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11-13 May 2004

Program Executive Office Ammunition. 11-13 May 2004. Presented By: Mr. Matthew T. Zimmerman Associate PEO Ammunition – Industrial Base. Presented To: NDIA Small Arms Symposium. PEO Ammo. MISSION. Develop and Procure Conventional and Leap-Ahead Munitions Combat Power to Warfighters.

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11-13 May 2004

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  1. Program Executive Office Ammunition 11-13 May 2004 Presented By: Mr. Matthew T. Zimmerman Associate PEO Ammunition – Industrial Base Presented To: NDIA Small Arms Symposium

  2. PEO Ammo MISSION Develop and Procure Conventional and Leap-Ahead Munitions Combat Power to Warfighters GOALS • Field Precision Munitions & Smart Weapons • Improve and Sustain the Conventional Stockpile • Satisfy the Customer, Achieve Excellence • Grow World-Class People and Teams

  3. Washington, D.C. Liaison Team Close Combat Systems Mr. Jim Sutton PM Combat Ammo Systems - Indirect Fire COL Nate Sledge PM Maneuver Ammo System - Direct Fire Mr. Bill Sanville PM Joint Services COL Jeff Gwilliam PM DEMIL PEO Ammo Organization PEO Ammunition BG Paul Izzo PEO Mr. Kevin Fahey DPEO Industrial Base Mr. Matt Zimmerman APEO Industrial Base Networked Munitions/ Munitions / Countermine Demolitions / Non-Lethal Medium & Small Caliber Mortars Excalibur Large Caliber

  4. PEO Ammo Main Objectives • Unify & Integrate Ammunition Management Under One Single Chain of Command…by Consolidating Responsibility and Resource Management in the PEO • Develop a Unified Munitions Acquisition Strategy • Integrate Requirements…Training, War Reserve, & Modernization • Include SMCA Mission • By Munition Family • Identify and Optimize Key Business Processes • Develop and Implement an Industrial Base Strategy (Organic and Commercial) Common Themes From PNNL Study, GAO Study, and Rand Study Authority and Accountability… For Meeting Full Military Requirement For all Ammo Families

  5. All Major Issues Resolved • Moving Forward With Execution • Measuring Improvements Where We Are Today • Single Manager for Conventional Ammunition (SMCA) • ASA(ALT) Named SMCA – 8 Jan 2003 • PEO Ammunition Named SMCA Executor – 16 Apr 2003 • Section 806 Authority Assigned 16 April 2003 • SMCA Charter in Service Review • All FY04 Service Funding Goes thru PEO Ammunition • PM’s are Engaging Other Services • Formed SMCA Acquisition Council • Completed Executive 6 Sigma Black Belt Program • Implementing Ammo Enterprise • Metrics – Covering All SMCA Functional Areas

  6. Single Manager for Conventional Ammunition (SMCA) DOD D5160.65 DOD I5160.68 • SMCA Key Objective: Achieve the Highest Possible Degree of Efficiency and Effectiveness Acquiring Conventional Ammunition • SMCA Functions: • RDTE • Production Base • Acquisition • Supply & Maintenance • Demilitarization

  7. Ammunition Enterprise Definition • The Ammunition Enterprise is the integration of people, infra-structure and processes required for ammunition life cycle management to support the warfighter. JMC-PEO Ammo - ARDEC

  8. RDA FY 04 PEO Ammo Budget Total Total: $1,799.6M (12%) (3%) (39%) (14%) (32%) Source: FY05 PB • PM Maneuver Ammunition Systems • Large Caliber • Medium Caliber • Small Caliber • PM Combat Ammunition Systems • Artillery Ammunition • Artillery Fuze • Mortar RDTE $184,067 WTCV $10,027 OPA $39,224 Ammo $339,633 RDTE $26,521 Ammo $670,148 • PM Close Combat Systems • Mines, Countermines & Demolition RDTE $133,615 OPA $17,884 Ammo $108,881 • PM Joint Services • PEO Industrial Base • Demil RDTE $30,937 Ammo $181,626 PEO Ammo RDTE $31,595 Ammo $25,446

  9. FY04 PEO Ammo Funding ($M) PEO Ammo Total=$1,799.6M Industrial Base Total=$131.22M PAA Total= $109M RDTE $22.22 RDTE ($406.7M) IF $32.35 WP MOD (plus-up) $24.30 Procurement 1,392.9M IF (Plus Up) $25.31 ARMS (Plus Up) $7.00 MIF $5.8 LIF $9.7 ARMS $4.57 IF=Industrial Facilities MIF=Maintenance of Industrial Facilities LIF= Layaway of Industrial Facilities ARMS= Armament Retooling & Manufacturing Support (ARMS) WP MOD= White Phosphorous Modernization Production Base Support Program Source: FY05 PB

  10. Section 806 Summary 19 $2430.4M 39 52 $421.3M $223.9M 64 $860M 42 $1274.7M 21 40 $205.2M 10 $321.4M $26.2M Procurement Approach Distributions • Section 806: • Public Law 105-261, Procurement of Conventional Ammunition • Permits SMCA to Restrict Procurements to Sources within NTIB FY04 Procurements FY03 Procurements FY03 Sec 806s FY04 Sec 806s • PEO Ammo Delegated Section 806 Authority Nov 02 Competition Limited to the NTIB Full and Open Sole Source Small Business Set Aside

  11. WWII 1941-1945 2500 VIETNAM 1966-1975 KOREA 1950-1953 2000 12 Plants 1500 3 Plants 2 Plants Millions of Rounds 1 Plant ATK 1000 USA Olin Multiple MFGs Remington Arms 500 0 1944 1950 1956 1962 1968 1974 1980 1986 1992 1998 2004 2010 Years Small Arms Ammo Production History

  12. Requirement Increases(Produced at Lake City) Unknowns associated with live fire training and OIF Supplemental Increased requirements due to Chief of Staff training surge Source: Integrated Conventional Ammunition Procurement Plan FY04 Draft Execution Price List Quantity

  13. DESIRED SURGE CAPABILITY GOAL ALL SERVICES UNFUNDED REQUIREMENTS ALT. SOURCE LCAAP CAPACITY POM FUNDING (ALL SERVICES) Small Cal Ammo Scenarios

  14. Small Caliber Ammunition • .50 Cal: A large number of soldiers commented that the M2 machine gun is “…the best weapon in the Army” • They successfully engaged and destroyed targets (light armor, buildings and personnel) between 50-2000 meters without experiencing any major malfunctions or breakages on the weapon system • 7.62mm: Coax machine gun and loader machine gun were most widely used weapons for tanks • Ammunition and weapon systems performed very well • 5.56mm: Most soldiers considered M16 weapon series to be very accurate regardless of the version or sighting system • One sniper team spotter employed his M16A4 (equipped with a high powered scope) against targets at 600 and 800 meters with first round hits in each case

  15. Outlines Goals and Tactics to Shape the Industrial Base Single Manager for Conventional Ammunition (SMCA) Industrial Base Strategic Plan: 2015 Volume A 3 November 2003 Program Executive Office Ammunition SFAE-AMO Picatinny Arsenal, NJ 07806-5000 Industrial Base Strategic Plan 7 Overarching Strategies 30 Tactical Strategies 1. Acquisitions Will Determine and Posture the Production Base. 2. Acquisitions and Investments Will be Synchronized to Assure Required Manufacturing Capabilities Remain Available. 3. Opportunities for Greater Joint Service Activity Will be Identified and Implemented. Strategic Goals: 1. Transform to Meet Current and Future Requirements 2. Modernize Utilized Manufacturing Capacity 3. Balance Industrial Base & Acquisition Management Risk 4. Operate Efficiently and Effectively 5. Incentivize Industry to Reinvest in Capital Equipment and Processes Sample Overarching Strategies:

  16. GOCO Production Base Outlook FY04 FY06 FY07 FY05 FY08 FY09 FY10 FY11 FY12 Chamberlain Scranton BRAC05 Norris Riverbank Valentec Louisiana FY03 Radford ATK FY99 Lake City Facilities-Jul 24 Kansas Principal Strategy: Lone Star 1-Align Facility Use Contracts w/ BRAC05 Day & Zimmermann Miss. MTI 2-Pursue Feasibility and Overall Business Case for Sell, Long Term Lease, and/or Capability Consolidation (Pending BRAC Outcome) Milan American Ordnance General Dynamics Iowa BAE Syst OSI Holston = Contract term expires Facilities-Jun 23 = Decision or actionable point

  17. Summary – The Ammunition Enterprise is … • Supporting Current Operations/Planning Future • Improving Ammunition Life-Cycle Practices • Focused, Well-Trained Workforce • Leveraging World Class Capabilities & Technologies • Vital to the development of products for the Future Joint Force

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