RADFORD ARMY AMMUNITION PLANT - Lexington Institute

RADFORD ARMY AMMUNITION PLANT THE HEART OF THE US AMMUNITION SUPPLY CHAIN

ExEcUTIvE SUMMARY

Nothing is more important to the effectiveness, security and survival of men and women in combat than

their supply of ammunition. This truth was brought home to the U.S. military in Operations Iraqi Freedom

and Enduring Freedom when soldiers and Marines repeatedly found themselves in intense firefights, using up

prodigious amounts of ammunition. Moreover, not only combat units but rear echelon forces were coming

under attack. This created a requirement that all soldiers and Marines be well-qualified with their weapons.

Faced with an adversary different from the ones the military had planned for, they discovered that it had not

correctly anticipated its ammunition requirements which were ballooning.

The U.S. ammunition industrial base rose to the challenge. For example, within a few years the Lake City Army

Ammunition Plant increased its production of small-caliber ammunition from 300 million rounds to over 1.2

billion rounds per year. Other facilities more than doubled the production of medium-caliber ammunition, the

kinds used primarily by helicopter gunships, fighter aircraft and infantry fighting vehicles.

The increased production of ammunition would have been impossible without the products made at the

Radford Army Ammunition Plant (RFAAP). This is a unique facility that produces the basic constituent

materials that go into virtually every small-, medium- and large-caliber projectile and rocket made by the U.S.

ammunition base. Without RFAAP, the U.S. military would be entirely dependent on foreign sources of supply

for critical materials.

The U.S. military was fortunate to have retained a working ammunition industrial base. However, that base is

old and desperately in need of modernization. The 11 facilities that constitute the core ammunition industrial

base were built at the start of World War II; much of the machinery and virtually all the infrastructure at these

facilities date to this time. Keeping the plants operational is a huge challenge.

The Army and the various private companies that manage most of the ammunition plants have been funding

a number of modernization efforts. At RFAAP, the Army has modernized the power plant, built a state-of-the-

art water treatment facility and broken ground on a new acid concentrator. The plant’s private operator, Alliant

Techsystems, has invested its own resources in RFAAP, brought in new ammunition operations and supported

commercial activities at the facility.

The Army has plans and, most important, the funds, to complete the needed critical modernization at RFAAP.

However, it has delayed moving ahead on this effort pending the award of a new contract to a private firm to

manage the facility. This could take as long as a year. In the meantime, the military risks having its supply

of ammunition virtually halted should there be a breakdown in any of a number of critical systems at RFAAP.

Rather than waiting, the Army needs to move ahead expeditiously to begin the final phase of its modernization

effort. Lives are potentially at stake.

This study was written by Dr. Daniel Goure of the Lexington Institute.

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WHAT IS AMMUNITION?

Ammunition consists of projectiles, such as bullets and/or missiles, together with their fuses, primers and propellants that can be fired from guns or otherwise propelled. Ammunition is divided into three basic categories:

•Small-caliberammunitionisusedinpistols,rifles,automaticweaponsandmachineguns.Itrangesinsizefrom5.56mmto.50-caliber.

•Medium-caliberammunitionisusedinlightcannonsandrangesinsizefrom 20mm to 57mm.

•Large-caliberammunitionisusedintankcannons,mortars,andlandandsea-basedartillerypieces.Itistypically60mmorgreaterinsize.

AMMUNITION IS ThE WARFIghTER’S LIFEbLOOD

Inordertolive,thehumanbodyneedsaconstantsupplyofblood.Itisthebloodthatprovideseachcellofthehumanbodywiththeoxygenandfooditneedstosurvive.Keepingthebloodflowingistheheart.Thehumanbodyholdsaboutfivelitersofbloodoffourbasictypes(O,A,BandAB).Theheartpumpsanaverageof72timesaminute,24/7/365fordecades.Overanaverageperson’slife,theheartmayhavebeatmorethan3.5billiontimesandpumpabout250,000gallonsofblood.Anyinterferencewiththeflowofbloodthroughoutthebodyandfunctionsdiminish,organsaredamagedandtheindividualcandie.Themostseriousdangerisaheartattack,aconditionwhenthatcentralorganinthebloodsupplysystemfailstofunction.

Asimportantasacontinuousandreliablesupplyofbloodistoeveryhumanbeing,sotooisacontinuousandreliablesupplyofammunitiontothewarfighter.Whenallissaidanddone,theexpenditureofammunitionistheprincipalmeansbywhichthewarfighterachieveshismission,whetheritiscapturinganobjective,neutralizinganenemyorsuppressinghostilefire.Theavailabilityofreliableammunitioninthequantityneededcanmeanlifeitselftothoseincombat.Thelackofammunition,likethelackofbloodflowtocriticalorgansinthebody,canresultindeath.

Unlikethehumanbloodsupply,whichisuniform,thesupplyofammunitionrequiredbythewarfighterscanvaryovertime.Inwartime,thedemandforammunitionrises,oftendramatically.Moreover,ammunition,unlikehumanblood,comesinmanytypesandvarieties.Forexample,theU.S.militarycurrentlyuses85differenttypesofsmall-caliberammunitionfromblanksusedintrainingtoarmorpiercingin11differentsizes.Therearealsomultipletypesandsizesofmedium-andlarge-caliberammunition.Inaddition,themilitaryisseekingtotransitionitsammunitionsupplytoadvancedtypesofpropellantsandexplosivesrequiringnewmanufacturing procedures.

Maintaininganadequatesupplyofreliableammunitionischallengingunderthebestofcircumstances.Inwartime,thechallengebecomesexponentiallygreaterasdemandincreasesandpre-warproductioncapabilitiesare stressed.


AMMUNITION AND ThE gLObAL WAR ON TERROR

Theimportanceofanadequatesupplyofammunitiontothesuccessandwell-beingofthewarfighterwasunderscoredbytheexperiencesofOperationsEnduringFreedom(OEF)andIraqiFreedom(OIF).Earlyinbothcampaigns,U.S.forceswentintocombatwithaninadequatesupplyofsmall-andmedium-caliberammunition.Erroneousexpectationsregardingtheduration,severityandbasiccharacteroftheconflictscausedmilitaryplannerstounderestimatetheamountofsmall-andmedium-caliberammunitionU.S.forceswouldrequire.Militaryleadershadforgottenthelessonsofunconventionalwarfareinwhichclosecombatrequiredtheexpenditureofprodigiousamountsofammunition.Bysomeestimates,U.S.forcesexpendednearly250,000bulletsforeveryIraqiinsurgentkilled.1

Priorto9/11,theannualdemandforsmall-caliberammunitionwasapproximately300millionroundsayear.Moreover,sincetheendoftheColdWar,ammunitionstockpileshadbeendepletedandwhatremainedwasoftennotsuitableforcombatuse.Withinashortperiodoftime,it became evident that this was not sufficient to meet both thedemandfromthefieldandfromthetrainingbase.Thedemandfor5.56mm,7.62mmand.50-caliberroundswasespeciallygreat;thesecategoriesrepresentedmorethan95percent of ammunition usage.2TheArmy’sdemandforsmall-caliber ammunition has soared from 426 million rounds in 2001to1.5billionroundsin2006.3

Inaddition,themilitaryquicklyrealizedthatinordertomeetthechallengeoftheGlobalWaronTerror(GWOT)itwasnecessarythateverysoldierandMarinebeproficientwithhisorherindividualweapon.Thismeantexpendinglargeamounts of ammunition on training. As a result, the demand forammunitionexploded.

TheDepartmentofDefense’sincreasedrequirementsforsmall-andmedium-caliberammunitionshavelargelybeendrivenbyincreasedweaponstrainingrequirements,dictatedbytheArmy’stransformationtoamoreself-sustainingandlethalforce–whichwasacceleratedaftertheattacksof11September,2001–andbythedeploymentofforcestoconductrecentU.S.militaryactionsinAfghanistanandIraq.4

Inthesametimeperiodthedemandformedium-caliberammunitionalsomorethandoubled.Additionalproductionlineswereestablishedtomeettheincreasedproductionrequirements.

1AndrewBuncombe,“USforcedtoimportbulletsfromIsraelastroopsuse250,000foreveryrebelkilled,”The Independent,September25,2005,p.1.2 KatherinePeters,“BitingtheBullet,”Government Executive,July15,2004.3 “War’sdemandforammunitioncausesuptoyear-longbackloginU.S.,1.5billionroundsusedbyArmyin2006,”Houston Chronicle,May21,2007,p.1.4 GeneralAccountabilityOffice,DOD Meeting Small and Medium Caliber Ammunition Needs, but Additional Actions Are Necessary,GAO-05-687,July2005,p.8.

Demand for small-caliber ammunition, such as the .50-caliber ammunition shown above, escalated

dramatically due to requirements from the field and from the training base.

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Theproblemwasnotsimplyoneoffiringuparobustammunitionindustrialbase.Withoutthesteadydemandfromthemilitary,theColdWar-eraammunitionindustrialbase–muchofwhichactuallydatedbacktoWorldWarII–wasallowedtoatrophy.

TheammunitionindustrialbaserespondedextremelywelltotherisingdemandoccasionedbytheGWOT.TheU.S.militarywasextremelyfortunatethatithadaviable,ifaged,ammunitionindustrialbaseonwhichtorely.Itwasalsofortunatetohaveasetofprivatecontractorsoperatingmostofitsfacilities–contractorswho were committed to meeting the new demands and willing to invest their own resources.

Thereisalessoninthisforthefuture.Muchoftheammunitionindustrialbaseisantiquated;onlylimitedmodernizationhasoccurred.Nexttime,wemightnotbesolucky.AstheNationplansforareducedtempoofoperationsintheGWOTconsistentwithaphasedwithdrawalfromIraq,thedemandforammunitionisexpectedtodecline.Unlessmeasuresaretakennowtomaintainanadequate,modernizedammunitionindustrialbase,thenexttimeacrisisoccursandthedemandforammunitionspikesthatindustrialbasemaynot be able to respond.

Manyfactorscantemporarilyimpedetheflowofammunitiontothewarfighter,muchlikeabloodclotorwoundcaninterferewiththeflowofbloodtoaportionofthebody.Muchmoredangeroustothewarfighterisafailureoftheammunitionindustrialbasetoproduceanadequatesupplyofammunition.Suchaneventcould prove fatal to those dependent on ammunition for their survival and catastrophic to the operations of theU.S.military.

In Afghanistan, Army soldiers prepare 155mm artillery for a training exercise. Having enough ammunition available for training is vital to

the success of our military forces in completing their missions.


ThE AMMUNITION INDUSTRIAL bASE

AttheheightofWorldWarII,theUnitedStatesammunitionindustrialbaseconsistedofsome34facilities,virtuallyallbrandnew,thattogetherproducedannuallytensofbillionsofroundsofammunitionandmillionsofbombs,torpedoesandexplosivedevices.Today,thatonce-mightynationalassethasbeenreducedto14agedproductionplants,11ofwhicharegovernment-ownedbutcontractor-operated(GOCOs)andthreeofwhicharebothgovernment-ownedand-operated(GOGOs).5Threeofthe11GOCOs–LakeCity(Missouri),Milan(Tennessee),andRadford(Virginia)–areproducersoftheDepartmentofDefense’s(DoD)small-andmedium-caliberammunition.Theotherfacilitiesmakearangeofproductsfromlarge-caliberammunition,aerialbombs,pyrotechnics,demolitionsandexplosives.The2005BaseClosureandRealignment(BRAC)Commissionrecommendedclosureof4ofthe14facilities:KansasCity,LoneStar,MississippiandRiverbank.Criticalactivitiesandproductionlinesatthesefacilitieswillbetransferredtotheremainingplants.Also,theLouisianaplanthasbeentransferredtotheNationalGuard.Asaresult,theremainingbasewillconsistofninefacilities(seeFigure1).

FIgURE 1: ARMY AMMUNITION PLANTS (POST 2005 BRAC)

gOgOs

Crane Demolitions,detonators,ordnancecomponents

McAlester Air-deliveredweapons

PineBluff Incendiaries, chemical weapons demilitarization

gOCOs

Iowa Large-caliberammunition,mines,missilewarheads

Holston Explosives

LakeCity Small-caliberammunition

Milan Medium-andlarge-caliberammunition

Radford Propellants,powders,medium-caliberammunition

Scranton Large-caliberammunition

Thegovernment-ownedammunitionindustrialbaseexiststoensuretheabilitytomeetcriticaldefenserequirements,particularlyinwartime.Thebaseproducesitemsandmaterialsthatarenotavailableinthecommercialsectorandmaintainsthecapability–demonstratedinthecurrentconflicts–toproducequantitiesofammunitionthatwouldbeunavailablefromcommercialsources.

Therearethreebasicstagesintheammunitionsupplychain.Thefirstistheproductionoracquisitionofbasicmaterials,mostlyenergetics(propellantsandexplosives)butalsometalparts,detonatorsandfuses,etc.Therearemanydifferenttypesofpropellants(e.g.,single-,double-,triple-basegunpropellants;andanumberofrocketpropellants)andexplosives,eachofwhichrequiresitsownproductionline.Thesecondstepistheloading,assemblingandpackaging(LAP)ofmunitionswhichtakesplaceatvirtuallyalloftheammunitionplants.Evenforsmall-caliberammunition,theLAPprocesscanbeextremelysophisticatedand

5 Therearefiveadditionalstoragesites.

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requirestheintegrationofthemanypartsthatmakeupasinglepieceofammunition,cannonroundorshell.The finalstepiseitherstorageofthemunitionsordeliveryto the warfighter.

Althoughshrinkinginsizeandagingoverall,theammunitionindustrialbasehasmanagedsofartomeettheNation’snewfounddemands.In2001,onlytheLakeCityArmyAmmunitionPlant(LCAAP)producedsmall-caliberammunition.Fortunatelytheplantanditscontractedoperator,AlliantTechsystems(ATK),wereabletorespond tothechallengeoftheGWOT;dueinparttoinvestmentsmadebyATKinthefacility.Themostnotableimprovementwasacquiringandmovingtothatfacilitytheonlysurvivinglinefortheproductionofthelinkstocreatebeltsfor 5.56mm,7.62mmand.50-calibermachineguns.After 9/11,asdemandforsmall-caliberammunitionwentthroughtheroof,LakeCityincreaseditsproductionfrom300millionroundsayearto1.2billion.SogreatwasthedemandforammunitionthattheArmywastemporarilyforcedtobuyfromforeignsuppliers.SeveralyearsofeffortandhundredsofmillionsofdollarswererequiredtoincreasethecapacityatLCAAP.Nowtheplantiscapableofproducingupto1.6billionroundsofammunitionperyear.6

ProductionatotherfacilitiessuchasMcAlester,Milan,Radford,andHolstonalsoincreasedtomeetthenewdemand.McAlesterprovidedmostoftheair-deliveredmunitionsusedinIraqandAfghanistan.Italsoproducednewproductssuchasthe15-tonMassiveOrdnanceAir-DeliveredBomb.MilanandRadfordupgradedtheirproductionlinestomeettheincreaseddemandformedium-calibershells.HolstonrespondedtoOIFandOEFbyrampingupproductionofexplosivematerials.MeetingthesurgeindemandfortheJointDirectAttackMunitionrequireda150percentincreaseintheproductionofthecriticalexplosivecomponent ofthatweapon.Overthesameperiod,productioncostsatHolstonhavebeenreducedbyapproximately 50percent.AtRadford,theproductioncostforapoundofnitrocellulosehasbeenreducedbyover40percent.

RADFORD: ThE AgINg hEART OF ThE AMMUNITION INDUSTRIAL bASE

TheheartoftheU.S.ammunitionindustrialbaseistheRadfordArmyAmmunitionPlant(RFAAP).AlltheServices,notjusttheArmywhichownsthefacility,aredependentontheproductsthatcomefromRFAAP.

RFAAPisauniquefacility.Italoneamongthe14existingplantshasanacidconcentratorfacilitythatproducesthenitricandsulphuricacidswhich,whencombinedwithcelluloseinaone-of-a-kindfacilityat RFAAP,makenitrocellulose,theessentialingredientforallpropellantsandexplosivesusedthroughouttheArmy’sammunitionindustrialbase.RFAAPisaprimaryproducerofgunpropellants,andtheonlyproducer

6 TheArmycreatedasecondsourceproducerofsmallarmsammunition.Thesecondsource,ateamledbyGeneralDynamics,produces300millionroundsperyearwiththepossibilityofanadditional200million.

Medium-caliber ammunition is used in light cannons and ranges in size from 20mm to 57mm.

The basic constituent materials that go into virtually every medium-caliber projectile and rocket made by

the U.S. ammunition base are produced at Radford Army Ammunition Plant.


ofthespecialsolventlesspropellantsemployedinsometankshellsandrocketmotors.Finally,theRFAAPmedium-caliberammunitionlineLAPs25mm,30mmand40mmcannonshellsusedbyalltheServicesandcanalsoproduce40mmshells,ifrequired.

Sinceacidisacriticalconstituentofnitrocellulose,weretheacidplanttofail,nitrocelluloseproductionwould also fail and there is no alternative domestic source for this material. It is also uncertain whether environmentalregulationswouldpermitmovementofthewasteacidvolumesacrossthecountry.Theinabilitytoproducenitrocellulosewouldcripplethedomesticproductionofammunition,placingthewarfightersatriskandmakingtheUnitedStatescompletelydependentonlimitedforeignsources.AfailureofanyoftheproductionlinesatRFAAP,butparticularlythoseforsolventlesspropellantsormedium-andlarge-caliberammunition,wouldbecatastrophicforsuchweaponssystemsastheAbramstank,BradleyFightingVehicle,ApachehelicopterandvirtuallyallNavyandAirForcefighters.

The Warfighter Depends on Radford NitrocelluloseM1A1 Abrams TankM119A1, M109A6,

M198, M777 Howitzers,M2 Bradley, Marine EFV

Artillery, Tank Ammo, Medium Cal

Medium CalSmall Cal

ArtilleryRockets,

Tank AmmoTank Ammo,

Artillery

CombustibleCartridge Cases

SolventlessPropellants

Triple BasePropellants

Double BasePropellants

Single BasePropellants

Radford Nitrocellulose Facility

Radford Acid Facility

M9 Pistol, M4 Carbine,M16 Rifle, M2 Machine Gun, 40mm Grenades,

Apache and Cobra Helos

M109A6, M198, M777 Howitzers

M1A1 Abrams Tank, Hydra 70 Rockets forApache and Cobra

M1A1 Abrams Tank, M109A6, M198 and

M777 Howitzers

FIgURE 2

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Speakingaboutpasteffortstomodernizethebase,DennisDunlap,DirectorofIndustrialSupportfortheJointMunitionsCommand,pointedoutthat:

...ourfocushasbeenprimarilyinmodernizingtheproductionfacilitiesandequipment.Wehadneverreallymodernizedtheunderlyinginfrastructure:thewaterlines,theelectricalsystem,andsoon.Andso,aswecameintothiscurrentOIF/OEFsurge,wewerefindingourselvesunabletokeepupwithdemand.7

RFAAP,likealltheplantsthatmakeuptheammunitionindustrialbase,wasbuiltatthestartofWorldWarII.Thesizeandlayoutofthefacilitymadesensethenandreflectedthestateoftechnologynearly70yearsago.Today,RFAAP’sinfrastructureisagingandrequiresconstantrepair.Therehavebeenpreviousinvestmentsinmodernization,associatedwithotherconflicts,buttherehasneverbeenacomprehensiveefforttorationalizeandmodernizethefacility.Liketheotherplantsintheammunitionindustrialbase,thebasicinfrastructureofpipes,sewerlinesandwatermainsdatesbacktotheearly1940s.Asaresult,RFAAPremainsafacilitydesignedforadifferentage.Meetingmodern,evolvingenvironmentalstandards is a constant challenge.

ItisironicthatRFAAP,socriticaltonationalsecurity,isatgreatpotentialrisk.Thisisparticularlythecaseintheperiodofreduceddefensebudgetsthatislikelytoensue.FormanyyearsDoDdidnottomaketheproperinvestmentsinmaintainingandmodernizingthefacility.Failuretocompletethemodernizationeffortsbegunafter9/11mightresultinafailureofcriticalproductioncapabilitiesatRFAAPsometimeinthefuturethatcouldplacethenation’ssecurityatrisk.Equallyimportant,stepsneedtobetakentoanticipatethemovetonewkindsofammunitionproductsandindoingso,todevelopanewbusinessmodelforRFAAPthatwilllowerthe costs of ammunition provided to the warfighters.

IMPROvEMENTS TO ThE AMMUNITION SUPPLY chAIN

AllowedtoatrophyintheyearsfollowingtheendoftheColdWar,thestateoftheammunitionindustrialbasewasuncertain,atbest,whenthenationwasconfrontedbynewthreatsafter9/11.Sincethen,theArmyandtheprivatecontractorsmanagingtheGOCOshavecollaboratedtomakesubstantialimprovementstotheammunition industrial base.

EarlyintheefforttomobilizeresourcesinresponsetothedemandsoftheIraqandAfghanistanwars,theArmyrecognizedtheneedforaplanthataddressedthedeficienciesintheammunitionindustrialbase.TheArmy’sagentinchargeofammunition,theSingleManagerforConventionalAmmunition,publishedthe

7 Mr.DennisDunlap,citedinScottR.Ghourley,“ModernizingtheAmmunitionIndustrialBase,”U.S.ArmyMaterialCommand,FaircountMediaGroup,2008.

The Radford facility is unique in its ability to make nitrocellulose – an essential ingredient for propellants

and explosives. There is no alternative domestic source for this material should an element of this process fail, such as the blenders pictured above.


Industrial Base Strategic Plan: 2015,whichlaidoutalong-term approach for rationalizing and upgrading the ammunition industrial base.8

Aspartofthisplan,theArmyhasmadesignificantinvestmentsinthelastsevenandahalfyearsonimprovementstotheammunitionindustrialbase.Forexample,theArmyhascommittedtoaninvestmentof$242millioninimprovementsatLCAAP.Insomeinstances,entireproductionlinesintheplanthavebeenredonetoimproveefficiencyand reduce production times. Additional computerization and robotics were added to some of the production lines and WorldWarII-erapressesandstampingmachines were refurbished.

Similarinvestmentshavebeenmadeatotherfacilitiestoensurethatthecriticalunderlyinginfrastructurecontinuestofunction.AttheHolstonArmyAmmunitionPlant,theArmymadeinvestmentsinimprovedprocesses,equipment,andinfrastructure.Thenation’sonlyagilemanufacturingfacility

forenergeticswascreated.Upgradesweremadetothechemicaltransferlinesandtherailroadtracksservingthefacility.TheIowaArmyAmmunitionPlantsawmodernizationinprocessandproductiontoenhancethatfacility’sabilitytoproducethenextgenerationofinsensitivemunitions(IM)andallowtheflexibleproductionlinetouseIMinallitsproducts.AttheMilanArmyAmmunitionPlant,thefocusofmodernizationhasbeenontheproductionlines.However,additionalattentionhasbeengiventomakingtheproductionfacilitiescapableofhandlingIM.

TheArmyiscommittedtoimprovingRFAAP.Ithasalreadyinvestednearly$100millioninpowerplantupgrades,watertreatmentfacilityandextensiveinfrastructuremaintenance.Overthepasttwoyearsalone,theArmyhasprovidedsome$148milliontohelpmodernizeRFAAP.Thisfundinghasbeendirectedatcriticalmodernization projects, the most significant of which is the completion of the design and construction of the newacidconcentratorfacility.Thefundingwillalsosupportthedevelopmentofanewsolventrecoverysystem,waterdistributionsystemrepairs,andadditionalpowerhouserepairs.

ButtheArmyalonecouldnothavekepttheammunitionindustrialbaseworking.TheprivatecompaniesthathavemanagedtheGOCOshaveshownthemselvestobeveryresponsiblewhenitcomestosustainingtheNation’sammunitionindustrialbase.ATKplayedasignificantroleinmodernizationeffortsatRFAAPboththroughitsownactivitiesandinpartnershipwiththeArmy.Managingammunitionplantsrequiresspecialskills.ATKbroughttoRFAAPawealthofexperiencethatservedthatfacilityandtheammunitionindustrialbase well.

8SingleManagerforConventionalAmmunition(SMCA),Industrial Base Strategic Plan: 2015,ProgramExecutiveOfficeAmmunitionSFAE-AMOPicatinny,NJ,November3,2003(UpdateNovember2004).

Modernizing the acid plant at Radford is key to its ability to ensure production of nitrocellulose.

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AsisquitecommonintheGOCOenvironment,theprivatesectormakessignificantinvestmentsinupgradingactivitiesatthefacilitiestheymanage.Forexample,ATKalsoinvestedinimprovementstotheoperationsatRFAAP. Ithasspentsome$40millionoverthepastfiveyearsonavarietyofprojectsattheplant,includingthemodernenergeticsfacility.ItrelocatedsomeofitsotherammunitionproductioncontractstoRFAAP,aswellasadditionaldefenseandnon-defenseactivitiesbyotherprivatecompanies,helpingtospreadtheindirectcostofthefacilitymorebroadly.Similarly,BAESystemshasinvestedsome$21millionsincefiscalyear2000at Holston on a refurbished power plant, enhanced laboratories and modernized production facilities.

WhAT STILL NEEDS TO bE DONE

IntheNationalDefenseAuthorizationActforFiscalYear2009,theSenateArmedServicesCommitteenotedtheabsenceoflong-rangeplanningfortherecapitalizationandmodernizationofArmyammunitionplantsandarsenalsnationwide.Itdeclaredthat,“inmanycases,theseammunitionplantsandarsenals,operatinginfacilities that have not been upgraded in decades, serve as the sole producer of critical components that are absolutelyessentialtothemissionoftheDepartmentoftheArmy.”TheCommitteerequiredtheSecretaryoftheArmytodevelopacomprehensivelong-rangeplanforeachammunitionplantandarsenal.

TheArmyisplanningnowforthelikelydownturnindefensebudgetsandtheresultingreductioninfundingforammunition.Ithassetverysensiblegoalsforthissectorofthedefenseindustrialbase.First,ensureanadequatestockpile.Second,modernizeand,toanextent,diversifytheindustrialbase.Third,advancethebasicscienceofsmall-caliberammunition.Finally,protectcorecapabilitiesfromtheinevitabledownturn in funding.9

9 DanielGoure,“IntheEnd,It’sAllAboutAmmunition,”Army,September2006.

The loading, assembling and packaging process can be extremely sophisticated and requires the integration of many parts that make up a single piece of ammunition, cannon round or shell.


Tothesegoalsanothershouldbeadded.Thisistopreparetheammunitionindustrialbasetoproducethenextgenerationofproductssuchasadvancedenergeticmaterials,IM,andeven“green”ammunition.Energeticmaterialsarethecriticalconstituentsthatprovidethepowerbehindpropellantsandexplosives.Advancedenergeticshasmorepowerperunitthancurrentproducts.AnIMwillnotdetonateunderanyconditions other than those associated with its intended mission. It will not detonate if subjected to extremelyhightemperatures,hitbyabulletorshellfragmentorimpactedbyexplosiveforces.Advancedenergeticsthatarealsoinsensitivetoexternalshocksarebecomingcommonplaceinthecommercialexplosivesindustry.“Green”ammunitionwouldhavereducedtoxiccontentsuchas“reducedlead”bullets,“reducedsmoke”grenadesandrocketsorbombswithfewertoxins.

Lookingtothefuture,theArmyneedstodomorethanmerelyassurethesurvivalofRFAAP.Theplantneedsadditionalmodernization.Toleratingrisingcostsforammunitioninatimeofbudgetaryretrenchmentisthewrongwaytodobusiness.Also,thenatureoftheammunitionbusinessischangingwithnewprocesses,products,environmentalandsecurityrequirementsemerging.TheArmyneedstoequiptheentireammunitionindustrialbase,butRFAAPinparticular,todealwiththesechanges.

Radfordisaone-of-a-kindfacilitythatmustbekeptfunctional.Therefore,itisvitalthatworkproceed onfacilitymodernization.Thefirststepsinthisdirectionhavealreadybeenstartedwiththemodernizationof thepowerplantandtheconstructionofanewacidconcentrator.Thenextcriticalprojectismodernizationofthenitrocelluloseplant.Inadditiontothat,RFAAPmusttakestepstomeetnewenvironmentalstandardsthatarelikelytoaffectcomplexchemicalprocessessuchasthoseassociatedwiththeproductionofenergeticsmostdramatically.

The control room for the Ammonia Oxidation Plant where dilute nitric acid is produced and is later concentrated in another part of the plant.

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Also,inordertolowercostsandprepareforthefuture,newworkmustbebroughtintoRFAAP.TheArmyshouldbeginnowtoinvestintheproductionofadvancedenergeticsandIMexplosiveingredients.AddingthesecapabilitiestoRFAAPwouldspreadfixedcostsovermorelinesofbusiness,therebyloweringammunitioncoststoallconsumers.WiththeRFAAPmanagementcontractabouttoberecompeted,thisisatime to see what the competing companies bring to the table for modernization.

TheArmyneedstoconsiderinvestinginmodernindustrialtechnologiestosupportthedevelopmentofadvancedproductioncapabilitiesatitscriticalammunitionplants.TheNavy’sapproachtomanagementandmodernizationoftheAlleghenyBallisticsLaboratory(ABL)isonetheArmyshouldconsideremulating.ABLproducesavarietyofproducts,includingsometypesofammunition.AtABL,theNavyandATKhaveinvested$589milliononarenovationandmodernizationprogram.Aspartofthisinvestment,anautomaticfiberplacementproductionfacilitywasbuiltthatisnowbeingusedtoproducethecompositepivotshaftassemblyfortheF-22fighter.ModernizationfundswerealsoappliedtotherelocationofnewproductionactivitiessuchasadvancedproximityfuzestoABL.

ATKhassuccessfullyoperatedABLfor50years,andhasalongcontract(24years),whichallowsittorecoupthecostsassociatedwithinvestmentsinthefacility.Inaddition,ATKpaysaleasefeethatisapercentageofrevenues;thesefundsareusedprimarilyforfacilityimprovementprojectsontheinstallation,includingbuildingandequipmentrenovations.ATKalsomanagesarangeofprogramsassociatedwiththeoperationsofABL,suchassecurity,withaneyetowardsreducingcosts.

TheArmyhasaplantoenhancetheoperationofRFAAP.Some$350millionhasbeenidentifiedandsetasidetocompletethemodernizationeffortatRFAAP,whichisnotalotofmoneywhenthefutureoftheentireU.S.ammunitionindustrialbaseisontheline.ThisinvestmentwouldensurethephysicalmodernizationofRFAAP’scriticalinfrastructureandprovidethebasisforbringingadditionalworktotheplant.

However,theArmyhasdecidedtodelayspendingtheRFAAPmodernizationfundsinanticipationoftherecompetingofthatfacility’sbasicmanagementcontract.ThecurrentplanistohavethenewmanagementcontractinplacewhentheoldoneexpiresattheendofMarch2010andsubsequentlyinvestthemodernizationmoney.

DelayingthecompletionoftheRFAAPmodernizationprogramisamajormistake.Delayiscostlyinmanyways.Mostobviously,somethingcouldgowrongwiththeaginginfrastructureatRFAAP.Inaddition,theArmyistakingariskwaitingforthenewmanagementcontracttobeawarded.Thecontractingprocessisoftenlengthierthananticipated,whichwoulddelayboththeawardingofthemanagementcontractandtheinvestmentofthemodernizationfunds.Also,givendownwardpressureonthedefensebudget,themoneymaynotbethereinayear.

AtLCAAP,theArmydecidedthatdelayingmodernizationtoawaitanewmanagementcontractwouldbeamistake.Indeed,theArmyextendedthecurrentcontractuntilthemodernizationeffortwascompleted.


REcOMMENDATIONS

Overall,theArmyhassuccessfullymanageditsefforttomodernizetheammunitionindustrialbase. Itshouldfinishtheprocessitbeganafter9/11.WithrespecttothatmostcriticaloflinksinthechainoffacilitiesproducingammunitionforU.S.warfighters,RFAAP,theArmyshouldtakethefollowingsteps:

•Commitavailablefundsnow.Waitingnotonlyincreasesrisk,butthecostofRFAAP’sproducts.Ineffect, theArmyshoulddecouplethetwoefforts,thebasicmanagementofRFAAPandthatfacility’smodernization.

•Consideroptionsformanagingmodernizationwhileplanningarecompete.TheArmyshouldconsiderrepeatingthedecisionittookwithrespecttomodernizationatLakeCity.

Theapproachdescribedabovehasseveralfeaturestorecommendit.First,itensuresthatthemoneywillbespentasintended,ratherthanbeingdivertedtootheruses.Second,byspendingthemodernizationmoneynow,theprocessisaccomplishedinanexpeditiousfashion.Third,thiswillmaketherecompeteeasier;thecontractwillbemoreattractivetobiddersiftheyknowthatthefacilitytheywillmanageisbeingmodernized.Finally,modernizationwillmaketheproductsproducedbytheammunitionindustrialbasebetterandcheaper.Thisisawinforeveryone.

RFAAP,theoldheartoftheU.S.ammunitionindustrialbasecontinuestofunction.Butlikethehuman heart,ifnotproperlycaredfor,itcanstopworking.Thewarningsignsareabundant,likeabadelectrocardiogram.Actionneedstobetakennowtopreventamajordisruptioninthevitalsupplyofammunition to the warfighters.

gLOSSARY:

ABL AlleghenyBallisticsLaboratoryATK AlliantTechsystemsBRAC DefenseBaseClosureandRealignmentDoD U.S.DepartmentofDefenseEFV ExpeditionaryFightingVehicleGOCO Government-Owned,Contractor-OperatedGOGO Government-Owned,Government-OperatedGWOT GlobalWaronTerrorIM InsensitiveMunitionsLAP Loading,AssemblingandPackagingLCAAP LakeCityArmyAmmunitionPlantOEF OperationEnduringFreedomOIF OperationIraqiFreedomRFAAP RadfordArmyAmmunitionPlant

It is essential that modernization of Radford move ahead. The military is at risk of having its supply of ammunition virtually halted should there be a

breakdown in any of a number of its critical systems.

13PRINTEDINTHEUNITEDSTATESOFAMERICA

APRIL2009

Related Lexington Institute Studies

Public-Private Partnerships and the Future of the Army Industrial Enterprise, June 2006

Supplying Ammunition: The Lifeblood of the Military, November 2004

From Factory to Foxhole: The Transformation of Army Logistics, April 2004


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RADFORD ARMY AMMUNITION PLANT - Lexington Institute

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