Strategic alliances between Dresser-Rand and key clients in the oil and gas business are finding support in other markets. 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. Co-leads and teams representing DLA and the Dresser-Rand Company are working together to effect change and develop solutions for improved processes and logistics response time reductions."

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, as a supplier of reciprocating compressors and steam turbines, as well as parts and services to the Navy for more than 60 years 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.

"Many private sector companies have found incentives for performance to be very effective," said Fred Conroy, vice president, Government Business Unit at Dresser-Rand Company. "This is the first time the Navy has applied it to a vendor for hull, mechanical and electrical equipment, and it’s really leading edge."

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 change in philosophy on the part of the government is designed to provide cost savings and increased parts availability while reducing the overall infrastructure necessary to maintain the U.S. fleet. Historically, personnel in government facilities have had the responsibility of managing, warehousing and overseeing the parts requirements. Under the new PBL model, the U.S. Navy is able to take full advantage of industry expertise to provide supply chain management and technology advancements.