OPENING INTERNATIONAL MARKETS
HEADS UP DOWNRANGE! Soldiers with the 7th Infantry Division send a round downrange in February during a com- bined arms exercise at Yakima Training Center, Washington. An RFQ from an ally for an artillery propellant charge for firing a 155 mm round from an M777 howitzer made a good test case for the recently piloted approach to foreign sales because the propellant charge was already in production for DOD customers. (U.S. Army photo by Sgt. Cody Quinn, 28th Public Affairs Detachment)
commercial use of its inventions. (Roy- alties from the licensing of government employee inventions can be used to seed new research, foster scientific exchange, award government employee innovators and other valuable purposes.)
Te government provided the LOIs to the requesting contractors, and the con- tractors submitted their proposals. In both cases, the U.S. contractor won the competitively awarded contract. Tese contracts represent a combined revenue of about $25 million. It’s admittedly a small start, but an opportunity that otherwise would not have been realized without the CRADA-DCS approach. Further, based on feedback from the U.S. contractor who has established a relation- ship with the foreign purchaser, these sales established a pattern of buying that is expected to lead to recurring sales of approximately the same magnitude over the next five years.
LESSONS LEARNED FROM THE PILOT 1. Buying inventory from stock: In a DCS case, industry initially believed that it could buy directly from U.S. inventory. However, after checking with the Joint Munitions Command, we learned that there is no process in place for this approach. Munitions
30 Army AL&T Magazine July-September 2016
bought via DCS need to be from new production.
2. Courses of action when the indus- trial base is not producing an item or component for a DOD customer: Te government will assist the contractor with technical
services through the
CRADA to requalify an old source or find a new source that will be able to make the part to the government’s technical specifications.
3. Communication: As with any new effort, all stakeholders (industry and government) need to be on the same page at the outset of the agreement and throughout the effort. Frequent integrated product team meetings were established to get through the pilot efforts, and improvements to the process were documented in the oper- ating procedures.
CONCLUSION Te goal of this program, strengthening the U.S. industrial base by opening up new opportunities for ammunition sup- pliers, was achieved in the successful outcomes of the two pilot efforts. PM CAS has developed a draft standard operating procedure (SOP) that documents the roles, responsibilities, process (including intra- government coordination), applicability,
limitations, LOI formats (including legal statements) and timelines associated with the CRADA-DCS process. Tis SOP is currently with PEO Ammunition and ARDEC for review and staffing. It is anticipated that it will be approved and implemented across PEO Ammunition by the end of the third quarter of FY16.
For more information, contact Peter Burke at 973-724-2110 or John Irizarry at 973-724-5250.
MR. JOHN IRIZARRY is a program management officer in PM CAS at Picatinny Arsenal. He holds an MBA from Wagner College and a B.S. in engineering science from City University of New York. He has more than 20 years’ acquisition experience, is Level III certified in engineering and program management and is an Army Acquisition Corps (AAC) member.
MR. PETER BURKE is the deputy project manager for PM CAS. He is a graduate of the Harvard Business School’s General Management Program, and holds an MBA from the Florida Institute of Technology and a B.S. in industrial engineering from the New Jersey Institute of Technology. He is Level III certified in program manage- ment and engineering and is a member of the AAC.
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