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    NAVSUP FLC Norfolk RRAM Program Brings Value to the Fleet

    RRAM

    Photo By Jim Kohler | (Left to right) Warehouse Specialist Wesley Spruill, Warehouse Specialist Melissa...... read more read more

    NORFOLK, VA, UNITED STATES

    02.16.2022

    Story by Jim Kohler 

    NAVSUP FLC Norfolk

    Recycling has become a way of life, saving money, helping protect the environment and continuing the usefulness of items that might otherwise be placed in a landfill. The NAVSUP FLC Norfolk Real-Time Reutilization Asset Management (RRAM) is essentially a huge recycling operation that pays huge dividends.
    According to Code 501 Physical Distribution Branch Director John Martin, NAVSUP FLC Norfolk manages the largest RRAM site in the Navy, with nearly 95,000 line items that are worth more than of $700 million. “RRAM is end-use material purchased by the fleet or SYSCOM, not Navy Working Capital Fund (NWCF),” said Martin. “The official category for RRAM material is OM&S(R) (Operating Materials and Supplies (Residual)). OPNAV policy requires OM&S(R) be made available for Navy customers (end users) at no charge.”
    The NAVSUP FLC Norfolk RRAM operation is government owned and contractor operated, specifically three civil service employees and 49 contractors keep the operation running. “RRAM provides storage for ‘A’ condition excess single materiel items not to exceed 6,000 pounds or 128 cubic feet,” said Martin. “The material is for redistribution to satisfy fleet requirements at no cost to the Navy.”
    The RRAM program supports critical needs for customers resulting in tremendous savings. “During calendar year 2021, RRAM received 42,672 line items from offloading activities valued at more than $125 million,” explained Martin. “RRAM completed 43,134 free issues in 2021 providing nearly $150 million in cost avoidance to fleet units saving valuable OPTAR funds, including 7,252 CASREP requisitions valued at $15 million.”
    Martin further explained that RRAM generates credits to program sponsors by making free issue inventories available to DLA Item managers. “Credits were generated in 2021 in the amount of $6.7 million which is the average for a typical year. These credits offset the RRAM contracted operational costs of $4 million per year, so the entire operation pays for itself!”
    Using Navy ERP/Single Supply Solution, the RRAM program provides customers real time Total Asset Visibility (TAV) of residual/excess material within the Navy ensuring cost avoidance by offsetting potential buys and repairs. “NAVSUP and fleet incorporated business rules in the ERP Sourcing logic ensure RRAM is considered first when filling Navy end user requisitions, in accordance with OPNAV and SECNAV guidance,” said Martin.
    Another important component of the NAVSUP FLC Norfolk RRAM operation is their REMOVES Team. They assist ships in the offload and backload of material being managed ashore during Integrated Logistics Overhaul (ILO) operations. “They remove excess material from in-service ships maximizing storage utilization onboard while making the material available to other Navy Activities via the RRAM free issue program,” explained Martin.
    In 2021, they supported the complete offload of all storeroom material for six ships going into ILO and supported the backload of three ships returning to service after ILO. They have also removed nearly 6,000 line items valued at more than $9.7 million from 18 other ships in Norfolk and Mayport. All material was screened and inducted into RRAM stock and made available for free issue in the supply system for use by all Navy activities.
    RRAM services are available to all U.S. Navy and Coast Guard activities worldwide and improves asset visibility and fleet readiness.
    “This program has yielded a return on investment of over twenty fold through free issue back to the fleet and Materials Return Program (Item Manager Buy Back),” said Mike Johnson, department head for NAVSUP FLC Norfolk’s Industrial Support Department. “Nothing has surpassed the benefit to the warfighter, saving and providing the needed parts to satisfy maintenance requirements in support of fleet readiness.”

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    NEWS INFO

    Date Taken: 02.16.2022
    Date Posted: 02.16.2022 11:08
    Story ID: 414747
    Location: NORFOLK, VA, US 

    Web Views: 337
    Downloads: 1

    PUBLIC DOMAIN