1 Disposition of “Unneeded” US Equipment Briefing to BG Terry 21 May 09

2 “Unneeded” US equipment As the US Army begins to draw down forces in overseas theatres over the next few years it is anticipated that much of the equipment will no longer be needed. The Army Materiel Enterprise must develop a plan to ship and dispose of equipment not needed after the war effort. Shipment and disposal of unneeded equipment will be very costly. Army/AMC are exploring redistribution options. USASAC has been tasked to explore Foreign Military Sales (FMS) as an option in disposition of this equipment as FMS customers may have a need for some of the equipment.

3 General Redistribution & Disposal Process Identify equipment no longer needed by the US Army (Army/AMC) Redistribute to requirements in other theaters (Army/AMC) Redistribute to other US DoD/civil requirements (Army/AMC) Sell/grant through Security Assistance program (USASAC) Donate to Foreign Customer (Army/AMC) Dispose through DRMS (Army/AMC)

4 Issues The process & key players for identifying equipment not required by the US Army need to be better defined and documented by the Army Materiel Enterprise The details and key players for the redistribution and disposal steps need to be better defined and documented by the Army Materiel Enterprise (except for Security Assistance)

5 Actions Taken by USASAC As the AMC lead for Foreign Military Sales (FMS) actions, USASAC has developed a web-based tool to alert potential customers of equipment available for transfer through FMS programs. –Web site will be hosted by USASAC on our existing International Customer Information portal – –Equipment will be identified by Nomenclature, NSN/DODIC, Condition Code, Manufactured Date and Location. –This web site will list ‘long supply” equipment (identified by the Army/LCMCs) available for sale. –The web site will also list “excess” equipment approved by DSCA for transfer to qualified countries on a grant or sales basis.

6 Recommendation Recommend AMC sponsor a Lean Six Sigma (LSS) project to map out the processes necessary to identify, redistribute, sell, donate and/or dispose of unneeded equipment in the most efficient manner. LSS Team membership should include AMC G-3/5, USASAC, DA G8, DASA (DE&C), PEO/PMs, DLA and LCMC item managers. USASAC has prepared a draft LSS Project Charter to jump start this action

7 “Draft Charter”

8 BACK UP SLIDES

11 Long-Supply (LS) / Excess Defense Articles (EDA) Force Structure Change Potential Long Supply G-8 Coordinate G-8 Retain LS ? Store N Other Services Transfer to AF/Navy LS FMS Sell On LOA N N Y G-4 G-3/5/7 AMC COCOMs Y Y = Retain N Y Store DRMO DEACMHFMSOther Services GSA EDA

12 S Purchaser Requests for EDA (LOR) 5 Army G3 Force Structure Changes 1 Army G8/G4 Reconcile Inventory vs. Requirements 2 Determine Excess Material Availability 3 AMC Transmits Survey Message 4 AMC Prepares EDA Requests 6 Sufficient Assets Available 8 NO YES DASA(DE&C) Submits Army Position to DSCA 9 1 DASA(DE&C) Proposes EDA Allocation 11 DSCA Develops DOD Position 12 -Includes DoS & DoC Position -Industry impact -Regional balance -SCG -Arms Transfer Policy EDA CORCOM (DoS, DoC, JCS J5, DSCA) 13 Allocation Plan Approved 14 Notification Required 15 NO YES 1 DSCA Congressional Notification 16 DSCA Issues Authorization Message 17 AMC Prepares FMS LOA 19 AMC FMS Case Implementation 20 E Joint Visual Inspection 18 DASA(DE&C) coordinates With ARSTAF 7 MTCR DSCA Staffing 10 Track EDA offers and Deliveries 21 Excess Defense Articles (EDA) Process