U.S. Army. Joint Munitions Command. MG Hamp McManus. Atlanta XXIX Conference Industrial Base: Front and Center April 2003

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1 U.S. Army MG Hamp McManus Joint Munitions Command Atlanta XXIX Conference Industrial Base: Front and Center 8-30 April 003

Industrial Base Chamberlain Mfg Corp Scranton AAP (Scranton, PA) Shell (Projectile Body) SCAAP Day & Zimmermann Lone Star AAP LSAAP (Texarkana, TX) Charge Assembly, Expulsion M95 Mortars RFAAP

2 Industrial Base Chamberlain Mfg Corp Scranton AAP (Scranton, PA) Shell (Projectile Body) SCAAP Day & Zimmermann Lone Star AAP LSAAP (Texarkana, TX) Charge Assembly, Expulsion M95 Mortars RFAAP (Radford, VA) Propellant SBM0 Mortars RFAAP Navy Gun Rockets Mortar RBAAP (Riverbank, CA) Case Cartridge 05mm, XM7 RBAAP Navy Gun Rkts/Warhds LSAAP (Texarkana, TX) Primer Perc, M8B LSAAP LSAAP (Texarkana,TX) Grenade M80 LAP LSAAP KDI Precision Products (Cincinnati,OH) Fuze M34 Self Destruct Mortar Navy Gun Navy Gun STOCKPILE Lead Azide (Dextrinated) Tank Rockets Navy Gun FASCAM Mortar STOCKPILE Lead Azide (Special Purpose) Fuzes Med Cal Missile Mortar LSAAP (Texarkana, TX) Detonator, Stab M55 Rockets LSAAP HSAAP (Kingsport, TN) RDX Bulk (Not used on Comp) Pyro Demo Rockets Navy Gun Med Cal FASCAM Mortar Grenade CARTRIDGE, 05MM, HEDP (ICM) M95, LAP- Lone Star AAP Summary: Item has 6 major components representing 0 producers (6 gov t + 4 commercial) operating in 0 states. Base Capability Constraints:! Self-Destruct Fuze - battery under development RFAAP (Radford, VA) Propellant, TB M30A Prop Charges RFAAP Navy Gun Amron LLC (Antigo, WI) Grenade Metal Parts f/ Grenade M80 MSAAP (Bay Saint Louis, MS) Grenade Metal Parts f/ Grenade M4/M46 RBAAP (Riverbank, CA) Grenade Metal Parts f/ Grenade M4/M46 ITW Highland (Waterbury, CT) Cone, Copper f/ Grenade M80 Mortar LSAAP (Texarkana, TX) Navy Gun Lead Cup Assembly HSAAP (Kingsport, TN) Composition A-5 Olin (East Alton, IL) Cone, Copper f/ Grenade M80 HSAAP Mortar Rockets Med Cal Demo Rockets Missile! ICM grenade capability inactive/laidaway Rkts,Warheads Navy Gun Mortar! No US source for Lead Azide;stockpile is dwindling UNCLASSIFIED

3 Transforming the Industrial Base - Capabilities-based based - " Vision A Responsive, Innovative, Lean Cost/ Process with an Efficient Manufacturing Base Capable of # Meeting National Security Missions # Integrating Lean/Agile Manufacturing Concepts # Satisfying Defense Future Systems Requirements Future Combat Systems, Navy DDX, Joint Strike Fighter # Migrating to Public-Private Partnerships Ammunition Plants "Implement SecArmy approved way ahead #Long Term Leasing #Integration #Consolidation #Divestiture "Strategy builds on & complements PBD 407 Joint Capabilities Most Desirable! Commercialize When Economically Feasible at Minimum Cost & Risk Rightsizing the Base "Implement Lean "Pursue Public-Private Partnerships "Champion legislative and financial reform Assure Warfighter Readiness! 3

4 Defense Industrial Base Transformation 4 Mar 03 SecArmy Direction AMC " GOGOs & GOCO Ammunition Facilities # Write concept to Consolidate, Divest, or Lease As Appropriate! # Include mission realignment Improve utilization & operating efficiencies! # No implementation activity Unless under BRAC 05 process " GOGO Manufacturing Arsenals # Continue reduction of plant capacity Institute internal efficiency initiatives # Facilitate business base at all Ground Systems Industrial Enterprise installations GSIE # Continue to leverage full capability of defense industrial base Reduce products & services cost to level comparable with industry with out need for subsidies " GOGO Maintenance Depots # Continue to form & maintain public-private partnerships # Continue implementation of LEAN Philosophy & other initiatives Improve efficiencies, optimize utilization, & upgrade core capabilities Meet current & future requirements! All activities related to realignment and/or closure Conform with SecDef s BRAC 05 policy! 4

5 Transforming Joint Munitions Base Environmental Baseline Studies Consolidation/Relocation Privatization/Public-Private Partnerships Joint Munitions Centers Multi Use/Multi Purpose/Multi Service -Centralized Ammo Management -Production -Storage and Outloading -Maintenance/Renovation/Demil -Terminal Operations -Reduced Government oversight Joint Munitions Centers Depots/Ammo Plants Apply Lessons Learned continue process of Consolidation & Privatization Joint Munitions Centers Further Consolidations -Optimize Capability/Capacity -Technology-Based Joint Munitions Centers PHASE PHASE PHASE Out Years = Assess Readiness Impact 5

6 What does a Joint Munitions Center Look Like in the st Century? Production (sized to peacetime + small surge) Multi-Use, Multi-Purpose, and Multi-Service Service! Centralized Ammunition Management Demilitarization Terminal Operations Joint Munitions Centers Out-loading Research and Development Maintenance/ Renovation Infuse Advanced Technology Capability Storage Focus is Requirements & Capability vs. Infrastructure 6

7 Transforming the Manufacturing Base Rationalization, Relocation / Consolidation, Reduction " Ground Systems Industrial Enterprise (GSIE) Goal Continuous improvement of soldier support while realizing cost reduction of products / services to a level comparable to private industry without Army subsidies Formation of GSIE: # Anniston Army Depot (ANAD) # Red River Army Depot (RRAD) # Sierra Army Depot (SIAD) # Watervliet Arsenal (WVA) # Rock Island Arsenal (RIA) # Lima Army Tank Plant (LATP) What we have done: # Reduced infrastructure (WVA) 90,000 sq. ft. of floor space 57 pieces of IPE # Reduced infrastructure (RIA) 600,000 sq. ft. of floor space 357 pieces of IPE What we are doing: # Leveraging Industrial Base s full capability # Expanding existing capabilities utilization # Getting more efficient # Divesting unneeded plant facilities # Reducing plant capacity How we re doing it: # Implementing lean philosophy & other quality programs # Further reducing infrastructure (RIA example) 00,000 sq. ft. of floor space 357 pieces of IPE # Infusing new workload Diminishing Manufacturing Sources & Materiel Shortages (DMSMS) # Legislative & financial reform Prior 003 Transition to Technology and Manufacturing Centers for the st Century Future 7

8 Summary " Transforming and Sustaining Simultaneously " Implementing Lean Philosophy " Restructuring Based on Jointness and Capabilities " Methodology # Rationalization # Relocation/Consolidation # Reduction Via BRAC 05 CHALLENGES Retain flexibility to increase production output to meet contingency requirements Not compromise Warfighter readiness! 8

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11 Enterprise Operations Not Just Army A Joint Collaborative Endeavor PEO Ammunition SMCA Executor Acquisition & Procurement RDT&E Industrial Base PA Program JOCG Joint Ordnance Commanders Group Oversee & Assess Plan & Execute Synchronize & Integrate Continuous Dialogue EDCA Executive Director Conventional Ammunition Joint Logistics Commanders Joint Munitions Command SMCA Field Operating Agency Logistics & Sustainment Readiness Reporting Industrial Base OMA Program Army.The Single Manager for Conventional Ammunition

12 Ammunition Enterprise (A complex process requiring an Enterprise solution) Determine, Gather, and Consolidate Ammo Rqmts Program, and Budget for Consolidated Ammo Rqmts (OMA and PAA POM) Funding for Ammunition Logistics / Sustainment Programs Funding for Ammunition Acquisition Programs Readiness (USR) Army Logistics / Sustainment Rqmts Army Acquisition Rqmts Warfighting Training and Outloading Customers and Stakeholders DCSOPS Program Execution Status (Feedback Loop) C- C- C-3 C-4 Ammunition Products / Services Deployment and Sustainment of Right Quantity of Quality Configured Stockpile Ammo Readiness Solution Army, Navy, Air Force, Marine Corps, Order / PRON or Contract SOW $$$ B- B- B-3 B-4 S- S- S-3 S-4 R- R- R-3 R-4 Q- Q- Q-3 Q-4 Execute within the Industrial Base (CONUS & OCONUS) C- C- C-3 C-4

13 Army Munitions Readiness Worldwide View TANK/AT/ACFT TANK MAIN GUN C ANTITANK C3 AIRCRAFT LAUNCHED C3 CANNON ARTY C3 GMLR ARTY C3 AIR DEF. ARTY C4 05MM JAVELIN S HELLFIRE R Q LT HOW 75/05MM S R Q B ARTILLERY MLRS STINGER RMP BLK S 0MM R Q DRAGON R Q HELLFIRE LONGBOW S R Q 55MM PROJO S Q B ATACMS S STINGER RMP B Joint Base Indicator Levels Legend Current S R Q B Drivers S=On Hand R=Serviceability Q=Quality B=Production Base 3 4 Future +6mo +mo +8mo +4mo SMALL CALIBER C3 TOW SHOULDER FIRED RKT S Q SMALL/MEDIUM CAL SHOTGUN 5.56MM 7.6MM B B HANDGUN MEDIUM CALIBER C3 5MM S Q 40MM MK9 B 40MM M03 R Q B.75 RKT S Q 30MM S MORTARS C3 60MM 8MM 0MM 55MM PROP CHARGES S FUZES B S R Q B Q B SUPPORT ITEMS C SUPPORT ITEMS SMOKE RIOT CTL S Q PYRO CAD/PAD S B GRENADES Q DEMOLITION ITEMS C3 DEMO CHARGES B LINEAR CHARGES INITIATION DEVICES MISC DEMO ITEMS S B PATRIOT S R Q MINE - CTRMINE C3 CTRMINE S B MODERN MINES S B AP MINES B.50 CAL S MODERN DEMO 3

Army Munitions Readiness Report (Drill Down Capability) " Asset vs Requirements " On-Hand Supply, Quality, Serviceability, and Production Base Ratings.

CURRENT ASSETS REQUIREMENTS ERDODIC NOMENCLATURE SERV E&N UNSERV TOTAL WR+OP REQ PIPELINE TTCOR TANK MAIN GUN 0MM C784 TP-T M83 0,500 0 00 0,700 0 36,488 9,496 P C785 TPCSDS-T M865 79,800 0 98,700

14 Army Munitions Readiness Report (Drill Down Capability) " Asset vs Requirements " On-Hand Supply, Quality, Serviceability, and Production Base Ratings. " Drill-Down Down to Acquisition Details and Industrial Base Mapping. CURRENT ASSETS REQUIREMENTS ERDODIC NOMENCLATURE SERV E&N UNSERV TOTAL WR+OP REQ PIPELINE TTCOR TANK MAIN GUN 0MM C784 TP-T M83 0, , ,488 9,496 P C785 TPCSDS-T M865 79, ,700 78, ,548 9,94 C79 HEAT-MP-T M830A 6, ,300 76, P C79 APFSDS-T M89A 34, ,800 49, CA05 TANK/AT/ACFT OBSTACLE REDUCTION 6, ,45 5, ,85 CURRENT + 66,75 MO + MO + 8 MO + 4 MO ER DODIC ANTITANK NOMENCLATURE AIRCRAFT RATING RATING RATING RATING RATING LAUNCHED TANK C MAIN GUN C3 0MM C784 JAVELIN TP-T M83 HELLFIRE S R Q B S R S R S R S R 05MM C380 P C785APFSDS-T TPCSDS-T M89AM865 79,700 S8,700 R3 Q37,800 B S96,00 R3 S R3 6 S R3 S 0R3 0 S R Q S R Q B Total C79 C79/C380 HEAT-MP-T M830A 44,500 S8,700 R Q7,800 B S43,000 R S R 49,595 S R S 0R 0 DRAGON HELLFIRE 0MM P C79 APFSDS-T LONGBOW M89A S R Q B S R S R S R S R S R Q B C787 CA05 R Q HEAT MP-T OBSTACLE S R M830 REDUCTION Q 60,400 S 300 R Q3,400 B S 64,00 R S R S 78 R S 349R 850 TOW Total C79/C787 0MM Rating.75 RKTexclusive of,700 Pacers S 300 R Q3,400 B S6,400 R S R76,405 S R S 349R 850 Lowest Pacing S Q Item Rating S R3 Q3 B S R3 S R3 S R3 S R3 0MM GROUP RATING S R3 Q3 B S R3 S R3 S R3 S R3 TANK MAIN GUN C SHOULDER FIRED RKT 30MM S C380 S APFSDS-T M89A S R Q B6 S R S R S R S R Total C79/C380 S R S R S R S R S R C787 ACQUISITION PLANNING HEAT MP-T M830 S R Q B6 S R S R S R S R Total C79/C787 S R S R S R S R S R TECHNICAL / ENGINEERING EXECUTION 4

15 State of the World " Market & Defense Globalization Program " 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 Sierra AD Sacramento AD Riverbank AAP U.S. Army Materiel Command Cornhusker AAP Ft Ft Wingate Sunflower AAP St. Louis AAP Kansas AAP ARL SBCCOM McAlester AAP CECOM AMCOM Charles Melvin Price JMC Support Center TACOM To Corpus Christi AD Be Excessed - Post Cold War Organic Base - Savanna ADA Lake City AAP Joliet AAP Twin Cities AAP Rock Island Arsenal Iowa AAP Badger AAP Crane AAA Selfridge ANG Base Indiana AAP 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 Bluegrass AD Holston AAP Anniston AD Seneca ADA Watervliet Arsenal Picatinny Arsenal Aberdeen PG Volunteer AAP Redstone Arsenal Milan AAP Scranton AAP Stratford AEP Natick R,D&E Ctr 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 = Ammo Production = Ammo Storage = Non-Ammo Storage U.S. Army Materiel Command Kansas AAP McAlester AAP - Today s Organic Base - Lake City AAP Rock Island Arsenal Corpus Christi AD Iowa AAP Lone Star AAP Crane AAA Lima Tank Plant Mississippi AAP Pine Bluff Arsenal Louisiana AAP Red River AD & Munitions Ctr Letterkenny AD & Munitions Ctr Tobyhanna AD Radford AAP Bluegrass AD Holston AAP Milan AAP Anniston AD & Munitions Ctr All with Joint Missions! Note: () GOCOs () GOGOs Watervliet Arsenal Scranton AAP GOCOs 3! GOGOs 3! 5

16 Production Base Realities # Example Critical End Items/Components at High Risk! Links redeveloped single producer (7 small/medium caliber items)! Fuze Base Down from 3 to 7 at-risk producers! Black Powder Only producer in financial difficulty (used in 94 items)! Electronics commercial markets more lucrative # Example Items Without Domestic Sources! Nitroguanidine essential to Modular Charge System! Lead Azide approximately 85% of the munitions families! Baled Cotton Linters HYDRA, 0 tank, & MACS! Vinyl Alcohol Acetate Resin Binder used in pyrotechnic items! M34 Self-destruct Fuze /Navy Gun/Missile Programs # Surge capability virtually non-existent can only affect 0% of the go to war shortfalls # Marginal capability for preferred and precision munitions # Policy changes diminish capabilities, e.g., MobilizationM Surge Resupply Replenish in 4 months Replenish in 36 months versus MTWs 6

17 Ramifications of Industrial Base Readiness to the Warfighter Recent walk-in order for 8 million additional pounds of CXM-7 7 explosive for Navy bombs being provided by Holston AAP no where else in world could timeframes and US military requirements be met. Demands for small arms ammunition increased from 800 million to. billion rounds per year. Lake City AAP only location that can meet m these demands. No peacetime buys for M67 Grenade resulted in contractor divestiture ture of equipment and critical shortage in supply for Operation Enduring Freedom while capacity later re-established established at new location. No production source currently exists for Lead Azide used in 9 of 4 ammunition families. Government divestiture of capability occurred red based on commercial source reliance. Commercial producer later exited the business resulting in current at-risk situation as existing aging stockpile is drawn down. Industrial base issues cause the Munitions Readiness Rating to be reduced for 3 percent of ammunition items. 7

18 What is the Ammunition Industrial Base? 99 Today Government-owned owned Facilities Acres 56K 35K3 - Equipment 483K 30K - Production Lines Production Personnel 9K 7K Contractor Facilities Contractor Facilities with 36 0 Government-owned owned Equipment Combination of Government-owned and private sector facilities required - supports production demands for all Services Significant downsizing has occurred 68% reduction in capacity since 99 8

19 Supports all Services BREAKOUT BY SERVICE 7 Unique to AIR FORCE 67 Unique to NAVY 5 Unique to MARINE CORP MC 3% ARMY 5% COMMON 3% AF 8% 50 Unique to ARMY 6 Common to Multiple Services 00 TOTAL ITEMS (& 355 components) NAVY 33% 9

HQ U.S. Army Materiel Command

HQ U.S. Army Materiel Command 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