Acquisition: Results of the Defense Logistics Agency Strategic Supplier Alliance with Honeywell International, Incorporated

Over the past 5 years, the Office of the Inspector General, DoD, has worked closely with the Defense Logistics Agency DLA and other DoD Components to achieve fair pricing for sole-source items. We have issued a series of reports involving pricing of both commercial and noncommercial spare parts. Two of the reports discuss sole-source commercial and noncommercial spare parts procured from AlliedSignal Incorporated. In response to the reports, the Director, DLA and the Deputy Under Secretary of Defense Acquisition Reform renamed Director for Acquisition Initiatives in June 1999, chartered a rapid improvement team to develop a new strategic supplier alliance relationship between DLA and AlliedSignal. In December 1999, AlliedSignal and Honeywell merged, forming a new company, Honeywell International, Incorporated Honeywell. The team included representatives from Honeywell DLA Defense Procurement the Defense Contract Audit Agency the Defense Contract Management Agency the Office of General Counsel, DoD the Office of the Inspector General, DoD and the Director for Acquisition initiatives. The objective was to report the results of the strategic supplier alliance between DLA and Honeywell. Specific objectives focused on wait time savings, inventory reductions, and potential cost savings associated with shifting from the current method of support to a more tailored approach.