
Benefits to Customers Provided by C&E Modified Bidwiser Order Process Flow
Improved Financials
Decrease in Unliquidated Obligations (ULOs)
Increased Accuracy in Trial Balance for DoD
Improved Accountability of Orders
Improved Evidential Matter (Audit Readiness)
Improved Communication from DLA on Order Acknowledgement, Placement, and Shipment
Improved DLMS Compliance for MRAs
IMPROVED CUSTOMER SERVICE

6. Scheduled Rollout
Currently Undergoing Programming Changes and Testing Enhancements Made for Modified Order Process
Modified Order Process will be Implemented Pending Successful Completion of Testing
Estimated Dates for Implementation:
Phase I & II: Multiple-Award Worldwide Contracts
Phase I: Special Operational Equipment - 30 March 2015
Phase II: Fire & Emergency Services Equipment -15 May 2015
Phase III: Single-Award Regional Contracts
Metals Prime Vendor -TBD
Maintenance, Repair, and Operations (MRO) – TBD
Note: Applies to MRO Non-CENTCOM only

7. POCs Troop Support – C&E Customer Operations
Frank Madeja, Customer Operations Division Chief
, DSN
Branch Chief – SOE & F&ESE Support:
Ed McCauley, , DSN
Branch Chief – MRO & Metals Support:
Kyle McCarthy, , DSN
* All inquiries regarding Phase I Rollout for Special Operational Equipment TLS Program shall be sent via to:
Finance
Cheryl Haines
, DSN
Troop Support – Audit Readiness
Denise Unruh
, DSN

8. DEFENSE LOGISTICS AGENCY
AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

9. BACKUP CHARTS

10. BidWiser Overview Customer ordering process for part numbered items
Customer places order directly with DLA Troop Support
Pre Award Process
Allows DLA Troop Support to scope check requested items
When order is for part-numbered items
Communications channel for soliciting and receiving vendor offers
Decision support tool for analyzing offers
Communications channel back to successful offeror

11. BidWiser Overview Standardized Excel templates and email enable
the processing of customer order requests
request for quotes from vendors
processing vendor offers
making vendor selections
Once a vendor offer is accepted for an order, the selected vendor submits the order information to DLA Troop Support via an EDI-855 transaction.

12. C&E BidWiser Modifications to increase MILS like ordering vice MIPRs
Spec Ops is the first program to be implemented based on largest volume of MIPRS and will be followed by Fire and Emergency Services and MRO CENTCOM.
Method for single award programs (MRO and Metals) must be developed. Long-term Enterprise solution is key to linking-in customer systems and for audit readiness.
Block 1: Financial POC must register before ordering activity can submit order to TS. This is a hard stop to customer ordering process.
Block 5: Notification 1 – notifies Ordering Customer and FOPOC of the items and dollar amount of the potential order.
Block 6: FOPOC submits funding information on BidWiser “Price Acknowledgement Spreadsheet” to Troop Support. This is an area here we will continue our communication efforts with FOPOC so they understand funding options other than MIPRS.
Block 7: Notification 2 – notifies Ordering Customer and FOPOC that Troop Support has received their funding information (mimics MILS AE status). ITCR = Information Technology Change Request
Block 8: Notification 3 – notifies Ordering Customer and FOPOC that the order has been placed (mimics MILS BV – on order).
Block 9: Notification 4 – notifies Ordering Customer and FOPOC that the order has shipped (mimics MILS SS – shipped status) and to go into EMALL and receipt.

13. New Bidwiser Ordering Process
Customer Registration Changes (Step 1):
Specify Customer Finance Office POC (FOPOC)/Contact Info
Advise whether Document Number/Requisition will be provided by customer or generated by DLA System on behalf of the customer; customer may also use MIPR as a last resort
Select Document Serial Number Range if DLA system generated
Customer Welcome Package Changes (Step 2):
Include FOPOC
Price Acknowledgment Spreadsheet (Steps 5 & 6):
New Hard Stop to obtain FOPOC approval and:
Document Number, Fund Code, Signal Code, Supplemental Address, Approved Item Quantity
Customer Notification Changes (Steps 7, 8, & 9):
upon Order Acceptance (MILS AE)- Initial status w/MILS data
upon Order Placement (MILS BV)- Award w/MILS data
upon Vendor Shipment (MILS AS)- Improve MRA success

14. Current Process (SOE/F&ESE)
Customer registers and receives a welcome package with an order spreadsheet, a unique account number and the Customer Guidelines Document (detailed instructions)
Customer submits a spreadsheet with an "R" in the first position requesting for an actual order. The order spreadsheet can be accompanied by a MILS-Like Document (requisition number and fund code) or a MIPR
may also contain estimated pricing obtained from a vendor or independent source as a result of the customer’s market research efforts prior to sending an order request to DLA
TVLS reviews the order spreadsheet for errors and loads the order spreadsheet in Bidwiser
KO / buyer reviews the order for scope approval
TVLS send the MIPR to the Finance Office (FO) for acceptance after the scope is approved
FO reviews the MIPR and send a MIPR Acceptance document to the customer
KO / buyer solicits the vendors

15. Current Process (SOE/F&ESE)
KO / buyer reviews the quotes and makes a best value award decision
TVLS sends a notification to the customer with the award information
Vendor submits an EDI 855 acknowledging receipt of the Purchase Order and creating a sales order and delivery order in SAP
Vendor ships the material
Customer submits an MRA (Material Receipt Acknowledgment) verifying receipt of the material --- or --- in most cases the TVLSs post the receipts based on valid POD (Proof of Delivery) provided by the vendor
Vendor submits an EDI 810 Invoice requesting payment
DFAS pays the vendor
15) DFAS records a bill to the customer and uses the funds against the MIPR to clear the bill