AMERICA S COMBAT LOGISTICS SUPPORT …€™S COMBAT LOGISTICS SUPPORT AGENCY ... –Business...

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

DLA Troop Support

Medical Supply Chain

November 16, 2016

LCDR Ebenezer Aniagyei, USNDeputy Chief Pharmacist

Customer Pharmacy Operations Center

Vincent ValinottiPharmaceutical Prime Vendor Program

Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2

• Customers

• Strategic Mission

• Organization

• DLA Medical Supply Chain Sales Volume

• DLA Medical Supply Chain Programs

• Relationships

• Becoming a Supplier / Business Expansion

• Customer Pharmacy Operations Center

• DLA/DHA Relationship

• Challenges & Opportunities

Agenda



• ASD (Health Affairs) and Defense Health Agency

• Defense Medical Logistics Standard Support (DMLSS)

• Program Management Office

• Department of Veterans Affairs (VA)

• DoD Pharmacy and Medical Logistics Consultants

• Other Federal Agencies; FDA, DEA, USPHS, CDC

• Industry Partners; Manufacturers/suppliers and wholesalers

Strategic Relationships



Every Day Every Crisis

Vision: To provide an integrated and responsive system of choice for delivering consistent, quality medical materiel support for health care providers to perform their patient care mission

Our Dual Focus

• Ready on day one

• Varied missions & requirements

• Resupply & sustainment

• Control commercial/industrial materiel

• Situational awareness

• Health care economics

• The business of health care

• The cost of medical materiel

• Reliable “next day” support

• Business intelligence

Institutional Operational



SMSG Division

Customer Operations Directorate

Nora Steigerwalt, Director

EA Program

Office

Forward Cell(Fort Detrick, MD)

OperationalDivision

Supplier

Operations DirectorateDan Keefe, Director

Supply Support Division

DMLSS

Office

Supply Chain IntegratorCOL Alex Zotomayor, MS, USA, Director

David Johns, Deputy Director

Institutional Division

CollectiveDivision

Pharmaceutical Prime Vendor Division

Medical/Surgical Prime Vendor Division

Electronic CatalogDivision

Capital EquipmentDivision

Hospital Supply Division

Pharmaceutical Manufacturer/Distributor

Division

Medical/Surgical Manufacturer/Distributor

Division

Medical Supply Chain Organization

National Contracts IST

CPOC



Army $1.5B

DHAHome

Delivery $3.0B

Air Force $1.0M

Navy $761M

Marine Corps $47M

Other $375M

Pharm PV $4,876

Med/Surg PV $626M

Capital Equipment

$365M

Traditional Med/Surg

$200M

Traditional Pharm $266M

ECAT $222M

Hospital $129M

Medical Business FY 2016

FY16actual$6.7B

FY17 Forecast$5.92B



• Ecommerce

– Pharmaceutical Prime Vendor – Global

– National Prime Vendor – DHA Home Delivery Program

– Medical-Surgical Prime Vendor – Generation V

– Electronic Catalog (ECAT):

Niche medical markets – Laboratory, Dental, Optical

• Traditional

– Depot

– Seasonal influenza

– Direct Vendor Delivery

– Capital Equipment

• Contingency

– Corporate exigency contracts

– Vendor managed inventory

Our Programs



Pharmaceutical Prime Vendors

National Prime Vendor



Pharmaceutical Prime Vendors



Medical/Surgical Prime Vendors



WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP

12WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 12

• Features

– Multiple Catalog Ordering

– Online comparison shopping

– Customer product and vendor selection

– Direct customer delivery

• Benefits

– Customer

• Stable pricing, B2B Interface, Ecommerce solution,

Robust Search Engines

– Supplier

• One focal point for contract administration,

15-day payment post receipt/invoice, No vendor fee

Paperless, Electronic published catalog pricing,

Available to all Federal Agencies

Electronic Catalog (ECAT) Program



Desert Storm Experience Today

8% Depot

Stock

92% New

Acquisition

69% Contingency

Contracts

24% New

Acquisition7% Depot

Stock

Peace Time Surge Sustainment

• Prime vendor

• Depot

• Direct Vendor

Delivery

• Electronic Data

Interface

• Service stock

• Vendor managed

inventory

(Service owned)

• PV surge

• Contingency contracts

– Corporate exigency contracts

– Vendor managed inventory

(DLA owned)

– PV war reserve materiel

– Industrial base maintenance ctrs

• New acquisition

Warstopper Funded

Opportunity

For

Improvement

Warstopper funding

key enabler

Purchase

Access not

Stock

Medical Supply Optimization Strategies



• What we need

– Access to FDA approved products – brand, generic, OTC

– Product availability through Ecommerce programs

• How to making products available in the Pharm Prime Vendor program

– Government pricing vehicle

(FSS, DAPA, BPA, National Contract)

– Business relationship with the Prime Vendors

Becoming a Supplier/ Business Expansion



Customer Pharmacy Operation Center

CPOC



• Mission: Customer Service. Facilitate & enable access to industry

• Roles

• Identify sources

• Clarify needs and alternatives

• Determine availability of TAA compliant sources and

recommending Non-availability Determination when compliant

sources are not available.

• Find hard to find drugs.

• Promote sources that provide the best value...National

Contracts, generics, etc.


(CPOC)




CPOC: Small Team…Global Impact• Established in 2011

– DLA’s response and pharmacists’ vision to improve customer

support for all DLA customers; internal and external

– Team: 5 military pharmacists, 2 civ pharmacists, 1 civ analyst

• Goals and Objectives

– Put the customer first

– Facilitate Pharmaceutical and Med/Surg Prime Vendor support

– Enable sourcing optimization efficiencies

– Modify procurement behavior

– Mitigate impact of drug and vaccine shortages

– Leverage business Intelligence tools and purchase data/analysis

– Support Medical Readiness and contingency response

– Build partnerships with other federal agencies and industry



• Background

• On March 11, 2013, the Deputy Secretary of Defense

directed the implementation of the Military Health

System (MHS) governance reform.

• Services to be provided

• work together to generate value as an enterprise for

the benefit of the DOD and it 9.7millinon beneficiaries.

DLA/DHA RELATIONSHIP



• Service Provider - 8 responsibilities

• Two directly related to DLA• (iv) - Define and implement standardized business rules to guide

and execute DoD policies for pharmacy operations.

• (vii) - Oversee, negotiate, and manage all existing

centralized/enterprise requirements and contracts regarding

pharmacy operations within pharmacy purchased care and mail

order contracts, Prime Vendor contracts, and joint contracts

with the VA; work with the DHA Contracting function to identify

contracting support resource needs and to build a requirements

development process for new centralized contracts to support

MTF pharmacy contractor staffing as well as MTF pharmacy

automation support.

DLA/DHA RELATIONSHIP



DHA PHARMACY OPS DIVThe Service Provider, in coordination with the Customer and, as necessary, the Defense

Logistics Agency (DLA), will:

(i). Define structures and processes needed to centrally program, budget, execute, and

manage Pharmacy program funds by FY 15 (1 October 2014); such structures and

processes will be developed via collaboration between the DHA (POD and Medical

Business Operations Group), the Customer’s resource management personnel and

Service Pharmacy Consultants, and DLA;

(xvi). Develop strategies to leverage the DoD’s purchasing power and foster competition

for pharmacy automation contracts. Such activities will include, but are not limited to, the

following:

1. Establish centralized contract vehicles for pharmacy automation products and

services for overlapping Customer requirements;

DHA/DLA RELATIONSHIP



Pharmacy Performance Metrics

DHA/DLA RELATIONSHIP

Objective ofMeasure

Metric Standard Owner

Increasecompliance withcentralized drugpurchasing rules

% of prescriptions filled as genericwhen generic is identified as a

preferred agent

>90% within 30Days

Customer

% compliance with purchasing

fromnational contracts

(Prime Vendor)

90% Customer



• Specialty Pharmacy / Limited Distribution Items

• Drug Supply Chain Security Act (DSCSA) – “Track and Trace”

• Ecommerce expansion

• Joint National Contracts expansion

• Auto substitution at the military treatment level – pilots

underway.

Challenges and Opportunities




DLA-Troop Support

Philadelphia, PA

[email protected]

mailto:[email protected]

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY


AMERICA S COMBAT LOGISTICS SUPPORT …€™S COMBAT LOGISTICS SUPPORT AGENCY ... –Business...

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