Presented By:Mr. David Fair 973-724-3078Davefair@pica.army.mil

Presented By:Mr. David Fair 973-724-3078Davefair@pica.army.mil

PEO Ammo &Industrial Base Management

PEO Ammo &Industrial Base Management

28 October 200228 October 2002

Objectives

Appointment of Kristin Jasinkiewicz to be the Army Chairperson

Overview of the PEO AmmoDiscussion of the Base Planning

Process

PEO Ammo

Committed to providing superior ammunition to the

soldier

PEO Ammo Objectives

Integrate Ammunition Life Cycle Management Under a Single Chain of Command

Execute a Consistent Munitions Acquisition Strategy Independent of: ACAT Level Acquisition Agency Munition Type

Optimize Key Business Processes Develop an Industrial Preparedness Planning Strategy (Organic and

Commercial)

PEO Ammo Mission

Execute the Life Cycle Acquisition Management of Ammunition

Manage DoD’s Ammunition Industrial Base Single Appropriation Manage

Wide Area Munition(Hornet)

M829A2 APFSDS-T

M795/M795E1

Conventional Mortar Ammo

5.56mm Armor Piercing Bullet

Non-Lethal Capability Set

Modular CrowdControl Munition

40mm Crowd Control Cartridge

Excalibur

Precision Guided Mortar Munition

Conventional Ammunition

Non-Lethal Systems Precision Munitions

Fire Control Electronics

Integration into IBCT Mortar

Carrier

Abrams Electronic Muzzle Reference

System

Centralized management of DoD’s organic and commercial munitions production base

Mid-Range Munition

Multi-Role Ammunition Systems

Weapon Systems Objective Force Ammunition

Munitions Industrial Base

PEO Ammo Organization

PEO OSC Integration CellWillie Smith Comm 309-782-2687 (DSN793)Bobbie Russell Comm 309-782-3006 (DSN793)

Maneuver Ammo System - Direct Fire

Mr. Bill Sanville PM x5307Fred Steinberg Act’gDPM x5964Babs Smith Sec’y x4622Bruce Potter BusMgr x4173

Large CaliberLTC Dave Rice PM x4935Pete Cardell DPM x4375

Medium & Small CalTBD PM xRon Brown DPM x4853

MortarsLTC Larry Hollingsworth PM x3636Dave Super DPM x4209

ExcaliburLTC Jeff Wilson PM x3152Chris Grassano DPM x5246

ASA(ALT) DASCsCOL Michael McChesney SAAL-SM Dir 703-601-0466

LTC Jim Ashworth DASC Chief 703-604-7221

PEO AmmunitionCOL (P) Paul Izzo PEO

724-7101Mr. Kevin Fahey DPEO

724-7102Patti Banta Sec’y

724-7116LTC Tim Prendergast XO

724-7133Ev Elko Admin

724-7112

Close Combat Systems

Mr. Jim Sutton PM x7041Patti Felth DPM x7921Justine Horchor Sec’y x7977George Firrincili BusMgr x6922

Combat Ammo Systems - Indirect Fire

COL Nate Sledge PM x2003Pat Serao DPM x2110Sonny List Sec’y x2573Joe Gormley BusMgr x5891

Joint Services

COL Jeff Gwilliam PM x5257

PEO AmmunitionSFAE-AMO, Building 171Picatinny Arsenal, NJ 07806-5000(973) 724 – xxxxDSN: 880 - xxxxFax: (973) 724-7127

DEMILLTC Kevin Jennings PM x5276

Industrial BaseMatt Zimmerman APEO

x7626

APEOsPete Vauter Business Mgmt APEO 724-7121Rene Kiebler System Mgmt APEO 724-4908Matt Zimmerman Industrial Base APEO 724-7626

Oct 1,’02

FY 03 Procurement, OPA, WTCV Total

PM Combat Ammunition Systems• Artillery Ammunition• Artillery Fuze• Mortar

PM Close Combat Systems• Mines, Countermines & Demolition

PM Maneuver Ammunition Systems• Large Caliber• Medium Caliber• Small Caliber

PM Joint Services• Industrial Base ($73.5M)• Ammo Peculiar Equip/Demil ($23.4M)

Total: $1,116.2M

$138.3

$505.2

$375.8$96.9 (9%)

(34%)

(45%)

(12%)

Source: FY04-09 BES

FY 03 RDTE Total

Total: $321.1M

$161.2

$16.4

$8.5$135.0

(3%) (42%)

(5%)

(50%)

PM Combat Ammunition Systems

PM Joint Services /Industrial Base

PM Maneuver Ammunition Systems

PM Close Combat SystemsSource: FY04-09 BES

MissionMission CustomersCustomers

SuppliersSuppliers

PM Maneuver Ammo SystemsPM Close Combat SystemsPM Combat Ammo Systems

USMC, USAF, USNSOCOM & USCG

PEOsIndustry

Lake CityLone StarIowaMilanKansasHolston

FY03FY03

•Provide Centralized Management of the Munitions Industrial Base •Optimize Planning, Coordination & Decision Making that Affects the Preparedness of the National Technology & Industrial Base

Radford ScrantonRiverbankLouisianaMississippi

GOCOs

CraneMcAlesterPine Bluff

GOGOs

PEO Ammo Industrial Base Management

IF $42.7MMIF $9.1MLIF $7.0 MARMS $4.7MLAP/Rad $10.0M $73.5M

Commercial: 70+ Companies

PAA Prod Base Support:

IF-Industrial Facilities; ARMS-Armament Retooling & Manufacturing Support; MIF-Maintenance of Inactive Facilities; LIF-Layaway of Inactive Facilities

RDTE 665805

Munitions $8.5M

Industrial Base Challenges

Current Munitions Portfolio 14 Major Families 200+ End Items 350 Components

Munitions Production Base Capacity Down 68% Last 10 Years Currently Underutilized

Replenishment Driving Size Of Base

Single Sources 71 Components

Minimal Incentives for Contractor Capital Investment

Manufacturing Capability Currently Focused on Legacy Systems Marginal Future Munitions Capacity

PEO Ammo Industrial Base Management

Status: Formed Multi-Service/Multi-Organizational Strategic Planning IPT Formulating Industrial Base Strategic Plan & Processes to:

• Modernize & Transform the Industrial Base • Optimize Coordination, Communication & Decision Making• Draft Nov ’02; Updated Draft Jan ’03; Completed May ‘03

Managing:• PAA Activity 2

– Production Base Support (IF, MIF, LIF) Programs– Armament Retooling & Manufacturing Support (ARMS) Program

• RDT&E 665805 Munitions Standardization/Effectiveness Program Preparing for Sec 806 Authority to Effectively Posture the Industrial Base Formulating “Critical Risk Products” Management Schemes Supporting AMC’s PBD 407 Implementation Plan Development

Industrial Base Vision

“A Responsive, Innovative, Efficient Manufacturing Base, Capable of Meeting National Security Requirements While Preserving Critical Core Competencies and Relying to the Maximum Practical Extent on Competition & Private Ownership”

Industrial Base Strategic Objectives

Transform to Meet Legacy, Interim, & Objective Force Warfighter Requirements

ModernizeBalance Industrial Base & Acquisition

Management RiskIncrease Operating Efficiencies & AffordabilityIncentivize Commercial InvestmentPreserve Critical Core Competencies

Let Acquisition Drive the Industrial Base

Industrial Base Strategic Plan

What is it? A Dynamic Planning Document that:

• Captures Overarching Industrial Base Vision, Goals & Strategies (5 Yrs., 10 Yrs.)

• Baselines the Industrial Base State• Identifies Industrial Base :

– Deficiencies– Critical Items, Capabilities & Technologies

• Contains Implementation Plans that Outline How Strategic Goals Will be Met

• Establishes Basis for Resource Planning & Allocations• Positions the Industrial Base for Responding to Acquisition

Plans, Strategies and ObjectivesTransform & Modernize the Industrial Base to Meet Legacy, Interim,

& Objective Force Warfighter Requirements

PEO Ammo Industrial Base Staff

David FairTACOM-ARDEC

DSN 880-2941

Steve RosenbergTACOM-ARDEC

DSN 880-7580

NH-IV(TBD)

Matt ZimmermanDSN 880-7626

•Strategies•Plans•Policies•Sec 806•Production Base Support •IF, MIF, LIF, PBS•Congressional

• Tech Base Linkage• Pilot Prototyping• MANTECH• Industrial BaseModernization •

• PM & OSC Liaison• Planning Coordination

= Matrix Support, OMA Funded

ARDEC 1

ARDEC 2

OSCIndustrial Assessment Div

ARMS office

= PEO Core

50% 33%

PEO Ammo Industrial Base Planning TeamPEO Ammo Industrial Base Planning Team

PM CCSGeorge FirincilliAriel Macalalad

PM MASCarl Roller

Greg O’Conner

David FairTACOM-ARDEC

DSN 880-2941

Steve RosenbergTACOM-ARDEC

DSN 880-7580

NH-IV

Matt ZimmermanDSN 880-7626

PM CASBob Goldberg (Art)Rene Medina (Mor)

Al beusterGary Budelier

OSC

EDCA

PEO Tactical Missiles/PM ARMS

AMC G-3 IB

OUSD(AT&L)

Navy

HQDA G-8, G-4, G-3

TACOM-ARDEC

AFMO

SBCCOM

DCMA

USAF

USMC

ASA(ALT)

Strategic Planning Approach

Establish Where We Are

Establish Where We Want to be

Establish How We Get there

Staff forApproval

Review& Adjust

Establish Team & Mission

• Vision• Goals• Objectives• Metrics

•PMs•OSC•DCMA•AMC•PEOs•SBCCOM

• G3, G4

•G-8•ASA(ALT)•OSD•TACOM-ARDEC•EDCA•Other Services

Baseline• DPG/TotalRequirements• ICAPP• OSC PBP• Capacity• Capabilities• Deficiencies• Critical Items• Technology• Cost• IB Assessments

Objectives& Metrics Realistic?

No

Implement

•Strategies to Meet Objectives• Implementation Plans• Decision & Risk Analyses• Harmonization• Prioritization

Yes

Apply6 Sigma

Principals

Industrial Base Hot topics

 71 of 302 Ammo Components Are Single Source. 26 Are Fuzes or Power Sources.

LAP Competition Deferred Radford Competition ongoing Sec Army Tasker: PBD 407 Rand Study: “A Strategy for Managing Army’s Arsenals

and Ammo Plants” Implement Rand Recommendations to Extent Possible AMC Lead for Plan Development & Implementation ASA(ALT):

• Assist w/ Plan Development• Identify Facilities for Gov. Retention As Exception• Receive AMC Plan 29 Nov 02

Salient Cross Family Items: Lead Azide, VAAR: No Producers Black Powder: Single Source, Future Availability Suspect

HASC Requested Industrial Base Report By 15 Jan 02 Sec Army Directed to Assess Industrial Base Capacity to Meet Army

Requirements

Summary

PEO Leading Development of Industrial Base Strategic Plan Focused on All Munitions

Strategic Plan Will:

• Capture Overarching Industrial Base Vision, Goals & Strategies

• Optimize Industrial Base Preparedness

• Position the Industrial Base for Responding to Acquisition Strategies, Plans and Objectives

Transition of Production Base Support Management Initiated Working w/ AMC on PBD 407 Privatization Initiative