This week DID’s Olivier Travers is attending WBR’s 2013 Defense Logistics event. Email me if you’d like to meet up or submit logistics themes for us to look into.
Vice Admiral Mark Harnitchek has been heading the Defense Logistics Agency (DLA) for 2 years and presented an update on the agency’s challenges and progress during WBR’s 2013 Defense Logistics conference. He candidly talked about how DoD at large, and DLA specifically, had benefited from “budget largesse” in recent years, especially with supplemental budgets (i.e. OCO / war spending) and had grown “thicker in the middle” as a result. In plain admission of the government’s shortcomings, the development of a “culture of judiciousness” to apply better judgment and save money is necessary within DLA. This is a welcome evolution in public discourse after so much hand-wringing about sequestration and befuddlement at the very idea of having to operate within financial constraints.
VADM Harnitchek was equally frank in recognizing that part of the agency’s focus will translate into margin pressure for contractors. Like other DoD senior officials, he’s broadcasting a clear signal that budget constraints are expected to stay and everyone should learn to operate within them. This should lead to increased reliance on commercial capabilities and less DoD resources, in relative terms. To that effect, fuel and food are pretty much already run “factory to foxhole” through commercial suppliers.