PEO Ammunition Affects and Limitations on Ammunition Resulting from the War on Terrorism 13 May 2003 Presented To: 2003 Joint Small Arms Conference Kevin M. Fahey Deputy Program Executive Officer, Ammunition

Agenda PEO Responsibilities and Organization War on Terrorism -- Impacts on Ammunition Challenges Future Focus Summary

PEO Ammunition Mission PEO Ammunition is committed to providing superior ammunition to the soldier PEO Ammunition responsible for Life-Cycle acquisition management of: conventional ammunition which includes integrating budgets, acquisition strategies, R&D and life-cycle management across all ammunition families Single ammunition voice in the budget process Industrial Preparedness Planning, representing the munitions industrial base Procurement of Conventional Ammo for DoD and the Single Manager for Conversional Ammunition (SMCA) Executor

Where PEO Ammo Programs Came From PEO GCS $ 375.911M PM ARMS PM TMAS PM Crusader (MACS) # Programs 23 PEO Ammo PM MAS PM CAS PM CCS PM Joint Services DSA-TACOM $ 439.476M PM Mines PM Mortars PM Small Arms # Programs 74 Bottom line is our programs came from many places, we have many programs and we have basically organized them by family of ammunition. AMC/DCS Ammo $ 708.263M Training Ammo Industrial Base Demil ARDEC (Fuze Programs) # Programs 94 Total RDA Programs 191 programs $ 1,523.650 M

Ammunition Enterprise Responsibilities (As briefed to the AAE and CG AMC on 6 December 2002) MISSION LEAD SUPPORT ACQUISITION RDT & E PEO-AMMO JMC Acquisition Strategy PEO-AMMO JMC Hardware Production PEO-AMMO JMC Components for Renovation (Maint Spt) PEO-AMMO JMC APE (Maint Spt) PEO-AMMO JMC PAA Program / Budget / Receive Funding PEO-AMMO JMC Industrial Base Co-Lead LOGISTICS / SUSTAINMENT Receipt / Issue JMC PEO-AMMO Storage / Distribution Management JMC PEO-AMMO Inventory / Accountability JMC PEO-AMMO Safety / Security JMC PEO-AMMO Quality Assurance (ASRP / Surveillance) JMC PEO-AMMO Maintenance JMC PEO-AMMO Demilitarization/ Disposal PEO AMMO JMC Transportation JMC PEO-AMMO OMA Program / Budget / Receive Funding JMC PEO-AMMO KEY TO ENTERPRISE: INTEGRATION AND SYNCHRONIZATION

Systems - Indirect Fire PEO Ammo Organization PEO Ammunition BG Paul Izzo PEO Mr. Kevin Fahey DPEO 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 Networked Munitions/ Munitions / Countermine Medium & Small Caliber Mr. Ron Brown PM Demolitions / Non-Lethal Mortars LTC Larry Hollingsworth PM Excalibur LTC Jeff Wilson PM Large Caliber LTC Dave Rice PM DEMIL LTC Kevin Jennings PM Industrial Base Matt Zimmerman APEO

Close Combat Systems Mission Equip Soldiers with Close Combat Systems for: Assured Mobility Force Protection Close Battle Intelligent Munitions System APLA Hard Target Defeat Anti-Personnel Landmine Countermine Demolitions Alternative (APLA) Non-Lethal Hand Grenades Countermine Pyro/Flares Non-Lethal Demolitions EOD Equipment Pyro/Flares SBCT Volcano 15 Prime Contractors 30 Contracts GOCOs JMC Combat Developers USAES USAMPS USAFAS USASOC USAIS USMC Bunker Defeat Munition R&D Establishments TARDEC ARDEC ARL CERDEC Hand-held Standoff Mine Detection System M67 Hand Grenade Non-Lethal Capability Set Selectable Lightweight Attack Munition

PM Combat Ammunition Systems M782 MOFA MOUT Time Excalibur Unitary LCCM 155mm M795 HE Projectile 105mm M1 HE 105mm M915 DPICM MK399 MOD1 M767 75mm M337A2 Blank 795 E1 M1155 PIAFS Excalibur Discriminating 155mm M107 HE 105mm M314A3 Illum 155mm M804A1 Practice M782 MOFA M762 ET 155mm M231/M232 Prop Concept Development Production Mortars This is a compendium of all the items that I manage (MFCS) Heavy Mortar Fire Control System - Light (MFCS-L) 120mm Training Insert, M303 81mm M853A1 Illum 120mm M983 IR 60mm M769 FRPC MBC 120mm XM984 DPICM 81mm M821A1/M889A1 HE 60mm M720A1 HE 120mm XM395 (PGMM) 120mm M934 HE Concept Development Production Sustainment

PM Maneuver Ammunition Systems Small Caliber Medium Caliber 40mm Grenades Large Caliber

PM Joint Services Mission Execute Single Manager for Conventional Ammunition (SMCA) acquisition functions Manage the execution of other services’ acquisitions not currently managed by other PEO Ammo PMs (e.g. bombs, pyrotechnics, propellant 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

War on Terrorism -- Affect on Ammunition Significantly more interest in Ammunition Readiness JMC in coordination with PEO Ammo has established a munitions readiness reporting system Some change in prioritization towards current capabilities Focus on fielding capabilities quickly Many urgent materiel releases since September 11th Large increase in training ammunition, both requirement and funding Big plus-up expected for ammunition resulting from expenditure Better understanding in the Pentagon of Ammunition Readiness and the industrial base Adverse impact on budget demands Homeland Defense requirements

Concerns Keeping the focus on ammunition Satisfying the near-term requirement without build a capacity that will not be utilized Industrial Base Balancing current requirements with future requirements Ensuring that we continue to field increasing capability to the warfighter Prioritization of funding for FCS Ammunition programs

Life Cycle Management Authority and Accountability… Unify & Integrate Ammunition Management Under One Single Chain of Command…by Consolidating Responsibility and Resource Management in the PEO Manage Ammunition as a Family, by Families (Artillery, Mortars, Tanks, etc.) Optimize Acquisition Strategy Optimize Technology across Family can save $$ in schedule Opportunity for Continuous Improvement thru Recurring Buys and Long Term Strategies Shape the Product Base through acquisition (modernize base through long term strategies) Perhaps talk about the challenges you have gone through in integrating ammo management and the acquisition function with the logistics function. Authority and Accountability… For Meeting Full Military Requirement For all Ammo Families

PEO Ammo Management Philosophy Promote Best Value Acquisitions Reinforce Success Utilize Disciplined Processes Promote Six Sigma and Lean Design/Production Promote Continuous Process Improvement and Technology Insertion Promote Commonality and Interoperability Spiral or Evolutionary System Development We are bringing a disciplined acquisition management approach to managing ammunition as a family, by family. Our intent is to manage the family of ammunition as a major acquisition program making smart acquisition decision for ammunition as a whole and not only as an individual program. We state that we are focusing on managing key business processes (e.g funding flow, engineering support to production, etc) and are pushing the use of six sigma/lean process initiatives not only for manufacturing, but also fro strategic planning and business processes. May want to briefly discuss the executive black belt program we are working out with OSC and TACOM-ARDEC. NOTE: Probably want to look at this and the next chart together, there is duplication-I would focus on the process part on this chart a system engineering/ commonality/ spiral development on the next chart. Put Eyeballs On – “Trust, but Verify”

We need to Change Our Acquisition Mentality Systems Engineering From The “Systems of Systems” Perspective New Approach To Ammo Development Commonality Spiral/Block Development Continuous R&D/Block upgrade Life Cycle Management Ultra-reliability Logistics Upfront Industrial Base Transformation Like I said on the previous chart , here I would focus on the systems engineering look at ammunition and consistent with the FCS focus on system of systems we are looking at ammunition as family, by family to maximize overall force effectiveness and assess commonality across product lines. We are working closely with PM lethality, PM FCS, the TRADOC schools and the LSI on force and system effectiveness to determine the most cost effective short and long term investment strategy for ammunition to ensure the Army gets the best bang for the buck in support of Army transformation. I would minimize any discussion on any specific item here since you do have a chart for each. Think Differently!

Summary PEO Ammunition Up and Running Current situation has brought a lot of focus on Ammunition Major job is to maintain Ammunition visibility and just do the right thing for the soldier