[ Triad Online Home ]                                                                                       October 28, 2005

A-76 decision leaves DRMO Sparta open

      FORT BELVOIR, Va. (Defense Logistics Agency Public Affairs) -- The Defense Logistics Agency (DLA) has announced the final decision on the public-private competition for warehousing functions at 68 Defense Reutilization and Marketing Service (DRMS) sites in the United States, including Hawaii.

      The decision by the DLA Administrative Appeal Authority confirms the selection of the government's Most Efficient Organization (MEO) proposal.

Photo: Ralph Elliot, a DRMO Material Examiner and Identifier, uses a forklift to offload items at DRMO Sparta. (Photo by Rob Schuette)
Ralph Elliot, a DRMO Material Examiner and Identifier, uses a forklift to offload items at DRMO Sparta. (Photo by Rob Schuette)

      The tentative decision to retain the functions in-house rather than award to a private-sector company was announced June 30. The tentative decision was made after a detailed public-private competition indicated it was more cost effective for the competed functions to be retained by the government than to be converted to contract performance.

      The DLA Administrative Appeal Authority received and considered appeals of the tentative cost comparison decision from GENCO Infrastructure Solutions, Inc., Resource Consultants, Inc., the DRMS MEO and employees at the Defense Reutilization and Marketing Office (DRMO), Selfridge, Army National Guard Base, Mount Clemens, Mich.

      All appeals were filed with the DLA Administrative Appeal Authority on or before Aug. 17. After a thorough review of the issues appealed, the Appeal Authority stated that the appeals did not identify sufficient problems with the challenged issues such that the tentative cost-comparison decision might be considered unsupported or in error. The Appeal Authority determined that the tentative cost comparison decision is correct and has issued a final determination showing that the cost comparison favors government performance.

      To be eligible for consideration, an appeal must identify noncompliance with requirements and procedures set forth in Office of Management and Budget (OMB) Circular A-76, the guidance governing the public-private competition, or specific items entered on the cost-comparison form.

Photo: Linda Smothers (left), DRMO Sparta site manager, and Marjean Christy, a DRMO Property Disposal specialist, conduct an inventory at DRMO Sparta. (Photo by Rob Schuette)
Linda Smothers (left), DRMO Sparta site manager, and Marjean Christy, a DRMO Property Disposal specialist, conduct an inventory at DRMO Sparta. (Photo by Rob Schuette)

      The projected five-year gross savings resulting from this decision is $45.4 million, or a 47.9 percent reduction of the costs associated with the warehousing functions currently performed at the DRMS sites. The competed functions currently  are being performed by approximately 300 federal and contractor employees. Implementation of the MEO's proposal will result in warehousing operations being consolidated to 18 sites.

      It was determined by the MEO that DRMO Sparta, which is located at Fort McCoy, would become a "stand-alone" operation or a nonimpacted site, according to Linda Smothers, DRMO Sparta site manager. The transition time frame for DRMO Sparta is to be in full performance by July 5, 2006. 

      Very little change is expected to occur at Fort McCoy because of the decision, other than possibly different faces in the stock, store and issue area, Smothers said. The DRMO will serve the same generating activities that it has in the past, and no property will be shipped out of Fort McCoy to another DRMO warehouse.  

      The MEO has determined that DRMO Sparta is scheduled (as of now) to have two part-time employees working in the warehouse. The DRMO located at Wright-Patterson Air Force Base in Ohio will be the hub under which DRMO Sparta will fall  for supervision and guidance. The remaining government organization will retain two employees, who will serve as Disposal Service representative and Site Leader/Quality Assurance personnel.

      A complete listing of competed, reduced operations, and consolidated sites is available at the Web site http://www.dla.mil/public_info/drmsA76.pdf. Other DRMS services such as hazardous and scrap property disposal are not expected to be diminished or directly affected by the warehouse consolidation.

      The announcement is the result of a public/private competition using the guidelines of Office of Management and Budget Circular A-76 (Revised 1999), "Performance of Commercial Activities" (A-76). DRMS announced these functions were undergoing an A-76 study Oct. 9, 2001.

      The A-76 competition process is the prescribed method for deciding whether to retain recurring commercial activities within the government or contract them out to the private sector. It also is a fair and effective tool for achieving the savings and efficiencies needed to continue to provide affordable and reliable disposal support.

      The DRMS mission involves disposal of excess property, including hazardous materials, received from the military services, with the highest emphasis placed on protecting the public and maintaining full environmental compliance. Property is first offered for reutilization within the Department of Defense (DoD), transfer to other federal agencies or donation to state and local governments and other qualified organizations. Additionally, DRMS manages the DoD surplus property sales program. Excess property that is not reutilized, transferred or donated may be sold to the public as surplus. DRMS has a worldwide presence within DoD, with disposal specialists in 15 foreign countries, the U.S. Territory of Guam and 39 states.

      DRMS, a field activity of the Defense Logistics Agency  (DLA), has its headquarters in Battle Creek, Mich.  DLA provides supply support, and technical and logistics services to the military services and to several civilian agencies. Headquartered at Fort Belvoir, Va., DLA is the one source for nearly every consumable item, whether for combat readiness, emergency preparedness or day-to-day operations. For more information about DLA, visit the Web site at http://www.dla.mil.

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