Centralized procurement plan for a jurisdiction of the Argentine Ministry of Defense

Executing the assigned budget means stopping one activity and specifying others. For the MINDEF it is added that this budget is limited.

This represents the ability to acquire Goods and Services in order to use them in accordance with established government policies.

An autarky procurement management with its own credit, seeks to meet these objectives in an efficient, effective and transparent manner; implementing processes that transform assigned budgets into concrete realities for the armed forces.

The challenge of implementing a Defense Logistics Agency to obtain better results is an ongoing fact.

Its success lies in the preparation, theoretical and practical knowledge of its members to optimize the centralized acquisitions of Jurisdiction 45.

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1. GENERAL SCOPE AND GLOBAL PROBLEMS

to. I raise the particular situation of the Ministry of Defense:

Within Jurisdiction 45 “Ministry of Defense” we find nine sub-jurisdictions, of which there are five corresponding to the central administration, namely:

Ministry of Defense Joint Staff of the Armed Forces General Staff of the Army General Staff of the Navy General Staff of the Air Force

The allocation of funds available in the budget for the operation of the portfolio of the Ministry of Defense (MINDEF) falls on these sub-jurisdictions.

Historically, each of the sub-jurisdictions has carried out its own financial administrative management, with very little intervention from its Joint Chiefs of Staff of the Armed Forces (EMCFA) or the MINDEF itself.

Prior to 1983, the controls and expenditures of their respective sources of financing were carried out arbitrarily without considering the evolution of the allocated funds (expenses) or their implementation in a centralized manner.

Since the return to democracy, within the framework of civic-military relations, a kind of implicit pact was consolidated where successive governments limited themselves to demanding from the military sector a recognition of full institutional submission to the Executive Power, in exchange for not meddle in depth with aspects such as its organization, deployment and equipment.

Thus, in budgetary matters this was reflected through a weak involvement in the formulation of the successive budgets of the Defense Jurisdiction. Remaining in the Economy portfolio the setting of the funds for the sector and their organic distribution, a prerogative that did not correspond to it.

Acting, the MINDEF as a formal instance that validated the draft budget that each force had carried out, taking into account their exclusive strategic orientations.

But subject to successive incremental budget cuts, which were not accompanied by policies emanating from the EMCFA or the MINDEF. (Look at annex 1)

Thus, 2003 is reached with an institutional context with major operational shortcomings due to the lack of adequacy of the financial situation to the new obligations assigned to the jurisdiction.

Thus new changes are undertaken in the control processes. Resulting in the need to rethink the way of managing sector resources.

Carrying out the following actions from MINDEF.

Assume the MINDEF a role of leadership, planning and control over the jurisdiction Weigh the tasks that the EMCFA should carry out and assign it greater responsibilities for conducting and controlling spending in an effective and efficient way Carry out a joint report by a group of specialists on the status of the material status of the Armed Forces (Armed Forces) and actions to take to begin to solve the problems encountered.From this report the General Directorate of the Defense Logistics Service (DGSLD) is created in order to make purchases of goods and defense services (ByS) jointly, thereby seeking to optimize purchases, make them transparent, avoid duplication of efforts in the undertakings of each force and know the budget executed. Put together a plan to recover lost capacities,acquisition of new ones and optimize existing ones. This DGSLD, on the funds available in the budget assigned to the armed forces, commits them to carry out the purchases of common ByS with the purpose mentioned in point iv.

In this new context, new problems arose:

Difficulty working with standardized or unified procurement processes as each Force has different procedures and work cultures Distrust of the change initiated by the new management The credits of the forces are compromised, taking away their purchasing power Failure to comply with Acquisitions in a timely manner, making the sub-jurisdiction lose credit, in the worst case scenario. Not having the DGSLD with its own credit does not speed up the acquisition processes. Depending on the assignment of each force and reductions that affect the processes already started. Having to comply with Delegated Decree No. 1023/2001 and its regulations, Decree No. 436/2000 does not give agility to the obtaining process, especially in shopping abroad.Procurement management, when carried out with agencies such as the UOC (contracting operating unit), SAF (financial administrative service) and legal advice (AL) that do not functionally respond to the DGSLD, caused delays and inconveniences in coordination.

With the creation of a Defense Logistics Agency (AML), with an autarky and its own budget, it would be possible to respond adequately to the acquisitions of B & Bs in common use for defense; deepening the logistical processes initiated from the MINDEF.

The biggest challenge for the DGSLD today is having to continue working to improve management with a limited budget allocation. Seeking to be more efficient, effective and transparent in the execution of the allocation of funds assigned to the budget. (See Annex 2)

To understand and provide an adequate vision of the responsibilities and implications of the new logistics organization within MINDEF, a chronology of the main events that give it legal support is presented:

With the National Defense Law No. 23,554, in its article 21, the organization and operation of the Armed Forces is determined, giving criteria of joint structuring and efficiency. Law No. 24,948, in article 5, establishes that both in the strategic provisions and in the organization, equipment, doctrine and enlistment priority will be given to joint action and the operational integration of the forces.

With Decree No. 727/06, the National Defense Law is regulated, and its article 13 establishes that it is the responsibility of the MINDEF to approve the readjustment of the functional organic structures of the armed forces, as well as to exercise any function that explicitly or implicitly arises of the laws that govern their powers.

Through Decree No. 729/07, it gives us the National Defense Planning Cycle, for Military Strategic Planning.

With Resolution MD No. 350/08, the Report for the Modernization of the Defense Logistics System was approved.

It is axial that by means of Decree No. 1451/08, the DGSLD is created under the orbit of the Ministry of Planning of the MINDEF, assuming logistics execution functions that until that moment were assigned by Resolution MD No. 522/02 to the Joint Chiefs of Staff through its General Directorate of Joint Logistics. And this new logistics body in the short term will be transformed into the Defense Logistics Agency (ALD), with the modality of an autarkic body under the orbit of the MINDEF.

The Minister of Defense, Dr. Nilda Garré, affirmed the following concepts:

that the creation of a Defense Logistics Agency dependent on his ministry will "rationalize, optimize and make transparent" the purchases of equipment and supplies for the armed forces, "by centralizing them in a body subject to the necessary technical and legal controls." He considered this integral logistics reform of the sector as "the greatest challenge" that MINDEF has faced, and that "This reform had been claimed by the military institution itself in the Rattenbach report of 1982". that the Defense Logistics Agency will be a higher and centralized body that will be located in the Ministry itself. that the fundamental objective of this agency will be to ensure a synergistic use of the global resources of the sector. that this initiative is based on experiences international organizations from similar organizations in several countries.In this way, the integral planning of the use of the facilities and maintenance capacities is encouraged in order to make it available to the needs of the whole, and that through the issuance of these instruments, the bases on which the organization and operation are based were built of the system "that support and allow progress in the modernization of the sector, a task to which we are today engaged".

b. Analysis of the budgetary problem:

The opportunity cost of national defense, anywhere in the world, means stopping doing one activity with the other, since they use budgetary funds from the country that could be redistributed.

The available budget only represents the ability to buy to acquire said ByS in order to use them in the way that seems best to you. If they are assigned well, the chances of success increase, but if they are assigned badly, the objectives set may not be achieved.

In both cases, the responsibility lies with the manager and not with the B & S that he has employed. The importance is in learning to acquire them correctly to get the most out of them and for this I must go to the models and theories that will help the decision maker. It will try to demonstrate that when economic reasoning is introduced in that decision, it can be stated that the available budgetary funds will be used with the maximum performance. (See Annex 3)

The practice is always based on a good theory which is what illuminates, stimulates and helps to find the best paths.

For which, first the objectives that are sought as a country must be established and plan how to achieve them, and on the other, the logistics to be implemented, which will allow that planning to be sustained and viable.

To understand the way in which the economy contributes to decision-making, one must work on the idea that we understand by economy and the principle of scarcity.

From these two the concept of alternative or opportunity cost is born, which corresponds to the sacrifice incurred when B & S are used in one activity instead of another.

Both the scarcity principle and the opportunity cost principle are central concepts in economic thought and illuminate its way of dealing with problems.

Just as all countries must solve the problem of how to allocate the BiH they have to satisfy the needs or the achievements that they have set out to achieve, so the MINDEF / FFAA also have an economic problem to solve, since they are also managing productive BiH in times of peace and BW of war in times of conflict. In this perspective, the economic problem of the MINDEF / FFAA consists of “choosing the strategy (using the means to achieve an end), the technology and the composition of forces (optimal combination of ByS) that allows to achieve the purposes of the policy defense at the lowest cost, in a world where resources are always scarce ”.

The foregoing sets a task for MINDEF, which consists of "that they must decide on these economic issues, having to be restricted to a budget and to the fulfillment of certain objectives set by the authority."

The country sets its goals and objectives and how to achieve them from a political, social and economic point of view. The MINDEF through its armed forces has the mandate to protect its borders and its wealth. For this, it is necessary that the company itself provide the necessary budgets to fulfill said mandate. However, as always, there is a gap between needs and B & Bs that allow them to be satisfied, the country must prioritize needs and distribute national wealth, so that the maximum of them are satisfied, choosing those that best contribute to the well-being of society. It is in this environment that national defense finds itself to compete with other needs and consequently must present the best projects, in order not to make other national sectors enter into excessive sacrifices.This does not mean that national defense should always be sacrificed to solve other national problems; What is important is to be aware that to the extent that optimized economic criteria are incorporated into the process of choosing alternatives, logistical resources will be used that will allow military operations to be carried out and at the same time collaborating with the rest of the country to solve the problems of citizenship. (See Annex 4)logistical resources will be used to carry out military operations and at the same time it will be collaborating with the rest of the country to solve the problems of citizenship. (See Annex 4)logistical resources will be used to carry out military operations and at the same time it will be collaborating with the rest of the country to solve the problems of citizenship. (See Annex 4)

From this moment on, countless gaps begin to appear in all sectors and within them, at each of the decision-making levels. The only way to “close that gap”, that is, to achieve all the goals with the budgetary funds that we have, is to make optimal use of them. This is where the changes to be made with the AML appear to comply with the assigned mandate, that is, to develop and conduct a sustaining logistics and genetic logistics for the armed forces. The interesting thing is to sensitize our consciences so that these types of considerations are effectively used and thus allow AML to truly fulfill its function. (See Annex 5)

The economic development strategy adopted by the country will influence the speed and capacity that it will have to generate national wealth with which to solve national problems. The more capacity there is to exploit our natural resources and the exploitation system is the most efficient, the more employment will be given to citizens and the more well-being will be generated, trying to achieve this in the shortest possible time. Therefore, the destiny of the MINDEF / FFAA is not alien to this environment, especially the economic one, since with more economic ambition they must be prepared to assume greater responsibilities; It is not by chance that the most developed countries are those with the most powerful armed forces and with the most international commitments.The economy will sustain a fuller and more self-sufficient overall national base to support the deterrent or defensive effort.

We must not forget that the resistance of a chain is given by its weakest link. From this point of view, it is very important that MINDEF / FFAA does not duplicate efforts, that it focuses its attention on the fact that “the fist hits harder when it is closed than when it is open” and that joint logistics, not understood only as the opportunity to buy war material and equipment with similar characteristics, and in what will always be reasons why it is different and in essence it is, but rather as a joint logistical function that supports the defense war effort with flexibility, diversification, opportunity, efficiency and efficiency, thus achieving the highest return on the limited budgetary funds available.

An effective way that allows to unify efforts, clarify actions and give greater value to money is to establish joint and / or institutional systems that allow evaluating national defense projects, because this procedure in itself rationally leads to seeking more effective solutions and efficient for the benefit of the work of the armed forces, whether it is a project with joint characteristics or specific.

The armed forces have a natural pyramidal formation, both in their procedures and in their structures, because common sense and the professional recommend it. But in the search to optimize budget funds in an effective and efficient way, it is worth considering starting to carry out a reengineering process, to flatten the current structures, at least within the areas that concern logistics and especially the future. ALD that would replace the DGSLD. Seeking to improve the response to the needs of the armed forces, especially in terms of quality, timeliness and budget management.

While it is true that defense economics is an applied science, it is ultimately nonetheless a way of acting and disciplined behavior of dealing with problems by decision makers. It is not necessary to be an expert in the employment techniques and calculation procedures recommended by defense economics, what matters is that the decision maker has the concept of what economics is in its essence and is aware that " economic means impose limitations on the forces that can be used in combat operations, from which it follows that economic-logistical factors determine the limits of the strategy ”.

Specific logistics (FFAA) can be classified as a subset of a joint logistics (EMCFA) and this in turn, dependent on a Supra logistics (ALD) at the ministerial level, constituting with this structure a part of the national economy; This means that if our country has managed to achieve important achievements at the national level, applying schemes based on the principle of shortage of B & S, by deductive transitivity, we should conclude that the same principle should also give us good results in the management of budget funds in the logistics mentioned above. MINDEF / FFAA cannot be oblivious to this reasoning. It is not that these institutions are more efficient so that other national sectors take the benefits of these savings;rather, it is about each activity being efficient in releasing budgetary funds that can be used to resolve other outstanding issues within the same jurisdiction that are waiting to be resolved.

In this sense, modern logistics, in its broadest expression and scope, taking advantage of the most advanced procedures and technologies developed by applied sciences, can and should collaborate so that AML carries out both its strategic action programs, with efficiency and effectiveness, since its intrinsic function is the acquisition, distribution and supply of productive defense B & Bs used by the armed forces. (See Annex 6)

2. PROPOSAL TO IMPLEMENT ON CENTRALIZED ACQUISITIONS

Given this conceptual introduction to the problem of logistics management from the perspective of the MINDEF with the political decision to create an AML, which centralizes the acquisitions of the Jurisdiction in terms of the maintenance logistics and genetics of the armed forces, and having raised the main obstacles that had to be sorted out up to the present at the beginning of its implementation and how the different budgets assigned to the Defense portfolio were executed over time, marking the incidents that they have with in GDP, with other ministerial portfolios from the point of view of its execution and programmatic classification;We will now introduce ourselves into the implications that this new organization would have on the centralized administration of its supplies in the management of the centralized procurement logistics process for the Defense Jurisdiction from a new autarkic, legal and budgetary framework in order to be able to:

Carry out centralized supplies of BiS of interest to the MINDEF, with the assigned budget and its financial restrictions Standardize the classification of BiS and determine their reference prices to be able to work with economies of scale Optimize the use of allocated budgetary funds, consolidating their procurement processes, seeking economies of scale to obtain the greatest amount of ByS or that have better qualities in their benefits. Define the appropriate organization and procedures to implement the management of the procurement process with the corresponding budget execution.

3. ANALYTICAL DEVELOPMENT

to. Preamble to the proposed context of the Ministerial Portfolio.

Due to the uncertainties on the part of the MINDEF and the little interference of its EMCFA, it was understandable that each armed force formulated its draft budget according to its own objectives. Given this, the MINDEF made the decision to try to generate added value by articulating the proposals received so that the project it authorizes reflects a joint, synergistic vision and in accordance with the political guidelines for the sector.

Defense policies, as regards the budgets of the last 20 years, had as their main focus a drastic reduction of the military instrument.

Responding to the needs of budget cuts at the national adjustment policy level, without a strategic definition of the medium and long term, with a consequent progressive and marginal reduction with respect to the military capabilities to maintain, enhance or eliminate.

An example of this has been the deprogramming of successive weapons systems, in response to the operational exhaustion of their life cycles and the financial inability to replace them.

The civil leadership in the affairs of National Defense and the Armed Forces has begun the design, preparation, planning, control and evaluation of defense policies and strategies as well as in the superior budgetary, logistics, financial and personnel administration of the Forces Armed. In this sense, the creation of the AML has been articulated, a key and essential project in the task of reconstituting a functional organic structure within the scope of the Ministry of Defense that allows this conduct.

Which is driven by the need to advance in the optimization of the operation of each of the state jurisdictions according to their particular characteristics.

This implies working on the acquisition processes in order to guarantee the efficiency of the B & Bs obtaining process; In the AML, a set of reforms of the Defense budget system will be implemented that will make it possible to increase transparency and control capacity. A more coordinated and rational distribution of the budget and a definition of more representative and clear goals, added to a greater regularization of resources, will constitute concrete progress towards a supervision model with the implementation of AML, which will be essential to achieve an efficient, effective and transparent centralized procurement management.

Procurement management and budgets, considered as mere administrative instruments, are now taken as key elements, due to their central role in setting and ordering priorities, by limiting or limiting the political strategy of the ministerial portfolio.

b. Basis of the points raised in the proposal

1- In order to be able to carry out centralized supply of ByS of interest to the MINDEF, the simple logic indicates the need to have assigned an own budget in the AML, seeking to have a centralized administration in the acquisition of the same. Currently, this task of carrying out the B&S procurement management is carried out with budgetary reserves, assigned by the parties, of the total budget assigned to each body of the Jurisdiction (internal clients).

This implies that AML must develop its sustainability and genetic logistics with a budget that can be modified by functional needs of each armed forces / EMCFA or cut by situations exogenous to the Ministerial portfolio and consequently restricts the margin of maneuver to be able to carry out the processes, if it is not in time, it will be in quality, quantity or form, or in all; This means that it will have an impact in some way due to the lack of management of budgetary funds.

Having them will allow the AML to have the necessary flexibility to establish the appropriate times for their employment and also to have them in year D with an amount equivalent to that assigned by each Armed Forces / EMCFA, plus an increase in inflationary adjustment. of the budget; allowing this to have a running year to carry out the acquisitions of each internal client for the YEAR + 1 period. These acquisitions will be carried out taking the ByS to be obtained from statistical projections collected from the periods already executed since the implementation of the centralized procurement programs initiated with the DGLC (PACIC) in 2007 and 2008 and the DGSLD (PACID) in 2009. to 2011, which gives us a timeline of at least 5 years to the date of this work,These estimates of a known universe of requirements must feed a database with quantitative and qualitative information from B & S acquired in advance, in order to speed up the process as they are commonly used.

Another method is to take the multi-year budget projections of the Defense portfolio and start increasing the AML budget in the 4 future years to be considered, adjusting them as the time line elapses; and at the same time increasing the amount of B & Bs of interest from MINDEF to be acquired in those periods. These should be added gradually according to their relevance, importance and implications in their procurement management, an example of which is aeronautical, naval and land fuel, ammunition, hospital supplies and equipment, new weapons systems, major repairs on the means of each armed forces, infrastructure works, up to the provision of all clothing, rationing, basic or special services, furniture and office and office supplies, etc.

This modality gives the procurement management a prospective vision of the necessary funds over a medium and long-term horizon, considering YEAR + 1 in the short term, in this way the requirements of the forces can be adjusted to more real possibilities, with better tools to make adequate budget management decisions to initiate the most convenient forecasts for obtaining them. (See Annex 9)

In this way, the feasibility of working on acquisitions under the concept of centralized supplies can be envisaged. Being able to gradually count on B & S reserves (stocks) that respond to the forecasts for Year + 1 to be considered. Allowing to carry out better reception controls, verifying that the B & Bs comply with the previously established standards, with the agreement of all users. And make the corresponding claims to have the ByS on time and therefore be able to make the provisions according to plan, complying with the quality and quantity required.

2- Standardize the classification of B & S and determine their reference prices to be able to work with economies of scale is a necessary task to carry out in order to carry out centralized acquisitions.

With the experience gathered from 2006 to date through the PACIC / PACID programs, they allow the AML to have enough information to be able to develop a necessary database (at least as a start) to classify the universe of B and S that are coming. acquiring and begin to define the standards of the same, on which the acquisitions will be made.

This is currently being carried out with the implementation of Defense Technical Specifications (ET-DEF) and standardized defense standards, through the intervention of the Ministry of Technical Standardization and Standardization of MINDEF. Said body regulates and establishes Standards and approves the ET-DEF that are being established with the participation of the Armed Forces and EMCFA (user / client), defining the ByS corresponding to the universe that is liable to be acquired. Standardizing its benefits and / or characteristics for all users. This will make it possible to define the qualitative differences (quality) of the ByS and in this way to be able to determine a reference price that better represents the required ByS.

With this new value or data of the required ByS, it provides us with a new parameter to be able to work on improving the acquisition with the premise of achieving economies of scale, because we will have better defined what is to be acquired and also its referential value in order to make better decisions when distributing the assigned budget. And with this we will be in better management conditions to achieve greater global efficiency, an efficiency in the process and transparency in the final result that is sought.

3- By carrying out centralized supplies and with standardized ByS, it will be possible to start optimizing the use of the allocated budgetary funds, consolidating its acquisition process, seeking the economies of scale possible to achieve, in order to obtain the greatest amount of ByS, or as counterpart, that they have better qualities in their particular benefits.

And also by having defined the modality in which the AML is made of its own budget, this gives it the tool to start managing them with a better base to negotiate with the market, because by being able to consolidate the acquisitions of the Armed Forces / EMCFA in a single process, having already set the ByS of interest to the MINDEF, and thus begin to define the final prices of each ByS required.

By having a centralized supply directed, which implies using unified requirements that allow consolidating them in the same acquisition process and thus, with time and the definition of a considerable volume of B & Bs, to achieve economies of scale, compared to a significant volume to require before a market more interested in the demand generated.

Thus, factors can be generated to achieve the reduction of unit prices and thus make better use of the allocated budget.

This is where you see the benefit of centralized sourcing and that resulting from implementing economies of scale. Now allowing to redistribute the difference obtained from the budget and use it in other objectives postponed due to lack of funds, to expand the acquisition of a greater quantity of ByS, responding to future provisions already planned or to be used in the qualitative improvement of the ByS to be required. This results in greater efficiency in the procurement process used.

All this must be regulated within a legal and legal framework that allows AML to negotiate within a more flexible or consistent framework as a governmental body, with interested companies in the national and international market.

For which, in the first instance, it must comply with current legislation (Law on Financial Administration and Control Systems of the National Public Sector No. 24,156 / 08, Delegated Decree No. 1023/2001 and its regulations, Decree No. 436/2000 and its future update to be executed in 2010); But since Jurisdiction 45 is the governmental body with the greatest diversity of BiS to acquire in specificity, quantity and time of employment, it is a subject of pending analysis. This will imply defining the procedures of the current laws that regulate acquisitions must be adapted to carry out the new acquisitions management with the modality to be implemented through AML.

Regarding legal advice, having to depend on a body that is not functionally dependent on it does not facilitate the processing of acts related to acquisitions, as it is not a specific function and does not know in depth the issues of procurement management. that the ALD would carry out. Regarding the particular problem and its necessary times to comply to achieve the desired effects through the realization of centralized supplies. Therefore, this is also another issue to be analyzed in order to define the necessary convenience that the AML has its own AL to carry out with due knowledge and diligence of the pertinent administrative acts to efficiently carry out the management of obtaining B & Bs for Jurisdiction 45.

4- Finally, it remains to define the appropriate organization and procedures to implement the management of the procurement process with the budget execution Since 2009, with the creation of the DGSLD, the main activities to be carried out by the new logistics organization were established at the ministerial and its basic organization chart (from Director General to Heads of Department). (see Annex 7)

The experience gathered from these two years of DGSLD, are reflected in working documents carried out in the first instance at the request of the Secretary of Logistics Planning, by personnel of the Defense Logistic Agency (DLA) of the Ministry of Defense (MoD) of the States States of North America, through a qualified team of advisers, who have been advising since the beginning of the creation of the DGSLD and its process towards the creation of an AML. Initiative arising from the modernization report of the Defense Logistics System.

From the report of the DLA advisory team, issued in December 2009, the following considerations are made to take into account for the realization of a better and adequate organization:

I first highlight a key concept that they reflected in the conclusions to take into account in the steps to follow, which synthesizes the conclusion of the evaluation, which says : “The evaluation reflects that AML is currently dysfunctional. The general management approach requires improvement and several key systems and processes still need to be implemented so that the organization can operate properly ”.

And they mark the following priorities of measures to be developed:

Establish a comprehensive strategic management system Work together with government, industry and the education sector to develop the defense procurement system Integrate human resource management into all processes and functions Define all key organizational processes.Control the changes.

In addition, it has its own reports issued to inform the DGSLD of the evolution and main problems to be solved in the execution of the procurement management.

From the reports issued by the Director of Procurement Management in June 2009 and the Director of Planning in December 2009 and, the following actions to be taken or points to be considered are expressed:

Set objectives to be met that are well defined, achievable and measurable in management terms Finish defining and formalizing the DGSLD procedures That the Director General be appointed to the position, a situation for which he currently does not sign or can assume the responsibilities that correspond to the position. That the administrative authority is exercised by the DGSLD, with the capacity to authorize and approve contractual procedures. The administrative structure of the MINDEF is not prepared and requires time for incorporation and familiarization with the requirements of the DGSLD. Due to the fact that it handles its own criteria and priorities in its management, not assigning priority to matters emanating from the DGSLD, because it does not know them.Obtaining the functional dependence of the UOC in the area of the DGSLD,as defined in the "Report for the Modernization of the Defense Logistics System",… any possible alternative must have its own UOC and LA. (See Annex 8) The Evaluation Commission has not been appointed to date, however it participates in all purchasing management from the Opening Ceremony. Likewise, its organic dependence has not been defined, depending “in fact” on the Director of the DGSLD. Such a situation vitiates the legitimate activity of the Public Administration Complement the Procurement Operational Management Department with more military and civilian personnel and by work groups by item Obtain better building conditions for the jobs (currently the different agencies are in different and distant buildings, with communication and transfer difficulties).Design a computer system that operates a single database for all the intervening areas and processes involved. Add to the different areas personnel with proven experience in the tasks to be performed and redistribution of functions and tasks, to improve current processes. Define A contracting plan that allows satisfying the logistical-operational needs of the applicants in a timely manner. Plan, organize and provide the DGSLD, as of July 1, 2010, with its own SAF that manages its own budget. (This action as of the date of this work could not be concluded yet) Specify the operation of its own legal body, with suitable personnel from the DGSLD, who specialize in contracting.Analyze the convenience of partial / general application of a special B&S contracting regime for the DGSLD, in search of a versatile and efficient system for the DGSLD maintaining the premises of the current national contracting system.

These reports, the product of the knowledge of personnel belonging to international organizations with extensive experience in the implementation and improvement of their own organizations and agencies, plus the valuable experience of the failures and successes of the organization itself, give us a vast accumulation of information on the steps to follow to achieve the most appropriate organization for AML to create and the procedures to implement in the pursuit of obtaining an effective, efficient and transparent procurement management, complying with its internal clients, our Armed Forces.

4- CONCLUSIONS "A path in development"

The defense budget of a country should be, then, one of the most faithful indicators of its defense policy, an unequivocal signal both for the internal public that finances it and for neighboring countries that may feel threatened by the position of it. comes off. In this way, it must be recognized that the transparency of the Defense budget constitutes a fundamental feature of the sector's management, in which two analytical dimensions are involved: one national and the other international.

The implementation of a body with budgetary independence, its own AL and that can relax the dependence on the current law for the acquisition of ByS, will allow the future AML to carry out acquisition processes through consolidated purchases of ByS of interest to the MINDEF, with the purpose of carrying out the Sustaining logistics to the different programs currently in execution and future; and optimize the obtaining of Genetic logistics through the execution of different projects that seek to recover or acquire military capabilities in a timely manner, required in medium and long-term military planning, efficiently and effectively and without losing the transparency of management. But this expression does not alleviate all the inconveniences and mishaps that we will have to overcome to make the entrusted mission a reality.

As a corollary, I highlight a point of the conclusions of the DLA advisory team, which says: “Although it is important to have written strategies and plans and define the processes, it must be recognized that these are only tools to achieve the result. desired - the fulfillment of the mission. Therefore, you need to proactively and continuously “develop the plan,” assess progress, and be flexible enough to make any necessary adjustments. With the active full support of the chain of command and the commitment of all, AML will become an effective and efficient organization. ”

From this conclusion I rescue the following idea, the development of a proactive and continuous plan, which is based on the implementation of courses and seminars that deal with each of the areas analyzed in this work or that arise from subsequent specific analyzes to achieve:

Synergy of all those involved in the management with the problems of its implementation.

Level the knowledge of the problem in general and in particular by area of work.

Seek to create a group spirit to carry out the challenge of implementing the changes to create AML.

Develop within the management control area the compilation of lessons learned and their subsequent dissemination in seminars or brochures, for their dissemination and feedback in the monitoring and management control process.

Work on the training of the current staff of military and civil personnel, and on future replacements, defining the profiles and work experience required for the positions to be filled.

Put together a career plan for military and civilian personnel in activity who have a relatively short step as a destination in the AML and achieve the formalization of their incorporation as retired, in order to obtain a critical mass of suitable professionals who will last in the positions to be filled and with complete experience in centralized procurement management processes and projects to be developed (sustainability logistics and genetics).

Creation of an educational unit that has the responsibility of training military and civilian personnel in each and every one of the areas that make the best performance of the AML in terms of sustaining logistics and genetics.

All this seeks that we do not stumble twice on the same stone.

BIBLIOGRAPHY CONSULTED

Nilda Garré, Minister of Defense of the Nation. "NATIONAL DEFENSE 2005 - 2006". Thomas Scheetz, "The Defense Budget in Argentina: Its Context and an Analysis Methodology". Security and Defense Studies Review Vol. 2 Summer 2002. Professor: Universidad Argentina de la Empresa, Buenos Aires, Argentina Lincoln University College, La Lucila, Argentina.Inés Rodríguez, Gustavo Sibila and Julio Vara. August 2004. “Quality, efficiency and transparency of the defense budget The case of Argentina”. In RESDAL Magazine - Research Papers. Press release. Relevant aspects of the 2010 national administration budget project. Retrieved September 6, 2010 on the World Wide Web: www.mecon.gov.ar/onp/html/comunicados/proy_presupuesto2010.pdf. Press release.Relevant aspects of the 2011 national administration budget project. Retrieved September 6, 2010 from the World Wide Web: www.mecon.gov.ar/onp/html/comunicados/proy_presupuesto2011.pdf.Presupuesto Jurisdicción 45-2010. Defense Budget. Chapter 6, Initial Suggestions Regarding Defense Budget Analysis. In RESDAL Magazine 2004.RICARDO ADRIÁN RUNZA. Strategic Studies of Buenos Aires. DEMITIFYING SOME PARADIGMS OF THE DEFENSE ECONOMY OF ARGENTINA. A constructive criticism of the National Defense report on the Democratic Agenda. National Meeting of Strategic Studies Buenos Aires, November 2004. Gordillo, Agustín A. Treaty of Administrative Law. General Part - Classification of public entities.06-02-2003 Common standardized methodology for the measurement of Defense Expenditures, seminars and conferences Series 14. Office of the Executive Secretariat - Economic Commission for Latin America and the Caribbean, Santiago de Chile. Argentine Association of Social Policies, SOCIAL CONTENT OF BUDGET 2010, Economic-Social Perspective. Roberto A. Martirene. Argentine Association of Budget and Public Financial Administration (ASAP). Methodology of Formulation of the Multi-year Budget Formulation. Roberto A. Martirene, Presentation 3.Evaluation of the Defense Logistics Agency, December 2009. Document prepared by the team of advisers of the DLA of the MOD of the United States of North America. Report: Problematic execution of PACIC, Brigadier Guillermo PUCCIO, Director of Procurement Management. June 3 Report:Management of the DGSLD in 2009 and its Projection for 2010, Rear Admiral Joaquín GONZALEZ, Director of Planning. December 17, 2009. Portal de la Defense Logistics Agency Web page,
- DLA Office of Small and Disadvantaged Business UtilizationDLA Procurement RegulationsMilitary Services Small Business SitesSmall Business Development CentersSBA Certification or Qualification RequirementFederal Acquisition Regulations (FAR)

Marcos Pedro Makón. International Association of Public Budget Management by results, is it synonymous with budget by results ?. 2006

Goods and services: They are those tangible and intangible things, of economic value that provide benefits to those who own or use them and that allow life in the community or allow the development of a specific activity

report based on a comprehensive diagnosis of the organization and current operation of the system and the survey of international experiences of recent modernization in the matter, prescribing an action plan for its optimization and integration; and an implementation program for its proper execution in a timely manner.

Expressions made when participating in the conference program of the Higher Course of the Higher School of Air Warfare, in the Autonomous City of Buenos Aires, on July 4, 2008.

Resolution of the Military Junta and charter of constitution of the Commission for the Analysis and Evaluation of responsibilities in the South Atlantic conflict

seeks to incorporate a joint and normalizing perspective of the functions of supply, maintenance, storage and others related to the genetics of incorporation of new weapons systems.

promoting the consolidation of requirements and the consolidated management of contracts, generating economies of scale and improving the negotiation conditions of the sector as a single client.

The United States, Great Britain, Canada and Australia, which have had their own logistics agencies for years, as well as the option chosen by France, Spain and Italy, which centralized the centralization of their logistics systems in organic instances of their Ministries of Defense.

Until now, the use of such resources was planned on the basis of the exclusive demands of the force of belonging.

It is the part of the supply chain process that plans, implements and controls the efficient flow and storage of goods and services and related information, from the point of origin to the point of consumption, in order to meet customer needs.

The economy studies the mechanism of allocation of the ByS, which are scarce, for the satisfaction of needs that are limited.

Since the needs are limitless, the available resources used to satisfy them are always scarce and for this reason we are forced to choose the best options to achieve them.

Productive Resources: Set of material goods (of a productive nature), financial and technical that a department, entity, or organization has and uses to achieve its objectives and produce the goods or services that are within its competence.

War Resources: Set of material goods (of a military nature), financial and technical that an armed group has and uses, the armed force of a nation to achieve its objectives and produce the goods or services that are within its competence.

Logistic Resources: Set of material goods (of a productive nature) and services (complementary), which integrate a comprehensive supply process from its technical definition, production, storage and distribution considering its financial and technical aspects that a dependency, entity, or organization to be able to carry out its objectives, producing other goods or services.

It seeks to support the Forces in a situation of enlistment or in operations (Sustaining the media during the Life Cycle).

It seeks the generation and maintenance of military capabilities (Acquisition of Significant Military means with its Logistic Support).

Joint Supply Program for Common Inputs.

Consolidated Supply Program for Defense Supplies.

Annex 1: Comparison of MINDEF Expenditure with that of the National Public Administration and GDP.

It can be seen in the time sequence (years), the successive reductions that were made on the ministerial portfolio. And although from the period 2007 onwards there is a slight upturn, this is not reflected in the percentage of participation with GDP.

Annex 2: Forecasts for 2010 of Expenditure by Jurisdictions of the National Administration.

Compared to the ten most relevant ministries, MINDEF is ranked ninth. This data marks the relevance assigned within the priorities determined within the framework of national policy.

Annex 3: Military Expenditure as a percentage of GDP and in current dollars.

The opportunity costs of spending are constantly reduced from period to period. This signal indicates that all efforts should be made in the present period, because in the next they will have less. Inflation distortions are not applied to this situation, due to the difficulty of obtaining and analyzing them.

Annex 4: Levels of execution of the approved expenditure.

Annex 5: Distribution of expenditure by purpose, planned for 2010.

The clear difference in the political priorities represented in the distribution of spending by purpose can be seen in this cake, where the Defense and Security Service (MINDEF) takes the least portion. This highlights the importance that must be assigned to procurement management, since its optimal use will allow to take advantage of the funds allocated in better acquisitions.

Annex 6: Evolution of DGSLD spending through PACID.

Here you can see from the implementation of centralized acquisitions, how the items consolidated by the Armed Forces increased and the partial assigned for each period. The most significant thing to highlight is how the timeline shows the constant increase in the funds allocated to PACID and how, at the same time, the allocation of items was leveled, seeking to acquire ByS already defined and standardized but quantitatively and qualitatively higher.

Annex 7: Organizational chart of the DGSLD

The Division levels that are presented do not respond to the provisions of Resolution MD No. 261 of March 2009 that creates the DGSLD, they were created by the Directorate in order to organize the management of acquisitions of the ByS to be obtained by subsection and item according to the national budget classifier. In addition, in this organic it is appreciated the non-inclusion of a UOC, LA or evaluation commission of the contractual acts.

Annex 8: Timeline of a contractual act

This graph compares the times used between a specific contractual act and a theoretical one. It can be seen how the administrative times increase in geometric form since it leaves the orbit of the DGSLD, given that the different entities involved in the process have different organizational dependencies, either from the Planning Secretariat or the Coordination Undersecretariat.

Another detail to consider and that directly affects administrative times is that all contracts are consolidated and in general of high amounts, which requires the intervention of the Minister of Defense and / or the Chief of Cabinet. of Ministers.

In this graph you can see the evolution of the entire process. Where it is seen how in the development of year D (initial) it ends in the next (year + 1), but that in the decline phase of the process the procurement management overlaps with the next year

In the case of a multi-year evolution, the superposition of all the processes in the form of sequences is observed. Marking the complexity of carrying out all the procurement management considering that it works on the basis of a smooth evolution.

Annex 9: Life cycle of the procurement process

ACRONYMS:

ALD: Defense Logistics Agency

AL: Legal Advice

ByS: Goods and Services

DLA: Defense Logistic Agency (Defense Logistics Agency - USA)

DGLC: General Directorate of Joint Logistics

DGSLD: General Directorate of the Defense Logistics Service

ET-DEF: Defense Technical Specifications

EMCFA: Joint Chiefs of Staff of the Armed Forces

Armed Forces: Armed Forces

MINDEF: Ministry of Defense

MoD: Ministry of Defense (Ministerio de Defensa - USA)

PACIC: Program for the Joint Supply of Common Inputs

PACID: Program for the Consolidated Supply of Supplies for Defense

GDP: Gross Domestic Product

SAF: Financial Administrative Service

UOC: Contracting Operational Unit

AUTHOR INFORMATION

1. PERSONAL DATA:

LAST NAME AND NAME: FERNANDEZ, Javier GRADE: Vice Commodore BODY: Command “A” ESCALAFON: General SPECIALTY:

Logistics Officer - Supply (Material Manager)

SUBSPECIALTY:

Staff Administration

2- DESTINATIONS AND PREVIOUS CHARGES

1998 to 1999 - Coordinating Logistics Officer of the I Air Brigade. 1999 - Head of the Supply Squad of the I Air Brigade. 2000 to 2003 - Head of the Material Control and Administration Service of the AM Río IV. And Head of the Logistics Library and Cataloging Service of AM Río IV. 2005 - Head of the Logistics Division of the General Directorate of Personnel of the EMGFAA2006 / 7 - Head of the Sustaining Division of Peacekeeping Missions of the Directorate of Supply of the Directorate General of Joint Logistics of the Joint Chiefs of Staff of the Armed Forces. 2008 - Head of the Class II and IV Effects Division of the Consolidated Purchasing Department of the Supply Directorate of the General Directorate of Joint Logistics of the EMCFFAA. 2009/10 - Officer of Acquisitions,of the Procurement Operational Management Department of the Procurement Management Directorate of the General Directorate of the Defense Logistics Service.

3- STUDIES AND COURSES CARRIED OUT:

UNIVERSITY EDUCATION:

1) ¨Del Salvador¨ University.

1996 - Bachelor's Degree in Personnel Administration.

2004 - Postgraduate degree in Integrated Logistics Management, dictated in agreement with the Georgetown University of Washington, DC, USA.

2) Austral University (IEEC - Institute of Studies for Competitive Excellence)

1999 - Post Graduate in Annual Program in Materials Logistics (PALM) of the American Production and Inventory Control Society (APICS).