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EXCESSIVE STOCK MANAGEMENT WITHIN THE D EPARTMENT O F D EFENCE

EXCESSIVE STOCK MANAGEMENT WITHIN THE D EPARTMENT O F D EFENCE. Portfolio Committee on Defence 26 August 2003. DOD DELEGATION. Presenter: Major General T.A. Ntsibande - Chief Logistics Representatives: SA Army – Brigadier General I.R. Johnson SA Air Force – Major General E.H. Dert

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EXCESSIVE STOCK MANAGEMENT WITHIN THE D EPARTMENT O F D EFENCE

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  1. EXCESSIVE STOCK MANAGEMENT WITHIN THE DEPARTMENT OF DEFENCE Portfolio Committee on Defence 26 August 2003 Department of Defence Chief Logistics

  2. DOD DELEGATION Presenter: MajorGeneralT.A. Ntsibande - Chief Logistics Representatives: SA Army – BrigadierGeneral I.R. Johnson SA Air Force – MajorGeneral E.H. Dert SA Navy – RearAdmiral (JG) T.M. Butler SAMHS – Brigadier General H. Wallis DOD Log Sup Fmn – Brigadier General B. Links Logistics Division – Colonel M.J. Craig Department of Defence Chief Logistics

  3. AIM To inform the Portfolio Committee on Defence on the progress made with the management of excessive stock in the DOD Department of Defence Chief Logistics

  4. SCOPE • History • Modus Operandi • Current status within the DOD • ARMSCOR initiative • Present Situation • Problems encountered • Current actions taking place in • SA Army • SA Air Force • SA Navy • SA Military Health Service Department of Defence Chief Logistics

  5. HISTORY • 1998 Auditor General report • SCOPA • Reasons originally given for excessive stock position • Weapon and equipment stockpiling during embargo period • Transformation process • DOD still determining new Force Design Department of Defence Chief Logistics

  6. Modus Operandi • Each Service and Division manages own disposal plans • Reports progress on a monthly basis to Chief Logistics • Progress managed at top level • Streamlined disposal process • Use ARMSCOR as disposal agent Department of Defence Chief Logistics

  7. CURRENT STATUS • During 2003/2004 financial year 171 disposal plans are being managed to the total value of RB 4,812. • Plans are being managed by • SA Army: 31 Plans – RB 2,445 • SA Air Force: 98 Plans – RB 1,695 • SA Navy: 34 Plans – RM 643,2 • SAMHS: 8 Plans – RM 29,229 Department of Defence Chief Logistics

  8. Armscor Initiative • ARMSCOR presently being used as an agent to manage all Cat 1 equipment that is to be disposed of, on behalf of the DOD. Department of Defence Chief Logistics

  9. Present Situation • Disposals • 3 Auctions – RM 5.1 • 11 Tenders – RM 4.9 • Donations to Namibia (144mm ammo) RM 90,45 (2 839 tons) • ARMSCOR • 102transactions Stock Sales – RM 155 • Stock Transfer of Cat 1 equipment - RM 325 • Problems • Ammo Disposal Plant • NCACC • Ledger values Department of Defence Chief Logistics

  10. Problems Encountered • Ammo Disposal Plant • 141 000 tons of ammunition • Average age – 17 years old • 90% out of manufacturers warranty (10 -11 years) • 67 000 tons expired, obsolete, redundant, re-workable, or un-serviceable • Safety not guaranteed by manufacturer • Need a safe environmentally friendly disposal capability • Request for proposal to industry on 4 Jul 2003 • Response has been received • NCACC • Local buyers have to register with NCACC – lengthens process Department of Defence Chief Logistics

  11. SA ARMY Down Managing of Excessive Stock Department of Defence Chief Logistics

  12. SA ARMY CURRENT SITUATION • The SA Army’s only approved force structure is that of the transitional force design. • Until such time as the affordable structure is approved no responsible down scaling can be done of (any) serviceable equipment. • For this reason only obsolete and beyond economical repair equipment to the book value of RB 2.445 has been programmed for disposal. Department of Defence Chief Logistics

  13. SA ARMY APPROACH TO DISPOSAL • The main focus of effort concentrated on the Auditor Generals concern that in the SA Army’s case there is excessive stock in the depots. • With this in mind armoured vehicles, air defence and vehicle platforms were concentrated on to decrease the monetary value of the stock. • Other systems will be handled concurrently with the view to decreasing the number of items. Department of Defence Chief Logistics

  14. SA ARMY ARMOURED VEHICLE SYSTEMS • The Army has standardised on the following Armoured systems Ratel Mk 3, Rooikat Mk 1 (Lot 3) and Olifant Mk 1A for the medium term and Olifant Mk 1 B for the long term.. • Ratel Infantry Fighting Vehicle MK 1&2 (99) RM 325 (31 Oct 02 – 29 Aug 03). • Ratel Mk3 Infantry Fighting Vehicle 3 (100) RM 320 (sold). • Ratel Mk 3 Infantry Fighting Vehicle (155) RM 487 (30 Jun 03 –26 Sep 03). Department of Defence Chief Logistics

  15. SA ARMY ARMOURED VEHICLES (CONT) • Rooikat Armoured Car PPM (28) RM 196 (3 Mar 03 – 25 Nov 04). • Rooikat Armoured Car Mk 1 (6) RM 84 (3 Mar 03 – 27 Feb 04). • Eland Armoured Car (80) RM 23.5 (on marketing list 27 Apr 03). • Olifant Tanks Mk 1A (14) RM 68 (on marketing list 25 Mar 03). Department of Defence Chief Logistics

  16. SA ARMY INFANTRY • After previous widely publicised disposal efforts very little remained. The routine expiry of parachutes for safety reasons were also included • Rifle Magazines ( 134 000) RM 6 (On stock list) • Parachutes (2 300) RM 2 (3 Sep 03 -11 Nov 03) Department of Defence Chief Logistics

  17. SA ARMY ARTILLERY • The GV1 25 pdr down graded to ceremonial and burial duties only the last remnants of the 140mm not donated to Angola • GV2 140 mm Gun ( System) RM 9 (3 Apr 03 -27 Feb 04) Department of Defence Chief Logistics

  18. AIR DEFENCE ARTILLERY Department of Defence Chief Logistics

  19. SA ARMY AIR DEFENCE ARTILLERY • The Air Defence has standardised on the 35 mm Mk 5 system and all other systems now obsolete • 35 mm Mk 1 System (100 Guns) RM 1,103 (19 Mar 03 – 2 Feb 04). • 20 mm (117 Guns) RM 115 (4 Mar 03 – 2 Feb 04). • 14.5 mm (24 Guns) RM 6 (4 Mar 03 – 2 Feb 04). • 23 mm (32)m RM 96 ( 29 Jul 03 – 20 Jun 07). Department of Defence Chief Logistics

  20. AIR DEFENCE ARTILLERY Department of Defence Chief Logistics

  21. SA ARMY CLOTHING • Major effort here was to rid the SA Army of the remaining odd sizes of Nutria clothing not enough to issue even a single units intake. • Nutria Clothing (System) RM 41 (On stock list) • Obsolete Women's Clothing (Various) RM 7 (20 Jul 03 - 29 Mar 04) • General Commodities (Various) RM 9 (20 Jul 03 - 29 Mar 04) Department of Defence Chief Logistics

  22. SAMIL TRUCK Department of Defence Chief Logistics

  23. SA ARMY B VEHICLES • Samil Vehicles in Vehicle Reserve Park(1704) RM 283 (Transferred to Armscor for sale) • Samil Vehicle Spares(Various) RM 64 (2004/2005) • Samil Vehicles at Units(1,049) RM107 125 978 (2004/2005) Department of Defence Chief Logistics

  24. SA ARMY • C VEHICLES • 580 C Vehicles will be phased out in the short to medium term • C Vehicles (73) RM 3 191 000 (12 Feb 03-15 Aug 03) Department of Defence Chief Logistics

  25. SA ARMY FUTURE INTENT • As soon as the Affordable Force has been approved by the Minister the SA Army will determine surpluses and initiate a second major wave of disposal Department of Defence Chief Logistics

  26. SA AIR FORCE Management of excessive stock Department of Defence Chief Logistics

  27. SA AIR FORCE • Imperatives • SCOPA resolutions • Treasury Regulations • Revenue accrued from sales • 98 disposal plans • Consolidated into 7 groups • Total value – RB 1,695 Department of Defence Chief Logistics

  28. Impala Mk II Department of Defence Chief Logistics

  29. SA AIR FORCE • Impala Mk I and Mk IIaircraft • 38 aircraft, 11 on tender in Mar 03 • NCACC authority awaited • Start date – 15/1/1997 • Expected end date – 31/12/2003 • Value – R5 430 Department of Defence Chief Logistics

  30. Mirage F1 Department of Defence Chief Logistics

  31. SA AIR FORCE • Mirage F1 aircraft • 21 aircraft including spares • Gabon interested in 6 aircraft • Start date – 09/09/1997 • Expected end date – 31/12/2003 • Value – RM 520 Department of Defence Chief Logistics

  32. Cheetah C and D Department of Defence Chief Logistics

  33. SA AIR FORCE • Cheetah C and D aircraft • 3 Cheetah D dual seat aircraft • 17 Cheetah C single seat aircraft • Brazil interested in 14 aircraft • Start date – 12/03/1999 • Expected end date – 31/12/2003 • Value – RM 2 (Cheetah D) • Value – R 0 (Cheetah C) Department of Defence Chief Logistics

  34. Alouette III Department of Defence Chief Logistics

  35. SA AIR FORCE • Alouette III Helicopters • 3 aircraft • 7 stripped down airframes • Stripped down airframes on tender in March 03 • Awaiting NCACC authority • Start date – 06/02/2002 • Expected end date – 31/12/2003 • Value – RM 1 Department of Defence Chief Logistics

  36. BOEING 707 Department of Defence Chief Logistics

  37. SA AIR FORCE • Boeing 707 aircraft • 2 aircraft including spares • Spanish firm registered interest • Need to return aircraft to flying condition. ARMSCOR investigating • Start date – 06/02/2002 • Expected end date – 31/12/2003 • Value – RM 1 Department of Defence Chief Logistics

  38. C-47 Dakota TP Department of Defence Chief Logistics

  39. SA AIR FORCE • C-47 TP Dakota aircraft • 2 aircraft • 1 fuselage • 2 aircraft recently sold. Finalising sale. • Start date – 01/02/2002 • Expected end date – 31/12/2003 • Value – RM 6 Department of Defence Chief Logistics

  40. SA AIR FORCE • Spares, engines, armament and tools • 40 plans • 11 plans on tender in Mar 2003 • Start date – 01/06/2002 • Expected end date – 31/12/2003 • Value – RB 1,135 Department of Defence Chief Logistics

  41. SA NAVY Excessive stock management Department of Defence Chief Logistics

  42. SA NAVY Current situation: • Qty 34 disposal plans consolidated into 7 groups (sub-plans) to value of RM 643,2. Department of Defence Chief Logistics

  43. SA NAVY • Current actions taking place: • Ordnance Spares at Depots (7 sub-plans) • EOD/IEDD Equipment • Mk 44 Torpedoes • Non Ops Small Arms • R4 Rifle Accessories • 40/60 Weapons System • Gun Mountings 40/60 Mk 5 • 20mm Guns and Mountings Department of Defence Chief Logistics

  44. SA NAVY • Ordnance Spares at Depots (cont) • Start Date: 28/09/00 • End Date: 30/09/03 • Value: RM 2,29 (excluding 40/60 Weapon System as value still awaited) Department of Defence Chief Logistics

  45. Minesweepers Department of Defence Chief Logistics

  46. Minesweeper Department of Defence Chief Logistics

  47. SA NAVY • TON Class Minesweepers (6 sub-plans) • SAS KIMBERLEY (platform) • SAS EAST LONDON (platform) • SAS WINDHOEK (platform) • SAS WALVISBAAI (platform) • Influence Sweep Gear • Minesweeper Inventory • Minesweepers • Start Date: 18/07/00 • End Date: 22/10/02 (sold on tender) • Value: RM 2,6 Department of Defence Chief Logistics

  48. SA NAVY • Minesweeper Influence Sweep Gear • Start Date: 18/07/00 • End Date: 22/11/02 (to be sold on tender) • Value: R380 184 • Minesweeping Inventory • Start Date: 03/04/00 • End Date: 26/03/04 • Value: Awaited Department of Defence Chief Logistics

  49. Strike Craft Department of Defence Chief Logistics

  50. SA NAVY • Warrior Class Strike Craft (10 sub-plans) • SAS JAN SMUTS (platform) • SAS SHAKA (platform) • SAS SEKUKHUNE (platform) • SAS RENE SETHREN (platform) • SAS ADAM KOK (platform) • SAS ISAAC DYOBHA (platform) • SAS GALESHEWE (platform) • SAS JOB MASEGO (platform) • SAS MAKHANDA (platform) • Strike Craft Inventory Department of Defence Chief Logistics

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