MARK DeYOUNG President and CEO ATK Arlington, VA
A healthy industrial base with the depth, breadth and diversity needed to support the joint warfighter—today and in the future—remains paramount to sustaining military
operations in an uncertain,
complex national security environment. Senior leaders face a difficult fiscal environment that requires hard decisions about how to prioritize spending on personnel, readiness and modernization.
A focus on four key areas—capacity, capital investment, modernization and workload—will chart a path for the future of the AOIB. Tis will allow the Army to leverage best business practices; maintain
an experienced, skilled and
specialized workforce; make prudent investments in modern, safe and capable infrastructure and equipment; and ulti- mately provide the capability for the joint force. Likewise, commercial enterprises that best meet the emerging readiness and modernization requirements of the joint force and embody best business practices to maximize return on invest- ment of taxpayer funds will have the best prospects, now and in the future.
Te secretary of the Army and the chief of staff of the Army said it best when they testified before the Senate Armed Services Committee in April 2013: “Te ability to reduce the industrial base in times of peace but surge as required remains essen- tial to equipping the Army, the Joint Force and, in many cases, our allies and coali- tion partners.”
For more information, bearer
see AUSA’s Torch- Issue Paper “Te Army’s Organic
Industrial Base: Providing Readiness Today, Preparing for Challenges Tomorrow,” at
http://www.ausa.org/publications/ilw/ DigitalPublications/Documents/tbip- aoib/
index.html.
A capable, responsive and resilient
industrial base is essential to the national security of the United States. In order to retain the essential skills that underpin the base, there are five fundamental enablers that should be considered and incorporated into the Army’s approach, now and in the future.
First, maintain and expand an open and active dialogue between the Army— particularly acquisition managers—and industry. With data points that include product inventories, consumption rates, potential impacts due to force size
trine requirements, industry can make informed decisions that support the preservation of industrial base capability.
To assist in the open dialogue, use and improve industrial base tools developed by joint life-cycle commands.
One example is the Minimum Sustaining Rate database that helps identify the production and support levels necessary to avoid placing the industrial base at serious risk.
Second, an acquisition policy that incen- tivizes innovation, preserves intellectual property rights and streamlines contract- ing practices would improve and sustain the industrial base. Meaningful dialogue on long-term plans, ensuring a steady flow of information to inform industry planning and investment, is a necessary element of this policy. Also, it is neces- sary to address Army and DOD policy regarding competition and maintaining multiple sources for products. History demonstrates that repeated competitions and smaller awards to multiple suppliers present serious challenges for industry that can swiftly erode capability and threaten the health of the supply chain.
Tird, adequately funded programs and realistic requirements are essential. With clear and concise program requirements and plans,
industry not only focuses
on delivering key performance param- eters and controlling cost, but also can more efficiently identify and develop critical
skills to meet current and emerging needs. reduction, and training or doc-
Fourth, increasing the Army’s support for international sales could reduce and/or sustain current production costs. Te resulting expanded market for U.S. military products would help lower pro- curement costs to the Army while helping sustain the domestic manufacturing base.
And finally, the Army, along with the other services, should continue to explore new ways to work productively with industry, academia and local com- munities
to support STEM education.
Investing in STEM education initiatives will help our nation attract, train and retain the next generation of innovators and skilled workers needed to lead the industrial base of the future.
ASC.ARMY.MIL
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CRITICAL THINKING
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