1. 1 Ammunition Program Restructure Plan: Context Progress of the Ammunition Program Restructure (APR) Project Status of the Ammunition Program elements PMB 14/07 endorsed Ammunition Program governance model Col Dan Rivière Materiel Group J4 (Mat J4) and Ammunition Program Restructure (APR) Team Lead CFLA Ottawa Chapter, 20 May 2014

2. Perspective (PERI) Personnel: Vast array of “A&E Practitioners”: Ammunition Technical Officers (ATOs), Explosive Engineers (EEs), Ammunition Technicians (ATs), Civilian Ammunition Technicians (CATs); AWTs, NWTs, EOD Operators, Civilian Contractors, Allies (military and Civilian) Supply Management Equipment Ammunition is about half of DND’s $6B inventory –Over 40% of the GoC total inventory holdings –12% of Net Value of all DND/CF non-infrastructure materiel assets (capital assets + inventory) Annual procurement of ammo and explosives involves expenditure over $140 (significant reductions in the past years) –Much of it under MSP, which is strategically important to Canada Readiness (through Governance): The program has been restructured multiple times –Until recently managed in a highly decentralized framework, guided by the « Ammunition Board » –Ammo Program crossed Strategic, Operational and Tactical responsibilities across L1, L2 and L3 HQs – Critical Mass versus Organizational Depth –L1 ATA function resided in L3 HQ with minimal / ineffective influence on L1 planning Infrastructure: Roughly 350 licensed 3rd and 2nd line Ammunition facilities at 28 locations for storage and supporting activities including workshops, transit, hardstand and laboratories, distributed across Canada Weakness in management of DND’s ammo program therefore has a significant impact on: CF operations and readiness Defence industrial capabilities Canada’s Public Accounts 2

3. 3 The Challenge Notwithstanding overall success in supporting ops, governance review identified multiple problems: – Inability to coherently address inventory data currency and accuracy problems, and Horizon 2 and 3 planning requirements, affecting ops and public accounts – Basis for requirements unclear and not well aligned with readiness management, meaning uncertain justification for expenditures – No strategic planning of stockpile positioning and distribution – No strategic planning design for infrastructure – Poor integration of business systems driving up business costs, which resulted in customized ammo-unique solutions – Overlaps, gaps and uncertainty in authorities, responsibilities and accountabilities (ARA) hindering decision making and leaving critical gaps (e.g. demilitarization) – Lack of strategic level performance and risk management reporting on the program – Ad Hoc specialist personnel selection, training and professional development (force generation), as well as retention and leadership development problems. – Terms of reference of the ammunition board (AB) do not provide authority to make strategic decisions and execute the program – Issues tabled at the board were mostly at the tactical and operational level and were not linked to program outputs and outcomes Governance and Integration Inventory Management Warehousing and Distribution Requirements Determination Support Capabilities (PERI) Demand – Allocn Reconciliation

4. 4 Mission: To oversee strategic-level management of the ammunition & explosives (A&E) program, with the view to –providing a comprehensive mechanism for A&E policy and support capability management, and –enabling strategic surveillance, collaborative readiness planning and Joint, Interagency, Multinational and Public (JIMP) information exchange Pillars: « Virtual Team » Regulator (DAER) Integrator (J4 Ammo) EPM (DAEME) Project Integration Program Mgt Policy and Doctrine Support Capability Commodity: Quality ammunition efficiently delivered on time to support CAF ops & trg Capability: Effective ammunition support capabilities Accountability: Accurate inventory and financial data Outcomes The Program

5. « Road to APR » “Go” IOC FOC Phase 2: Mobilize + Outreach Phase 3: Implement + Optimize Phase 1: Plan + Prep +6m (31 Mar 2014) +12m (15 Sep 2014) Obj - Steady State - NFO - Continuous improvement + process optimization APR AO Pre-Conditions VCDS/ DCB approval, received Options Analysis, completed Mgt framework, with exec leadership in place, established MIP signed-off by ADM(Mat) Res (pers, $, infra, sys) made available to the APR Tm TOA from Study Ld to APR Team Ld, completed AA LD Conditions for IOC Orient: retreat (kick-off) conducted Res secured ($, pers, infra, sys); pers transfers staff work initiated Training initiated APR (Core) Tm assembled TORs developed and communicated Fin and HR authorities delegated. Project Control Office (PCO) estab. AB evolved to APOC; last AB forum held (closed). Temporary/Minimum manning levels for J4 Ammo Br (Policy, Program and Sp Capability Sections) are reached (14). Track 1: NICP/EPM functions consolidated under LEPM/DAEME. Track 2: New J4 Ammo Branch activated under DCOS Mat. CJOC functions realigned (internal).  - IOC: (Tracks 1-2) Achieved. Conditions for FOC √ Revitalized governance model and APOC TORs endorsed by PMB - APOC forum held. - Manning levels for J4 Ammo Br (Policy, Program and Support Capability Management Sections) optimized (15-20). - Pers transfers approved and completed (as per MIP; relocations internal to Mat Gp and from external). - Training completed (Program, Performance and Risk Management training essential). - Transition/ integration of J4 Ammo Br into Mat J4 completed. - APR PCO transitioned into Mat J4 Sec. - FOC: ADM(Mat) declared - APR Project Closure and transition to steady state - Ammunition Program: Report back to PMB (on annual basis or as req). Focus: FG Focus: FE (and beyond) Cursit (0): MIP sign-off (16 Sep 2013) 5

6. Current posture – Assessment and Progress FunctionAssess + Trend Current OPIsRemarks Start 15-09- 2013 Last 19-03- 2014 Current 05-2014 Prog Planning & Management OPI: Mat J4 Ammo- Secretariat, Project Control Office stood up. - Governance model, endorsed at PMB 14/07 - Dev APOC sub-committee/WG structure - CRS MAPs (Acquisition) closing Policy & Doctrine OPI: DAER (regulatory), J4 Ammo (non-regulatory) OCI: CJOC, DMPP, DAEME - Reviewing entire ammo policy suite: regulatory, non-regulatory, technical. Sp Capability Management OPI: CFD OCI: CJOC, ECS, J4 Ammo - Outreach/ engagements in progress - Developing processes Requirements Management OPI: SJS OCI: Mat Gp, ECS - Requirements: Call Letter to initiate annual cycle rel by DOS SJS (April 2014) - Review of Ammunition Requirements WG TORs Ammo EPM OPI: LEPM/DAEME, SOFCOM (Black Ammo) OCI: PWGSC, MSP Partners - Natl Inventory Control Pt (NICP) in Mat Gp/LEPM - Procedures being established Ammo Pers Management OPI: CF Branches, Corps OCI: CJOC, ECS - Highly decentralized and dispersed function - J4 Ammo has not yet addressed the challenges Infrastructure OPI: ADM(IE) OCI: CJOC, ECS, Mat J4 Ammo, L1 ATA - Outreach to L1s and SME advice to OPI for national real property development planning - J4 Ammo has not yet addressed the challenges Regulatory OPI: DAER- Renewed Policy suite nearing completion - Compliance and Safety program stable Systems Management OPI: Mat Gp (DRMIS wave 2), IM Gp (AIMS) -Ongoing tech support, Ammunition Information and Maintenance System (AIMS) - Coord development of reporting tools 6

7. Composition: Reps preferably at Col/EX Level Core Membership SJS J5 (Co-Chair) DCOS Mat (Co-Chair) VCDS: DDFP (in direct support) SJS J34 CJOC: J4 and Comd CMSG ECS (RCN, CA, RCAF) CANSOF CMP ADM(IE) ADM(S&T) DAER Mat Gp: DGLEPM, DGMSSC, DGIIP, J4, DAEME, DLP Supporting Membership PWGSC CFEOD ADM(IM) Mat Gp: DGMEPM, DGAEPM, DGMPD(Air), DGMPD(L&S), DMG Compt, DMGOR, LBI Coordination: Mat J4 Ammo Secretariat Meeting and Reporting Frequency: Quarterly or as required Mandate: To provide strategic advice and make recommendations to the Programme Management Board (PMB) on all aspects of the DND/CAF Ammunition & Explosives, linked to its intended outcomes. Outcomes: Effective management of: Ammunition as a commodity, Ammunition Support Capability, and Accountability. Program Elements: The primary focus of APOC is to assist CAF/DND senior leadership with decision support and advice as it affects performance of and risks to the ammunition program. It facilitates a collaborative forum to enable cross-functional coordination and monitoring of the ammunition program elements: Program planning and management Policy and doctrine Support capability management Requirements management Ammo equipment program management Ammunition personnel management Infrastructure Regulatory Systems management Ammo Program Oversight Committee (APOC): Terms of Reference 7

8. 8 Opportunity : Ammo Program in support of Defence Renewal Ammo Program Pillars SME advice Decision support ADM(Mat) (MSSC) 2.1 A&E Inventory Mgt (Modernize management of and rationalize commodity) SJS 1.4 A&E Rqmnts Planning (Align with FP&R) ADM(IE) 4.2 Real Prop Rationalization (Optimize Footprint) CJOC (CMSG) 2.2 A&E Warehousing-Distr (Optimize space and movement) Governance and Integration Inventory Management Warehousing and Distribution Requirements Determination Support Capabilities (PRICIE) Demand – Allocn Reconciliation

9. 9 Discussion

10. 10 Pocket Slides

11. 11 22 Kingston Rocky Point 6 Cold Lake 18 Wainwright 17 Suffield 19 Shilo 20 Petawawa 23 Valcartier 10 Bagotville 11 Greenwood 25 Gagetown 5 Comox Trenton9 12 Goose Bay 4 Dundurn 1 Angus 2 Edmonton16 Bedford 3 Halifax Esquimalt Farnham 24 Montreal Toronto Winnipeg8 21 Meaford 28 Nicolet13 Alert # Large Base Facility # Smaller Base Facility Headquarters # Small Storage Facility Ammunition Depot # 15 Chilliwack 26 Aldershot 7 Moose Jaw14 Gander Ottawa27 Real property currently used to deliver your capability? 350 28 There are roughly 350 licensed 3 rd and 2 nd line Ammunition facilities at 28 locations for storage and supporting activities including workshops, transit, hardstand and laboratories that are distributed across Canada. Licences can represent more than one building.

12. 12 DCB 13-04: High Level Program Organization DAER J4 Ammo DAEME DGLEPM ADM(Mat) COS Mat CDSDM VCDS DOS SJS DMSPR DGMSSCJ5 J3-4Mat J4 Program Execution Program Partners DCOS Mat Program Oversight Program Authority

13. 13 Program Design (Functions) External Clients: Central Agencies & OGDs Respond to AG Audits/ Reviews Reports to TB/GoC External Suppliers and Service Delivery Partners Maintain PWGSC Relations Maintain Industry Relations Allies/ Partners Relations & Alignment Support Systems Interfaces Contribute to GoC Policy Development Integration with DND/CF Processes Op Planning CAF Training & Readiness Planning Financial Planning & Mgmt MA&S Program Planning & Delivery HR Requirements & Planning Capability Planning & Mgmt Performance Reporting Business Planning & Management Corporate Enablers Financial Mgmt HR Mgmt IM/IT Audit & Evaluation A - Policy Develop Ammo Program Policy Develop Ammo Support Doctrine B - Planning Define Performance Metrics Define Strategic Vision Develop Program Plan Define Business & Systems Requirements Define Ammo Sp Capability Requirements Report Results Regulatory & Safety C –Decision Support Analyze BI & Provide Advice Assess Policy Impact D –Relationship & Knowledge Mgmt Mange Ammo CoP Manage Internal & External Relationships Conduct Research & Provide Advice Manage Knowledge Content E –Compliance & Risk Mgmt Monitor & Report Compliance Monitor & Report Performance Identify, Evaluate & Manage Risk F - Services Ammo Design & Life Cycle Management Ammo Procurement & Supply Management Ammo Sp Capability Management Op Planning Support Ammo HR Management G – Enabler Processes Manage Ammo IM Applications Manage Ammo Knowledge Repositories Manage Ammo Professionalization & Learning Contribute to GoC Tasks & Programs Ammunition Program Framework Corporate Risk Management EPM Services Capability Mgmt Research & Development

14. 14 J4 Ammo Structure – Initial Build Prog Implementation Coord Office PCO (Maj Any) Coord (Capt Any) Policy Team Program Mgmt Teams Capability Mgmt Teams Planned vacancy 1 new Col billet from VCDS 1 AO billet from ADM(Mat) 5 pers transfer from DAEME 2 pers transfer from DAER Remainder transfer from CJOC Prog Implementation (temporary)

15. 15 DCB A&E Support Capability WG PMB NPOC Requirements & Resource Management Policy and Capability Development Freq/ Reporting As per strategic calendar Quarterly to Semi-Annual Working level, as reqd Ammo Requirements WG (SJS lead) A&E Policy & Doctrine WG Other A&E WG TBD Ammunition Program Oversight Committee (APOC) Proposed Governance Model