NNSA - National Nuclear Security Administration

09/25/2020 | News release | Distributed by Public on 09/25/2020 12:27

KCNSC’s Supply Chain Management Center spurs $1 billion in cost savings

The SCMC, managed by Honeywell Federal Manufacturing & Technologies (FM&T), was created in 2006 to more effectively manage $5 billion of annual purchases across the NNSA and later DOE EM sites.

The SCMC works with DOE contractors to combine their purchasing power to award multi-site commodity agreements for operating supplies, information technology, and services. The most visible savings have been generated through SCMC's eSourcing tool, which allows buyers to consolidate proposals, quotes, and bids from various suppliers into one central hub for easy comparison. It also allows the suppliers to receive real-time, transparent feedback to facilitate the submission of enhanced RFP responses.

Holecek, who worked at KCFO for 26 years, has observed how SCMC has expanded over the years.

'I am proud to have been part of the site where SCMC began and continues to expand each year throughout NNSA and the DOE. The SCMC was created under the Kansas City M&O contract and has been one of our best success stories,' noted Holecek, adding that the push for continuous improvement at KCNSC led to the formation of SCMC.

'It is practically written into the site's DNA,' he said. 'More important, though, it has allowed more money to be focused on mission work.'

Scott Bissen, senior director of the SCMC at KCNSC, manages nearly 20 employees, many of whom work remotely across the United States.

'The savings results generated through the SCMC are an excellent example of what can happen when the prime contractor community collaborates,' Bissen said. 'Working together, we're eliminating inefficiencies, improving operational cost management, and contributing to a resilient, more agile, and effective DOE supply chain.'

Honeywell FM&T President Eric Wollerman said, 'This is a once in a lifetime milestone. It speaks to the value and deep commitment Honeywell and all of NNSA and DOE Environmental Management prime contractors place on being good stewards of taxpayer dollars.'