SOLIDIFYING THE BASE
A WIDE ARRAY OF AMMO
PD MC is responsible for dozens of different types of cannon-caliber ammunition, and before implementation of the MCFA strategy, each had its own contract vehicle for procurement. Through long-term strategic planning and a novel view of the acquisition planning process, the MCFA revamped the conventional methods of acquiring cannon-caliber ammunition for the Army and its sister services. (SOURCE: PM MAS)
mm x 113 mm LAP; 30 mm x 173 mm LAP; mechanical and pyrotechnic fuze design and production; high-explosive press- ing; and cartridge trace. Tere were only two NTIB contractors with the requisite facilities and expertise to handle all eight criti- cal capabilities.
Te MCFA consolidated all medium-caliber ammunition items under a multiple-award, indefinite-delivery indefinite-quantity (IDIQ) contract and included contract language to allow for industrial base considerations to ensure dual-source capabili- ties for the identified critical capabilities. Tis methodology allowed the Army not only to consider price, but also to make awards to mitigate the risks of creating a single-source producer for any one capability. Te MCFA also improved economies of scale and reduced administrative costs for the government and the contractors. It ensured that the significant reduction in all services’ requirements did not negatively impact unit prices or critical capabilities.
Before the MCFA, there were 22 separate contract vehicles to con- trol the production of the 33 medium-caliber rounds. Te MCFA approach consolidated Army and sister-service requirements into one, resulting in the award of two IDIQ contracts for all tactical and training ammunition over a five-year period (FY13-17) with a total ceiling of $1.5 billion.
CONCLUSION As a result of the MCFA, the NTIB for medium-caliber ammu- nition has sustained dual-source capabilities for all eight critical capabilities and has maintained the lines and facilities to pro- duce all required medium-caliber ammunition for DOD. Tis provides flexibility in the manufacture of medium-caliber ammunition through the availability of warm production lines operating below their capacities. As stated in the 2014 Army Strategic Planning Guidance, “it is inevitable that there will be a next crisis at an unanticipated time, in an unforeseen place, unfolding in an unforeseen manner, requiring the rapid com- mitment of Army forces.”
In ammunition, it can take 36 to 60 months and millions of dollars to stand up a capability from a nonoperational line. Te MCFA strategy created the ability to respond rapidly to the changing operational requirements of warfighters through mul- tiple sources with warm lines. Trough careful management of the critical capabilities in the NTIB, the government protected more than $100 million of its prior investments.
Te MCFA also provided the product director a means to create economies of scale when purchasing medium-caliber ammunition. Instead of having to buy small, individual lots of ammunition for each service, the office was able to combine the services’ requirements into larger lots, which lowered the
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Army AL&T Magazine October-December 2015
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