Brigadier General Frank Kelley
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1 MUNITIONS EXECUTIVE SUMMIT Ammunition Enterprise Cross Service Panel Brigadier General Frank Kelley Commander, Marine Corps Systems Command Achieving Efficiencies in an Uncertain Budget Environment 3 February, 2011
2 Industry Support FY11 Supplier Breakout Total Production Pipeline: 377 Open $2.3B 2
3 Fiscal Landscape FY11-FY16 Procurement Breakout - $4.5B (PRESBUD11 in millions) 3
4 USMC Ammunition Investment (FY99 thru FY16) Fiscal Landscape 4
5 Procurement Driver USMC Live Fire Training (FY98 thru FY10) 5
6 Scoping the Future Requirement Defense Secretary Gates Efficiency Initiatives We cannot support our troops with the capabilities they need unless we achieve greater efficiency. - Robert Gates, Secretary of Defense Objectives: Better Buying Power: Mandate for Restoring Affordability & Productivity in Defense Spending Obtain 2-3% net annual growth in warfighting capabilities without commensurate budget increases by identifying and eliminating unproductive or low-value added overhead and transfer savings to warfighting capabilities. Do more without more. 6
7 Adopting Government Practices that Encourage Efficiency Adopting Should-Cost and Will-Cost Improving Audits Mandating Affordability as a Requirement Stabilizing Production Rates Eliminating Redundancy within Warfighting Portfolios Establishing Senior Managers for Procurement of Services Protecting the Technology Base Scoping the Future Requirement Defense Secretary Gates Efficiency Initiatives 7
8 Scoping the Future Requirement USMC VISION & STRATEGY USMC S&T STRATEGIC PLAN MARINE CORPS SYSTEMS COMMAND STRATEGIC PLAN PM AMMUNITION CONVENTIONAL AMMUNITION STRATEGIC PLAN 8
9 Scoping the Future Requirement Marine Corps Vision and Strategy 2025 We have been prepared in the past because we understood that a force in readiness must be well-trained, broadly educated, and properly equipped for employment across all forms of warfare. We believe the individual Marine is the most formidable weapon on today s battlefield and will remain so tomorrow. 9
10 Scoping the Future Requirement Priorities of the 35 th CMC We will continue to provide the best trained and equipped Marine units to Afghanistan. This will not change. This remains our top priority! We will rebalance our Corps, posture it for the future and aggressively experiment with and implement new capabilities and organizations. We will better educate and train our Marines to succeed in distributed operations and increasingly complex environments. We will keep faith with our Marines, our Sailors and our families. 10
11 Scoping the Future Requirement Will affect the Munitions Industrial Base! End of OCO funding FY03-FY11 $2.3B Force Structure reduction heavy on trigger pullers POM13 Bottoms up review Efficiencies will now drive our relationship with the industrial base 11
12 USMC Expectations Quality is a must - every investment dollar must buy me a dollar USMC will continue to align procurement profiles with ALL customers in the best interests of Need first AND industry! We have increased investment in our O&MMC account to maintain our inventory (quality, maintenance, rework) may be a component procurement driver 12
13 Summary Unstable Funding Profiles Requirements Fluctuation Alignment of Procurements & Requirements Joint Ordnance Commanders awareness Continued Reliance on Industry Single Manager for Conventional Ammunition The Key to Success Collaboration Open and frank Communication Reasonable Expectations 13
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