LOGIS-TECH

CS/CSS TASK FORCEMeeting

Corrosion Is An Enemy!CHP is a Weapon!

The Reality The Reality

CORROSION COST DOD $20 + BILLION ANNUALLY!

COST OF CORROSION TO ARMY AVIATION $1.2 Billion ANNUALLY!

COST OF CORROSION TO ARMY VEHICLES $2.4 BILLION ANNUALLY

20% OF ALL ELECTRONIC COMPONENT FAILURES RESULT FROM MOISTURE INDUCED CORROSION!

COST OF CORROSION TO ARMY MISSILES $1.6 BILLION ANNUALLY!

“At a time when the nation faces increased financial constraints, it is important for both DOD and Congress to be in a position to weigh the trade-offs between competing requirements and risk associated with degraded equipment readiness, so that they can make sound investment decisions on the use of the funding”

GAO Report GAO-07-814

Use Of CHP Can Be A Significant Part Of The Solution

The CHP Program Reduces Maintenance

Backlog Caused by Moisture Induced

Corrosion, Unfinanced Technician Manning

Levels, and Increased Requirements from

Fielding ModernMaintenance-Intensive

Systems

ARNG Maintenance Mission

Traditional Guardsmen 5%

Military Tech 40-50%

CHP “IS” the 3rd Pillar of Maintenance

Varies with Mobilization &

Deployment

CHPCHP“A Readiness Stabilizer”“A Readiness Stabilizer”

CHP ApplicationsSheltered (LTP/MLTP) and Unsheltered (OP)

CHP ApplicationsSheltered (LTP/MLTP) and Unsheltered (OP)

Sheltered CHP uses a new or converted shelter as the protection envelope.

Unsheltered CHP (OP) uses the vehicle or aircraft to create the protection envelope.

Ft Riley, KS

Fort Pickett, VA

BOTH CHP APPLICATIONS ALLOW UNLIMITED ACCESS TO EQUIPMENT!

CHP Shelter ApplicationsProvide:

Protection for entire vehicle and installed equipment from corrosion damage.

Regulatory Compliant deferral of all MAINTENANCE ACTIONS while in CHP for up to 60 months.

Regulatory Compliant Reporting - Mission ready equipment in CHP remains reportable as mission ready.

Significant Cost avoidance in manpower and parts.

Maintenance Labor Hours COST PER POTENTIAL COST AVOIDANCEUnit and DS and GS MAINTENANCE PER ITEM PER YEAR IN CHP

LIN DESCRIPTION Total MANHOUR UNIT DS and GSX40831 Trk Cargo 5 Ton 154 35.52$ 5,470.08$ T07679 Trk Armored 101 35.52$ 3,587.52$

HMMWVPotential Annual Cost Avoidance

IN MANHOURSHMMWVs that will fit in a 10,000 Sq Ft CHP Shelters* 78 426,666.24$ 5-Ton Truck Cargos that will fit in a 10,000 Sq Ft CHP Shelter* 45 161,438.40$

STORAGE CHP SHELTER FACILITY

CHP system provides stabile low humidityair to entire turret area

•The M1A1 Tank Turret contains electronic components – Total Value – $596,837.00.

•Cost of a Controlled Humidity Protection (CHP – OP) System for 20 M1 Tanks – $100,000.00.

•Total value of electronic components protected by a single CHP system - $11,936,755.00. •Failure data shows that USMC II MEF’s 72 M1s experienced and average of 59 failures of these components per year at an annual value of $1,793,964.00.

•Studies confirm 20% of ALL electronic failures result from moisture induced corrosion and that CHP is confirmed as eliminating moisture induced corrosion.

•Reducing LRU failure costs by 20% provides an annual $358,792.00 of cost avoidance in parts alone per OP Line.

Reducing the Impact on the Supply and MaintenancePipe Line through Reduced Component Requirements

CHP OPERATIONAL SYSTEM

Initiated as SBIR Phase II Demonstration by ARNG LOG in 1994 at MN and MS to access CHP capability to:

** Reduce maintenance costs** Reduce corrosion damage** Conserve limited resources** Sustain or Increase readiness

ARNG expanded into full program in 1996 with implementation continuing today.

ANG initiated demonstration of CHP in 2005 based on ARNG realized success and need to reduce impacts of corrosion related damage on ANG systems.

** F-15/KC135/ AGE at Hickam AFB in 2005** ANG continued implementation in SC for F-16s/C-130

ARNG Aviation demonstration initiated in 2010 in VA and SC but full usage delayed due to deployments.

On continuous CHP contract since 1994 with contract in effect today.** W9133L-08-D-0017

NGB CHP ProgramNGB CHP Program

DOD and DHS Expand CHP Implementation to GainDOD and DHS Expand CHP Implementation to GainResource Control In Constrained EnvironmentResource Control In Constrained Environment

USMC – 102 Systems for tanks, artillery, vehicles at 19 Sites world wide provides improvements in total readiness while reducing total cost of corrosion.

USAF – Implemented 75 systems for F-22, C-130s, F-15s and Pave Hawks at 3 sites with 41 additional systems in approval process.

USCG – Implemented 101 systems at 28 sites with plans to outfit entire 211 ACfleet. Dispatch rates up 9% and LRU failures down 4.65% / 1000 flight hrs.

USA – Four systems at two sites for Strykers and PREPO Ship Prep.

Navy – 16 systems at 12 sites for V22 and EP3 aircraft and electronic equipment storage.

Government Confirms Ten-Year CHP9:1 ROI is Conservative

Government Confirms Ten-Year CHP9:1 ROI is Conservative

Leveraging Controlled Humidity ProtectionThrough Enterprise Integeration

Leveraging Controlled Humidity ProtectionThrough Enterprise Integeration

Bottom Line: Improves Materiel Readiness While Reducing The Logistics Footprint

REQUIRED

100% of personnel

100% of assets

THE CHP ADVANTAGE

< 100% of personnel Low equipment usage Fewer maintainers

ACTUAL

Adaptive systemsSVESSESS® equipment stagingESS® operational

Protects equipment when not In use Requires less maintenance Requires less repair parts

100% of assets

BACK UP SLIDES

Controlled Humidity Protection

Army National Guard Realized a $1.2B dollar cost avoidance benefit for a $75M investment. CHP cited as the most beneficial component of the Corrosion Prevention Program.  

Ohio NG reported a $32M manpower cost avoidance between FY96-FY08 at Ravenna Depot. In comparing two Avenger units, the unit utilizing controlled humidity protection had 83% fewer Single Stock Fund expenditures. USCG achieved 9% improvement in “dispatch rates” and a reduction of 4.34 failures per 1000 flight hours for 6 avionic components. Implementing CHP fleet-wide.

The USMC identifies CHP as a key component of a total Corrosion Prevention Program stating that it:

Reduces the need for corrective maintenance, Increases equipment usability and safety,Increases opportunity for training and operations, Reduces the overall total cost of equipment ownership to the Marine Corps, and Improves readiness and decreases maintenance costs.

PACAF increasing CHP utilization to meet corrosion-related readiness challenges.

What Could That Cost Avoidance Buy Annually?

2,000 additional man years for NGB Maintainers

900 M1A1 Fire Control Computers

1,153 Fire Control Transmitter Sub-Assemblies for F-16

Replacement of the Top10 LRU Failures in each of 143 ANG F-15s

36 Million Gallons of JP8

6 New UH-60 Helicopters

4 New F-15 Eagles

120 Turn-Key, 10,000 sq ft, CHP Shelter Systems

27 turn-key CHP flight line systems to protect 324 ANG Aircraft

1200 turn-key CHP OP systems to protect 24,000 NGB vehicles

ARNG CERTIFIES INITIAL 10 YEARS OF CONTROLLED HUMIDITY PROTECTION

IMPLEMENTATIONPROVIDED $1.2 BILLION in O&M COST AVOIDANCE

Environment Stabilization System-ESS®Environment Stabilization System-ESS®

1. Envelope(New or Existing Structures

or the Equipment Body)

2. Air Dehydration Units (Fixed, Mobile and Single)

3. Super Flight Line Electrical Distribution System

(SFLEDS)

% RH

0 25 50 75 100

Rate Of Corrosion

CHP Stops Corrosionand provides

Verifiable Performance

AV

G. R

H I

N U

.S.

GuardianTM

Data Acquisition and Control System

Remote Monitoring Via Internet

09 Apr 12 -15 May 12

4. Data Acquisition and Control Systems

Over 1350 dehumidification systems installed at

355 sites in 43 States and 15 overseas locations

Over 1350 dehumidification systems installed at

355 sites in 43 States and 15 overseas locations

Service Site

Service Office

Corporate HQ

Field Office

5,443,459 s.f. sheltered CHP and 5223 vehicles OP/SVESS®5,443,459 s.f. sheltered CHP and 5223 vehicles OP/SVESS®

Greece Bahrain Germany South Korea

Japan Taiwan Okinawa

Puerto Rico Diego Garcia Virgin Islands

Qatar Spain Guam

Iraq Afghanistan

5. Full Service Support Network Established Worldwide