Supply Inventory Management: Industrial Prime Vendor Program at the Air Force Air Logistics Centers
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 Science Applications International Corporation (SAIC) under the Industrial Prime Vendor (IPV) Program to support Air Force air logistics centers. The Defense Supply Center Philadelphia initiated the IPV 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 IPV Program is a customer-oriented, supply-chain management initiative that transfers complete responsibility for bench-stock material to a third-party vendor. The primary customers covered under the demonstration program are Navy depots and Air Force air logistics centers. FY 2002 budget figures show overall bench-stock sales of about $296.5 million, which includes the IPV stock sales of about $42 million. The Defense Supply Center Philadelphia awarded the IPV contract (SP0500-00-D-BP02) to SAIC on January 24, 2000, to support Air Force air logistics centers. The contract was valued at about $40 million annual, with approximately $34 million in material costs and $6 million in annual distribution (infrastructure) costs.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 20, 2002
- Accession Number
- ADA406017