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The Nation’s Combat Logistics Support Agency

Established 1961

DEFENSE LOGISTICS AGENCY

DLA

Demand Forecast 

Communication to 

Industry

November 6, 2023
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DLA Acquisition Strategy

$16.40 $13.58

$10.09 $10.84 $11.45

$8.29

$6.67

$7.66

$12.42 $12.36

$1.63

$2.05

$2.11

$2.15

$44.2 

$41.6 

$39.1 

$48.2 

$49.5 

48.9

 $36

 $38

 $40

 $42

 $44

 $46

 $48

 $50

 $52

2019 2020 2021 2022 2023 2024 (Est)

$ Billions

DLA Contract Obligations FY23

• FY23 DLA Overall Obligations: $49.51B, highest ever 

• FY23 DLA Small Business Obligations: ~$18B, record for DLA. 11th year in a row DLA exceeded Small Business goal

• 42% of eligible DLA obligations were for Small Businesses

• FY23 AbilityOne Obligations: $543M (Leader in Products)

• How DLA Does Business:

• 8500 suppliers; DIB continues to decline but rate is slowing

• 5M Line-items managed

• ~10K contract awards per day, >95% automated delivery orders awarded in 1 day

• 87% of awards to domestic suppliers

• Competed 82.9% of all awards in FY23, exceeding Agency goal of 80%

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DLA Obligations FY19-FY24

$10.84 $11.45

$12.42 $12.36

$2.15 $1.90

3

 $-

 $5

 $10

 $15

 $20

 $25

 $30

 $35

 $40

 $45

 $50

FY19 FY20 FY21 FY22 FY23 FY24 (Est.)

$8.9 $6.7 $6.0 $6.8 $7.1 $7.1

$7.5

$6.9

$4.1 $4.2 $5.8 $5.8

$8.3

$5.7

$7.7

$15.3 $13.4 $13.4

$17.9

$19.8

$19.3

$19.8 $20.1

$16.5

$1.6

$2.1

$2.1

$2.2 $2.4

$2.4

$ Billions

Hardware Depot Level Reparable Energy Troop Support Services
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Demand Projection

Supply Chain Management (SCM)

• Sales fluctuating over the period of FY20 through FY23

– Hardware supply chains: Standard Deviation ~$200M

– Troop Support supply chains: Standard Deviation ~$1.4B

• Contributing factors for fluctuating sales

\

SCM and Energy

• FY24 demand projected:

5.9% higher than FY23 for Hardware

11.6% lower than FY23 for Troop Support

6.0% higher than FY23 for Energy

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Challenge Hardware Troop Support

Working Capital Fund Health 

COVID Impacts  

Support for Global Conflicts  
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Hardware

Net Sales at Cost Trends

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Mix of sales varies from year-toyear; FY23 heavily influenced by 

support to Ukraine:

• Patriot

• Multiple Launch Rocket System

• Howitzer

• M777 Lightweight Towed Artillery System 
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Troop Support

Net Sales at Cost Trends

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FY24 Projections 

Hardware & Troop Support (less DLRs)

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Low / High Range

Budget 

Request

$23.6B

Orders from DLA to Industry estimated to be 6% to 16% less, compared to FY23

$B
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Projected Demand

(Energy)

3,658 3,662 

3,469 3,341 

3,540 

 -

 200

 400

 600

 800

 1,000

 1,200

 1,400

 1,600

 1,800

 2,000

 2,200

 2,400

 2,600

 2,800

 3,000

 3,200

 3,400

 3,600

 3,800

 4,000

2020 2021 2022 2023 2024

Sold Projected

8

3.7% Dip
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Services Acquisition

9

Modernization Efforts Continue

$883M 27%

$907M 28%

$206M 6%

$81M 3%

$21M 1%

$6M 0%

$2M 0%

$1.14B 35%

$14M 0%

Portfolio Spend Forecast FY24 Information Technology (IT)

Facility Related Services (FRS)

Professional Services (PS)

Electronic and Communication Services (ECS)

Transportation and Logistics Services (T&LS)

Equipment Related Services (ERS)

Medical Services (MS)

Sustainment, Restoration & Modernization (SRM)

Other

$1.67 

$3.24 $3.59 

$4.60 

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

FY20 FY21 FY22 FY23 FY24

Services Acquisition Spend ($B)

Projected

$3.26
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MSC Demand Forecast 

Communication to Industry

• MSCs will provide opportunity forecast via Industry Association event and/or other method

– Aviation – Mini Monthly Webinar Series; AbilityOne Manufacturing Capability briefings; Strategic 

Supplier engagements; Vendor Score Card; Supplier Surveys.

– Disposition Services – Web postings and advance notice of forecasts for procurement/public sales 

opportunities; Industry Day/Virtual Industry Day (Date: TBD,Q4 FY24); Small Business Training and 

Outreach.

– Distribution – Business Opportunities Forecast provided to Industry Jun 2023, next update will be 2nd

Qtr FY 2024; Small Business Outreach/Capabilities Presentation and Engagement with 

socioeconomic vendor base; Industry Day (tentative Spring/Summer 2025).

– Energy –Web postings; Worldwide Energy Conference (Apr 22 – 24, 2024); Supplier Advocate 

Engagements with Industry; Small Business Outreach and Industry Conferences.

– Land & Maritime –– DLA Supply Chain Alliance Conference & Exhibition in Columbus, Ohio (April 23-

24, 2024); Outreach/Partnering with OSD/Services on Tactical Energy Storage Supplier Base 

Requirements; Small Business Webinars and Events; Executive-level engagements with Strategic 

Suppliers; Pre-Solicitation and Pre-Proposal conferences.

– Troop Support – Joint Advanced Planning Brief for Industry (Nov 15-16); Communicate at Industry 

Events; Meet regularly with industry partners; IPRs with TLS/PV Programs and LTC vendors with 

traditional NSN LTCs; Pre-Solicitation and Pre-proposal conferences; web postings.

– Small Business - DLA small business offices help shape acquisition strategies to expand 

opportunities for small businesses, especially those in underserved communities.

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What Now?

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• DLA Strategic Plan

– https://www.dla.mil/Info/strategicplan/

• Learn how to business with DLA

– https://www.dla.mil/SmallBusiness/

• Learn about DLA’s Industry Engagement Program

– https://www.dla.mil/HQ/Acquisition/Business/Enterprise-Industry/

• Opportunities will be posted at

– https://www.dla.mil/Info/strategicplan/IndustryEngagementPlan/Demand

Forecast

• DLA Supplier Survey information

- https://www.dla.mil/Info/Strategic-Plan/Industry-EngagementPlan/Supplier-Survey/
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