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CHIPS Articles: NSWC Panama City employees save time, money by challenging prices

NSWC Panama City employees save time, money by challenging prices
Rapidly delivering solutions to ensure warfighting dominance
By Ashley Conner, NSWC Panama City Division - June 19, 2019
PANAMA CITY, Fla. — Naval Surface Warfare Center Panama City Division (NSWC PCD) scientists and engineers, working on 150 different projects, utilize the Military Standard Requisitioning and Issue Procedures (MILSTRIP) waiver process saving the Navy time and money.

Many of the items purchased have a national stock number assigned, which requires that they be purchased through MILSTRIP. Vigilant employees at NSWC PCD are doing a little extra research to make sure the products they buy meet standards and are not overpriced.

“I was preparing to fabricate some Landing Craft Air Cushion (LCAC) Command, Control, Communications, Computers, and Navigation (C4N) equipment and needed to purchase over 1,000 diodes,” said Mike Campbell, NSWC PCD LCAC C4N production product lead. “When I checked MILSTRIP they were priced at $107.18 a piece but they were being sold commercially for 15 cents a piece.”

Campbell submitted a MILSTRIP waiver and was able to procure the part for around $100 instead of $100,000.

“I have been producing LCAC C4N systems for the past 14 years and you tend to notice when a part looks like it is overpriced,” said Campbell. “I have submitted multiple challenges and have saved the Navy over $200,000 just this year alone.”

Employees are encouraged to submit a Price Challenge Process (PCP) through the Defense Logistics Agency (DLA).

A Price Challenge Process raises DLA’s overall awareness of potential material overcharges.

The process can take up to 90 days but if approved, will change the price for the inventory. If the item is needed sooner than 90 days personnel can submit a MILSTRIP waiver to the NSWC PCD Technical Screening Group, who reviews and approves waivers based on cost savings.

“During fiscal year 19 we have seen over 60 MILSTRIP waivers. In addition to saving money, the waivers enable on time delivery of projects,” said Jodi Hendrix, NSWC PCD Technical Screener.

Once an employee has gathered the necessary information for a MILSTRIP waiver then they submit the request to the Technical Screening group on NSWC PCD Form 4400/11.

“At NSWC PCD we strive to create an environment that fosters an inquisitive and questioning attitude that empowers employees at all levels to find a better way to do business, said NSWC PCD Commanding Officer Capt. Aaron Peters. “This effort is just one of many that help us create the Navy that the nation needs. Every opportunity to reduce costs has a huge impact on our ability to rapidly deliver solutions to ensure warfighting dominance.”

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