COMMENTARY
need to build the expectation of funding delays, gridlock and stop-gap measures into their financial planning.
As we’ve seen, the National Defense Authorization Act often gets held up in the mix, and DOD and the military branches need a budgetary approach that reflects this reality. To maximize your budget and ensure investments are being appropriately allocated to urgent and long-term priori- ties like supply chain resilience, you need to know how you will deploy funds and be ready to enact that plan as soon as fund- ing becomes available (and while it lasts).
KEEP SUPPLIES MOVING
U.S. Army Reserve Spc. Jozeph Dybalski, of the 341st Medical Logistics Company supply platoon, works alongside supply technician Aaron Miller in the U.S. Army Medical Materiel Center – Europe’s cold-chain storage warehouse during Operation Patriot Press in May 2024. (Photo by Spc. Zoe Horton, U.S. Army Medical Logistics Command)
INCENTIVIZE TRANSPARENCY AND COLLABORATION Tere are a variety of carrots and sticks that military and defense buyers can deploy to incentivize their suppliers to provide greater transparency and collabo- ration, which ultimately improves supply chain resilience. Te industry needs to move toward treating supply chain secu- rity and resilience as a competitive factor (in addition to cost and performance) in acquisitions and sourcing.
strategy envisions, things like battery stor- age systems and on-base renewable energy production will ensure reliable, sustainable energy for our troops.
If you pinpoint programs or capabilities that may pose sourcing risks further down the road, address them today. For example, GAO reports that the U.S. Navy is look- ing into replacing Dual Band Radar with Enterprise Air Surveillance Radar to guard against potential supply chain disruptions.
HAVE A PLAN TO DEPLOY ANNUAL FUNDING At a time when we’re averaging five continuing resolutions a year and the all- in-one fiscal year budget feels like a distant memory, defense acquisition stakeholders
The Army should begin incorporat- ing language into contracts that enforce Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement rules and require technical data for what is being purchased, thus providing the opportunity to gain better insight into supply chains. Other mech- anisms include providing benefits for allowable costs related to supply chain technology, resources and mitigation spending, or instituting a safe harbor for voluntary disclosure and mitigation of vendor risks.
Te sooner these measures are imple- mented, the sooner providers will invest in satisfying these kinds of requirements as a standard business practice going forward.
https://
asc.ar my.mil 125
CONCLUSION Today’s defense acquisition leaders are rewriting the playbook for risk manage- ment, vendor requirements and supply chain preparedness. Te measures they put in place will have a direct impact on our nation’s security and competitiveness in the decades to come—as recent crises have underscored.
All of the necessary capabilities and use cases already exist in the market. It’s merely a matter of prioritizing and implementing them. Te Army’s time and resource investment today will pay dividends to secure and empower the warfighter of tomorrow.
For more information about innovative supply chain risk management strategies and solutions, contact Jason Dury at jdury@
exiger.com or go to
exiger.com.
JASON DURY is vice president of defense programs at Exiger, where he leads the U.S. and international defense market segment. He brings over three decades of mission enablement across government and commercial clients. Before joining Exiger, he led supply chain risk management programs for global commercial and government clients for Guidehouse, a U.S. consulting firm. He holds an MBA from the University of Phoenix, a Master of public and international affairs from the University of Pittsburgh, and a B.A. in political science from Gettysburg College.
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