Home / Acquisition & Procurement / Mark Harnitchek: DLA to Target Excess Inventory for Six-Year Cut Plan

Mark Harnitchek: DLA to Target Excess Inventory for Six-Year Cut Plan

Mark Harnitchek
Mark Harnitchek

The Defense Logistics Agency has targeted inventory levels for cuts as the agency aims to reduce operations and maintenance spending by $13.1 billion over the next six years, Federal Times reported Sunday.

Aaron Mehta writes Vice Adm. Mark Harnitchek , DLA director, told industry leaders at an early August meeting the agency has nearly $14 billion in inventory and he believes half of that is excessive.

He said DLA spends $2 billion per year on distribution operations and nearly half of that is spent on infrastructure maintenance, Mehta reports.

“We can’t afford to have stuff we just don’t need. This is an example of money that will go back to the services,” Harnitchek said, according to Federal Times.

DLA intends to increase the number of reverse auctions, performance-based logistics contracts, opportunities for small businesses and consolidate infrastructure as part of its strategy, Mehta reports.

Check Also

Senate Passes Bill to Establish DHS Bug Bounty Program

The Senate has voted unanimously in favor of a bill that would establish a bug bounty …

Leave a Reply

Your email address will not be published. Required fields are marked *