JUST IN: Army to issue supply chain risk management directive
NORFOLK, Virginia – Governments around the world have been rocked by ongoing supply chain issues and the military is now preparing to issue a directive to manage shortages of critical goods and materials, an official said March 1.
“Supply chain risk management is a whole-of-government approach,” said Timothy Goddette, assistant assistant secretary of the Army for acquisition, logistics, and technology in the office of the assistant secretary of the Army for sustaining power.
His office plans to work alongside organizations such as the Defense Acquisition University to develop the guideline and publication courses aimed at supply chain risks, he said during a speaking at the National Defense Industrial Association’s Annual Tactical Wheeled Vehicle Conference.
The Army plans to launch pilot programs with five program executive offices to inform the directive, he said.
“Then we can continue to evolve the policy,” he said. “The worst thing we can do is write a policy that… pushes everyone towards a solution without getting feedback from the field.”
While supply chain risk management isn’t new to the industry, greater collaboration between business and government could pay off, he said.
“Maybe now [with] government and industry working together… [we can] look at things a little differently” and adjust the procedures, he said.
Some notable supply chain challenges have included batteries, microelectronics, chemicals and raw materials as production of some goods moves overseas, Goddette said.
However, “the military, and the DoD for that matter, don’t necessarily control some of these products — we’re not the driver,” he said.
Often when the government draws up its contracts, it evaluates the bids based on several factors, “but the question is, do we ever evaluate the risk associated with the supply chain?” Godette asked.
“If we don’t, maybe we’ve been tacit in our ability to say, ‘Okay, we’ll just let you decide and the government really has no role to play in helping to fund the rest. supply chain,” he said. “I think this is going to be the biggest change in our politics. … The government has a role to play.
The Department of Defense has mechanisms that can help mitigate certain risks, and agencies may not be using all of them, he said.
“When we talk about raw materials, parts or components, the Defense Production Act divided into Titles One, Three and Seven, has already put in place mechanisms that deal with priorities, they deal with capability and/or health of the industrial base,” he said. noted.
That means there’s money available to help with some issues, Goddette said.
Title I deals with industrial resource allocation priorities and authority; Title III deals with national production essential to national defence; and Title VII examines transactions that may result in foreign control.
“The Department of Defense and you, as industry partners, have tools … that will help you in the supply chain in certain circumstances,” he said.
Title III allows the Pentagon to invest in domestic sources to develop, maintain and monitor necessary equipment, he said.
“If we know you have an issue somewhere and especially if it impacts more than one industry partner, we can bring it together and make our request up to [the office of the secretary of defense to] get that kind of money,” he said.
Most of the funding so far has gone to soldier systems and aviation platforms, but that doesn’t mean the Department of Defense can’t invest in other areas, he said. he declares.
“Congress is willing to work with us, but we need your input on the areas you are encountering… [issues with] and then we can work together,” Goddette said.
Topics: Wheeled tactical vehicles