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.