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    DLA Cost Summit explains commodity costs, pricing to military customers

    DLA Cost Summit explains commodity costs, pricing to military customers

    Photo By Teodora Mocanu | DLA Finance Director Tony Poleo (left) and Mike Scott, deputy director of DLA...... read more read more

    FORT BELVOIR, VA, UNITED STATES

    12.11.2014

    Story by Amanda Neumann 

    Defense Logistics Agency   

    FORT BELVOIR, Va. - Defense Logistics Agency senior leaders hosted senior finance and logistics personnel from the Defense Department at a DLA Cost Summit Dec. 8 at the McNamara Headquarters Complex.

    The meeting was co-chaired by DLA Finance Director Tony Poleo and Mike Scott, deputy director of DLA Logistics Operations. Attendees included senior officials from DLA, the Army, the Air Force, the Navy and the Marines, as well as representatives from five of DLA’s field activities, both in person and over video teleconference.

    As the first meeting of its kind, the summit’s main purpose was to educate customers on DLA’s financial operations and how that translates to the military services by way of cost recovery and billing, Scott said.

    “I think the wide volume of people that have shown up today is just an indication of how this topic is on everybody’s mind these days with the current financial situation around the Department [of Defense],” he said. “And we have received a number of requests from the different services to engage on this cost-type topic, from the creation of several [implementation planning teams] to just the desire to come and meet about costs and what can be done in these areas.”

    Aside from helping the military services see where their money goes, the summit also aimed to show them how their requests for materials and services can vastly affect pricing and even impact other services, Poleo said.

    “The goal here is to share the information, … be very transparent on what we’re assuming, where our costs are and in a reasonably decent level of detail, show you how we structure our costs,” he said. “You’re the customer, … and you write the checks, or you’re sitting here on behalf of those people that write the checks. If that’s how you want it, then that’s how we’ll do it. But we want to be very transparent on it; if you want it that way, here’s what the cost of that is going to be. And if you’d like it a little different way, it might cost a little less, but at the end of the day, you have to make that choice.”

    Other agenda topics included briefings from DLA Finance on performance budget reviews, special cost arrangements and cost reduction initiatives, as well an open discussion forum on allocations and costs.

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    NEWS INFO

    Date Taken: 12.11.2014
    Date Posted: 12.11.2014 09:45
    Story ID: 150058
    Location: FORT BELVOIR, VA, US

    Web Views: 59
    Downloads: 0

    PUBLIC DOMAIN