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DCB Feature Report feature report feature report 8th September 2004 8th September 2004 is not only lucrative, but member states also profit. Moreover, it creates a healthy marketplace and avoids members paying often inflated prices from their traditional supply source. Interestingly many NATO members have yet to establish a disposal mechanism for obsolete kit, nor do they appreciate the implications of environmental legislation. The DSA is in discussion with members with the aim of establishing a NATO disposal policy.This is a smart move that must be good for NATO, and great for the DSA! The second is the development of the DSA’s own e-Trading facility – a clever disposals initiative that so impressed HM Treasury it awarded the Agency a spend-to-save grant of almost £850,000. eDisposals.com has been established on the internet and allows the DSA’s contractors to advertise and sell non-contentious items over the web. It also enables the DSA to run tenders for large ‘one-off’ items, such as former Hawker Hunter trainer aircraft, and later this year functionality will be added to enable contractors and the DSA to run online auctions for appropriate items such as memorabilia and collectables. The creation of the website has not only opened up sales opportunities but has also enabled the DSA to offer a fully electronic way of doing business with its customers. In summary, it allows the Agency to trade electronically with its customers and contractors, to advertise, sell, tender or auction its customers’ equipment globally via the internet, and to safely achieve competitive returns. The third is the offshore expansion of the Agency’s existing consultancy service. The DSA now provides advice to foreign governments on all aspects of disposal, from the impact of international environmental legislation to marketing redundant defence kit.The clever part is that the DSA has incorporated this service into its early as possible, equipment that will be made host of clients. The DSA also uses various own marketing strategy, especially for large redundant and available for export. The DSA also international agencies (NATO, UN, etc) as platforms, to give it competitive edge. Even better attempts to get kit declared redundant when still in additional avenues to source legitimate spare parts. is that it allows the DSA to facilitate offshore reasonable operating condition, rather than having The DSA is helping inventory managers in other investment, which is not only lucrative to many been picked over for spares. Marketing equipment ways so that the MoD can make savings in storage, non-defence companies but also allows the DSA to ‘hot’ is far more attractive to the potential handling and overheads from rundown to closure gain offset credit and trade that credit with ELL ISPOSED customer and, of course, the DSA can command a of depots. It does this by arranging for its W D obligors. And, of course, apart from being very far higher price. contractors to take on the task of storage and lucrative for the DSA, it will have long-term oncentrating on the front end of any more attention to the back end – the final part of The clever part of the export process is that the profitable disposal without any up-front costs to COMMODORE SYM TAYLOR OF THE ramifications for the UK MoD under the banner of project is understandable. Buying is the procurement cycle, which has been sadly DSA, selling surplus ships from the Royal Navy, the MoD. By being smarter in terms of risk defence diplomacy. DISPOSAL SERVICES AGENCY OUTLINES more exciting than selling – whether neglected. I want to take this opportunity to aircraft/systems/radar from the RAF and vehicles assessment and incentivised contracting, the DSA C I said at the beginning of this article that it was it’s a new car, new house or new personal introduce the Disposal Services Agency (DSA) to from the British Army, gives defence exporters has achieved considerable benefits for its service THE IMPORTANT ROLE THE ORGANISATION becoming increasingly important to spend computer. To be honest, deciding how to readers of Defence Contracts Bulletin and explain marketing edge when it comes to the sale of new clients. The RAF has been able to advance the resources on the front end of any project. PLAYS IN THE DISPOSAL AND EXPORT OF dispose of something before even buying it how the DSA is taking the lead in a range of equipment.The Agency knows that in future years, closure of its stores depot at RAF Carlisle by three Neglecting this key area could prove disastrous. is the last thing we think about, if at all. In disposal issues. I would also like to describe how as the overseas customer’s economy grows, Britain years, the Army radically reduced the disposal DEFENCE EQUIPMENT I hope that I have highlighted the real advantages to the context of defence contracts, the front the DSA gives the best overall return to the is well placed to secure repeat orders. The depots at Donnington and Bicester and the RN be gained from spending time on the back end too. end is where all the excitement is, where taxpayer. equipment is likely to be new rather than made savings of approximately £170 million by I accept that the disposal of redundant or obsolete the political debates lie, where we decide The DSA is an executive agency of the UK second-hand, making the sale of much greater rationalising its warehouses. And it’s not just the equipment may not particularly excite, but nobody, the best way of financing, contracting, and Ministry of Defence with very clear targets and value to the UK economy. armed services that have benefited from the DSA’s especially those in the defence sector, should ignore finding logistic support and after-sales operating procedures. It has the sole delegated If the DSA is operating a clever disposal policy in initiatives. In partnership with Guilbert plc (a major the subject, nor believe the issues will go away. service. And, quite rightly, it is at the authority to dispose of all UK MoD surplus terms of export sales, it can do the same in other office equipment supplier) the Agency has freed up beginning of any project where we really equipment and excess stock.Additionally, the DSA areas such as spares support and inventory storage in five UK locations by removing items at must work out how to meet the is responsible for delegating all local powers to management. an original cost to Guilbert of £2 million. CONTACT requirement so that our armed services get overseas theatres where applicable. Ultimately it is Numerous defence forces need to maintain How else is the DSA trying to turn the spotlight Readers of Defence Contracts Bulletin who the right kit at the right time and in the accountable to Parliament, through the Secretary equipment that has been, and is likely to be, in on disposal? Well, there are many examples but I would like more information about the DSA are right place. Getting it wrong is not an of State for Defence. service for many years.Vast amounts of equipment want to detail three that are particularly invited to check out www.disposals.mod.uk option. Perhaps the best example of how the DSA is are being upgraded with the basic machine innovative. or contact Barry Teideman, Business Development Perhaps unjustly, the public believes defence taking the initiative is in respect of defence underneath still needing its original component to The first is the contribution the DSA is making to Director, at [email protected] SYM TAYLOR procurement history is littered with disasters. exports. Recent examples include Island Class function. Finding spares in time, at the right price NATO in terms of effective spares distribution and Their perception is that cost escalations, delays in ships to Bangladesh, HMS Sheffield to Chile, and crucially with all the appropriate official the establishment of a common disposal policy.As This, and further Defence features, CHIEF EXECUTIVE, delivery, risk and other issues should have been ex-Royal Navy (RN) type frigates to Romania, documentation is not just challenging but truly a member of NATO’s Maintenance and Supply can be accessed under the DISPOSAL SERVICES considered at the start. However, I do not wish to Hercules 130s to Austria and Challenger tanks to difficult. It is here that the DSA is playing a smart Agency (NAMSA), the DSA is taking full advantage Newsroom section of the MoD AGENCY argue for less effort at the front end of any project. Jordan. A key to success is that the DSA works role in using its relationship with most of the of NATO’s Logistics Stock Exchange by trading Portal at: www.contracts.mod.uk My aim is to highlight the importance of paying with logistic and inventory managers to identify, as world’s defence forces to meet the demands of a surplus UK equipment with NATO members.This 2 3 www.contracts.mod.uk www.contracts.mod.uk.
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