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
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• 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
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• 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
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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
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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
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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
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• 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
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Pharmaceutical Prime Vendors
National Prime Vendor
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Pharmaceutical Prime Vendors
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Medical/Surgical Prime Vendors
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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
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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
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• 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
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Customer Pharmacy Operation Center
CPOC
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• 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.
Customer Pharmacy Operations Center
(CPOC)
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Customer Pharmacy Operations Center
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
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• 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
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• 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
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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
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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
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• 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
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Customer Pharmacy Operations Center
DLA-Troop Support
Philadelphia, PA
DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE
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