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MINIMIZING DOWNTIME A newly installed cell of computer-numerical controlled lathes at SCAAP is capable of machining multiple types of projectiles with minimal downtime required between changeovers. The lathes were one of $32.2 million in production base support projects. (Photo courtesy of SCAAP)


• With resource and fiscal restrictions, the Army sought out and implemented innovative cost savings initiatives. One notable effort is the recapitalization of the 155 mm Dual-Purpose Improved Conventional Munition (DPICM) and 105 mm M1 projectile bodies. The Army is disassembling DPICM rounds that are designated for demilitarization and using the artillery projectile bodies for a new extended-range round. The Army is also recapitalizing a large volume of M1 rounds each year at the government-owned, government-operated Blue Grass Army Depot in Kentucky and McAlester Army Ammunition Plant in Oklahoma, which are reusing the projectile bodies. While saving the Army about $65 million annually, these cost- saving strategies also reduce the requirement to produce new artillery projectile bodies at plants such as SCAAP.


• Another fundamental cost-saving strategy employed by the Army is to award production contracts competitively where possible. In 2012, a competing facility won a five-year contract for 120 mm mortar shell bodies that SCAAP historically had built. With the reductions in demand for other types of artil- lery and mortar bodies, GD-OTS proportioned more of the cost burden from the government regulations into its overhead price for the 120 mm, leaving it unable to provide a competi- tive price. Losing the 120 mm work further stressed SCAAP’s financial situation.


SURVIVING THE DROUGHT One way the government can support GOCO facilities is by reducing the requirements it places on them while ensuring the necessary care and maintenance of the facilities.


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