From Naval Facilities Engineering Command Headquarters Public Affairs
WASHINGTON (NNS) -- Representatives from the Naval Facilities Engineering Command (NAVFAC), Commander, Navy Installations Command (CNIC), Marine Corps, Office of the Deputy Assistant Secretary of Defense for Energy (ODASD (Energy)), and members of NAVFAC’s Advancing Navy Commodities Cost Reduction (ANCCR, pronounced "anchor") program celebrated its second year of success at the NAVFAC Headquarters, July 30.
Serving as the subject matter expert for utility and energy-related market and financial analysis impacting the Department of the Navy’s (DON) $1 billion purchased utilities portfolio for the last two years, the program analyzed 29 pilot opportunities for Facilities Engineering Commands (FECs) all over the globe, and has paved the way to institutionalize ANCCR’s role in how NAVFAC increases lethality through cost savings and avoidance.
“Utilizing business intelligence and advanced analytics is how the Naval Facilities Engineering Command optimizes our utility purchasing practices – and ANCCR is a key example of that goal. In just two years, the ANCCR Program’s centralized community of expertise generated $26.2 million in savings and $308 million of cost avoidance for Navy purchased utilities,” said Rear Adm. John W. Korka, commander, NAVFAC. ”ANCCR leverages data analytics to support NAVFAC in delivering sophisticated market and financial analyses that align with industry practices, resulting in business decisions that reduce the cost of the purchased utilities portfolio.”
ANCCR is a centralized headquarters capability powered by a global community of expertise that provides technical analysis to support key business decisions impacting utility rates. With this program, the Navy has access to in-house commodity market and financial modeling experts. This expertise, combined with ANCCR’s understanding of DON equities and enterprise perspective, results in unbiased, fact-based recommendations that support mission requirements at the lowest cost.
“Over the past two years, the program has really made leaps and bounds of progress, and has come to set very high standards in the way we conduct analysis,” said Monica DeAngelo, NAVFAC director of Utilities Procurement, who leads the ANCCR team.
In its second year, ANCCR piloted several types of opportunities while focusing on two goals: identifying utility commodity cost-savings and optimizing business processes through advanced analytics and technical procurement support that take advantage of market opportunities.
“To think about the fact that we spend $1 billion on utilities, it’s an area ripe for that type of analytics. And the fact that you’ve [DeAngelo] been able to drive that, bring it home, saving $26 million and avoiding $308 million [of unnecessary expenditures] is a great start for a two-year-old program,” said NAVFAC Executive Director, Jennifer LaTorre.
The ANCCR program is a model for how centralizing a community of expertise can achieve increased productivity, allowing resources closer to the mission to maintain focus on the warfighter.
“Not only have you [DeAngelo] built a team of folks, with contractors and government folks who have achieved the goal, we are the envy of the federal government in this space,” said David Curfman, NAVFAC’s chief engineer, who previously served as the public works business line director and was instrumental in creating the program.
The ANCCR program has leveraged business intelligence and advanced analytics that strengthened and validated utility commodity purchases. Building on that momentum, ANCCR will now focus on institutionalizing analyses to increase the volume, breadth and depth of its services for the Navy.