Reducing risk of unauthorized buys, decreasing cycle time purpose of LSS project
November 26, 2008
ROCK ISLAND ARSENAL, Ill. -- Ensuring authorized buys are accurate is such an important part of the acquisition process that the federal government saw fit to create
a set of regulations called the Anti-Deficiency Act.
The folks in charge of the nonstandard ammunition process at the Joint Munitions Command feel that it is important too. So, in the interest of fulfilling the provisions of the ADA, they conducted a Lean Six Sigma project to improve the process and reduce the cycle time between the award of an acquisition contract and the obligation of funds.
The goal of the project was to reduce the possibility of potential ADA violations by ensuring authorized buys were accurate. The intent was to compare the Department
of the Army's operation authorized list with the actual buys to guarantee accuracy. Another goal was to look at the Military Interdepartmental Purchase Request process
and the award vs. system obligation posting cycle time.
The team established to carry out the project consisted of personnel from JMC;
Program Executive Office-Ammunition; Armament Research, Development and
Engineering Center; and Fort Benning.
When the project started, there was a 33 percent defect rate within the authorized
list and the contract buys. This was due to discrepancies in the quantities on contract
vs. the quantity authorized; nomenclatures on the contract not being the authorized
nomenclatures; and mismatches between the nomenclature on the contract and the
authorized nomenclature because of vague language.
The cycle time from date of issuing a MIPR to the MIPR acceptance date was averaging 26 days and 28 days from date of contract award to Standard Operation
and Maintenance Army Research and Development system date postings. This
was reduced to an average of 0.3 days and the cycle time for the award process was
reduced to an average of two days.
Because of this project, several changes were made to the procedure. A copy of the purchase request or draft contract in advance of the award is requested to ensure only the authorized items are being procured and the acceptance of MIPRs is to be returned no later than two days. Follow up emails are sent if needed to guarantee this requirement is met and MIPRs are tracked to ensure the contract is let. Once the contract is received it is
reviewed for accuracy and line of accounting and faxed/emailed to the obligation desk at PEO-Ammo for obligation.
"I believe the non-standard ammunition project will benefit JMC by creating an in-depth standard operating procedure that put controls in place to eliminate the possibility of incurring Anti-Deficiency Act violations," said Jennifer Baden, execution team leader, Acquisition Funds Requirements Division, JMC's Munitions and Logistics
Readiness Center business directorate.
Ron Stevenson, chief, Logistics Funds Requirements Division, Business Development, Munitions and Logistics Readiness Center, echoed this and added, "They assigned the responsibility to then newly established PEO for Ammo who looked to JMC for help. I believe the results of this project will put the controls in place that our Army customer requires."
Some of the benefits achieved through this project are improved communication lines and greater customer satisfaction.