New Name, New Efficiencies

Directorates of logistics become logistics readiness centers for more effective access to services and supply

 

By Col. Dan J. Reilly

 

When the U.S. Army Materiel Command (AMC) rebranded the installation directorates of logistics (DOLs) as logistics readiness centers (LRCs) on Oct. 1, 2013, the rebranding not only culminated the formal transfer of 73 DOLs worldwide from the U.S. Army Installation Management Command to AMC, but also established a vision to integrate and optimize AMC capabilities on installations.

This transformation enables AMC to focus on materiel and services support, allowing installation commanders to focus on managing their installations. It also optimizes the LRCs’ capability and capacity, improves contract management, and enhances quality and visibility of services. The LRCs provide the command additional field maintenance expertise, transportation services and base logistics support. This aids the U.S. Army Sustainment Command (ASC) in its mission to support the Army Force Generation process.

The LRCs are designed to provide an AMC presence on every installation. Today, the LRCs manage installation supply, maintenance and transportation. This includes food service, ammunition supply, clothing issue facility and initial issue point, hazardous material, bulk fuel, personal property and household goods, passenger travel, nontactical vehicles, rail and garrison equipment maintenance.

As a result of the transfer of installation DOLs to AMC a year earlier on Oct. 1, 2012, the DOLs became separate activities on their installations. This uniquely identified each DOL as an Army operational unit. The change in the DOLs’ status on the installations required an official name change on authorization documents. It also marked a change in their mission as AMC’s “face to the field,” which necessitated realignment with DA and the renaming from DOL to LRC.

ASC, as AMC’s operational arm, assumed responsibility for the LRCs during the 2012 transfer. ASC’s mission is to sustain Army and joint forces throughout the world in support of combatant commanders, so this additional mission fit perfectly with its capabilities.

Upon transfer, AMC did not implement the name change because the focus was on a seamless transition. One year later, AMC believed the timing was right to formally rebrand the DOLs as LRCs.

LONG-TERM VISION
This transition results in a single entry point to access AMC capabilities. It best postures AMC to support the vision outlined in Globally Responsive Sustainment 2020, Army 2020 and Defense Support to Civil Authorities, setting conditions to optimize AMC capabilities from power projection platforms to forward operating bases.

Globally Responsive Sustainment 2020 is an approach that seeks to produce a sustainment system that is optimized, integrated, synchronized, affordable and relevant to support unified land operations and the joint warfighter while minimizing redundancy.

Army 2020 is an initiative to transition the Army to address future security challenges. The sustainment initiative develops and implements the Army 2020 Sustainment Strategy through its ongoing efforts in the area of tactical sustainment force structure.

ONE LOGISTICAL HUB
The LRCs are AMC’s single face-to-the-field on installations, through which customers can access, integrate and synchronize AMC capabilities to support senior commanders, installation tenants and units’ priorities. Each LRC acts as the single hub on an installation for customers to access the Army sustainment base, giving Soldiers, commanders and joint partners on Army installations the full power of a globally networked logistics command with responsibility for Soldier services, supply and maintenance support.

Installation-based LRCs, forward-deployed Army field support brigades, ASC and AMC together control the supply chain “from factory to foxhole,” including forward operating bases. LRCs enable AMC to bring its full capabilities to the decisive point on an installation in support of Army power projection platforms, training requirements and no-notice contingency missions, as the Army transitions to a globally deployable force based in the continental United States.

EAGLE CONTRACT STRATEGY
In the future, the transition to LRCs will result in efficiencies and increased effectiveness. Before the transition, each installation managed its own contracts. Currently, the Army has more than 250 contracts for the acquisition of LRC installation logistics services. That has resulted in redundant capabilities and excess capacity. In response, ASC developed a contracting strategy called the Enhanced Army Global Logistics Enterprise program (EAGLE), to address inconsistencies in requirements and levels of service.

The EAGLE program focuses on material maintenance services, retail and wholesale supply services, and transportation support services. It also executes logistics services and requirements using an innovative strategy designed for flexibility. The EAGLE program fundamentally changes the way that the Army acquires installation logistics services, by increasing competition and small business participation, reducing the number of contracts to award and oversee, and reducing the acquisition timeline by using task order competitions under multiple basic ordering agreements.

In addition, EAGLE task orders can expand or contract based on funding and requirements—that is, the Army pays only for the services it needs and receives. Currently, 128 contractors, 78 of which are small businesses, are qualified to compete for EAGLE task orders.

EAGLE can be scaled and adapted as needed, which makes it ideal for the current fiscal environment as well as the overall defense resource strategy. EAGLE contracting strategies align with those of DA and DOD.

Five EAGLE task orders were awarded in the fourth quarter of FY13. Through contracting strategies such as EAGLE, AMC is expecting at least a 15 to 30 percent savings on contracts. Those five EAGLE task order awards in Q4 of FY13 reflect an 18 percent reduction from previous contracts.

CONCLUSION
As the LRC concept matures, it will continue to set the conditions to integrate all AMC capabilities under one roof. Through consolidation of AMC mission command, ASC will increase flexibility, eliminate redundancy, standardize processes, ensure reachback through our life-cycle management commands and other AMC major subordinate commands, and meet the challenges of a constrained fiscal environment, all while continuing to sustain the Army and joint forces worldwide in support of combatant commanders.

For more information, contact ASC’s executive director for field support at 309-782-4815 or usarmy.ria.asc.list.fs@mail.mil.

Col. DAN J. REILLY is director of the Installation Logistics Directorate at ASC, Rock Island Arsenal, Ill.. He holds a B.A. in communications from Eastern Illinois University, an M.S. in administration from Central Michigan University and an M.S. in national strategic studies from the U.S. Air Force Air University.