NAVSUP Reform Update

BY MELISSA OLSON, Reform Management Office (RMO) Lead, NAVSUP Headquarters

What does NAVSUP Enterprise reform mean to you? Hold that thought. Now, how do your thought propel NAVSUP to be ready to “Fight Tonight?”

As part of the NAVSUP Enterprise, and anyone that affects the Navy supply chain, you are an important part of making the NAVSUP reform effort successful.  NAVSUP Enterprise reform is at a critical juncture where we are going full throttle in taking charters, roadmaps, pillars, enablers, objectives, and initiatives to unfold large-scale reform efforts that have been successful during their pilot stages. As we head into the next phase of reform, we want to highlight the following efforts around three focused initiatives.

NAVSUP’s new operating model was rolled out in Integrated Weapon Systems Team (IWST) (aircraft carriers (CVN), cruisers and destroyers (CRUDES) and F-18) across NAVSUP Weapon Systems Support (WSS), collocating item managers and contracting specialists. This collocation facilitates cross-functional issue resolution. In addition, Readiness Acceleration Boards (RABs) were stood up in 11 of 13 aviation IWSTs. These changes will facilitate speed of materiel to customers. 

In Responsive Contracting, a core pillar and part of the new operating model, five of seven policy changes, were implemented that reduce administrative lead time (ALT) by two weeks. Strategic Supplier Management initiated executive level relationships with our top nine suppliers, is driving action through the sole source pilot to increase competition, and has seen several suppliers commit to larger monthly deliveries or accelerate deliveries to address unfilled customer orders (UCO) and issue priority group one backorders. Forecasting has empowered item managers to create overrides using a tiered threshold, while Digital Accelerator has launched the purchase request (PR) checklist and justification and approvals (J&A) tracker in the new ContractsPro application. The goal of the Digital Accelerator tools is to provide a way to enhance quality in making sure N7 procurement folders and J&As are ready for solicitation.

Customer Presence was renamed Integrate End-to-End, and is setting up a supply presence via the Code 500s in shipyards and N41s in fleet readiness centers. Integrated Logistics is launching a pilot to use a depot consolidated allowance list concept to ensure parts availability, and prevent work stoppages.  Anticipated results at Fleet Readiness Center Southwest point to a 90% materiel delay reduction. 

In support of ensuring requirements, lead times have been loaded so actual contracting and manufacturing timeframes are factored with enough time to be successful in meeting customer requirements. The next phase focuses on aligning budget to support requirement and ensuring contract execution.

Three initiatives, broken out to seven core business objectives, are the focus for the latest phase of reform, which started in July 2019:

Scale Operational Model

  • 100% of IWSTs operating daily standups, long tail tools, RABs, inventory management to drive 50% smaller UCO backlogs, 25% ALT reduction, double contracting throughput increase, 25% increase National Item Identification Numbers (NIIN) on vehicles, and achieve 341 mission-capable F/A-18 goal
  •  Standup new IT project governance to drive faster deployment of IT tools that support the business – target two months requirement to implement
  • Establishment of new inventory control practices and inventory movements

Integrate End-to-End

  • Standup N41s at fleet readiness centers with defined roles
  • Standup Code 500 at shipyards with defined roles

Ensure Requirements

  • Standup post award contract execution capability – people and tools (ContractsPro)
  • Define new budget governance and contracting process to ensure true requirement executed (a requirements-driven budget vs. a budget, cash and/or contracts execution constrained requirement.

A huge shout out and congratulations to Charla Fridley for her promotion to deputy of NAVSUP HQ N51B, Fleet and Warfare Integration. As we have turned over last summer, I have noted how much care and hard work she put into this past year’s reform management efforts. She will continue in a primary role in the Integrate End-to-End initiative.  I look forward to the opportunity to be your new NAVSUP RMO lead. My background is 22 years of primarily NAVSUP WSS experience. I am a Corporate Management Development Program graduate hired originally through the Navy’s Outstanding Scholars program. I earned a Master’s in Public Administration from Pennsylvania State University, and a Certificate of Contracting from University of Maryland University College.

During my career, I was NAVSUP WSS’s Aircraft Carrier Platform Manager, and a USS Ronald Reagan (CVN 76) honorary plankowner. Also, I was the Deep Submergence Supply Support Logistics element manager, and most recently NAVSUP WSS’s deputy director for littoral.  My focus is keeping the fleet customer first. As the new RMO lead, I welcome you to get or stay engaged.

Your engagement will be the reason we are ready to “Fight Tonight.” You can reach me at melissa.olson1@navy.mil, or call (717) 605-3790.