UNCLASSIFIED UNCLASSIFIED

Army Materiel Command

Honorable John M. McHugh Secretary of the Army
Sustaining the Strength of the Nation!

UNCLASSIFIED UNCLASSIFIED

Facer – What I Want To Leave You With
 Theme today: how we‟ve adapted – and are adapting – for our future

UNCLASSIFIED

 Several updates on items you asked for (BRAC, Efficiency Directive)
 Will discuss several efficiencies

 Visit to the Prototype Integration Facility this afternoon
 Looking forward to your thoughts throughout … intended as a discussion vice a brief

Takeaway: All about supporting the Warfighter
GEN Dunwoody
UNCLASSIFIED UNCLASSIFIED

What I Want To Leave You With  Thanks For Taking Time To Visit

UNCLASSIFIED

 A Decade at War
 Adapting and Transforming  Looking Forward to Your Thoughts

UNCLASSIFIED

Sustaining the Strength of the Nation!

2

Facer – AMC Commanders and Deputies
{Gen Dunwoody – Introduce Team – Around the Table and Room}

UNCLASSIFIED

Welcome Back! Thanks for taking the time to visit …
 Showed this at your last visit

 Approx 1/3 of our leadership have turned over (yellow) or are scheduled to turn over (green)

Takeaway: New faces, new place, new facilities ... same dedication and professionalism
GEN Dunwoody
UNCLASSIFIED UNCLASSIFIED

AMC Commanders and Deputies
H.Q. Army Materiel Command TACOM LCMC
MG Kurt Stein Mr. Mike Viggato

UNCLASSIFIED

As of 1 June 2011

Assembled Chemical Weapons Alternatives Program

BG John Wharton

LTG Dennis Via

GEN Ann E. Dunwoody

Mr. John Nerger

CSM Jeff Mellinger

Mr. Conrad Whyne

Mr. Joe Novad

Civilian 15,303 | Military 72

Civilian 32| Military 0

Aviation and Missile LCMC
MG Jim Rogers Mr. Ronnie Chronister

Civilian 1,121 | Military 83
Spec Assistant

Military Surface Deployment & Distribution Command MG Kevin Mr. Mike Leonard Williams

New Since Mar 2010

Ms. Terry Gerton

Departing Next 6 Months
Civilian 9,842 | Military 89 Civilian 1,449| Military 373

Joint Munitions Command
BG Gus Perna
Mr. Jyuji Hewitt

JM&L LCMC
BG Gus Perna

AMC Band
CW4 Peter Gillies

US Army Security Assistance Command
BG Chris Tucker

Army Sustainment Command
Civilian 245 |Mil 407

Mr. Robert Moore

MG Yves Fontaine

Mr. Scott Welker

Civilian 6,808 | Military 27 6,582 19

Civilian 0 | Military 31

Civilian 561 | Military 38

Civilian 1,933| Military 449

CECOM LCMC
MG Randy Strong Mr. Ed Thomas

Chemical Materials Agency
Mr. Conrad Whyne Mr. Don Barclay

AMC SWA
BG Jesse Cross

Research, Development & Engineering Command MG Nick Justice Mr. Gary Martin BG John McGuinness

Army Contracting Command Mr. Jeff Parsons

Expeditionary Contracting Command BG Joe Bass

Mission and Installation Command BG Steve Leisenring

UNCLASSIFIED 61 Civilian 8,687| Military

Civilian 1,419 | Military 16

Civilian 1,415 |Mil 749

Civilian 15,585 | Military 209

Civilian 5,610|Military 504

3

Facer - Priorities
 Continuous process of reviewing/updating priorities

UNCLASSIFIED

 Cross-walked your priorities against ours and review weekly

Takeaway: Mutually supporting efforts

GEN Dunwoody
UNCLASSIFIED UNCLASSIFIED

Priorities
SecArmy Top Priorities
1. Ensuring a Highly Capable “Force” within Fiscal Constraints 2. Transforming the Institutional Army 3. CSA Transition 4. General Order #3, HQDA 5. Accountability 6. Army Modernization, Equipping & Continued Reset 7. Quality of Army Life 8. ANC Follow-on Actions 9. Energy 10. POM 13-17 Development
UNCLASSIFIED
As of: 11 April 2011

UNCLASSIFIED

CG, AMC Top Priorities
1. SA Directive: Optimization of Materiel Development/Sustainment 2. DOL Transformation 3. Special Installations Pilot 4. Service Contract Management/ Portfolio Alignment 5. Terms of Reference/Succession Plan 6. LMI/LIW Implementation Plan 7. Workforce Quality of Life 8. Operation Red Zone (BRAC) 9. Operational Energy Initiatives 10. Strategic Communications
As of: 10 Jun 2011

Executing Your Priorities

4

Facer – A Decade at War . . .
 Discussed this in the UK  Most of us consumed with budgets and other daily challenges  Sometimes, we need to take a step back and remind ourselves this has been a …  Tough …  Demanding …  And challenging decade. {Gen Dunwoody – Introduce LTG VIA and Decade @ War}

UNCLASSIFIED

UNCLASSIFIED UNCLASSIFIED

Takeaway: We all have much to be proud of

GEN Dunwoody

A Decade at War . . .

UNCLASSIFIED

“In the past decade, America’s Army has been challenged and prevailed in some of the most daunting tasks in the history of our military.”
UNCLASSIFIED UNCLASSIFIED UNCLASSIFIED

~ SecArmy McHugh, 31 March 2011

5 9

Facer – . . . Fighting on Two Fronts . . .
 Fighting two wars …  In Iraq …  Ended major combat operations in August of 2010 …  Now completing the drawdown  Increased operations in Afghanistan  One of the toughest combat environments...  … landlocked country …  … the size of Texas, with only 2% of its roads … few paved  … and 18 – 20,000 foot mountains … Takeaway: Building a better life for others
LTG Via
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

. . . Fighting on Two Fronts . . .
Afghanistan  Support/Sustain the Surge  Building Partner Capacity  50% Surge Equipment from Iraq Iraq  Complete Drawdown  Build Iraqi Capabilities and Self-Sufficiency

UNCLASSIFIED

 Set Conditions for Department of State/Others
UNCLASSIFIED UNCLASSIFIED

11 6

Facer – . . . In a Tough Distribution Environment . . .  … In a very demanding environment … not just today … but for future missions  Truly a "ground" operation  Political environment, border delays, attacks, dependence on foreign carriers and weather - all make for an uncertain distribution environment Takeaway: Mission success despite all the challenges

UNCLASSIFIED

LTG Via
UNCLASSIFIED UNCLASSIFIED

. . . In a Tough Distribution Environment . . .

UNCLASSIFIED

Attacks Border Delays Weather Political Unrest Expanding Militancy Host Government Rule Uncertainty Economic Issues Labor Issues

Theft & Pilferage
UNCLASSIFIED UNCLASSIFIED

Visibility Issues

Road Conditions
13 7

UNCLASSIFIED

Facer – . . . While Supporting Contingency Operations . .
 Support provided at home and abroad  Peacekeeping and Stability operations in Africa …  Humanitarian Relief in Haiti …  Disaster response in Japan …  Small footprint with strategic reach-back  Contracting (Mr. Parsons)  Transportation  Sustainment Takeaway: Quiet success … often assumed away
LTG Via
UNCLASSIFIED UNCLASSIFIED

. . . While Supporting Contingency Operations . . .

UNCLASSIFIED

Rapid Port Opening

Emergency Rations

Logistic Support Haiti - Hurricane Haiti – Earthquake Chile – Earthquake Pakistan – Floods . . . And Now Japan

Water Purification
UNCLASSIFIED UNCLASSIFIED

Mortuary Affairs
15 8

Facer – ... And Responding to Other Threats
 Environment of increasing change and uncertainty  Popular uprisings … and instability across the Middle East …

UNCLASSIFIED

 Regional threats - North Korea

Takeaway: With experiences of the past decade, confident we can overcome the challenges of the next decade

LTG Via
UNCLASSIFIED UNCLASSIFIED

. . . And Responding to Other Threats . . .

UNCLASSIFIED

Revolutions

Autocratic Subversion

Terrorism

Regional Instability
UNCLASSIFIED UNCLASSIFIED

Extremism

Political Unrest
17 9

Facer – The Impact of BRAC
{LTG Via – Mr. Nerger and Mr. Marriott and impacts of BRAC on Command and People} And … we‟ve executed BRAC …  At AMC … BRAC impacted 11,000 employees (1 in 6 employees) across 25 states  Shifted our centers-of-gravity:     Redstone, AL Aberdeen, MD Rock Island, IL Warren, MI

UNCLASSIFIED

 Congressional interest  Intense at Monmouth (CECOM)

UNCLASSIFIED UNCLASSIFIED Takeaway: Continued to execute all missions throughout BRAC

Mr. Nerger Mr. Marriott

The Impact of BRAC
Kansas, KS Umatilla, OR Tooele, UT Deseret, UT Riverbank, CA St. Louis, MO *Rock Island, IL Scott AFB, IL
Iowa, IA

UNCLASSIFIED

*Warren, MI Glenn, OH Letterkenny, PA Picatinny, NJ Selfridge, MI

Watervliet, NY Tobyhanna, PA Ft. Monmouth, NJ Natick, MA Adelphi, MD *Aberdeen, MD
Alexandria/Falls Church, VA

Newport, IN Crane, IN

Sierra, CA

Ft. Belvoir, VA Concord, CA Ft. Huachuca, AZ McAlester, OK Closing Realigning - Loss Red River, TX Lone Star, TX Ft. Sam Houston, TX Corpus Christi, TX Milan, TN Anniston, AL Langley, VA
Ft. Eustis, VA Ft. Monroe, VA Bluegrass, KY Shaw AFB, SC Stennis Space Center, MS Ft. McPherson, GA Ft. Gillem, GA

Realigning - Gain
*Center of Gravity

• Involves half of all US States • One out of every six AMC employees affected (approximately 11,000) • More moves and more people affected than any other Army organization
UNCLASSIFIED UNCLASSIFIED

*Redstone Arsenal, AL

19 10

Facer – A Time of Transition
 Not simply a matter of moving once - in most cases … multiple moves (office and home)

UNCLASSIFIED

 For some folks the first lifetime PCS (97% civilian + 3% military
 Deliberate process … orientation briefs, sponsorship, etc.  Also taking care of those leaving AMC/Army  Facilities = Economy of Force (no café/gym/auditorium)  Currently in 31 Temp facilities

 Move disrupted by tornadoes in late April/early May
Takeaway: Stressful times for the workforce (+ lack of adequate Mr. Nerger cafeteria, gym, meeting space)
UNCLASSIFIED UNCLASSIFIED

Mr. Marriott

A Time of Transition
Personal Move
Home Hotel Apartment Home

UNCLASSIFIED

Consolidate From Two Bldgs to One

AMC HQ Belvoir

31 Temp Facilities at RSA
Housing Market Geo Bachelor New Community
21 11

School Year
UNCLASSIFIED UNCLASSIFIED

Facer – People – Our Greatest Resource
 AMC is the largest employer of civilians in DoD  97% = Civilian - represents more than a quarter of all DA Civilians  Center-of-gravity for the generating force  Still Stressed – 22 Suicides since 2008 (4 this year)  Army focused on Soldiers – need complementary program and attention to civilians

UNCLASSIFIED

Takeaway: Working collectively to support our workforce

UNCLASSIFIED UNCLASSIFIED

Mr. Nerger Mr. Marriott

People – Our Greatest Resource

UNCLASSIFIED

UNCLASSIFIED

Taking Care of Our People

12

Facer – Translating Intent into Action
 Institutional adaptation is the challenge of our time  It‟s hard but not impossible  Tendency to focus on the Operational Army  4 Decades without adapting the Institutional Army  An organization in motion … record speed … not in decades but years

UNCLASSIFIED

 Operationalized our institutional command over the past 10-years
 Since 2008 … adapting to an enterprise approach … really a mind-set  Three directives  LMI  LIW  Optimization Takeaway: A busy decade ... Abut next few years even more challenging!
UNCLASSIFIED UNCLASSIFIED

GEN Dunwoody

Translating Intent into Action
Oct 2010 CECOM at APG

UNCLASSIFIED

Sep 2009 Secretary McHugh Appointed

Oct 2009 ACC Fully Operational Capable (FOC)

Mar 2011 Optimization Nov 2010 Directive TF APG Directive

Jun 2011 AMC at RSA

2009
Sep 2009 USASAC at RSA Oct 2009 R2TF FOC

2010
Sep 2010 Operation New Dawn Jan 2010 Haiti Relief Support Oct 2009 Special Installation Pilot Oct 2010 CONUS DOLs OPCON to AMC

2011
Apr 2011 Oct 2011 LMI/LIW Fleet Management Full Scale Pilot Expanded FOC

Mar 2011 LMI/LIW Directives

Jun 2011 ACC at RSA

Enterprise Centric
UNCLASSIFIED

Institutional Change at an Unprecedented Pace

May 2011 Services Acquisition Directive
13

Facer – Fiscal Realities
 You‟ve seen this chart … but we can‟t ignore it  Learn from History  Can‟t assume everyone knows it  Funding at peak of every conflict  Reductions every time – no exceptions  2d & 3d order effects  TF Smith  Hollow Army  Expect a soft landing – never happens – always a clift

UNCLASSIFIED

 Sec Lynn – 0 for 4 … not 0 for 5
Takeaway: Setting the stage for success
GEN Dunwoody
UNCLASSIFIED UNCLASSIFIED

Fiscal Realities
Korean War Vietnam War Height of the Cold War Future Unknown 9/11

UNCLASSIFIED

End of WWII

Hollow Army Task Force Smith

Budget Low Points

“We have gone 0 for 4 in managing the draw-downs to date. We cannot afford to go 0 for 5.”
UNCLASSIFIED UNCLASSIFIED UNCLASSIFIED

~ William Lynn, DepSecDef, May 2011

14 27

Facer – Maximizing Limited Resources
 Can‟t „salami-slice‟ our way out of budget …  … „Salami-Slicing‟ is the easy way out …  5%, 10%, 15% - leads to the same results … share the pain equally and avoid strategic choices  Need to make some Strategic Choices  Assess Strategic Risk  then Develop Strategic Strategy  Bottomline – must turn „salami-slice‟ guidance into capabilities and risk to ensure we make informed decisions Takeaway: Not about what‟s best for one individual … about what‟s good enough for everyone
GEN Dunwoody
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Maximizing Limited Resources

UNCLASSIFIED

UNCLASSIFIED

A Bold New Strategy . . .

15

Facer – Fundamentally Different Way
 {Gen Dunwoody – Introduce Ms Gerton and Doing Things Differently}
 Need to assess where we divest and when we invest  Strategic Choices will shape our forces  Our Focus:  Prioritize the capabilities we need  Eliminate redundancies  Identify where we are willing to accept risk  Make informed decisions  Adapt to Win - On and off the battlefield  Adapting our institution to move beyond  Legacy organizations  Outdated technologies  Antiquated processes Takeaway: Our challenge is finding a fundamentally different way of doing business Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Fundamentally Different Way of Doing Business

UNCLASSIFIED

UNCLASSIFIED

Becoming More Efficient and Effective

16

Facer – Why is This so Hard?
 The Institutional Army …  Unfortunately many have become entrenched – which creates silos that hinder:  Coordination  Collaboration  Communication Takeaway: More agile/more flexible/more responsive

UNCLASSIFIED

UNCLASSIFIED UNCLASSIFIED

Ms. Gerton

Why is This so Hard?

UNCLASSIFIED

“Institutional change is about doing things better, doing them smarter and taking full advantage of the progress, technology, knowledge and experience that we have available to us.”
UNCLASSIFIED UNCLASSIFIED

~ U.S. Army Posture Statement, 2011

17

Facer – Unity of Effort
(Slide Builds While Speaking)
 All about breaking down the walls between silos  Adaptation occurs right in the center – where the best ideas and talent from each silo is optimized  We can exchange information that leads to informed decisions  Number of examples … DOL transfer, FMX, Special Installations …  It used to be that information was power … today, shared information is power Takeaway: Shared information breaks down the barriers

UNCLASSIFIED

UNCLASSIFIED UNCLASSIFIED

Ms. Gerton

Unity of Effort
Materiel

UNCLASSIFIED

Cooperate People Coordinate Collaborate Communicate Services

Readiness
UNCLASSIFIED

Breaking Down the Silos

18

Facer – Why Adapt?
 Shared this at one of my first AEBs  Primary focus during conflict:
 Buying new equipment to support the Operational Army  Good reasons for doing that…

UNCLASSIFIED

 We don‟t like to get rid of anything (“just might need it”)  Very expensive – no longer affordable

{Gen Dunwoody – Introduce Mr. Dwyer and Why Adapt}
Takeaway: If we don‟t adapt, we won‟t find a different way of doing business
UNCLASSIFIED UNCLASSIFIED

GEN Dunwoody

Why Adapt?

UNCLASSIFIED

WWI

WWII

Korea

Vietnam
UNCLASSIFIED

Desert Shield/Storm

2011

An Unaffordable Approach

19

Facer – Multiple Piles
(Slide builds while speaking)
 Transformed Army
 fewer headquarters  more combat brigades  Modularity/ARFORGEN … right intention … no bad actors  Built separate „piles‟ of equipment in order:  to get the right stuff

UNCLASSIFIED

 to the right place
 at the right time Takeaway: With a smaller budget – no longer an affordable strategy
Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

Multiple Piles

UNCLASSIFIED

Capability Sets Theater Sustainment Stocks Excess Defense Articles

Theater Provided Equipment

Depot Stocks Army Prepositioned Stocks Unit Equipment

Training Sets Pre-Deployment Training Equipment
UNCLASSIFIED UNCLASSIFIED

Left Behind Equipment

Non-Standard Equipment
39 20

Facer – Multiple Managers

UNCLASSIFIED

(Slide builds while speaking)
 Each pile has own manager  Difficult to synchronize available equipment

 If you‟re the customer, who you go to depends on what you need and
when you need it

Takeaway: Can‟t afford to continue doing business this way
Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

Multiple Managers

UNCLASSIFIED

Army Commands

Medical Command

Army Service Component Commands

Program Executive Officers

HQDA G-4 (Logistics)

Army Materiel Command

HQDA G-8 (Finance)

Program Managers

Reserve Components

Lifecycle Management Commands

Direct Reporting Units Rapid Equipping Force
41 21

UNCLASSIFIED UNCLASSIFIED

Facer – Multiple Sources of Repair
(Slide builds while speaking)
 Multiple organizations established own repair capability  Own people

UNCLASSIFIED

 Own resources
 Inventory o Repair parts

o Tools
o Equipment  Optimizing repair capabilities is complex

Takeaway: Can no longer afford redundancy
Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

Multiple Sources of Repair

UNCLASSIFIED

Commercial Industry Special Repair Teams

Depots/Arsenals

Installations Unit Maintenance Program Managers Training Maintenance
UNCLASSIFIED UNCLASSIFIED

43 22

Facer – Multiple Management Info Systems
(Slide builds while speaking)
 Led to numerous independent information systems  Iron Mountains of equipment after Desert Storm    Thousands of containers in theater No visibility on what was in them Or where they were o Shipped containers into the theater o Shipped them back without opening them  Committed to Intransit Visibility and Total Asset Visibility Takeaway: We are facing the same challenge today
Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Multiple Management Info Systems

UNCLASSIFIED

CIF-ISM AWRDS

LMP MENS-E

SAMS-IE

SAMS-E

PBUSE

TEWLS WMMS
UNCLASSIFIED UNCLASSIFIED

TAMMIS

SARSS

45 23

Facer – SECARMY Guidance
 You directed us to fix just a few short months ago  Thanks – we would not be where we are without your guidance, direction and top-cover  Took us a year before your guidance to get to this point  Now we need to push this mission (ball) into the end-zone  Still a few antibodies out there … we continue to educate and inform  Highway example (was on highway, now in express lane)  All about culture change

UNCLASSIFIED

Takeaway: Providing visibility and speed we‟ve never had before
UNCLASSIFIED UNCLASSIFIED

GEN Dunwoody

46

Secretary of the Army Guidance
Lead Materiel Integrator (LMI) Directive Logistics Information Warehouse (LIW)

UNCLASSIFIED

22 March 2011 “I am designating Commander, U.S. Army Materiel Command (USAMC) as the Army’s LMI with the mission to synchronize the distribution and redistribution of Army materiel in accordance with Department of Defense and Army directives and priorities.” John M. McHugh
UNCLASSIFIED UNCLASSIFIED

22 March 2011
“I am directing the Commander of U.S. Army Materiel Command (USAMC) to undertake the task of creating a repository for Army logistics data that will provide a single, common location for all Army materiel stakeholders to access, acquire and deliver data and information for managing Army materiel.” John M. McHugh
47 24

Facer – Integrating and Optimizing
(Slide builds while speaking)
 “Brute Force” was way of the past … now must take fundamentally different approach … that will lead us to …  … one authority …  … one source of repair …  … one information system …

UNCLASSIFIED

 … all working together to achieve complete transparency and visibility of
every piece of equipment across the Army  Already made progress ... can now  see ourselves better ... in real time versus just a projection  provide pinpoint disposition for what‟s coming out of our depots and arsenal  And better focus our resources on what needs to be repaired Takeaway: Much accomplished … more to do {Example = Tanks and/or Howitzers} Mr. Dwyer [Transition to BG Brian Layer for Demo] BG Layer UNCLASSIFIED
UNCLASSIFIED

Integrating and Optimizing
Logistics Information Warehouse
Multiple Piles

UNCLASSIFIED

Lead Materiel Integrator

Multiple Managers

US Army

Multiple Sources of Repair

Materiel Command

Multiple Info Systems

UNCLASSIFIED UNCLASSIFIED

49 25

Facer – Decision Support Tool
 Strategic choices … how we manage materiel to meet Army readiness

UNCLASSIFIED

 Systems approach to manage materiel
 Leveraging AST … predictive tool that allows us to optimize solutions

BG Layer
UNCLASSIFIED UNCLASSIFIED

Decision Support Tool

UNCLASSIFIED

Lead Materiel Integrator Decision Support Tool

UNCLASSIFIED

26

Facer – Pilot Key Takeaways

UNCLASSIFIED

 Multiple touch points  In real time …  Minutes/seconds vs months/years

BG Layer
UNCLASSIFIED UNCLASSIFIED

Pilot Key Takeaways
 Exceeded expectations
 LMI demonstrated ability to produce a coordinated Army-wide materiel sourcing solution per Army priorities and law  Automated Army-wide materiel solutions in minutes/hours  Rapid course of action analysis allowed multiple excursions  LMI collaboration process worked extremely well to resolve stakeholders issues

UNCLASSIFIED

UNCLASSIFIED UNCLASSIFIED

Demonstrated Successful Progression

27

Facer – Efficiencies Directive
 {Gen Dunwoody – Introduce Ms. Gerton and TF DFR Status/Update}  Your directive to us in March  Met with Ms. Shyu, 17 June  Updated you a few weeks ago  Follow-up to your questions

UNCLASSIFIED

Takeaway: Work ongoing

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

Efficiencies Directive
Mission: Conduct a review to create a more agile and cost effective research, development, and acquisition system by analyzing work flow and optimizing organizations, processes, and procedures to support the work.
Key Tasks • 150 day review • Save $3B annually by the end of 2015 • Deliberative approach to process and cultural transformation • Optimize PEO and AMC responsibilities
UNCLASSIFIED

UNCLASSIFIED

More efficient, effective, and agile and free-up resources to build the Army of the future.

$3B Savings Will Require a Team Approach

28

Facer – Strategic Issues (Technical)
 You told us what you wanted us to do …
• These strategic issues get at the “Why” • The underlying issues that if addressed will get at the “So What”

UNCLASSIFIED

Takeaway: Hard Issues that have impacted how we operate for years

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

Strategic Issues (Technical)
1. Lack of Enterprise traceability of funds (flow, source, what spent on) results in inefficiency, lack of visibility, limited ability to: perform management controls, redirect $ to higher priorities, and forecast.

UNCLASSIFIED

2. Process inefficiencies, to include multiple layers of management result in reduced effectiveness and efficiency; leads to increased: throughput time, cost, and distance from customer.
3. Army research strategy that lacks Army-unique focus results in ineffective use of available research $ and insufficient transition to development programs. 4. Capacity of depots, arsenals and storage plants difficult to synchronize with Army OPTEMPO resulting in over/under capacity and lagging response.

UNCLASSIFIED

What We Found . . .

29

Facer – Strategic Issues (Environmental)
 Strategic Issues con‟t …

UNCLASSIFIED

Takeaway: These “environmental” issues are the root cause of the majority of the current issues we currently face and will be the most difficult to address / resolve

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

Strategic Issues (Environmental)

UNCLASSIFIED

5. Lack of consensus on organizational roles, missions, and functions combined with misalignment of authority, responsibility, and accountability result in multiple faces to Soldier, unnecessary overlap, tension among organizations, and competing objectives. 6. Lack of trust leads to redundancy within and between AMC & ASA(ALT) resulting in increased cost and unnecessary competition.
7. Lack of enterprise-level incentives and governance results in overlap, duplication of investments, lack of strategic focus, inefficient enterprise management and sub-optimal materiel solutions.

UNCLASSIFIED

What We Found . . .

30

Facer – Specified Task to Strategic Issues
 Cross-walked the issues from two previous charts across specific tasks

UNCLASSIFIED

Takeaway: Taking a holistic approach

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Specified Task to Strategic Issues Cross-Walk
Specified Task Strategic Issue
1 2 3 4 5 6 7
Conduct a review to create a more agile and cost-effective research development and acquisition system by analyzing work flow and optimizing organizations, processes, and procedures to support the work Optimize PEO and AMC responsibilities to improve the agility and reduce overlaps and redundancies in the Army‟s [RDA] activities… the study should recommend the skills required in the PEOs and those needed to be developed and maintained in AMC Create an integrated strategy for efficient and coordinated research and development through item management and sustainment Organize efforts to identify technologies that must be in-house while leveraging from commercial, academic, and other government laboratories Reduce life-cycle costs from cradle to grave Support the Army‟s goal to create an auditable financial system & time-to-task reporting for all sources of funds Develop a plan that pursues a significant reduction of personnel and annual savings of $3B by the end of FY 2015, with initial savings realized by the end of FY 2012 and FY 2013

1.
2.

X

X

X

X

X

X

X

X

X

X

X

3. 4.

X

X

X

X

X X X X X X X X X X

X X X

5.
6. 7.

X

X

X

X

X

X

X

UNCLASSIFIED

The Strategic Issues Mapped to the Specified Tasks

31

Facer – ASA(ALT)/AMC Funds Flow ($FY10)
 First time

UNCLASSIFIED

• We‟ve had this level of visibility
• Has taken 115 days to compile • Indication that our financial systems are not set up to enable effective management or support quick financial decisions

Takeaway: Never had funding visibility to this level before and we need to change our funding flow / processes

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

ASA(ALT)/AMC Funds Flow ($ FY10)
Materiel Solution Analysis
MS A

UNCLASSIFIED

Technology Development
II

MS B

Engineering & Manufacturing Development
MM

MS C

Production & Deployment
SS TT

Operations & Support
UU

Disposal

PEGs

EE

OO

$415M

$549M $145M $57M $668K $1.2B $32.4B

$89M $355M $57M

$12M $124M $31M $24M $35M $397K $6.5B

$3.3B $1.7B $442M $204M $31M $116M $362M

$7.3B $1.6B $1.9B $89M

AMC (RDT&E) (with ASA(ALT) Direction) R&D SBIR MANTECH
RDTE $2.52B (Base)

RDECOM ARL AMSAA RDECs
•R&D •Matrix Labor •Services (lab & mat) $291.2M (Base) $237.7M (OCO) $118.8M $2.5B $1.1B

AMC Funding Source PEO/PM Funding Source Funding Receiver Program Eval Group (PEG)

UNCLASSIFIED

$2.52B
$295.7M $19.2M $10.3B

RDTE

$18.0B (Base) $6.6B (Base) Procurement $16.3B (OCO) $111.5M (OCO)

OMA

$1.9B (Base) $4.3B (OCO)

AMC OMA
$2.5B (Base) $8.9B (OCO) Repair/Reset

AMC Proc
$415M (Base)

ASA(ALT) PM Chem Demil

HQAMC LCMCs Other MSCs
•Acq Suppt •Field Suppt •Log Assist •War Reserves •Matrix Labor •Supply (AWCF) •Distro/Trans •Depots/Arsenals/Plants (AWCF) $2.1B (Base) $8.6B (OCO)

Legend
RDT&E Procurement OMA Other

$1.2B

ASA(ALT) PEOs/PMs

RECAP

ASA(ALT) ASC (Apportionment)

LOGSA
•Data Whse •Acq Suppt •Sust Suppt •Analysis

ATEC
•DT/OT •Prod Testing •Stockpile Testing

PM Support Contracts
•SETA •Products •Services

PM Prime Contracts
•Development •Procurement •Support •Engineering Services

$56.4M (Base) $63.3M (OCO) $490K $850K

$11.4B

Other AMC Customers Other Army ($8.7B) Other DOD ($1.9B) Other US Gov ($110M) FMS ($421M) All Other ($264M)

Summary: ASA(ALT) Base = $27.7B AMC Base = $5.4B ASA(ALT) OCO = $20.7B AMC OCO = $8.9B AMC Other= $11.4B TOTAL= $74.1B
63 32

Tracking the Money

Facer – Process Focused Concepts
 Stratified across three levels … based on difficulty of implementation

UNCLASSIFIED

Takeaway: Stratified concepts across implementation levels

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

Process Focused Concepts
Inter-dependencies are not yet addressed
1 2 3 4 5 6 7 Virtual IMMC Software Management Support Reliability Improvement Next Gen S/W Field Support AWPS and LMP ATEC (RDECOM and ATEC) Excessive Inventory Savings

UNCLASSIFIED

High

8
9

-

ARL Direct Funding
Virtual Contracting Alt. Matrix Mgt Model (FFRDC) RDE AWCF CNA Study 2006 Merge EE and SS PEGs Make all reimbursable funding AWCF Provide SS PEG funding to PEO's DA G-4 Conventional Ammo WCF Secondary Item PBL Ammo Supply Point

11 12 13 14 15 16 17 18 -

Medium

10 -

$ Benefit of Implementation

1

2

4

5

6

3

7

High

Med

Low

Low

8

9 10

11-19 11-19 11-19 11-19 11-18

Confidence Level
UNCLASSIFIED UNCLASSIFIED

Low

Stratifying the Concepts

Medium Risk of Implementation

High
33 65

Facer – Non-Process Focused Concepts
 Stratified across three levels … based on difficulty of implementation

UNCLASSIFIED

Takeaway: Stratified concepts across implementation levels

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

Non-Process Focused Concepts
Inter-dependencies are not yet addressed

UNCLASSIFIED

High

1 2 3 4 5 6 7 8 9

-

Virtual IMMC Dr. Braverman Right-size Organic IB OCIE (CIF) Reduction CBM+ Converge RDA Next Gen S/W Field Support Lead Materiel Integrator (LMI) LAISO Lab Reorg Consolidate TMDE Spt Logistics Innovation Agency DA Staff Redundancy (Reduction) PEO Aviation Redefining Generating Force Consolidation of Contracting Decker Wagner

$ Benefit of Implementation

1

2

3-4 3-7
5

6

Medium

10 - ATEC (RDECOM and ATEC) 11 12 13 14 15 16 17 18 -

7

8 9

10

11

12

13 14

High

Med

Low

Low

15

16

17

18

Confidence Level
UNCLASSIFIED UNCLASSIFIED

Low

Stratifying the Concepts

Medium Risk of Implementation

High
34 67 67

Facer – Gap Analysis (Funding)
 One example … and probably the most significant

UNCLASSIFIED

Takeaway: Lack of adequate funding visibility is a major impediment

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Gap Analysis (Funding)
Strategic Issue 1. Lack of Enterprise traceability of funds (flow, source, what spent on); lack of adaptation to ERP systems (LMP, GFEBS) results in inefficiency, lack of visibility, limited ability to perform management controls, redirect funds to higher priorities, and forecast and does not taking advantage of its full capability via unauthorized work-arounds, inability to divest legacy systems and realize ROI, and not harvesting staffing savings.

Sub Issue

Process Concept
Alt. Matrix Mgt Model (FFRDC) RDE AWCF All Reimb. to be under AWCF Provide SS PEG $s to PEOs Establish LC Mgt PEG ARL Direct Funding

How Process Change (e.g., req‟d change in Addresses Sub-issue org structure)
Provides caps on what is in Limits matrix mgt O/H overhead

Org Impact

Annual Savings
($ Millions )
TBD

Extent that Concept Solves Issue?
limited mod major

Puts matrix mgt under small office to min O/H Provides traceability for reimb. Provides traceability for reimb. Provides stronger traceability of funds Provides coherent approach during programming process Would focus ARL research efforts Provides better financial accuracy, trace. of workld & reduced redund. trans. Provides traceability for reimb. If fully implemented and enforced, concept designed to directly address issue

Lack of financial accountability across enterprise

Supports financial None (note: excludes 6.1/6.2) None accountability system Supports financial accountability system, but None TBD goes beyond materiel issues Would program & execute OMA by wpn sys

None

TBD

Dollars flow from multiple PEGs and organizations

Merging of EE, SS, and All program LC funding programmed from single PEG part of TT PEG ARL would not be allowed to accept reimb work Electronic contracting provides direct feeds to std financial systems LMP system includes time and attendance reporting linked to workload Fully commits / enforces corporate ERP solution and max divestiture of legacy systems Need to assess impact on SLAD None

Minimal

TBD

Accounting system does not provide visibility into work funded and accomplished
Not taking advantage of full ERP capability via unauthorized workarounds causes inability to divest legacy sys & realize ROI via reduction of staff

Virtual Contracting
RDE AWCF

Minimal

None (note: excludes 6.1/6.2) TBD

S/W Mgt Support

None

$10-$100‟sM
(initial est.)

UNCLASSIFIED

Lack of Funding Traceability and Visibility

35

Facer – Time Line
 On track to deliver recommendations to you next month

UNCLASSIFIED

Takeaway: On track

Ms. Gerton
UNCLASSIFIED UNCLASSIFIED

Time Line

UNCLASSIFIED

28 Jul 11: Recommendations to SA

AAE / DUSA Update (6 (Jul)

SA Update (23 Jun )
AAE / DUSA Update (17 Jun)

AAE / DUSA Update (26 May) SA Update (19 May) AAE / DUSA Update (11 May) DUSA / MECC IPR #1 (27 Apr) VCSA Update (22 Apr)

35 Days Remaining

Battle Rhythm Events

AAE IPR #2 (12 Apr) AAE IPR #1 (1 Apr) CG Update #2 (31 Mar) CG Update #1 (25 Mar)

Brief to DUSA and ASA(ALT) Brief to SA

UNCLASSIFIED

1 MAR 11: SA Memo to Optimize RD&A

On Track!

36

Facer – Army FMS Across the Globe
 {Gen Dunwoody – Introduce few quick topics:}     BG Tucker = FMS Mr. Parson = ACC, Gansler status & Contracting Mr. Dwyer = Industrial Base BG Wyche = Chem Demil Status

UNCLASSIFIED

 Changing the channel … quickly talk about changing the way we do business  Process used to be slow & cumbersome … more streamlined now  Tremendous growth in FMS sales  300% cumulative increase Takeaway: Supporting the COCOM Cdrs
BG Tucker
UNCLASSIFIED UNCLASSIFIED

Army FMS Across the Globe
FY03-FY06 $18B ~3400 Cases

UNCLASSIFIED

FMS Portfolio by Region
COUNTRIES: 50 CASES: 1394 VALUE: $13.4B

FY07-FY10 $62.5B ~4600 Cases COUNTRIES: 20 CASES: 842 VALUE: $17.3B

Security Assistance Training Countries: 15 Personnel: 125

COUNTRIES: 22 CASES: 1720 VALUE: $87.7B COUNTRIES: 30 CASES: 444 VALUE: $2.7B

TOTAL ACTIVE FMS COUNTRIES: 154 CASES: 4631 VALUE: $121.7B

COUNTRIES: 32 CASES: 231 VALUE: $590M

UNCLASSIFIED

Building Partner Capacity and Goodwill

37

Facer – Army Contracting Command (ACC)
 Aggressive implementation of Gansler Report  Increase stature of military contracting personnel  Restructure organization & restore responsibility  Provide training & tools  Obtain legislative & policy support to enable contracting effectiveness Takeaway: Thank you for your support!

UNCLASSIFIED

Mr. Parsons
UNCLASSIFIED UNCLASSIFIED

Army Contracting Command

UNCLASSIFIED

General Order #6 Gansler Report, Oct 07 Establishment of Army Contracting Agency, Oct 02

Realignment of ACA to AMC, Jan 08

General Order #20 Establishment of ACC, ECC and MICC, Jul 08

UNCLASSIFIED

Expeditionary – Responsive - Innovative

38

UNCLASSIFIED

Facer - Scope and Impact of ACC Contracting
 An idea of the breadth and scope of the contracting business

Mr. Parsons
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Scope and Impact of Army Contracting Command
Scope:  FY 10 Federal Contact Spend - $536B  FY 10 DOD Contact Spend - $366B or 68% of Federal  FY 10 Army Contract Spend - $140B or 38% of DOD, 26% of Federal  FY 10 • • • ACC Contract Spend - 93B which is: 17% of Federal Spend 25% of DOD Spend 65% of Army Spend

INCREASING COMPLEXITY

Impact: Supports systems acquisition, sustainment, training, mission and installation missions, and worldwide expeditionary operations (108 in FY10)

UNCLASSIFIED

Contracting Must Be An Army Priority !

39

Facer - Contracting Workload vs Personnel
 Big business … high visibility … must keep up momentum  All about capability brought to the fight

UNCLASSIFIED

Takeaway: More work to be done

Mr. Parsons
UNCLASSIFIED UNCLASSIFIED

Contracting Workload vs Personnel
$166B

UNCLASSIFIED

$132B

$35B

Gulf War I

Bosnia/Kosovo; 1995 - present

9/11 OIF, Attacks 2003OEF, 2001- present present

Gansler Report

UNCLASSIFIED

All About Becoming More Efficient and Effective

40

UNCLASSIFIED

Facer - Key Takeaways
 No Facer comments

Mr. Parsons
UNCLASSIFIED UNCLASSIFIED

Key Takeaways
 Contracting must become an Army core competency  Contract dollars as percent of DoD outlays declining slightly, but will remain higher than pre-Gansler levels  As budgets decline, we need to become better and smarter buyers  Need the right number of people (mil and civ), with the right skill sets, at the right place  Now is not the time to be penny wise and pound foolish

UNCLASSIFIED

UNCLASSIFIED

We Can’t Risk Losing Momentum

41

Facer – Modernizing the Industrial Base
 Prior to 2007, investment in organic industrial facilities flat  Couldn‟t compete against Army priorities (barracks, etc)  Reset gave us that visibility  Now: Visibility of requirements and priorities – something we didn‟t have before  Portfolio reviews allow us to take holistic views – divest excess and modernize the rest.  Portfolio focus was on OIB. AMC consistently showed entire facility requirements … Takeaway: Progress made … more to do
Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED

Modernizing the Industrial Base
Pre-2007 . . .
 Aging infrastructure  Risk accepted; focus elsewhere (BRAC, GTA, etc.)  Modernizing through prudent reinvestment

UNCLASSIFIED

Progress . . . 2007-2011

 PAA: $1.01B at GOCO Ammo Plants
 MCA: $540M for AMC projects  AWCF: $850M in Capital Investment
New ANAD Power Train Facility

 Visibility on GOCO plants
 New missions needing facilities

2011

Way Ahead . . .

Old Ammo Plant Facility GOCO = Government Owned, Contractor Operated AWCF = Army Working Capital Fund
UNCLASSIFIED

 Portfolio Review  Address Quality of Work Environment  Special Installation Transfer  Investment Needed:  PAA: $150M annual + $50M for QWE for 6 years  MCA: $350M per year for 15 years
42

Accomplished a Lot . . . Much More to Do

Facer – Organic Industrial Based (OIB) Req
   Total requirements – over $8B (OIB and Materiel Enterprise) Antiquated facilities inefficient and reduce ability to address ARFORGEN VCSA tasking to fix in 5-7 years vs 24-30

UNCLASSIFIED

Takeaway: Requirements identified and prioritized

Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

Organic Industrial Based (OIB) Requirements
OMA $517M 6% AWCF $150.6 M 2% RDTE/ECIP $79.3 M 1%

UNCLASSIFIED

PAA $1.5B 19%

MCA $5.9B 72%

CIP and OMA/OPA Tails $1.9B

1207 Projects - $8.1B

Demil and Disposal Costs 1174 Structures - $105M

“Provide mature plan with associated timeline that solves the problem in UNCLASSIFIED 5-7 years vs 24-30 years” (VCSA Guidance) 43

Facer – Organic Industrial Base (OIB)
 Have Prioritized OIB requirements  Available FY13-17 funding = $250M  Critical unfunded requirements = $913M

UNCLASSIFIED

Takeaway: Methodical approach & addressing the problems over time

Mr. Dwyer
UNCLASSIFIED UNCLASSIFIED

Our Organic Industrial Base (OIB)
 Industrial base has assumed increased risk over the years  MCA (and other) funding continues to decline  Establishment of an Army Initiative for the OIB and Materiel Enterprise working to correct imbalance by 2020

UNCLASSIFIED

UNCLASSIFIED

First Time With This Level of Visibility

44

Facer – Bottomline: It’s All Possible With Our People
 Can‟t do it without our team of professionals  Sampling of some of our awards since FY10

UNCLASSIFIED

Takeaway: A great team … doing great work

GEN Dunwoody
UNCLASSIFIED UNCLASSIFIED

Bottomline: It’s All Possible With Our People
SECARMY/CSA/DA Safety Awards Chief of Staff Combined Logistics Excellence Awards

UNCLASSIFIED

Standardization Program Winners

Defense

4 Lean Six Sigma Awards

Recognized Supporter 7 Army Acquisition of Historically Black Corps Awards Colleges and Universities (HBCUs) ACC recipient of the 2011 CIO 100 SHINGO Awards 6 Value Engineering Awards

Army Greatest Invention Awards Decoration for Exceptional Civilian Service Awards
UNCLASSIFIED UNCLASSIFIED

LSS Awards

Our Dedicated Professionals People Are Our Credentials

Presidential Rank Awards
41 45 89

Facer – Closing Comments
 No facer comments

UNCLASSIFIED

UNCLASSIFIED UNCLASSIFIED

UNCLASSIFIED UNCLASSIFIED

Army Materiel Command

Honorable John M. McHugh Secretary of the Army
Sustaining the Strength of the Nation!

UNCLASSIFIED UNCLASSIFIED

46

UNCLASSIFIED

BACKUP

UNCLASSIFIED

Fraud, Waste, & Abuse In Army Contracting
Army Contracting Officer MAJ John Cockerham Convicted of $9.6M in Contract Fraud (SWA)

UNCLASSIFIED

SWA: 466 Contracting Investigations Since 2005

SWA Suspects: 72% (240 of 329) are US ARMY

GAO Audit results continue to list the same conclusions:

UNCLASSIFIED

Area of Continued Emphasis

47

Accelerating Chem Demil
Actual Destruction Data Date: As of 13 Jun 11 As of 13 Jun 11 CMA Portion of 100% Milestone Progress 27,473 FY16

UNCLASSIFIED

Sites (Owner)

Agent and Storage Configuration
HD, HT, H, GA,L,GB,VX Projos, TCs, Spray Tanks Rockets, Bombs, Mines, Mortars
GB, VX, HD, HT Rockets, Mines, Projos, Mortars, TCs

Total Original Tons

Cumulative Processed

Operations Complete *

Deseret, UT (CMA)

Actual
13,617 13,599 Feb 12
25,015

FY15

Anniston, AL (CMA)

FY14

2,254

2,249

Aug 11

22,557

Umatilla, OR (CMA)

GB, VX, HD, Rockets, Bombs, Mines, Projos, Spray Tanks, TCs
GB, VX, HD, HT Rockets, Mines, TCs

FY13

3,720

2,947

Nov 11

Pine Bluff, AR (CMA) Blue Grass, KY (PM ACWA) Pueblo, CO (PM ACWA) Legends: = Operational

CLOSING
3,851 N/A N/A

3,851

Nov 10

Scheduled
17,642

20,100

FY12

FY11 FY10 FY09

VX, GB, H Rockets, Projos

N/A

N/A

HT, HD Projos, Mortars = Project design/construction

N/A
= Campaign Completed *Earliest Credible Planning Date

N/A

2007

15,184
14,739 FY07 Goal Actual

Treaty progress: 87.4% of declared agent (Stockpile and Non-Stockpile) destroyed.

Note: CMA portion: 27,473 ACWA portion: 3,137

UNCLASSIFIED

Well Ahead of Schedule

Bar Graph Green Bar = Actual Demil Yellow Bar = APB FY Goal Gray Bar = Projected APB

48

UNCLASSIFIED

So, Where Do We Go From Here?

“If you don’t like change, you will like irrelevance even less.”
UNCLASSIFIED

~ General Eric Shinseki, CSA, December 2001
49

AMC Across Our United States

UNCLASSIFIED

People
0 1 – 0049 50 – 499 500 – 4999 5000 +
Primary AMC Locations

UNCLASSIFIED

Every AMC Job Creates ~1.27 Local Community Jobs

50

Challenge Into Opportunity

UNCLASSIFIED

Anniston Army Depot
Including 672 M1s, 285 M109s, 1,019 M113s, and 554 M88s

Including 3,868 HMMWVs, 1751 Bradleys, 1525 Trucks and 491 Trailers

Red River Army Depot

Letterkenny Army Depot
Including 1,684 HMMWVs

Increase from 3135 vehicles in 2008 to over 10,000 Combat Vehicles and related equipment today including 1941 Tanks, 7731 APCs and 133 Howitzers
UNCLASSIFIED

Sierra Army Depot

Opportunities for Added Value to Army Sustainment Operations

51

Sign up to vote on this title
UsefulNot useful