Program Executive Office AmmunitionProgram Executive Office Ammunition

6 April 20056 April 2005

Matthew T. ZimmermanAssociate PEO Ammo, Industrial Base1-973-724-7626matthew.zimmerman1@us.army.mil

Matthew T. ZimmermanAssociate PEO Ammo, Industrial Base1-973-724-7626matthew.zimmerman1@us.army.mil

3Apr 2005

Body TextSecond Level• Third Level

–Fourth Level»Fifth Level

Picatinny TenantsPicatinny Tenants

PEO Ammunition & Program ManagersArmament Research Development and Engineering CenterPEO Ground Combat Systems Program ManagerPEO Soldier Program Manager for Soldier WeaponsPicatinny Contracting and Commerce CenterDefense Contract Management AgencyDefense Contract Audit AgencyCRADA Industry Partners(Cooperative Research andDevelopment Agreement)US Army ReservesNJ Army National GuardUS Marine Reserves

Workforce:4309

Strong

4Apr 2005

Body TextSecond Level• Third Level

–Fourth Level»Fifth Level

WorkforceWorkforce

Military Personnel: 82Officers - 52

PEOs 34ARDEC 15IMA 2DCMA 1

Enlisted - 30

Total Civilians: 3888Police and Guards: 158

Reserves: 181Total: 4309

Number of Quarters on Picatinny: 113

450 New Hires since FY99

6,493 Acres

804 Buildings

64 Laboratories

5Apr 2005

PEO AmmoPEO AmmoPEO 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 StockpileSatisfy the Customer, Achieve Excellence Grow World-Class People and Teams

6Apr 2005

PEO Ammo OrganizationPEO Ammo Organization

Maneuver Ammo System - Direct Fire

COL Mark Rider PM

PEO AmmunitionBG Paul Izzo PEOMr. James Sutton DPEO

Close Combat Systems

COL Jack Koster PM

Combat Ammo Systems - Indirect Fire

COL Nate Sledge PM

Medium & Small CaliberLarge CaliberExcaliburMortarsDemolitions /

Non-LethalNetworked Munitions/

Munitions / Countermine

DEMIL

Joint Services

COL Jeff Gwilliam PM

PEO StaffPEO Staff

Industrial BaseIndustrial Base

Washington DC StaffWashington DC Staff

7Apr 2005

Where PEO AmmoWhere PEO AmmoPrograms Came FromPrograms Came From

DSA-TACOM• PM Mines• PM Mortars• PM Small Arms

DSA-TACOM• PM Mines• PM Mortars• PM Small Arms

PEO GCS• PM ARMS• PM TMAS• PM Crusader (MACS)

PEO GCS• PM ARMS• PM TMAS• PM Crusader (MACS)

AMC/DCS Ammo• Training Ammo• Industrial Base• Demil• ARDEC (Fuze Programs)

AMC/DCS Ammo• Training Ammo• Industrial Base• Demil• ARDEC (Fuze Programs)

# Programs23

# Programs74

# Programs94

Total RDA Programs 191 programs Total FY05 Dollars

$1.96 B

PEO AmmoPEO Ammo• PM MAS• PM CAS• PM CCS

• PM Joint Services

Established: January 1, 2002

Total People Managed725 at PicatinnyARDEC Life-Cycle Engineering Support:• Competencies• Modeling and Simulation• Technology Maturation• Sustainment Support

8Apr 2005

PEO Ammo Main ObjectivePEO Ammo Main ObjectivePEO Ammo Main Objective

Unify & Integrate Ammunition Management Under One Single Chain of Command…by Consolidating Responsibility and Resource Management in the PEODevelop a Unified Munitions Acquisition Strategy

Integrate Requirements…Training, War Reserve, & Modernization Include SMCA MissionBy Munition Family

Identify and Optimize Key Business ProcessesDevelop and Implement an Industrial Base Strategy (Organic and Commercial)

Authority and Accountability… For Meeting Full Military Requirement For all Ammo Families

Common Themes FromPNNL Study, GAO Study,

and Emerging Rand Study

Common Themes FromPNNL Study, GAO Study,

and Emerging Rand Study

9Apr 2005

Key Initiatives/ThrustsKey Initiatives/Thrusts

Systems ContractingStrategic PlansIndustrial Base Modernization

Center for Manufacturing ScienceEngineering Initiatives

Incorporate new technologies into old designsStreamlined ESIP process

Ammo PortalIntegrated business environmentIntegrated engineering environment

Modeling & SimulationTraining, Lethality & Force effectiveness

10Apr 2005

FY 05 PEO Ammo PAA, FY 05 PEO Ammo PAA, OPA, WTCV TotalOPA, WTCV Total

PM Combat Ammunition Systems• Artillery Ammunition• Artillery Fuze• Mortar

PM Close Combat Systems• Mines, Countermines & Demolition

PM Maneuver Ammunition Systems• Large Caliber• Medium Caliber• Small Caliber

PM Joint Services• Industrial Base/Facilities• Demil• ARMS

Source: FY05 PB

PEO Ammo

(25%)

(13%)(47%)

Total: $1,610.6M(1%)(14%)

$756.7

$394.8

$223.2 $21.4

$214.4

11Apr 2005

$187.1

$57.1 $28.3

$76.9

FY 05 PEOFY 05 PEO--Ammo RDTEAmmo RDTE

PM Combat Ammunition Systems

PM Joint Services

PM Maneuver Ammunition Systems

PM Close Combat Systems

(22%)

(8%)(16%)

(54%)

Total: $349.4 M

Source: FY05 PB

12Apr 2005

Close Combat Systems MissionClose Combat Systems MissionEquip Soldiers with Close Combat Systems for:

Assured Mobility Force Protection Close BattleIntelligent Munitions System APLA Hard Target DefeatAnti-Personnel Landmine Countermine Demolitions

Alternative (APLA) Non-Lethal Hand GrenadesCountermine Pyro/Flares Non-LethalDemolitions EOD Equipment Pyro/Flares

15 Prime Contractors• 30 Contracts

GOCOsJMC

Non-Lethal Capability Set

Bunker Defeat Munition

Selectable LightweightAttack MunitionM67 Hand Grenade

SBCT Volcano

Combat Developers• USAES• USAMPS• USAFAS• USASOC• USAIS• USMC

R&D Establishments• TARDEC• ARDEC• ARL• CERDEC

AN/PSS-14Mine Detecting Set (HSTAMIDS)

13Apr 2005

Close Battle Feedback“Using the NL claymores at a rate of 1 every two days at the POW camps to prevent escapes and riots.” -800th MP Bde, 13 Feb 04

“An Awesome Weapon!My Only Regret Is That We Could Not Carry

Enough Of Them!” – NCO 10th Mountain Division, Oct 03

“Bottom Line is that our new equipment works well and the NLM kept usfrom having to kill someone as well.” LTC Brown, Battalion Commander, Bn 709th (Task Force Falcon Provost Marshall)

Non Lethal Capabilities Sets

“Used to clear bunkers and rooms, and to destroy equipment and ammunition. Performed as expected”

CountermeasureFlares

Hand Grenades

“The M211/M212 flares savedmy life while deployed.

Thank you and everyoneon your team.”

BG Clay L Newman,Commanding Officer, ARDEC

19 Dec 03

Shoulder Launched Munitions

14Apr 2005

PM Combat Ammunition SystemsPM Combat Ammunition Systems

Production

105mm M314A3 Illum

105mm M1 HE 105mm M915 DPICM

155mmM107 HE

155mm M795 HE Projectile

M762 ET

M767MK399 MOD1

MOUT

155mm M231/M232 Prop

75mm M337A2

Blank

M1155 PIAFS

Concept Development

ExcaliburUnitary

795 E1LCCMM782 MOFA

M782 MOFA

Time

155mm M804A1Practice

MortarsMortars

Concept Development

120mm XM984 DPICM

120mm XM395 (PGMM)

MBC

60mm M769 FRPC

81mm M853A1 Illum 120mm M983 IR

(MFCS) Heavy

Mortar Fire Control System - Light (MFCS-L)

120mm Training Insert, M303

Production Sustainment

60mm M720A1 HE

81mm M821A1/M889

A1 HE 120mm M934 HE

ExcaliburDiscriminating

15Apr 2005

Mortars in BattleMortars in Battle

“On several occasions my mortar platoon was called upon to shoot missions two to three thousand meters beyond our max range. Most of these mission were in support of dismounts in a MOUT fight”

SSG Charles Weaver Jr. 4th BN, 64th

Armored Regiment, 3IDOperation Iraqi Freedom, 2003

60mm: Illum, Smoke, WP Smoke, HE81mm: Illum, RP, HE120mm: Smoke, Illum, IR Illum, HE

“120mm Mortar – A good system for pounding targets up in the mountains. Had to push out 120mm Mortar due to combat patrols moving out side the 7200m range”

SFC McLaughlin, 75th Ranger Regiment in supportOperations In Afghanistan, 2002

16Apr 2005 MRMXM1002 XM1028KE-WA2 XM1040M830A1 XM908M829A3 M393A3 M467A1M829A2

PM Maneuver Ammunition SystemsPM Maneuver Ammunition SystemsPM Maneuver Ammunition Systems

17Apr 2005

Small Caliber AmmunitionSmall 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 accurateregardless 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

18Apr 2005

PM Joint Services MissionPM Joint Services Mission

Execute Single Manager for Conventional Ammunition (SMCA) acquisition functions

Manage the execution of other Services’ acquisitions not currently managedby other PEO Ammo PMs(e.g. bombs, pyrotechnics, and explosives)

Coordinate management of other services’ acquisitions managed by other PEO Ammo PMs(e.g. artillery, cannon, small and medium caliber)Oversight of PM Demil

19Apr 2005

PEO Ammo Industrial Base OfficePEO Ammo Industrial Base OfficeKey Responsibilities:

(DOD 5160.65 SMCA; AR700-90, Army Industrial Base Process):

•Develop and maintain an overarching ammunition industrial base strategic plan.•Plan, budget and manage the PAA, Activity 2, Production Base Support program:

• Industrial Facilities• Maintenance of Inactive Facilities• Layaway of Industrial Facilities• Armament Retooling and Manufacturing Support (ARMS).

•Plan, budget and manage RDTE PE605806, Munitions Standardization, Effectiveness and Safety-Project 859: Life Cycle Pilot Process.•Execute the HQDA Heavy Metals Charter.•Manage and invest in a production base to meet the Military Services’ SMCA requirements. •Execute Public Law 105 -261, Section 806, Procurement of Conventional Ammunition.

PAA, Act 2: $106.5 MRDTE: $27.2 M

FY05 Resources

20Apr 2005

Ammunition Industrial Base Ammunition Industrial Base

Oversized and Underutilized Production Base

5 of 10 GOCO AAPs Less Than 15% Utilization

Sec Army Mar 2003 Direction:No AAP Consolidation or Divestiture Outside BRAC Process

Production Base Support Investment Down 84% Since 1990

GOCO Equipment At or Approaching Useful Life

Supply Chain State:310 Single Point Failures

• 27 Foreign Financial Viability of Several Commercial Suppliers Under Pressure

Manufacturing CapabilityLimited Surge Capability

Current State Transformation

Single Manager for Conventional Ammunition (SMCA)

Industrial Base Strategic Plan: 2015

3 November 2003(Updated November 2004)

Program Executive Office AmmunitionSFAE-AMO

Picatinny, NJ 07806-5000

Implementing an Overarching Strategic PlanIntegrating Ammo Production & Logistics Industrial Bases

Goals:Balance Industrial Base & Acquisition RiskTransform to Meet Current and Future RequirementsIncentivize Industry to ReinvestModernize CapacityOperate Effectively and Efficiently

21Apr 2005

Section 806 Summary

FY04 Actual Procurements FY05 Planned Procurements

Competition Limited to the NTIB Full and Open

Sole Source Small Business Set Aside

USA 62 $1377.5M

USN 12 $469.9M

$35.2M

$831.0M

USMC 7

USAF 57

$795.2M

$987.0M$755.8M

$175.5M

USA 69 $3329.3M

USN 25 $351.2M

$117.9M

$1200.0M

USMC 20

USAF 1

TOTAL 115 $4,998.4M

TOTAL 138 $2,713.5M

Actual FY04 Section 806s

$1914.4M

$379.8M$1807.6M

PEO Ammo Delegated Section 806 Authority Nov 02

Planned FY05 Section 806s

$896.6M

Section 806; DFAR 207.1:•Public Law 105-261, Procurement of Conventional Ammunition•SMCA Required to Review & Concur on All Acquisition Plans•Permits SMCA to Restrict Procurements to Sources within NTIB

22Apr 2005

Organic Production Base CapabilitiesOrganic Production Base CapabilitiesGOCO AAPs GOGO AAPs

Facility Core Processes & Products

% Capacity Utilization FY 01-03 / FY 04-06

Holston (TN) Energetics - HMX, RDX <35 / <50

Radford (VA)Propellant Manufacturing (Rocket, Artillery, Tank, Med Cal; NC for

all Propellants)<50 / <65

Iowa (IA) Load, Assemble & Pack (LAP) - Tank/Artillery, FASCAM

<30 / <35

Lone Star (TX) LAP - Grenades, Initiators, Detonators, Mines, ICM

< 5 / < 5

Milan (TN) LAP - Mortars, 40mm Cartridges; C-4 Extrusion

<10 / <15

Kansas (KS) LAP-Sensor Fuzed Weapon; Mortar/Artillery; ICM

< 5 / <10

Lake City (MO) Small Caliber <40 / <95

Scranton (PA) Large Caliber Metal Parts- Artillery/Mortars

<45 / <35

Riverbank (CA)Large Caliber Metal Parts- 5"

Steel, 105mm Cartridge Cases; Mortar/Cargo Metal Parts

< 5 / <10

Mississippi (MS) Semi Active - Cargo Metal Parts 0 / 0

Louisiana (LA) Semi Active - Large Caliber Metal Parts

0 / 0

Facility Core Processes & Products

% Capacity Utilization FY 01-03 / FY 04-06

Crane (IN)

LAP-Pressed/Cold

Cast Navy Gun, Illum Candles

<15 / <10

McAlester (OK)

LAP-Cold Cast Bomb

LAP-Smoke Artillery/Mortar

<20 / 35

Pine Bluff (AR) <20 / <30

Key Challenges•Reducing AAP Operating Costs•Ensuring Viability of Critical Processes•BRAC Outcome & Implementation•LAP Consolidation•Resourcing Modernization

** Does Not Include Laid-away Capacity ** Calculation Approximates Utilization** Excludes FY05 Supplementals

23Apr 2005

Center for Manufacturing ScienceCenter for Manufacturing Science

Production Studies(ie smart munitions metal part)

Tech BaseR&D Prototype Production

Base

Academia

Industry

The Model

New Manufacturing Processes (ie. Lead Azide)Rapid Manufacture (ie. Stryker Shields)

24Apr 2005

Summary Summary –– The Ammunition The Ammunition Enterprise is …Enterprise is …

Warfighter Focused

Improving Ammunition

Life-Cycle Practices

Focused, Well-Trained Workforce

Leveraging World Class Capabilities & Technologies

Positioned for the Future