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1 Public-Private Private Partnerships With Industry Tank-automotive & Armaments Comm Advance Planning Briefing to Industry (APBI) 5 October 004 U.S. Army Materiel Comm Government Industry Unite to Support our Forces LUIS E. GARCIA-BACO Chief, Industrial Base Capabilities Division HQ U.S. Army Materiel Comm
2 State of the World Market & Defense Globalization Increased Joint Operations Financial & Budgetary Instability Global War on Terrorism Critical Global Industrial Base for the st Century Umatilla CD Pueblo CD Tooele AD Rocky Mt. Arsenal Deseret Chem Depot Hawthorne AD AD Sierra AD Sacramento AD AD Riverbank AAP U.S. Army Materiel Comm Cornhusker AAP - Post Cold War Organic Base - Savanna ADA Lake City AAP Joliet AAP Ft FtWingate Sunflower AAP St. St. Louis AAP Kansas AAP ARL SBCCOM McAlester AAP CECOM AMCOM Charles Melvin Price JMC Support Center TACOM To Corpus Christi AD Be Excessed Twin Cities AAP Iowa AAP Rock Isl Arsenal Badger AAP Selfridge ANG Base Indiana AAP Crane AAA Newport CD Jefferson PG Mississippi AAP Detroit Tank Plant Detroit Arsenal Ravenna AAP Letterkenny AD Lima Tank Plant Pine Bluff Arsenal Longhorn AAP Louisiana AAP Lone Star AAP Red River AD Alabama AAP Tobyhanna AD Vint Hill Farms Radford AAP Holston AAP Anniston AD Seneca ADA Watervliet Arsenal Picatinny Arsenal Aberdeen PG BluegrassAD Volunteer AAP Redstone Arsenal Milan AAP Scranton AAP Stratford AEP Natick R,D&ECtr Ft Ft Monmouth Adelphi Laboratory Center Current Mission Manufacturing Maintenance Ammo Production Ammo Storage Non-Ammo Storage NOTE- () GOCO () GOGO Organic Industrial Base Evolution Tooele AD Hawthorne AD Sierra AD Riverbank AAP = Manufacturing = Maintenance = Fleet Management = Ammo Production = Ammo Storage = Non-Ammo Storage U.S. Army Materiel Comm Kansas AAP McAlester AAP - Today s Organic Base - Lake City AAP Rock Isl Arsenal Corpus Christi AD Iowa AAP Lone Star AAP Crane AAA Lima Tank Plant Pine Bluff Arsenal Louisiana AAP Red River AD & Munitions Ctr Letterkenny AD & Munitions Ctr Tobyhanna AD Holston AAP Milan AAP Watervliet Arsenal Radford AAP Bluegrass AD Anniston AD & Munitions Ctr All with Joint Missions! Note: () GOCOs Mississippi AAP Fort Rucker (Pilot) () GOGOs Scranton AAP GOCOs 3! GOGOs 3! Fort Knox (Pilot) Challenge Rapid Reaction to Warfighter Requirements!
3 Transforming the Army Organic Base - Army Strategy - Why transform... To meet National Security Missions To integrate Lean/6 Sigma/Agile Manufacturing Concepts To satisfy Defense Future Systems Requirements To migrate to Public-Private Partnerships Our Strategy... Ammunition Plants Program Budget Decision 407, Ordnance Base rightsizing SecArmy approved way ahead Integrate Consolidate Divest Lease Armament Retooling & Manufacturing Support Arsenals Ground Systems Industrial Enterprise Arsenal Support Program Initiative Integrated matrixed capabilities Maximum flexible workforce Commercialize When Economically Feasible at Minimum Cost & Risk Reconfigurable responsive manufacturing... Rapid acquisition Maintenance Depots Centers of Industrial Technical Excellence Ground Systems Industrial Enterprise Army Public Private Partnership Plan Lean Philosophy 6 Sigma Public--Private Private Partnerships Legislative Reform Financial Reform Capital Investment Program 3
4 What is Public-Private Partnership? -P3- Contractual agreement between an Army-owned operated facility one or more private industry or other entities to perform work or utilize the Army s facilities equipment. Includes one or more of the following: Provide articles or services to industry. Industry leases equipment or facilities Performs work for public or private sector. Work sharing arrangements. Team arrangements where depot industry jointly contract. Army-owned Army-owned operated operated facilities facilities -Maintenance -Maintenance depots depots -Manufacturing -Manufacturing arsenals arsenals -Ammunition -Ammunition plants plants 4
5 Department of Defense P3 s Goals Strategy Improve output performance through increased private sector participation. Accomplish Army depot workloads efficiently. Sustain robust organic capabilities Army-owned. Increase use of commercial capabilities for functions for which private sector excels: Program management Supply chain management Technology upgrades Sustaining engineering knowledge Leverage Leverage Industry s Industry s Strengths Strengths Enhance support to warfighter by enabling empowering facilities to develop appropriate P3. Provide focused support to the warfighter through seamless, integrated use of public private capabilities Leverage capabilities of public private industrial technology sectors. Shape support strategies for both existing new weapon systems equipment. Partner with private sector to ensure access to complimentary or dual capabilities. Recognize legitimate National Security need for Army to retain critical organic capability. 5
6 Statutory Authorities Depots Depotsonly only General Statutory Authority 0 USC 474: Designated Centers of Industrial Technical Excellence (CITEs). Participate in Public Competitions 0 USC 08j 0 USC 470 Section 803 PL Lease or Use Army Property 0 USC USC 474 Sale of Articles Services to Persons Outside DOD 0 USC 08(h) 0 USC 539b 0 USC 4543 USC 770 Other Armament Retooling Manufacturing Support (ARMS) Initiative 0 USC Arsenal Support Program Initiative (ASPI) Pub Law Def App Bill FY003 (Expires OCT 005) Providing Government Property to Contractors FAR Subpart
7 Types of P3 Direct Sales 0 USC 08(h); 0 USC 474;0 USC 4543 Facility Use Agreements 0 USC 667 Work Share Agreements Subcontracting 0 USC 08(j) Center of Industrial Technical Excellence (CITE) Partnering 0 USC 474 Armament Retooling Manufacturing Support Programs (ARMS) - 0 USC Arsenal Support Program Initiative (ASPI) - Public Law
8 Integration of Organic Commercial Base -Stryker Program- Lima Army Tank Plant Lower Hull Fabrication Final Assembly Test Overflow Anniston Army Depot Partnership Arrangement with GDLS Facility Support & final paint operations Watervliet Arsenal Serving as Sub-contractor for Stryker MGS Program producing cannons breech assemblies 8
9 Red River Army Depot (RRAD) PROJECT MECHANISM PARTNER M95A4 Glider Vehicle Title 0 USC 08(j) Subcontract Lear Siegler Inc (LSI) MLRS Workshare PM MLRS HEMTT Workshare Oshkosh Truck Corp Bradley Fire Spt Tm Vehicle Work Share PM Bradley MLRS Hoist Assembly Title 0 USC 08(j) Subcontract Lockheed Martin Missile & Fore Control (LMMFC) Bradley Fighting Vehicle Transmissions CITE Work Share GDLS HEMTT Recap Program Workshare UDLP T57 Track Shoes Title 0 USC 4543 UDLP Bradley Transmissions Workshare GDLS First Article Testing for M MLRS Roadwheels M3 Roadwheels MLRS Chassis Component Overhaul Build Patriot Conduit Cover Shields Title 0 USC 539(b) Title 0 USC 539(b) Title 0 USC 4544 Concurrent Technologies Norcatec LMMFC RRAD has significant successes RRAD has significant successes with partnering dating back to the with partnering dating back to the 980 s when they teamed with 980 s when they teamed with Emerson Electric on the M90 Emerson Electric on the M90 Improved Tow Vehicle Improved Tow Vehicle Bradley Ramp Pump Inspect, Test & Paint Title 0 USC 474 UDLP Collaboration- TACOM Market Survey for HMMWV Title 0 USC 08(j) Stewart Stevenson 9
10 Arsenal Support Program Initiative (ASPI) -Watervliet Arsenal- Partnering Contract with Hartchrom Albany Inc for chrome plating & phosphate services. Elmhurst Research Inc. rental of office space for engineering support services & R&D of high vessel technology. Cooperative Research Development Agreement CRADA arrangements with Benet Labs supports partnering for office space facility services. Extreme Molding is leasing space for a start-up injection molding business with future expansion plans. Step Tools leasing space for development of new software associated with manufacturing processes. M&W Zer leasing space for clean room technology development training. This This reduces reduces Army s Army s cost cost of of ownership, ownership, preserves preserves critical critical mission mission skills, skills, Permits Permits modernization modernization of of faculties faculties infrastructure infrastructure 0
11 Arsenal Support Program Initiative (ASPI) -Rock Isl Arsenal- United Defense Limited Partners Production of turrets crew production baskets on the BMP- Opposing Forces Surrogate for the upgrade of gun Mounts for the M09 Howitzer CMRED Center for Manufacturing Regional Economic Development for the sale of various supplies services not commercially available in support of area businesses. Depot Systems For the sale of various supplies services for both DOD commercial application. Alliant Techsystems For the sale of gun mounts spare parts for the MA. Focus Hope Mobile Parts Hospital development production. Log Value Government security qualification Pendulum Management Government security qualification
12 Conclusion The U.S. Army Materiel Comm is committed to strong mutually beneficial working relationships with our Industry Partners. The Public-Private Partnership process has proven to be a dynamic effective tool in forging such relationships. Should Should be be utilized utilized wherever wherever whenever whenever practical practical as as a a sound sound management management philosophy philosophy for for business business in in the the present present future. future. Government Industry Unite Win Win Win Win For ForIndustry & U.S. U.S. Army Army BOTTOM LINE Ensure Warfighting Readiness!
13 QUESTIONS? 3
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