1. Government Base Strategic Planning
U. S. Army Industrial Operations Command
LARRY V. GULLEDGE
DEPUTY TO THE COMMANDER
INDUSTRIAL OPERATIONS COMMAND
12 JAN 00

2. ORGANIC BASE STRATEGY
INTENT: Reduce Army Cost of Ownership with Innovative
Acquisition Strategies for Production and Site Management
Contract for Replenishment Capacity
Seek multiple year production contracts
Encourage private capital Investment with year site
agreements.
Industrial Reuse of GOCO Army Ammunition Plants
Cost of Facility Maintenance reduced or free
o Set the stage for you by discussing our intent for our Organic Base.
o Reduce cost of ownership by using Innovative Acquisition Strategies for Production & Site Management.
o Listed here are some of those strategies.

3. REDUCING OWNERSHIP VS. COST OF OWNERSHIP
DISPOSAL DECISION = BUSINESS DECISION
LESSONS LEARNED; INDIANA AAP:
LOSS OF ARMS REVENUES TO OFFSET OWNERSHIP COSTS
IMMEDIATE BILL TO THE ARMY
2 YEARS OUT OF BUDGET CYCLE
THOROUGH BUSINESS PLAN BEFORE ANY EXCESSING DECISION IS MADE
o Why are we reducing the cost of ownership vs. just reducing ownership?
o What happens if we don't start making some smart business decisions?
o It's not always cost effective to excess facilities - there is a bill to be paid.
o We have learned some lessons on this, e.g. at Indiana AAP - the ARMS revenues were already offsetting the Operations & Maintenance Costs. There was also an $80M bill for disposal and environmental cleanup that was not expected. We had to rob Peter to pay Paul and therefore the budget cycle was out of sync.
o We know now that we need to conduct a complete business analysis prior to excessing any further facilities.
o We need to look at this smartly and not reduce our footprint just for the sake of reducing. We will do what is best for the Army and the Soldier.
PLANTS
AMMO

4. ACQUISITION STRATEGIES TO SHAPE THE ORGANIC BASE: “Big Wins for Army & DOD”
THE NEXT TWO SLIDES SUMMARIZES IOC ACQUISITION SUCCESSES, WHICH WE BELIEVE REPRESENT BIG WINS FOR THE ARMY, AS WELL AS OUR DOD CUSTOMERS.
THIS AMOUNTS TO OVER $1.3 BILLION DOLLARS IN SAVINGS/COST AVOIDANCE.

5. ACQUISITION STRATEGIES:
THIS IS A CONTINUATION OF THE BIG WINS WE’VE HAD RECENTLY.

6. Start with requirements
Developing the Ammo Strategic Plan
PROCESSES
DPG
OPLANS
Customers
Budget
Installation Mgt
Production Mgt
Stockpile Mgt
War Reserves
Outloading
Surge
Replenishment
Production
Storage
Demil
Modernization/MANTECH =
This chart shows how we did our preliminary analysis.
o Driven by reuqirements from DPG, OPLANS, Customers and the budget.
o By integrating missions vertically & horizontally, we've developed our strategic direction.
o We're still fleshing it out - but we think we have a good plan to start from.
Start with requirements
Identify processes
Map to capabilities

7. The Results 22 17 13 REMAINING FACILITIES MULTI MSN BASE
MULTI MSN BASE
EXPL/PROP BASE
SMALL/MED CAL BASE
PRIMARY LAP FACILITY
AMMO DEPOT OPS ONLY
ARSENALS
INACTIVE BASE
EXCESS BASE
REMAINING FACILITIES
o Here are the results of our long term strategic plan.
o We now have 22 facilities and by the year 2025 we plan to have around 13.
o We have received your input as well as that from the other services. We will continue to work with you as we firm up these plans.
Long Term Strategy to program
out the cost and leverage out strategies
to reduce cost of ownership.