Navy Medicine FY11
Enterprise Spend Analysis &
Strategic Sourcing
Presented by:
Bert Hovermale
Lead Contracting Executive (LCE) BUMED /
Director Acquisition Management, NAVMEDLOGCOM
&
Jeremy Toton (CTR)
ReefPoint Group
Senior Acquisition and Logistics Analyst
NAVMEDLOGCOM
Navy Medicine FY11
Enterprise Spend Analysis
Bottom-Line Up-Front (BLUF)
• NMLC has been conducting an annual spend analysis for four
(4) consecutive years.
• This compilation of data is pulled from two (2) disparate
systems:
• Federal Procurement Data System (FPDS)
o Data feed from Standard Procurement System (SPS)
• Defense Medical Logistics Standard Support (DMLSS)
• Overall we want to see a continued movement of doing more
inside DMLSS thru E-Commerce and less inside SPS (which we
call direct contracting).
• E-commerce = Prime Vendor Pharmacy + Prime Vendor Med Surg + ECAT
• We want more of an emphasis placed on better commodity
management and less fragmentation…meaning limiting
multiple contracting offices purchasing the same
FOR OFFICIAL USE ONLY
3
BSO-18 Total Funding for Equipment/Supplies/Services
Spending Trend FY09-11
Comment:
E-Commerce and Sourcing Optimization are critical to Navy Medicine Success!
Success = E-Commerce – 40-45% / Direct Contracting – 50-55 % / P-Card – 5%
As the overall spend grew by a net of $42M from FY10 to FY11…
• $119M (25% growth) came in the form of E-Commerce…Great!!!
• Direct Contracting saw a 5.3% decrease
$131M
(6%)
$514M
(23%)
$104M
(4%)
$1,625M
(71%)
$494M
(22%)
FY09
Total FY09 Spend = $2.27B
$1,688M
(74%)
FY10
$112M
(5%)
Total FY10 Spend = $2.29B
$613M
(26%)
Direct Contracting
$1,603M
(69%)
FY11
E-Commerce
P-Card
Total FY11 Spend = $2.33B
Navy Medicine Region Spend Trend FY10 -FY11
FY10
$63M
(13%)
FY11
$17M
(3%)
NCA
$81M
(20%)
$18M
(4%)
$314M
(76%)
$419M
(84%)
Total
by $86M
* Decrease linked to shift from Navy UIC to JTF UIC
$52M
(6%)
$46M
(6%)
$238M
(31%)
$287M
(35%)
NME
$491M
(59%)
$476M
(63%)
Total
$39M
(7%)
$38M
(7%)
NMW
$188M
(36%)
by $70M
$298M
(57%)
$234M
(39%)
$319M
(54%)
Total
Direct Contracting
E-Commerce
P-Card
by $68M
Billions
BSO-18 Total Funded vs Contracted
$4.0
The pace of growth for the APF is outpacing that of our investment
in material and services…indicating a growth in things such as
CIVPERS (in-sourcing), Travel, Training, Support Agreements, etc.
$3.5
$3.34
$3.0
$3.01
$2.5
$2.99
$2.81
$2.27
$2.0
$2.33
$2.29
$1.85
$1.5
$1.36
$1.0
$1.49
$1.61
$1.64
With continued focus on sourcing optimization and E-commerce this gap
will close…allowing Navy Medicine to manage more of their own workload
$0.5
$0.0
FY08
Navy Medicine Total $ APF:
* APF data source – SMART
** Inclusive of DMLSS Spend
FY09
Navy Medicine Total $ Funded
FY10
FY11
$ Navy Medicine Self-Contracted
$600
$500
Significant decrease in
Healthcare providers in NMW
$535
$483
Millions
Millions
Navy Medicine Commodity Direct Contracting Spend
$350
$300
$250
$400
$234
$200
$314
$300
$278
Support Services (Medical and Non-Medical)
continue to rise each year
$150
$200
$228
$207
$199
$102
$100
$76
$50
$100
$0
$0
FY09
Millions
Healthcare Provider Services
FY10
FY08
FY09
Non Med Support Services
Med Support Services
FY11
Med Equip Supply
Millions
FY08
$100
$90
$90
$80
$78
$70
$69
$60
$54
$50
$59
$60
Maint-Repair for our Comms/IT/Office Equip
are the reasons for the increases each year
$50
$49
$40
$40
$32
$30
$40
$20
$33
$23
$20
$30
FY10
FY11
Facility Const / Maint
$18
$10
$10
$0
FY08
Non Med Equip Supply
Logistics Support Services
FY09
FY10
FY11
Education and Tuition Services
$0
FY08
FY09
Non Med Maintenance Services
Med Maintenance Services
FY10
R&D Support Services
FY11
Breakdown of Direct Contracting Support FOR Navy Medicine – All Commodities
$52M $23M
$131M (3%) (2%)
(8%)
$49M $14M
(4%) (1%)
$59M
(5%)
$438M
(37%)
$200M
(17%)
$229M
(15%)
$219M
(19%)
$531M
(34%)
$213M
(14%)
$194M
(17%)
$382M
(24%)
FY08
FY09
• Continues to be a strong reliance on FLC and Army for
contracting support
• Want to continue to see FLC support decrease and
NAVMEDLOGCOM / MEDCEN/MTF/CLINICs % of
support continue to increase
$139M
(8%)
$30M
(2%)
$54M
(3%)
$697M
(42%)
$219M
(13%)
$238M
(15%)
$138M
(9%)
$59M
(4%)
$37M
(2%)
$587M
(38%)
$215M
(14%)
$238M
(15%)
$276M
(17%)
$277M
(18%)
FY11
FY10
NAVMEDLOGCOM
NAVFAC
MEDCEN/MTF/CLINICs
FLCs
ARMY
NAVMED T&E
SPAWAR
$400
Non-Medical Commodities
$160
$350
$140
$300
$120
$250
$200
Millions
Millions
Breakdown of Direct Contracting Support FOR Navy Medicine – Med vs Non-Med
$100
The Contracting Activities supporting our Non-Medical Commodities
have been given steady requirements for the last 4 years
$80
$150
$60
$100
$40
$50
$20
$0
$0
NAVFAC
FY08
FLCs
FY09
MEDCEN/MTF/CLINICs
NAVMED T&E
FY10
ARMY
FY11
NAVMEDLOGCOM
SPAWAR
$800
Medical Commodities
$200
$180
$700
$600
$500
$400
$160
NAVMEDLOGCOM’s decrease in Healthcare
Services ($72M) from FY10-11 was the single
largest decrease in any of the commodities Navy
Medicine invested in over the last four (4) years
$140
$120
$100
$80
$300
$60
$200
Army is Navy Medicine’s largest supporter
of our Lab Testing Services through Quest
$100
$0
$40
$20
$0
FY08
NAVMEDLOGCOM
FY09
MEDCEN/MTF/CLINICs
FY10
ARMY
NAVMEDLOGCOM on left axis…MEDCEN/MTF/Clinics, Army, FLCs on right axis
FY11
FLCs
Millions
Millions
NAVFAC on left axis…All Others on right axis
Medical Commodities Direct Contracting Support FY11
<1%
2%1%
1%
Medical Support Services
43%
49%
Healthcare Providers
5%
Too Fragmented
“lack of consistency = lack of control”
92%
7%
1%
1%
Medical Equip & Supplies
39%
55%
All of FLC support for Med Maintenance
should shift to Navy Medicine
Medical Maintenance Services
14%
23%
R&D
1%
4%
17%
65%
Goal is to shift more of this to
NAVMEDLOGCOM
12%
68%
NMLC
FLC
MEDCEN/MTFs
ARMY
DOI - NBC ACQ SERVICES
NAVMED T&E
GSA
NAVMED R&D
Non-Medical Commodities Direct Contracting Support FY11
Education & Tuition Services
1%
1%
<1%
2%
Great examples of
commodity management
98%
Facilities
98%
Non-Medical Support Services
• TeleComm / ADP
• Program Management
• Studies & Analysis
• Admin Support
10%
8%
8%
1%
9%
2%
Too Fragmented
“lack of consistency = lack of control”
64%
Logistical Support Services
• Janitorial
• Laundry
• Warehousing
44%
52%
2%
Non-Medical Equip & Supply
3%
61%
7%
Non-Medical Maintenance Services
Air Force supported a
$5M ADP requirement
for Bethesda in FY11
62%
3%
12%
1%
13%
NMLC
FLC
MEDCEN/MTFs
13%
ARMY
NAVFAC
DOI - NBC ACQ SERVICES
SPAWAR
AIR FORCE
NAVMED T&E
GSA
9%
8%
8%
NAVMED R&D
$600
$140
$120
$112
$500
$482
$104
$400
$100
$94
$397
$80
$71
$300
$60
$200
• E-Commerce and Sourcing Optimization initiatives are working!!!
• GPC increased by $8M…most notably in NME
$37
$40
$27
$100
$19
$20
$14
$0
$0
FY09
FY10
Prime Vendor - Pharmacy
GPC
Prime Vendor - Med Surg
FY11
ECAT
Prime Vendor - Pharmacy on left axis…All Others on right axis
DLA/GSA
Millions
Millions
Breakdown of Navy Medicine Total DMLSS Spend FY09 – FY11
5,000
$126
4,500
$120
$107
4,000
3,500
$100
$84
3,000
2,500
$80
$56
4,494
2,000
2,927
$40
1,720
$20
500
0
$0
FY08
FY09
De-Obligations - Actions
$
Actions
$60
3,672
1,500
1,000
$140
Millions
Total Navy Medicine De-Obligations
De-Obs
Total Direct Spend
% De-Obs
De-Obs
Total Direct Actions
% De-Obs
FY08
$56,079,153
$1,208,720,780
4.6%
1,720
20,302
8.5%
FY10
FY11
De-Obligations - $
FY09
$83,834,797
$1,600,220,493
5.2%
2,927
23,184
12.6%
FY10
$107,236,310
$1,674,994,196
6.4%
3,672
24,451
15.0%
FY11
$126,133,099
$1,584,839,612
8.0%
4,494
23,914
18.8%
De-Obligations have increased exponentially over the last four (4) years…they represent an indicator for improved contract administration!!!
Navy Medicine Spend through Non-DOD Contracting Offices
BSO-18 Totals:
FY08
FY09
FY10
FY11
$3,920,064
$3,998,170
$6,970,189
$13,351,910
We are trending in the wrong direction!
Product / Service Type
FY08
FY09
FY10
FY11
BIOMEDICAL RESEARCH STUDIES & TRIALS
$38,930
$0
$0
$9,769,996
FACILITY OPERATIONS & MANAGEMENT SUPPORT
$3,666,526
$3,618,913
$5,042,006
$2,939,177
MANAGEMENT & TECHNICAL SUPPORT SERVICES
$49,195
$229,821
$630,159
$642,736
TELECOMM SERVICES AND COMPONENTS
$165,414
$149,436
$1,298,024
$0
• This data represents real risk to Navy Medicine!
• There are very specific approvals and processes that must be documented in order to utilize Non-DOD contracting Offices
• Contact Navy Medicine’s POC at FLC Norfolk Det. Philadelphia (Ms Leanne Hanger (leanne.hanger@navy.mil) to develop a transition
plan for these type requirements
Take Aways
• Strategic Sourcing, E-Commerce, and Sourcing Optimization initiatives are
working…as they continue to develop, we should see a consistent decrease in
the # of unique Contracting Offices used within each commodity.
–
i.e., less fragmentation and more process control
• Commands must continue to focus on shifting their GCPC and open market
procurements into the E-Commerce mechanisms within DMLSS
(Prime Vendor Pharm / Prime Vendor Med Surg / ECAT)
–
In effort to reinforce supply chain efficiencies, OSD has decremented each of the Services Medical
Commands budget by over $250M spread across the next five (5) years (Navy Medicine’s portion of that
decrement is $25M).
•
De-Obligations are a measure of successful contract administration…better planning
and contract administration will allow for Navy Medicine to make better use of deobligated funds still available for use in the future!
•
Sending our Non-Medical requirements to our Non-Navy Medicine partners is a good
thing…but sending our requirements outside of DoD is against regulations
(example: Department of Interior’s GovWorks)…unless those requirements have been
properly vetted and documented by the appropriate authorities.
–
Violating these regulations puts Navy Medicine at risk of losing procurement authority. In addition, these
actions illustrate Navy Medicine’s lack of control over regulated processes…again, placing us at risk of
failing our clean audit assessment in 2013!
Navy Medicine
Strategic Sourcing Initiatives
SOURCING SEMANTICS
• Sourcing Optimization
– Obtaining maximum value from DLA eCommerce solutions
like Prime Vendor and ECAT by decreasing inappropriate
utilization of the Government Purchase Card and
eliminating unnecessary direct contracting
• Strategic Sourcing
– Replacing fragmented buying with centralized commodity
management through demand aggregation and vendor
consolidation in order to achieve savings, purchasing
efficiencies, and standardization
MEDICAL EQUIPMENT MAINTENANCE
Commodity Statistics:
• The most highly fragmented commodity in Navy Medicine
contracting
• >95% of the spend for medical equipment maintenance occurs at
the local MTF level…despite the fact that the most maintenance
intensive medical equipment in our MTFs are procured by NMLC
• Initial high-level analysis indicates Navy Medicine could save >$8M
annually and streamline over 1,600 individual purchase orders.
Where we are going:
Limited commodity management success so far
– Some OEM-specific requirements being processed through DLA Troop
Support
• Need to balance interests
– Support to the BMET community
– Current contracting realities
ORTHOPEDIC IMPLANTS – A HYBRID STORY
• Strategic sourcing initiative led by M81 with a strategic
optimization execution plan
• Multiple awards with primary and secondary vendors in
each of five major categories: Hips/Knees, Spine, Ortho
Trauma, Instruments, Sports Medicine
• Surgeons identified for each major category with
Specialty Leader involvement
• Plan of action:
– Issue single solicitation but award by major category
– Turn negotiated contracts over to DLA-Troop Support to become
ECAT-enabled
– Leverage these contracts to get additional vendors and
additional discounts in ECAT
STRATEGIC SOURCING OF SERVICES
• Medical support services buying is highly fragmented
– Appointment clerks, records clerks in particular
• FLC Norfolk/Philadelphia office will test SEAPORT-O
Global Business Solutions (GBS) contracts as a
possible vehicle to consolidate vendors
• Effort is in need of a sponsor to facilitate
requirements definition/development and demand
management
BACK-UP
$400
$381
$350
$294
Millions
Millions
NME Activity Funding Trend FY08-11
$120
$200
$150
$100
$80
• $51M of the $87M increase was linked to increases in
Healthcare Providers
•E-Commerce grew by near $20M…(Great Job)
•Remaining growth came from Non-Medical Commodities
$60
$40
(Facilities / IT Equip & Maintenance / Logistics Support)
$20
$0
FY09
FY10
FY11
$35
•Each activity’s minimal increases in spend are attributed to:
1.Minor decreases in Healthcare Providers
2.Increases in Facilities
$44
3.Minimal (if any in some cases) increases in E-Commerce
$40 their P-Card spend
• NH Beaufort did double their ECAT spend…but also increased
from $670K to $3M
$33
$30
$28
$25
$20
$17
$13
$15
$10
FY10
NH PENSACOLA
$18
NH JAX
• NH GITMO’s decrease is linked to
their downsizing of facilities
• As a note…NH Rota records zero
(0) spend for PVM within DMLSS
$16
$14
$12
$18
$14
$8
$7
$9
$8
$6
$6
$5
$4
$5
FY11
$10
$24
$20
FY09
NH CAMP LEJEUNE
Millions
Millions
• NH CL saw a decrease in Healthcare Providers by
$12M…but also an increase in E-Commerce by $6M
• NH Jax’s growth is linked to significant increases in IT
support and Facilities…overall decrease of ECAT by 16%
FY08
NMC PORTSMOUTH, VA
$40
$77
$0
FY08
$45
$95
$81
$80
$50
$50
$98
$100
$300
$250
$107
$4
$2 for easier Acq Planning!
Pretty Stable and Predictable…makes
$0
FY08
NH BEAUFORT
NHC CORPUS CHRISTI
NHC CHARLESTON
FY09
FY10
FY11
NHC NEW ENGLAND
NHC CHERRY POINT
$0
FY08
NH GITMO
FY09
NH SIGONELLA
FY10
NH ROTA
FY11
NH NAPLES
NME Region Commodity Spend
$300
$269
$250
$289
$200
$150
$100
$50
$75
$59
$33
$54
$0
FY08
Millions
Healthcare Providers
FY09
FY10
Med Equip & Supply
FY11
Facility Const & Maint
$35
$30
$30
$26
$25
$15
$14
$14
$12.5
$12
$12.1
$10
$22
$20
• The net $20M increase in Healthcare Providers doesn’t tell the story:
▫ NMC Portsmouth increased from $96M to $147M
▫ Nurses went up by $20M / Radiologists rose $7M / Dentists up $11M
▫ NH Camp Lejeune decreased from $58M to $45M
▫ All other NME MTF Healthcare Provider requirements shrunk $4-6M
• The $16M decrease in Medical Equip & Supplies was tied mostly to NME
Region HQ spend shrinking from $12M to $1.5M
• There were significant funding increases from FY10 to FY11 in Facility
Construction & Maintenance at every NME MTF…most notable:
• Portsmouth went up by $8M / Beaufort rose $5M / Jax up $4M
• The non-med support services spike is linked to IT/ADP/Telcom services
• The $10M decrease in Non-Medical Equip & Supplies was tied mostly to
NME Region spend shrinking from $8M to $980K
• Despite increases at every MTF for facilities…there were decreases in
Logistics Support Services at almost every MTF…mostly minor (>$1M)
• Medical Equipment Maintenance declined significantly at Portsmouth,
Jax, Pensacola and Camp Lejeune
Millions
Millions
Noteworthy Comments:
$350
$8.3
$8
$16
$14
$7.0
$6
$10
$4
$5
$2
$0
$4.9
$4.7
$0
FY08
FY09
Non Med Support Services
Med Support Services
FY10
FY11
Non Med Equip & Supply
FY08
FY09
Logistics Support Services
Non Med Maint Services
FY10
FY11
Med Maint Services
NME DMLSS Spend Comparison FY09-FY11
GCPC
FY09
NMC PORTSMOUTH
USNH JACKSONVILLE
USNH PENSACOLA
USNH CAMP LEJEUNE
NHC NEW ENGLAND
USNH BEAUFORT
USNH CHERRY POINT
USNH CORPUS CHRISTI
USNH CHARLESTON
USNH NAPLES
USNH SIGONELLA
USNH GUANTANAMO BAY
USNH ROTA
NME Total GCPC Spend:
ECAT
FY10
$22,102,039
$5,027,669
$5,569,379
$10,139,494
$1,324,353
$2,077,833
$1,194,757
$557,766
$794,511
$3,724,446
$1,809,632
$2,400,070
$17,355,729
$4,960,852
$4,080,964
$8,113,658
$2,665,003
$671,184
$1,157,126
$581,171
$701,321
$1,755,977
$1,535,522
$1,340,197
FY11
% Change
FY09
$18,580,158
$5,348,025
$4,216,102
$8,539,114
$2,855,727
$2,883,453
$1,054,775
$547,074
$681,862
$2,903,367
$1,732,718
$1,926,846
7.1%
7.8%
3.3%
5.2%
7.2%
329.6%
-8.8%
-5.9%
-2.8%
65.3%
12.8%
43.8%
NMC PORTSMOUTH
USNH JACKSONVILLE
USNH PENSACOLA
USNH CAMP LEJEUNE
NHC NEW ENGLAND
USNH BEAUFORT
USNH CHERRY POINT
USNH CORPUS CHRISTI
USNH CHARLESTON
USNH NAPLES
USNH SIGONELLA
USNH GUANTANAMO BAY
USNH ROTA
$858,788
$609,818
$787,634
29.2%
$57,580,738
$45,528,522
$52,056,855
14.3%
NME Total GCPC Spend:
PRIME VENDOR – MedSurg
FY09
NMC PORTSMOUTH
USNH JACKSONVILLE
USNH PENSACOLA
USNH CAMP LEJEUNE
NHC NEW ENGLAND
USNH BEAUFORT
USNH CHERRY POINT
USNH CORPUS CHRISTI
USNH CHARLESTON
USNH NAPLES
USNH SIGONELLA
USNH GUANTANAMO BAY
USNH ROTA
NME Total GCPC Spend:
FY10
$13,567,111
$3,586,014
$3,576,596
$4,103,770
$289,220
$2,363,497
$455,020
$943,620
$181,747
$60,680
$14,595
$592,209
$12,603,853
$3,609,530
$3,115,271
$4,217,231
$315,085
$1,594,886
$559,952
$338,136
$206,379
$106,526
$22,741
$343,044
FY11
$17,112,959
$4,397,326
$3,518,954
$5,292,190
$406,827
$1,671,912
$732,297
$250,806
$171,303
$116,779
$16,482
$381,553
$27,032,634
$34,069,390
FY10
FY11
$2,486,863
$451,472
$732,866
$1,346,901
$393,045
$696,398
$50,611
$113,849
$120,723
$66,070
$10,435
$3,890
% Change
$3,245,689
$380,900
$742,404
$1,598,530
$582,054
$1,142,039
$41,175
$138,174
$123,589
$86,928
$17,156
$56,376
31%
-16%
1%
19%
48%
64%
-19%
21%
2%
32%
64%
1349%
$3,427
$17
$77
357%
$7,148,828
$6,473,141
$8,155,091
26%
PRIME VENDOR – Pharmacy
% Change
36%
22%
13%
25%
29%
5%
31%
-26%
-17%
10%
-28%
11%
No Recorded PVM sales in DMLSS
$29,734,079
$2,501,589
$449,307
$954,826
$1,595,038
$304,527
$836,458
$57,775
$153,794
$127,261
$95,998
$40,331
$28,497
FY09
NMC PORTSMOUTH
USNH JACKSONVILLE
USNH PENSACOLA
USNH CAMP LEJEUNE
NHC NEW ENGLAND
USNH BEAUFORT
USNH CHERRY POINT
USNH CORPUS CHRISTI
USNH CHARLESTON
USNH NAPLES
USNH SIGONELLA
USNH GUANTANAMO BAY
FY11
% Change
$81,851,996
$32,776,639
$30,799,399
$20,119,753
$14,046,913
$9,367,338
$5,819,562
$9,043,908
$9,064,616
$100,128
$268,761
$1,185,874
$77,624,243
$30,483,578
$30,750,315
$19,436,910
$13,412,124
$8,366,550
$6,809,693
$7,151,140
$6,760,662
$174,610
$429,115
$1,396,798
$92,278,589
$36,990,714
$34,345,369
$23,717,558
$14,760,249
$11,179,137
$7,065,111
$12,961,060
$7,453,073
$714,578
$643,229
$1,130,721
-5%
-7%
0%
-3%
-5%
-11%
17%
-21%
-25%
74%
60%
18%
$1,231,659
$1,600,672
$1,324,052
30%
NME Total GCPC Spend: $215,676,546 $204,396,410 $244,563,440
-5%
USNH ROTA
26%
FY10
$300
$275
$250
Millions
Millions
NMW Activity Funding Trend FY08-11
$222
$100
$95
$90
$80
Saw a decrease of $20M
in Healthcare Providers
$70
$200
$150
$100
$60
• $25M of the $53M increase was linked to Facility
Construction, Logistics Support, and Med Equipment
• The remaining increase was in the form of E-Commerce
(Great Job)
$56
$50
$40
$42
$30
$32
$20
$50
$0
$38
• Facilities increase by $8.4M
• Healthcare Providers increased by $4.5M
$10
$0
FY08
FY09
FY10
FY11
FY08
$35
$30
$25
$25
FY09
NH CAMP PENDLETON
$23
$29
$27
$23
$20
Millions
NMC SAN DIEGO
Millions
$75
FY10
NH BREMERTON
$25
FY11
NH OKINAWA
$24
$20
$20
$21
$20
$15
$16
$15
$10
$10
Pretty Stable and Predictable…makes for easier Acq Planning!
Pretty Stable and Predictable…makes for easier Acq Planning!
$5
$0
$5
$0
FY08
NH LEMOORE
FY09
NHC HAWAII
FY10
FY11
NH YOKOSUKA
FY08
NH OAK HARBOR
FY09
FY10
NH GUAM
FY11
NH 29 PALMS
Millions
NMW Region Commodity Direct Contracting Spend
$180
Noteworthy Comments:
$160
$146
$140
$135
$120
$100
$80
$66
$63
$60
$44
$40
$22
$20
$0
FY08
Healthcare Providers
FY10
FY11
Facility Construction / Maintenance
$40
Millions
Millions
Med Equip Supply
FY09
• The net $11M decrease in Healthcare Providers doesn’t tell the story:
▫ Camp Pendleton decreased from $39.5M to 17.5M
▫ NHC Hawaii increased from $10.8M to $15M
▫ NH Bremerton increased from $9.8M to $14M
▫ All other FY11 NMW Healthcare Provider requirements were the
same as FY10 (within +/- 1%)
• NMW investment in Med Equip & Supplies have been consistent
• Facility projects at NMC San Diego, NH Bremerton, and NH Yokosuka
caused the $22M increase from FY10 to FY11
• Non-Med Equip and Non-Med Support Services remain consistent
• Logistics Support Services continue to shift pretty drastically year to year
▫FY10-11 $6M increase was at NMC San Diego
▫ Near $15M spike in FY09 was linked to one requirement for custodial
janitorial services awarded by NAVFAC Northwest for NH Bremerton
• $2.4M increase for Med Support Services was due to new investment for
Naval Center For Combat and Operational Stress Control (NCCOSC)
$35
$30
$12
$10.7
$10
$8
$25
$20
$21
$15
$15
$10
$10
$20
$8.3
$7.6
$7.9
$2.2
$2.2
$6
$16
$14
$4
$2
$5
$0
$0
FY08
Non Med Equip Supply
FY09
Logistics Support Services
FY10
FY11
Non Med Support Services
FY08
Med Support Services
FY09
FY10
Med Maintenance Services
FY11
R&D Support Services
Breakdown of Direct Contracting Support FOR NMW – All Commodities
$16M
(6%)
$3M
(1%)
$10M
$22M
(3%)
(6%)
$7M
(2%)
$133M
(44%)
$76M
(25%)
$8M
(2%)
$151M
(43%)
$80M
(23%)
$67M
(22%)
$80M
(23%)
FY08
FY09
• Continues to be a strong reliance on NAVFAC, FLC and
Army for NMW contracting support
• Navy Medicine (NMW MTFs and NMLC) account for
over 70% (on Avg) of total contracting support for region
$26M
(9%)
$21M
(8%)
$10M $5M
$17M
(3%) (2%)
(6%)
$7M $6M
(3%) (2%)
$129M
(43%)
$60M
(20%)
$148M
(52%)
$72M
(26%)
$78M
(26%)
FY11
FY10
NAVMEDLOGCOM
MEDCENs & MTFs
NAVFAC
FLC - CONUS
ARMY
FLC - OCONUS
NMNCA Region Spend Trend FY09-11
FY08
FY09
FY10
FY11
$298,541,038 $461,475,925 $478,522,177 $393,749,983
$8,130,517 $6,021,873 $11,256,385 $8,470,902
$3,300,211 $1,826,674 $6,125,551 $7,275,656
$1,644,020 $3,892,059 $3,394,832 $3,700,057
$1,021,335 $1,142,038 $6,625,041 $9,070,911
$600
$12
$11
$500
$479
$461
$400
$8
$394
$8
$7
$300
$200
$100
$9
$6
$299
$4
$3
$6
$3
$7
$4
$2
$2
$10
Millions
Millions
NMNCA Activity
NNMC BETHESDA
NHC QUANTICO, VA
NHC PAX RIVER, MD
NHC ANNAPOLIS, MD
JTF CAPMED
$8
$6
$4
$2
$1
$1
$0
$0
FY08
NNMC BETHESDA
FY09
NHC QUANTICO, VA
FY10
NHC PAX RIVER, MD
FY11
NHC ANNAPOLIS, MD
Bethesda on left axis…Quantico/Pax River/Annapolis/JTF CAPMED on right axis
* - NNMC Bethesda’s totals include the DMLSS spend for Quantico, Pax River, and Annapolis
JTF CAPMED
$250
Millions
Millions
NMNCA Region Commodity Spend
$220
$200
$171
$150
$50
$100
$71
$60
$109
$74
$49
FY08
FY09
FY10
FY11
FY08
$25
$22
$20
$17
$14
$13
$10
$14
$12
$12
$0
$0
FY09
FY10
$2
$2
$2
$1
$566K
FY09
$1
FY10
FY11
Logistics Support Services
$8
$5.6
Non Med Maintenance Services
Non Med Equip Supply
$9
$9
FY08
FY08
FY11
• $3M increase in Comms Installation
• 2M increase in Office Machine maintenance
• $1.5M increase for elevator maintenance
$6
$2
$5
FY10
$10
$4
$9
$8
$33
Healthcare Provider Services
$8
$16
$15
Millions
$25
FY09
Med Equip Supply
Non Med Support Services
Investment in ADP/Telcom equipment
went from $800k to $8M
$35
$0
Facility Construction and Maintenance Services
$30
$47
$27
$21
$20
$0
Millions
$53
$40
$50
$44
$44
$113
Nursing Services alone
dropped from $47M to $9M
$80
Investment in ADP/Telcom
Services more than doubled
$100
$120
Med Maintenance Services
Med Support Services
$423K
FY11
Breakdown of Direct Contracting Support FOR NMNCA – Medical Commodities
$138k
$1.8M
(<1%)
$3.6M
(2%)
(3%)
$17.3M
(17%)
$621k
$7.2M $1.8M
(1%)
(2%)
(8%)
$1.2M
(1%)
$27.3M
(31%)
$26.6M
(25%)
$55M
(53%)
$51M
(57%)
FY08
FY09
Based on current guidance, the Army’s % of
supporting NMNCA should continue to rise
and NMLC’s should continue to shrink
$7.8M
(5%)
$1.9M
(1%)
$600k
(<1%)
$5.4M
$7M (6%)
(8%)
$31.6M
(20%)
$2.1M $1.6M
(3%) (2%)
$38.6M
(45%)
$31M
(36)%
$115M
(73%)
FY11
FY10
NNMC BETHESDA
NMLC
ARMY REGIONAL CONTRACTING- NCA
FLC NORFOLK Det Philadelphia
ARMY MEDCOM HCAA
FLC JACKSONVILLE
FLC NORFOLK