Defense Distribution Center (DDC)
The Defense Distribution Center was established October 1, 1997, through the consolidation of the former Defense Distribution Region East and the former Defense Distribution Region West. It is a Primary Level Field Activity (PLFA) of DLA. The Defense Distribution Center, headquartered in New Cumberland, Pa. has oversight of 22 distribution depots worldwide. The depots comprise two categories of facilities -- some are highly automated, specifically designed to provide global support for general commodities; others are used to fill customer requirements on a regional basis or to provide global support for material that requires special handling, equipment, facilities, or training.
The Defense Distribution Center is principally responsible for the Distribution Management business area. Responsibilities include receipt, storage, issue, packing, preservation, worldwide transportation, intransit visibility and redirecting enroute, when required, of all items placed under its accountability by the Defense Logistics Agency and the military services. The DDC’s 24 Distribution Depots located throughout the United States and Europe store 3.9 million stock numbers in 348 million cubic feet of storage space and process over 24 million transactions annually. Clothing and textiles, electronics, industrial, general and construction supplies, subsistence, medical material and the military services’ principal end items are among the commodities for which the DDC is responsible.
The Defense Distribution Center is a combat support organization, providing a single, unified materiel distribution system for DoD under DLA management. DDC distribution depots comprise two categories of facilities — some are highly automated, specifically designed to provide global support for general commodities; others are used to fill customer requirements on a regional basis or to provide global support for material that requires special handling, equipment, facilities, or training. Each depot is dedicated to timely and efficient delivery of quality materiel and services to customers.
With the end of the Cold War, the DoD logistics system is evolving to support a smaller, highly mobile, technology based force with limited resources. DDC is challenged by an infrastructure far bigger than requirements dictate. DDC has too many warehouses, and is seeking to accomplish by FY 2005 part of the DLA goal to reduce infrastructure (square footage) by 40% from the FY 1996 baseline. DDC is holding a considerable amount of stock that hasn’t moved in years. More than 50 percent of everything on DDC shelves has not received a requisition in two years. In the past, ‘distribution’ was about depots, the storage of material and responding to customer needs. This narrow view of distribution as a minor link in the supply chain has changed. Because many commodities and types of equipment have no commercial use, depots and warehousing will remain an important and fundamental aspect of our business.
In March 1998, DLA announced that most of its distribution depots would undergo public-private competition. The process follows the guidelines described in the Office of Management and Budget Circular A-76 and examines the financial impact of providing distribution services at the depots in-house, by the current government work force, or under contract by a private-sector firm. Under the A-76 process, the depots bid on any work subjected to the competition by designing a "Most Efficient Organization" and formulating an in-house cost estimate. For each competition, the top-ranked private-sector offeror will compete against the MEO. An award decision will be made approximately 18 to 30 months after the solicitation, with conversion to either an MEO or private contract within six months.
The Defense Logistics Agency announced October 10, 2001 that it would conduct public-private competitions for selected logistics functions at seven defense distribution depots. The seven depots are located at Anniston, Ala. (239 employees), Corpus Christi, Texas (124 employees), Norfolk, Va. (530 employees), Oklahoma City, Okla. (687 employees), Puget Sound, Washington (86 employees), Red River, Texas (626 employees), and Tobyhanna, Pa. (120 employees). Five other depots have already completed the process and an additional four are currently undergoing the study. The remaining depots are being competed in phases scheduled to end in the spring of 2004.
