FEMA - Logistics Supply Chain Management System (LSCMS)
Investment ID: 024-000007333
Overview
Program Title
FEMA - Logistics Supply Chain Management System (LSCMS)
Description
The Logistics Supply Chain Management System (LSCMS) supports FEMA s mission of responding to all hazards expediently & efficiently by managing the nation s end-to-end supply chain of critical disaster assets & commodities. LSCMS addresses the Post Katrina Emergency Management Reform Act, SEC. 636 which mandates that FEMA Logistics provide an efficient, transparent and flexible logistics system for procurement & delivery of goods & services necessary for an effective & timely response to natural disasters. LSCMS manages the supply chain process including requests for disaster commodities from FEMA commercial vendors & Federal partners, transportation, inventory management at FEMA locations, shipment & receipt by the States. The LSCMS-Cloud is currently in the Support phase of the Acquisition Lifecycle Framework which allows the operational system to receive enhancements request that supports the business & mission needs of the Logistics Management Directorate & supply chain processing.
Type of Program
Major IT Investments
Multi-Agency Category
Not Applicable
Associated Websites
https//lscms.fema.gov/
Investment Detail
The ROI formula has too many unpredictable components to be calculated precisely, but an ROI qualitative analysis is useful: ROI=(((Original Baseline O&M - New Total O&M) + Other Benefits to Society)/Acquisition Cost Only)-1
The LSCMS ROI calculation considers the benefit to the public of using LSCMS compared to alternative uses of the funds. However, public benefits directly attributable to LSCMS are dependent on disasters making actual benefits unpredictable. An expected yearly benefit over the cost of not implementing LSCMS is estimated at $5M, including savings, cost avoidance, and productivity improvements. This does not consider the benefit of implementing LSCMS. An average annual public benefit of $20M, based on 4 disasters per year and $5M per disaster for benefits to the states = $20M, returning an annual benefit to recover the initial investment by 2028 (or earlier if public benefits accrue faster.)
Although a quantified ROI timeframe is not feasible, the ROI is negative when considering only system benefits which are always less than O&M costs, and significantly positive when considering the probability of annually distributing more than $20M in benefits to society.
Previous O&M = averaged $29.85M
New O&M = $24.88M
the increasing resource costs, O&M costs are not anticipated to decrease.
System cost Benefits = $5M
Public Benefits > $20M
ROI = (((29.854M-24.883M)+385.550M)/102.017)-1 = 283%
System cost benefits include savings from developmental alternatives, resource optimization and hardware and asset inventory; cost avoidances from reduction in legacy O&M costs, better asset management and COOP; and productivity improvements from data visibility, automation, and partner integration.
The LSCMS ROI calculation considers the benefit to the public of using LSCMS compared to alternative uses of the funds. However, public benefits directly attributable to LSCMS are dependent on disasters making actual benefits unpredictable. An expected yearly benefit over the cost of not implementing LSCMS is estimated at $5M, including savings, cost avoidance, and productivity improvements. This does not consider the benefit of implementing LSCMS. An average annual public benefit of $20M, based on 4 disasters per year and $5M per disaster for benefits to the states = $20M, returning an annual benefit to recover the initial investment by 2028 (or earlier if public benefits accrue faster.)
Although a quantified ROI timeframe is not feasible, the ROI is negative when considering only system benefits which are always less than O&M costs, and significantly positive when considering the probability of annually distributing more than $20M in benefits to society.
Previous O&M = averaged $29.85M
New O&M = $24.88M
the increasing resource costs, O&M costs are not anticipated to decrease.
System cost Benefits = $5M
Public Benefits > $20M
ROI = (((29.854M-24.883M)+385.550M)/102.017)-1 = 283%
System cost benefits include savings from developmental alternatives, resource optimization and hardware and asset inventory; cost avoidances from reduction in legacy O&M costs, better asset management and COOP; and productivity improvements from data visibility, automation, and partner integration.