$
Management” that was released by then-U.S. Chief Information Officer Vivek Kundra on Dec. 9, 2010 (
https://cio.gov/wp- content/uploads/downloads/2012/09/25-Point-Implementation- Plan-to-Reform-Federal-IT.pdf ).
LL_691: Use an acquisition approach that leverages a com- petitive environment, when possible, to maximize return on investment (ROI) for the government.
Background Te Program Executive Office for Ammunition developed an acquisition strategy for the production of small-caliber rifle ammunition and the operation, maintenance and moderniza- tion of the Lake City Army Ammunition Plant (LCAAP) in Independence, MO. Te seven-year, $242 million moderniza- tion effort aimed to improve production facilities at LCAAP, the only remaining DOD-owned small-caliber ammunition plant in the United States, which produces more than 80 percent of the ammunition used by U.S. military services. Operations in Iraq and Afghanistan increased demand for ammunition from approximately 400 million rounds per year to more than 1.5 billion rounds per year. However, many of LCAAP’s production lines had had few or no upgrades in more than 60 years, and the increased demand exposed vulnerabilities in the facilities.
Te modernization plan will ensure an annualized production capability of 1.6 billion cartridges for 5.56 mm, 7.62 mm and
.50-caliber weapons, and will greatly improve production reliability, availability and maintainability, as well as safety and environmental performance.
An acquisition strategy focused on incentivizing industry
through a long-term contract that transferred risk and ROI to the contractor achieved success, and resulted in the contrac- tor investing its own capital and resources in addition to Army investments.
Recommendation Push relevant information out to industry as soon as possible, and encourage full and open competition. Obtain intellectual property rights, and incentivize government and commercial use of facilities with compensation back to the government.
For more information on these and other Army lessons learned within ALLP, go to
https://allp.amsaa.army.mil.
MS. GAIL CAYCE-ADAMS is an operations research analyst with the U.S. Army Materiel Systems Analysis Activity at Aberdeen Prov- ing Ground, MD. She holds an M.S. in systems management and operations research from the Florida Institute of Technology and a B.S. in computer science from the University of Maryland Baltimore County. She is Level III certified in engineering and Level I certified in program management.
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