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Army Industrial Operations Command Strategic Planning for Cost Reduction

This document outlines the U.S. Army Industrial Operations Command's strategic plan to reduce the cost of ownership through innovative acquisition strategies for production and site management. It highlights the importance of contract replenishment capacity, seeking long-term production contracts, and encouraging private capital investment with extended site agreements. The plan also emphasizes industrial reuse of GOCO Army ammunition plants to minimize facility maintenance costs. Lessons learned from past disposal decisions are discussed, emphasizing the need for thorough business planning before any excessing decision is made. The document further discusses acquisition strategies such as War Reserves, DPG, OPLANS, and budget stockpile management, and outlines processes for outloading, surge, replenishment, production, storage, demilitarization, and modernization to reduce the cost of ownership.

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Army Industrial Operations Command Strategic Planning for Cost Reduction

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  1. Government BaseStrategic 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 10-25 year site • agreements. • Industrial Reuse of GOCO Army Ammunition Plants • Cost of Facility Maintenance reduced or free

  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 PLANTS AMMO

  4. ACQUISITION STRATEGIES TO SHAPE THE ORGANIC BASE: “Big Wins for Army & DOD”

  5. ACQUISITION STRATEGIES:

  6. War Reserves • DPG • OPLANS • Customers • Budget Stockpile Mgt Production Mgt Installation Mgt Developing the Ammo Strategic Plan PROCESSES • Outloading • Surge • Replenishment • Production • Storage • Demil • Modernization/MANTECH = Start with requirements Identify processes Map to capabilities

  7. The Results 200020102025 MULTI MSN BASE EXPL/PROP BASE SMALL/MED CAL BASE PRIMARY LAP FACILITY AMMO DEPOT OPS ONLY ARSENALS INACTIVE BASE EXCESS BASE 22 17 13 REMAINING FACILITIES Long Term Strategy to program out the cost and leverage out strategies to reduce cost of ownership.

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