Industrial Prime Vendor Program at the Naval Aviation Depot - Cherry Point
Abstract
This report is one in a series involving the pricing of commercial and noncommercial spare parts and other logistics support initiatives. This report addresses bench-stock material (screws, bolts, rivets, etc.) and logistics support procured from Raytheon E-Systems Incorporated under the industrial prime vendor program to support the Naval Aviation Depot, Cherry Point, North Carolina. Report No. D-2001-072, "Industrial Prime Vendor Program at the Naval Aviation Depot North Island," March 5, 2001, addressed the program at the Naval Aviation Depot, North Island, California. A third audit will address the industrial prime vendor program at the Air Force Logistics Centers. The Defense Supply Center Philadelphia initiated the industrial prime vendor program in July 1998 as a test or demonstration program to explore innovative logistics solutions for providing spare parts used in maintenance, repair and overhaul facilities. The conceptual goal of the industrial prime vendor program was to improve logistics support to the service depot maintenance facilities at a lower cost by streamlining the logistics pipeline. The industrial prime vendor program is a customer oriented supply chain management initiative that turns complete responsibility of bench- stock material over to a third-party vendor. The primary customers covered under the demonstration program are Navy depots and Air Force logistics centers. FY 2001 budget figures show overall bench-stock sales at about $284 million, which includes the industrial prime vendor bench-stock sales at about $38 million. The Defense Supply Center Philadelphia awarded industrial prime vendor contract (SP0500-98-D-BP03) to Raytheon on August 19, 1998 to support Cherry Point. The contract has an estimated material value of $15 million annually. Also, the contract provides approximately $1,260,000 in annual overhead costs and $sales totaled $1,569,120 ($720,605 spot buys; $655,368 preexpended
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 06, 2001
- Accession Number
- ADA393429
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense