NAVSUP GLS Shores-Up Navy’s Overseas Contracting Business Practices

BY SUZANNA BRUGLER, DEPUTY, OFFICE OF CORPORATE COMMUNICATIONS, NAVSUP GLOBAL LOGISTICS SUPPORT

Over the past two years, personnel from NAVSUP Global Logistics Support (GLS) and the greater NAVSUP Enterprise successfully developed the Navy’s first-ever multiple award contract (MAC) strategy for husbanding support services or port services.

The strategy culminated in NAVSUP Fleet Logistics Center (FLC) Yokosuka awarding the first MAC contracts in June 2016 for services in Singapore.

The contract, awarded to two Singapore husbanding companies, defines the first time a MAC has been introduced as a contracting solution to support port visits.

Implementation of the MAC strategy worldwide is expected to be complete by the end of 2017. This gives regional NAVSUP FLCs a new role in liaising with competing contractors within their respective regions in order to ensure that pricing and other contract variables are reasonable and to deter potential abuses.

In essence, the MAC concept introduces vendor competition for each U.S. Navy port visit.

“With increased NAVSUP FLC involvement in overseas port visits, MACs will be awarded within smaller geographic areas, encouraging more players and more vendors – especially local vendors – to compete in the contract awarding process,” said Capt. Robert Heck, NAVSUP GLS lead contracting executive and Code 20 department head. “Competition drives better pricing, directly engaging local regional firms that are in austere locations.”

NAVSUP GLS has eight regional FLCs worldwide in the following locations: Manama, Bahrain; Jacksonville, Florida; Norfolk, Virginia; Pearl Harbor, Hawaii; Puget Sound, Washington; San Diego, California; Sigonella, Italy; and Yokosuka, Japan.

In the multiple-award contracting environment, multiple vendors and contracting companies may be awarded business contracts with the Navy such as the case in Singapore.

“The MAC awards are very important to the U.S. Navy, as it is a key piece in our overall strategy to improve the accountability of the husbanding process,” said Heck.

November/December 2016