Dresser-Rand Signs SSA with DLA

Wednesday, January 08, 2003
Dresser-Rand recently announced the signing of a Strategic Supplier Alliance (SSA) with the Navy's Defense Logistics Agency (DLA). In a recent letter to Dresser-Rand, Keith W. Lippert, Vice Admiral, SC, USN wrote, "The Strategic Supplier Alliance Charter represents a significant opportunity for the Department of Defense, through the Defense Logistics Agency (DLA), and the Dresser-Rand Company to forge a productive alliance that will serve the readiness and operational needs of the Military Services." According to Dresser-Rand president, Vince Volpe, "Closer relationships with key clients is a trend we endorse wholeheartedly. This alliance is unique because it establishes long-term relations in an area of our business that has been traditionally project oriented. We are proud to have been selected by the Navy to perform this significant role, and we will work tirelessly to continue to add value to the relationship." Dresser-Rand has also signed a new Performance Based Logistics (PBL) contract with the Defense Supply Center, Columbus (DSCC). This contract supports the strategic supplier alliance, as it includes improved processes and reduced lead times for the sole sourced D-R navy compressor components that are covered by this contract. As a performance-based contract, D-R receives incentives based on delivery performance. The nine-year contract, which is being managed through the Maritime Support Group of DLA, based in Columbus, Ohio, guarantees predictive pricing with controlled escalations for Dresser-Rand compressor parts purchased by the Navy. "This is a win-win situation for all parties," said Dennis Norton, director, Government Business Unit at D-R. "The DLA reduces inventory and administration in favor of more reliable delivery schedules. D-R is assured to be the sole supplier for the next nine years and, most importantly, this contract will improve the support to the Navy fleet."

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