The DLA supports U.S. warfighters across the world.
By Daniel Beaird
Editor’s note: The following is part-two in a series on government sales. Read the July issue of Repertoire Magazine for part one.
Supply chain disruptions and delays became common after the global pandemic. But for the Military Health System, these issues can risk the welfare and health of its over 9 million beneficiaries.
That’s where the Defense Logistics Agency (DLA) comes in, playing a crucial role in supporting military operations. Its mission is to drive and sustain warfighter readiness by delivering unmatched global support as the nation’s logistics combat support agency. It manages the end-to-end global defense supply chain for the five military services, 11 combatant commands, other federal, state and local agencies and partner and allied nations.
The DLA provided more than $47.1 billion in goods and services in fiscal year 2023. It supports a worldwide warehouse and distribution services network, and logistics and staff planning support to the Department of Defense’s (DOD) combatant commands. Its employees are divided into multiple supply chains that contract material and services across the military classes of supply, including:
- Subsistence (food/water).
- Clothing and textiles.
- Bulk petroleum and other energy products.
- Construction material and equipment.
- Personal demand items.
- Medical material and equipment.
- Repair parts for land, sea and air systems.
Supporting high quality medical care for warfighters
High quality medical care for warfighters is a top DOD readiness priority. Troops could be widely dispersed on the battlefield, making it difficult for distribution of blood, drugs, equipment and personnel. But that’s where DOD investments in science and technology help close the gap. For example, the DLA Troop Support’s Medical Capital Equipment Division manages major equipment investments for the DOD.
That includes the acquisition of major items of equipment, normal installation, turnkey installation, maintenance, upgrades of existing equipment, training and other services required for medical equipment. And its medical supply chain developed ECAT (Electronic Catalog) to streamline its business practices and expand its range of procurement options.
ECAT is an internet solution that uses the latest technology for ordering, distribution and payment, providing DOD and other federal agencies access to multiple manufacturer and distributor commercial catalogs at discounted prices. A full line of medical and surgical products are available for customers worldwide, including the Navy Fleet.
Furthermore, the Strategic Material Sourcing Group Readiness Division contracts for access to medical consumable supplies in support of deploying and deployed forces. Support for surge and sustainment is provided through contingency contracts awarded to manufacturers and distributors. It also procures and manages the full spectrum of pharmaceuticals for the military and their dependents worldwide.
Contracting with the DLA
Kevie Hendrix – better known as The DLA Guru – has been contracting with the DLA for over 20 years and in the past two years he has launched his own YouTube channel called the DLA Vendor Network. He helps government contractors achieve contracting success with drop shipping products to the DLA.
His company, The National Material Supply Company (NMS) and HEC Distribution, was founded in 1999 and is a national distributor of medical, tactical and industrial maintenance, repair and operating (MRO) supplies within the U.S. government and business-to-business sectors. It services federal and commercial clients with:
- Just-in-time emergency spot buys.
- Supplier management and procurement services.
- Industrial MRO equipment and supplies.
- Tactical gear and supplies.
- Medical equipment and supplies.
- Consumer electronics.
- Renewable energy solutions.
- Kitting solutions.
- DD250 and Mil-Spec packaging services.
“The DLA primarily does business through an internet bid board system called DIBBS,” Hendrix said.
DIBBS stands for the DLA’s Internet Bid Board System and it’s the primary gateway to connect small businesses to the DLA that want to contract with the agency. It’s an electronic catalog of products and solicitations.
“It never sleeps,” Hendrix said. “It’s 24 hours a day, seven days a week and the DLA has about 100,000 solicitations that are available for small, medium and large businesses to compete to win those opportunities.”
Small business centric
Hendrix says if small businesses can partner or position themselves with original equipment manufacturers (OEMs) or Tier 1 distributors to buy direct and resell to the DLA, then they are in a position to bid on those solicitations. But it’s an exacting process to gain access to DIBBS because it’s a military site and its operators don’t want information getting into the wrong hands.
“They’re pretty serious about who has access to DIBBS,” Hendrix said. “They take you through security clearances, etc., but once you have access you can bid.”
According to Hendrix, it’s usually a two-page electronic solicitation that asks about pricing and availability and makes sure the company is bidding approved source products.
“The right form, fit and function,” he said.
That includes a national stock number (NSN) as the DLA makes sure vendors are aligned with the NSN and products are exactly what the military wants.
“Do they want a red apple or a green apple?” Hendrix asked. “That NSN is specifically for that green apple.”
The DLA manages a dynamic database of about 5 million NSNs. New assets come online, and other products become obsolete and are removed.
“It presents fantastic opportunities for your company to align with the DLA because it’s ever changing. There’s always something new coming in,” Hendrix explained. “If you can access the NSNs, bid on them and deliver, the DLA invites you into their community as a viable agency.”
Awarding 10,000 contracts every day
The DLA awards approximately 10,000 contracts every day, according to Hendrix. Many are automated awards, but others have a contract officer that helps the vendor throughout the process because the DLA is responsible for counterfeit parts being denied from the supply chain.
And while there might be some restrictions and hurdles to clear, the barrier to entry is relatively low and the DLA has lost about 30% of its industrial base since the pandemic, Hendrix says.
“So there’s a strategic mission over the next five years to stimulate the industrial base – manufacturers that are able to produce bona fide spare parts in support of the DLA’s military assets,” he said.
To that end, his role is to promote small businesses because the DLA invites them to the table with about 70% of its fiscal spend earmarked for small businesses. That includes women-owned businesses, disability-owned businesses, veteran-owned businesses and others.
“You basically just have to be a U.S. citizen or part of a NATO nation in order to have access to DIBBS,” Hendrix explained. “And the DLA does a great job of setting aside opportunities for small businesses.”
Hendrix promotes manufacturing opportunities on his YouTube channel for small businesses and “for new technicians graduating from college who think there aren’t any jobs out there.”
Small businesses can be nimbler and can react to smaller projects more quickly than some larger businesses. And for Hendrix, it’s just a matter of getting the word out because some companies don’t know there’s a demand.
“The DLA is a great customer,” he said. “But there are a handful of companies that win their business over and over again. That’s a risk if something goes wrong with those companies.”
Combining federal buying power
In 2024, the DLA and the Department of Veterans Affairs (VA) partnered to combine their buying power. The two agencies worked together to define their requirements and awarded about 40 contracts to large and small businesses that provide quick access to a full array of modern radiology and imaging equipment.
The goal was to eliminate duplicative contracting work and improve customer service at lower prices that benefits veterans, warfighters, DOD beneficiaries and government partners.
A 10-year, $3.6B partnership agreement
This March, the DLA and the Veterans Health Administration (VHA) signed a 10-year, $3.6 billion Level 2 interagency agreement for healthcare support documenting the general terms and conditions, aligning supply chain requirements and centralizing logistical support to all VHA healthcare facilities in the country.
With the agreement, VHA can request goods and services from all supply chains when the need arises. The two signed an agreement in 2018 to use DLA Troop Support’s medical supply chain’s ECAT for medical supplies. They also signed a memorandum of agreement in 2019 marking a strategic partnership with the DLA as one of the VA’s logistics providers.