THE ABRAMS ANGLE
The Abrams tank IB is the focus of Army assessments related to modernization at the Lima Army Tank Plant, OH. The Army looked at how to maintain needed production capacity as well as engineering and manufacturing expertise. (Photo by SPC Christen Best)
a healthy IB for key sectors that are critical to future capabilities. All of the vendor-specific
information is kept
relationships between second- and third- tier suppliers.
in
strict confidence and is therefore not publicly available.
While still an ongoing project, most of the work of S2T2 is complete, Broitman said.
She described S2T2 as an invaluable resource. “With S2T2, we really delve deep into each tier of the supply chain in order to be accurate [as to] whether a particular company is critical, meaning if it goes away, no other company could fill its spot, so the entire supply chain is at risk,” she said. Te S2T2 data reposi- tory includes a detailed examination of
“Te effect on these firms is especially important to emphasize, since a sub- stantial portion, often 60-70 percent, of defense dollars provided to prime con- tractors
is subcontracted,” states the
2013 MIBP report to Congress. “Many of these subcontractors, and their own suppliers, are small and innovative firms.”
POSSIBLE POINTS OF FAILURE
“Single points of failure” is another key phrase in the lexicon of Pentagon IB policymakers, who look for instances in which the ability to produce a certain product could go away. “On single
points of failure, we look at the fragility and criticality of Broitman said.
the supply chain,”
She added that these points tend to be more common among products or technologies that are manufactured solely for DOD, meaning that there is no alternative commercial use or market for the product.
One analyst agreed, explaining that industries with a large commercial audience are likely to be more stable in what they can provide DOD during a downturn. “For example, you have a commercial airliner industry that is going really well. Companies without
ASC.ARMY.MIL 17
ACQUISITION
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