The Publication of Record for the Military Logistics Community
Special Pull-out supplement USTRANSCOM
Resource Aligner Vice Adm. William A. “Andy” Brown Deputy Commander U.S. Transportation Command
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November/December 2013 Volume 7, Issue 10
Exclusive Interview with:
Gail Jorgenson Acquisition Director USTRANSCOM
Reverse Auctions O Defense Transportation O Afghanistan Retrograde ILS O Supply Chain Efficiencies O DMSMS O Senior Logisticians
Logistics
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If you can’t move it, you can’t use it. That’s why customers worldwide rely on the awardwinning team of logisticians at AM General to deliver critical parts and services, affordably and on time around the world. With more than 50 years of experience in shipping tens of millions of parts around the globe for the more than 1.5 million vehicles we have produced, AM General is the proven logistics solution for mission readiness and success.
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MILITARY LOGISTICS FORUM Features
November/December 2013 Volume 7, Issue 10
Cover / Q&A USTRANSCOM
Special Pull-Out Supplement
1
Gail Jorgenson
7
Recent Contract Activity
Acquisition Director USTRANSCOM
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25
Military Logistics Forum speaks with Major General Tim Crosby, Program Executive Officer, PEO Aviation, and Major General Lynn Collyar, commander, Army Aviation and Missile Life Cycle Management Command, about their major initiatives for 2014.
With new technology emerging at lightning speed, how do we proactively prolong the life of aging equipment while freeing up resources to develop new systems? By Scott D. Royse
AMCOM Initiatives
Marathon vs. 50-Yard Dash— The DMSMS Dilemma
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Military Logistics Forum asked senior logisticians, “Is there a concern that as reduction and trimmings are made, the logistics community will bear an uneven amount of the burden? Is logistics too easy to cut and how do you make the case that strong logistics is vital to the bottom line?”
The core aim of integrated logistics support—more reliable assets supported at more affordable costs—is more essential than ever under today’s tight defense budgets. By Henry Canaday
Unlike a typical auction where bidders seek to win with a high bid, in a reverse auction vendors lower their prices as they compete to win a contract. By Amanda Neumann
Cuts Too Deep?
Integrated Logistics Support
27
29
Learning from the lessons of past experiences and thinking big for maximum results from defense transportation systems. By Lieutenant General Kenneth R. Wykle, USA (Ret.)
The 1st TSC’s mission is to synchronize the movement and responsible drawdown out of Afghanistan, provide command and control for logistics units in theater, provide sustainment support to forces, and assist with base closure and transfer. By Stephenie Tatum
The Future of Defense Transportation
8
Supply Chain Efficiencies
How talking with and listening to industry can be a driver of lower costs and increased supply chain efficiency. By Peter Buxbaum
Departments
Success Comes in Reverse
Afghanistan Retrograde
Industry Interview
2 Editor’s Perspective 4 Log ops/people 16 Supply Chain 31 Resource Center
Colonel John Bryant (Ret.)
Senior Vice President of Defense Programs Oshkosh Defense
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Your single-source solution for material and services. www.SupplyCore.com
Vice Admiral William A. “Andy” Brown Deputy Commander U.S. Transportation Command
“Today, the USTRANSCOM team is committed to preserving readiness; achieving information technology management excellence; aligning resources and processes for mission success; and developing customerfocused professionals.” —Vice Admiral William A. “Andy” Brown
EDITOR’S PERSPECTIVE
Military Logistics Forum Volume 7, Issue 10 • Nov./Dec. 2013
Publication of Record for the Military Logistics Community Editorial
Editor-In-Chief Jeff McKaughan jeffm@kmimediagroup.com Managing Editor Harrison Donnelly harrisond@kmimediagroup.com Online Editorial Manager Laura McNulty lauram@kmimediagroup.com Copy Editor Sean Carmichael seanc@kmimediagroup.com Correspondents Heather Baldwin • Christian Bourge Peter Buxbaum • Henry Canaday Cheryl Gerber • Hank Hogan • Marc Selinger Karen Thuermer
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KMI Media Group Chief Executive Officer Jack Kerrigan jack@kmimediagroup.com Publisher and Chief Financial Officer Constance Kerrigan connik@kmimediagroup.com Executive Vice President David Leaf davidl@kmimediagroup.com Editor-In-Chief Jeff McKaughan jeffm@kmimediagroup.com Controller Gigi Castro gcastro@kmimediagroup.com Trade Show Coordinator Holly Foster hollyf@kmimediagroup.com Operations, Circulation & Production Operations Administrator Bob Lesser bobl@kmimediagroup.com Circulation & Marketing Administrator Duane Ebanks duanee@kmimediagroup.com Circulation Barbara Gill barbg@kmimediagroup.com Data Specialists Raymer Villanueva raymerv@kmimediagroup.com
The airline business—at least since deregulation—has been a challenging one. With high capital expenses and operating costs, profit margins are almost always slim. U.S. Transportation Command has long had close partnerships with a number of carriers supplementing military passenger and cargo needs. However, those needs are not quite what they used to be, and the number of flight requirements is down significantly. Recently, Global Aviation—parent company of World Airways and North tin two years. Citing a “continued worldwide downturn in commercial freight markets coupled with the military’s decision to immediately curtail its cargo expansion flying” drove the company to go back to the court system for relief. Just Jeffrey D. McKaughan Editor-IN-CHIEF coming out of Chapter 11 earlier in 2013, the past few years have demonstrated the competition for DoD contracts as a growing number of carriers look to supplement their revenue base with government contracts. As Military Logistics Forum was being readied for print, it appeared that Evergreen International Airlines, a cargo airline with long connections to the U.S. military, was laying off employees and planning to shutter its doors at the end of November. A statement issued by the company’s chief executive officer said, “Evergreen’s business has been adversely impacted over the past several years by decreased demand in military spending and weakness in global economic markets.” In the same statement he said that rumors of the airline planning to shut down were “at this time false,” although unless a white knight comes to the rescue, a shutdown appeared imminent. Of the 22 carriers listed as approved Civil Air Reserve Fleet long-haul carriers—both passenger and cargo—for July 2013, one is no longer in business, three are in Chapter 11 and one is expected to close its doors before this magazine reaches your hands. While Chapter 11 is a financial condition and does not necessarily reflect any operational issues, the numbers do highlight the challenges and competitive nature of the government charter business. There is always somewhat of a push-pull going on between DoD and its organic airlift capability and the nonorganic partners it has to supplement lift during times of a surge or when specific conditions make a commercial contract the most cost-effective and viable option. Naturally, interest and participation in CRAF fluctuates with the level of conflict around the world. Just as the services became accustomed to higher budgets over the past decade, so too did the commercial carriers that flew on behalf of DoD. I suspect there will be a few more struggles as airlines find alternates to the government contracts they have been flying for.
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Maersk Line, Limited was awarded its first government contract in 1983 for the conversion and operation of five Maritime Prepositioning Ships for the U.S. Navy’s Military Sealift Command. 30 years later, we continue to provide quali service operating and managing U.S. government ships, and our U.S. flag fleet of containerships, tankers, heavy lift and roll-on/roll-off vessels supports the U.S. Military worldwide. Our efforts have been—and will be —guided by our values and commitment to the U.S. maritime industry, national securi , and environmental stewardship. Trust and integri will ensure that we are serving our customers 30 years from now.
LOG OPS Afghanistan Transport Contract USTRANSCOM has exercised a renewal option with AAR valued at approximately $156 million for airlift support in Afghanistan through October 31, 2014. The renewal extends AAR’s mission-critical support of the U.S. military under a contract awarded in September 2010. The company will meet the requirements using 10 rotor-wing aircraft from its fleet. The U.S.-based defense contractor transports people, cargo and mail for DoD and NATO operations in Afghanistan. “We are proud of our role as the largest provider of airlift for the U.S. government and its allies in Afghanistan and to serve as an integral part of our nation’s logistics capability,” said Randy J. Martinez, president and chief executive officer of AAR Airlift Group. “This renewal reflects the excellent work of our pilots and support teams and the confidence they have earned supporting USTRANSCOM and Department of Defense operations.”
Compiled by KMI Media Group staff
Electronic Systems Tester AAI Test & Training, an operating unit of Textron Systems, a Textron Inc. company, has developed the next generation of its proven joint services electronic combat systems tester (JSECST) end-to-end system. The JSECST quickly and accurately tests and isolates faults in electronic combat and avionics systems in today’s advanced combat aircraft. The new 670A upgrade kit adds digital radio frequency memory and test capability, as well as extends system compatibility to future platforms and applications. “Designated the AN/USM-670A Electronic Systems Test Set by the U.S. government, the JSECST 670A upgrade resets the life cycle clock on one of the most successful end-to-end military test systems of the modern age,” said AAI Test & Training
Senior Vice President and General Manager Steve Mensh. “With a simple upgrade kit that can be customer-installed in just hours, our JSECST 670A is compatible with legacy, current and future platforms for years to come. It is an affordable and value-added upgrade path.” AAI Test & Training and the U.S. Air Force will continue to implement the JSECST USM-670A upgrade program over the next several months, with system regression testing scheduled for early 2014. The JSECST system is utilized for more than a dozen aviation platforms by every branch of the U.S. military, as well as numerous international customers including Canada, Australia, Kuwait and the Netherlands.
PEOPLE
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as director, Central Command Deployment and Distribution Operations Center, U.S. Central Command, Southwest Asia.
Alan F. Estevez
Alan F. Estevez has been assigned as principal deputy undersecretary of defense (acquisition, technology and logistics), Washington, D.C. Estevez previously served as assistant secretary of defense (logistics and materiel readiness), Washington, D.C. Colonel Sam C. Barrett, who has been selected for the grade of brigadier general, deputy director, operations, Headquarters Air Mobility Command, Scott Air Force Base, Ill., has been assigned
4 | MLF 7.10
Air Force Brigadier General Stayce D. Harris has been nominated for appointment to the rank of major general. Harris is currently serving as the mobilization assistant to the commander, 18th Air Force, Air Mobility Command, Scott Air Force Base. Northrop Grumman Corporation has named Harry Q. H. Lee II, vice president, corporate contracts, pricing and supply chain, reporting to James F. Palmer, corporate vice president and chief financial officer. Army Colonel Daniel G. Mitchell has been nominated for appointment
to the rank of brigadier general. Mitchell is currently serving as deputy commander, U.S. Army Sustainment Command, Rock Island Arsenal, Ill. Rear Admiral Mark J. Belton will be assigned as deputy commander, Naval Supply Systems Command, Mechanicsburg, Pa. Belton previously served as commander, Navy Expeditionary Logistics Support Group, Williamsburg, Va. Rear Admiral (lower half) Valerie K. Huegel will be assigned as commander, Navy Expeditionary Logistics Support Group, Williamsburg, Va. Huegel previously served as deputy commander, Global Logistics Support Command, San Diego, Calif.
Fort Bragg, N.C., and Camp Arifjan, Kuwait.
Rear Adm. James R. McNeal
Rear Admiral (lower half) James R. McNeal will be assigned as deputy commander, Global Logistics Support Command, San Diego. McNeal previously served as commodore, Fifth Naval Expeditionary Logistics Regiment, Point Hueneme, Calif. Major General Darrell K. Williams, deputy chief of staff, U.S. Army Materiel Command, Redstone Arsenal, Ala., has been assigned as commanding general, 1st Sustainment Command (Theater),
Brigadier General Edward M. Daly, special assistant to the commanding general, U.S. Army Training and Doctrine Command, Fort Lee, Va., has been assigned as deputy chief of staff, U.S. Army Materiel Command, Redstone Arsenal, Ala. Colonel William E. Cole, who has been selected for the rank of brigadier general, chief of staff, Office of the Assistant Secretary of the Army (Acquisition, Logistics and Technology), Washington, D.C., has been assigned as deputy commanding general, U.S. Army Research, Development and Engineering Command/ senior commander, Natick Soldier Systems Center, Natick, Mass.
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Special Section: Setting the Table
Cuts Too Deep? The Government Accountability Office recently released the results of an audit they performed to see how DoD managed sequestration in 2013. “In general, DoD’s approach to sequestration was a short-term response to address the immediate spending reductions for fiscal year 2013,” was their one-liner. “As such, the response was not a comprehensive review of potential long-term implications should sequestration occur in subsequent years. DoD officials noted that the department had begun some activities that may inform its decisions in fiscal year 2014 and beyond and may better position it to make more strategic choices should sequestration continue. For example, DoD recently completed the ‘Strategic Choices Management Review,’ which is intended to help inform DoD’s preparation for alternative funding levels over a 10-year period. DoD has also begun development of the 2014 Quadrennial Defense Review, which will be a review of U.S. defense strategy, force structure, budget plans and related policies.” Among a number of areas looked at, depot maintenance and base operating support were two.
Vice Admiral Philip Hart Cullom
The Department of Defense faces unprecedented budget constraints now and in the coming
years. At the same time, the security challenges we face as a nation continue. Our mission as DoD logisticians, first and foremost, is to support the warfighter. As the chief of naval operations stated in the 2014-2018 Navigation Plan, “Regardless of reductions, we (Navy) will continue to operate forward with ready forces, where it
Ensuring that logisticians have a voice. Depot Maintenance: “DoD prioritized funding to maintain equipment readiness for ongoing operations. However, reduced funding levels due to sequestration required some of the services to defer depot maintenance that had been planned for fiscal year 2013 until future years. Base Operating Support: “Service installation commands and other organizations responsible for oversight of base operating support issued guidance that outlined areas where spending reductions could be implemented—such as deferring building sustainment, delaying the renewal of contracts and reducing electricity usage—without sacrificing the protection of life, health and safety. With this in mind, and actually before the GAO report was even released, Military Logistics Forum reached out to several senior logisticians and asked them, “Is there a concern that as reduction and trimmings are made, the logistics community will bear an uneven amount of the burden? Is logistics too easy to cut and how do you make the case that strong logistics is vital to the bottom line?”
Deputy Chief of Naval Operations for Fleet Readiness and Logistics
matters, when it matters.” Fiscal challenges in the coming years are a near certainty and DoD logisticians cannot leave it to chance that the current Department of Defense logistics networks will continue to effectively support the warfighter as further reductions are made. Difficult decisions about which activities supporting organizations must continue to
Vice Admiral Mark Harnitchek
No, I am not concerned that logistics will
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bear an uneven share of the burden. After 12 years of conflict and countless natural disasters, here and abroad, the department recognizes the importance of logistics. The Defense Logistics Agency’s relief operations in the Northeastern United States after Hurricane Sandy attest to the value of our logistics
perform and which activities they can stop doing will have to be made, but at the same time must only be made after careful consideration of the effects on readiness and operational capabilities. As DoD logisticians, we must instill a culture of judiciousness. Inefficient logistics systems are not only a waste of scarce fiscal resources but also a
potential vulnerability that can lead to operational failure. We must therefore strive to improve decision making to optimize the overall system. It is equally essential we develop solutions that increase logistics resiliency and supply chain flexibility to maximize the options available to those who most depend upon our services—the warfighter.
Director, Defense Logistics Agency
capability as a national asset. We have a longstanding partnership with FEMA, dating back to post-Katrina, to provide all manners of logistics support during disaster relief operations. From barges and blankets to fuel, cots and trash removal, we did a little bit of everything. We’ve been through challenging financial
times before. In the 1970s, budget cuts were heavily weighted against logistics capability without accompanying reductions in force structure. The result was a poorly equipped and supplied military that was unprepared to meet its strategic and tactical goals. The department recognizes that mistake and
has made it clear that a smaller, well equipped and trained force is preferable to another large but “hollow” force with limited logistical support. I believe the case for maintaining a strong logistics capability has already been made. Since the beginning of operations in Iraq and Afghanistan, we’ve been
MLF 7.10 | 5
Special Section: Setting the Table
mindful that when those operations come to an end, budget reductions would be inevitable as the force downsized. As a result, DLA instituted an efficiency initiative known
as “Big Ideas,” with the goal of $13 billion in savings by 2019. To date, $2.9 billion of that goal has been achieved. The series of continuing resolutions and
the sequestration have imposed a much bigger challenge than anyone anticipated. However, DLA’s continuous effort to reduce cost, while at the same time
Lieutenant General Bruce Litchfield
The Air Force Sustainment Center, part of Air Force Materiel Command, has embarked on a groundbreaking effort to transform our operations from effective to cost effective. AFSC has leveraged best practices while keeping focused on warfighter support to create “The AFSC Way.” The
AFSC Way is based on a shared leadership model that emphasizes speed (productivity), safety, quality and cost effectiveness in every process, and every work center across the 33,000-person enterprise, in order to achieve “art of the possible” results despite declining budgets and fiscal uncertainty. The AFSC Way uses scientific methods based on the theory of constraints, critical path and lean principles to drive continual process improvement to increase speed (productivity), eliminate waste and remove constraints
providing responsive logistical support to the warfighter, has the agency well positioned to navigate the budget challenges ahead and I’m confident we’ll get
through this. As the vice chief of naval operations said when he coined a phrase from the British during the dark days of the Blitz in 1940: “Keep Calm and Carry On.”
Commander, Air Force Sustainment Center
in critical processes. It is all about building a high-confidence plan and executing to the plan while understanding and reducing our costs. As a $16 billion a year enterprise, it is the duty of the center to be as cost effective as possible for our Air Force. But it is more than simply being good stewards of our resources; it’s about winning tomorrow’s wars. As a key contributor to Air Force readiness, AFSC must be able to provide more readiness at the same cost, or today’s readiness at decreased cost. It’s clear that the
cost of readiness will determine the size of the force we can afford, and the size of the force will determine our ability to fight and win tomorrow’s wars. That’s why AFSC has championed the idea of cost-effective readiness for our Air Force. As the United States transitions from decades of conflict to an environment of peacetime funding and reduced budgets, the focus must shift from readiness at any cost to a cost-effective readiness that balances risk with fiscal realities. Cost effectiveness is achieved
through increased levels of integration and efficiencies, as evidenced by the tactical-level wins in the AF Sustainment Center’s Road to $1 billion. However, the real opportunities for costeffective savings lie in the integration of readiness processes at the Air Force level and higher. Only through a strategiclevel examination of the factors that drive readiness and the interaction between them will our Air Force be able to drive to a cost-effective readiness that will ensure we are able to fly, fight and win in the future.
Major General John J. Broadmeadow Commander, Marine Corps Logistics Command
In times of declining resources and shrinking budgets, it has always been tempting to offer up logistics as the financial “trade space” for more immediate and
6 | MLF 7.10
kinetic elements of combat power. But, as we have seen in similar fiscal cycles in the past, this approach inevitably proves itself operationally risky and strategically shortsighted. Today we are faced with a national security environment in which crises often erupt quickly, accelerate violently, and, if not confronted soon enough, overwhelm decisively. Forward presence and
engagement in regions ripe for conflict is the necessary posture, and the U.S. Marine Corps, as America’s expeditionary force in readiness, is charged with this duty. Crisis response requires a nimble, lethal and selfsustaining force that functions adeptly across the full range of military operations. These qualities are the fundamental characteristics of the Marine Corps’ combined arms philosophy that
drives our organization for combat. Our deliberate integration of ground combat, aviation combat and logistics combat elements within a single Marine air-ground task force (MAGTF) under a single commander is the cornerstone of expeditionary operations. Moreover, it is also the way the Corps has fought for decades. We understand, like all service branches, that cuts and reductions
are here and that we must implement them judiciously. But we are also keenly aware that pruning one element of the MAGTF too deeply destroys the synergy generated by all three working together. This synergy is the foundation of our expeditionary combat power; just as we recognize that reducing our aviation or ground combat capability too far is imprudent, we will apply the same
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Special Section: Setting the Table
caution to logistics. The MAGTF functions as a cohesive whole, and changes to one element have impacts on the others. Further, we cannot simply redirect wholesale cuts at our strategic logistics base (acquisition and depot
maintenance, in particular) without jeopardizing the enduring health of the force. This, more than anything else, prevents us from isolating a single element—in this case, logistics—and making it the bill payer for the other two.
The Marine Corps’ unique national security role as the nation’s expeditionary force in readiness ultimately elevates logistics to the same level of value exhibited by ground and aviation combat elements. This fact, proven over and over
Major General Thomas J. Richardson
The fiscal burden will be felt across the department. This is certainly a challenge, however, that leads to opportunity for the Military Surface Deployment and Distribution Command. As the Army service component command to U.S. Transportation Command and a major subordinate command to Army Materiel Command, SDDC’s strategic roadmap is
aligned with the Army’s vision for the future. SDDC touches 87 percent of the cargo going into and out of Afghanistan. Our immediate challenge is meeting the president’s deadline to be out of Afghanistan by the end of 2014. While focused on this mission, we are also preparing for the future. SDDC’s core competencies will remain constant, but how and where we are organized and how we manage our business processes and lines of operations (international, domestic and household goods transportation missions) will change. This is why we’re already 18
again in Iraq, Afghanistan and across the globe, is well understood by the Corps’ leadership. Reductions will not rashly target logistics alone to purchase hasty but short-lived gains in other areas. We will balance today’s fiscal realities
against the capabilities required of our mission, making adjustments to the MAGTF as a whole. This is the most effective means by which to address today’s fiscal realities while fulfilling our national security responsibilities.
Commander, Military Surface Deployment and Distribution Command
months into an aggressive campaign plan for 2015 and beyond. Our military is becoming more of a CONUS-based force. This shift, along with the drawdown of forces from Afghanistan, means our domestic transportation mission will increase while our international support mission decreases. SDDC’s current global footprint, however, is still postured for the Cold War. We’re working now to re-position and reshape our transportation brigades and battalions for tomorrow’s force. What skills will they need? What tools will
they need? And where will they need to be located to provide that support? We’re also reshaping the headquarters and examining how to reduce our personnel strength. Of course, it’s a huge challenge to do this and take care of a skilled and loyal workforce. But it’s also an opportunity to reshape and develop talent and competencies. We’ve already begun the process of identifying and eliminating redundancies while shifting and consolidating responsibility for some of our business and operations functions. Whether the cargo
SDDC moves is for a contingency or if it’s a servicemember’s personal property, the rates we charge our customers are paid for by budgets that are being drastically cut. SDDC is the only USTRANSCOM component that provides distribution integration and is node and mode neutral. As the “heavy lifter” for USTRANSCOM, we are focused on gaining greater effectiveness and efficiencies in our ability to plan, order, ship, track, pay and bill for the services and support we provide. It won’t be easy, but we are taking advantage of this opportunity to posture SDDC for the future.
Rear Admiral Lawrence B. Jackson Deputy Commander, Military Sealift Command Military Sealift Command is—and will continue to be—a vital part of our Navy, operating forward and supporting our nation’s warfighters. The logistics capabilities our command provides ensure combatant ships remain supplied and at sea,
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that strategic materiel is prepositioned and rapidly available, and that efficient and costeffective ocean transportation is available to DoD and other federal agencies. And these are just a few of the missions that MSC ably performs.
Make no mistake, though; we are not back to business as usual. Ongoing fiscal issues, including sequestration, mean uncertainty is likely to be factor in our operations. MSC is a unique Navy command. As an entirely working capital fund activity, the
money we use to operate is not allocated by Congress, but provided for services rendered to other Navy, DoD and federal entities. In other words, if our customer’s operational needs shrink, our business will also shrink in reaction to their needs. O
MLF 7.10 | 7
How talking with and listening to industry can be a driver of lower costs and increased efficiency. By Peter Buxbaum, MLF Correspondent
There are many ways that military logistics organizations can partner with private industry to enhance the efficiency of defense supply chain. Companies can integrate into the military’s shipping systems, they can send electronic proofs of delivery, they can provide service to remote areas of the world with minimal commercial customers, and they can work with their outsourced supplier to provide vendor direct transportation. But one of the most valued aspects of supply-chain partnerships to the Defense Logistics Agency involves talking. By engaging with industry leaders, the DLA can learn industry best practices and both sides can understand how best to use their respective capabilities to bring value to the warfighter. “We have a captains of industry program,” said Major General Kenneth Dowd, the DLA’s director of logistics operations. “We invite high-level executives from the companies from the medical business, for example, to talk about what DLA is doing in that lane and hear the lessons they have learned from their operations on how to improve processes and cut costs.” “We find that communication is key,” said Nancy Heimbaugh, director of DLA acquisition. “We ask industry leaders how they drive efficiencies into their supply chain and we translate those into contractual changes. We make it a win-win for industry and the DLA.” “One of the ways we partner with the military is in sharing commercial best practices,” said Charlie Covert, vice president of customer solutions at UPS. “We have met people like General Dowd and others in the military logistic community and have found them to be very receptive to looking at commercial best practices and figuring out how they can be applied to military missions. At the same time, it is important for commercial organizations to understand the military. They usually don’t have profit or revenue targets, but they do have mission to be accomplished.” 8 | MLF 7.10
By adapting commercial processes, DLA often reduces specific supply chain costs by as much as 20 percent, according to Heimbaugh. “Through the six to seven forums a year we have with major industries, we have been able to identify $1.5 billion in costs we can take out of our supply chains over the next five years,” she added. The changing defense budget picture over the last decade has forced adjustments in how the military and its industry partners view their partnerships, driving new thinking on how agencies and companies can come together to being more value to warfighters. “In the time frame after 2001, the primary measurement [of the success of a collaboration] was whether the mission was successful,” said Kirstin Knott, director of worldwide sales at FedEx. “Cost wasn’t as much of a factor. In the aftermath of sequestration, success is being redefined through best value and through developing solutions together. These drive efficiencies yet still allow the carrier to remain profitable.” One of the implications of this trend involves changes in how logistics companies are evaluated. “Evaluating a company on best value is essential,” said Knott. “Transportation may seem to be a candidate for a lowest price, technically accepted evaluation, but, in reality, it isn’t. Carriers need to invest capital to have the necessary fleet of aircraft and trucks to provide a reliable service. The lowest-priced carrier may not have the asset available at the time requested. Choosing best value allows the carrier to work with a shipper to develop a program specific to their needs while meeting the requirements of the contract.” The effort to more carefully customize transportation services to the military’s needs has given rise to multi-modal transportation partnerships and contracts, through which, typically, two or more companies will come together to execute complex moves on behalf
of the government. “Multi-modal contracts require multiple entities to partner their core competencies together and apply them to particular situations,” said Covert. “This has worked pretty effectively. It reduces the number of freight hand offs and puts the onus of managing the moves on the civilian partnership.” “Under the U.S. Transportation Command’s new multi-modal contract, we offer ocean services and we have a partner that offers air service,” related Torben Svenningsen, senior director of government sales at Maersk Line Ltd. “We are both U.S.-flag carriers in our own arena. We are two partners that are operating together that sometimes would act in competition. We get efficiencies in cost and speed since it is cheaper to sail and faster to fly. It is hard to get goods in and out of a landlocked country like Afghanistan using only our service infrastructure. But we can fly now as well to get the goods out, which helps when we have difficult countries surrounding Afghanistan.” Maersk Line is partnering with National Air Cargo on the multi-modal contact, with National being the prime contractor and Maersk its subcontractor. Those roles were reversed in earlier TRANSCOM multimodal contracts. “The government is really third partner in this scenario,” said Svenningsen. “The government asked us to do this. It’s like a three-legged stool. It can’t stand without all three.” The armed services and other military logistics groups are attempting to optimize transportation services and modes when that makes sense, according to Knott. “A MICAP (mission impaired capability awaiting parts) is sent priority overnight while another item may be sent via second day air if it isn’t mission essential,” she explained. “If a base is within 100 miles or so of a depot and the shipment isn’t a top transportation priority, www.MLF-kmi.com
it might be sent via ground rather than air. Service and mode optimization reduces the overall transportation spend without jeopardizing the readiness level.” “These partnerships benefit military logistics in several ways,” said Svenningsen. “They provide expedited timing so that transit time is shorter and speed to destination is faster. In the case of food, for example, the military can carry a lower inventory of food in-country because they know the supply is coming in faster.” The risk of loss has also been reduced with the multi-modal contract. “Based on our take, we have handed cargo over in good condition,” said Svenningsen. “The cost is comparable, and safety has increased and risk has been lowered by utilizing multimodal services.” Pilot Freight Services also provides the air leg of multi-modal moves under a contract with the U.S. Navy. Under this contract, Pilot flies out of theater aircraft components that are in need of repair to seaports such as Jebel Ali in Dubai, where they are loaded onto ships of transport to repair facilities. Pilot personnel are stationed at naval installations, where they work hand-in-hand with Naval personnel to get the job done. Pilot also stages freight for the Navy for forwarding to repair destinations such as Navy depots in San Diego, Norfolk and New Cumberland. One of the services included in Pilot’s contract is to provide advanced tracing capabilities. “The Navy has certain windows during which they want something done,” said Larry Wenrich, Pilot’s vice president for government services. “They may want a component delivered to a repair node and then back to a storage node within 10 days. We are responsible for moving the component between all those points and we are accountable for getting it where it needs to go to get repaired.” The tracking and tracing is accomplished through a company system called CoPilot. “Everything is entered into that system and we provide the customer with progress benchmarks along the way,” said Wenrich. “The customer is also able to get into the system, but generally they manage by exception. They don’t get involved unless something didn’t reach its destination when it should have.” FedEx integrates into the military’s shipping systems such as Global Freight Management, the Cargo Movement Operation System (CMOS) and the Distribution Standard System (DSS), and sends electronic www.MLF-kmi.com
proofs of delivery into systems like Electronic Retrograde Management System-Navy and IGC (Integrated Data Environment/Global Transportation Network Convergence). “Integrating with DSS or CMOS makes shipping easier,” said Knott. “The distribution systems are integrated resulting in a shipping label being produced, linking a tracking number to a requisition, and uploading the information into a payment authorization system. Time on the shipping dock and in the billing department is reduced, keying errors are minimized and visibility to the shipment is increased. “From a carrier perspective, the military shipping systems generate a shipping label which meets our requirements,” she added. “From the DoD perspective, it is integrated into their order processing systems.” The DLA has effected changes in its contractual relationships as a result of interfacing with industry leaders and is now contemplating sharing its costs savings with its industry partners. “Industry leaders in fuel and energy indicated that we could get better prices if we were to establish longer term contracts,” said Heimbaugh. “Previously, we were typically writing one-year contracts for bulk fuel. We stretched those to two and three years and found that that increased competition and lowered costs.” The DLA also saved money by streamlining the way its customers acquire subsistence commodities. “Our traditional method of contracting allowed for several different catalogs for the military services to acquire subsistence goods from,” said Heimbaugh. “Our industry partners came up with an idea for reducing and streamlining the catalogs. This is another example of how we identified supply chain costs reductions and greater efficiencies.” As a result of these successful collaborations with industry, the DLA is now looking at incorporating costs-savings incentives into its contractual structures. “We are looking at moving into fixed-price incentive contracts,” said Heimbaugh. “Typically we don’t do that, relying instead on firm fixed-price contracts. But by having these dialogues with industry we feel we can challenge ourselves on how to incentivize contractors by sharing the savings with them.” Besides reducing prices and costs, the DLA also measures the success of its contracts on criteria such as material readiness and availability. “If you look at the data points,” said Dowd, “our material readiness rates in Afghanistan and worldwide are
much higher than they were 15 or 20 years ago. Partnerships with industry help make those repair parts more readily available and to push them forward to where they are needed.” “We recognize that as we move forward, the new norm will be more partnerships with like-minded companies that are not necessarily operating in the same space,” said Svenningsen. “There is going to be more collaboration among ocean, land and sea carriers.” The winding down of the conflicts in Southwest Asia might have put a dent in the business of some of the transportation carriers for the moment, but the idea of multi-modal collaboration will likely pick up steam, according to Svenningsen, as the U.S. military focuses on new areas of operations such as Africa. “This was just the beginning,” he said. “We have the whole continent of Africa with difficult places to reach, and the new formula has potential there. You circumvent logistics challenges by partnering. We can move goods in the fastest, safest, most efficient way by sea or air to risky countries. “Five years ago, air and ocean carriers looked at each other as threats,” Svenningsen added. “Now we realize that there are areas where we can compete and other areas where we can benefit by joining forces.” Budgetary constraints will continue to drive the movement toward governmentindustry logistics partnerships, according to Covert. “Reductions in the defense budget means the military will have an increasing need to rely on civilian capabilities,” he said. “They will have less ability to make investments and, related to that, they will need to reduce inventory levels without sacrificing war fighting capabilities. Some investments in vehicles and aircraft can be deferred while relying on civilian capacity. The military will have to plan how to deploy inventory to meet mission objectives at lower costs.” For Dowd, the trust that is being developed between the military and its industry partners is a key outcome of the extensive talks DLA conducts with captains of industry. “DoD and industry are talking at the highest levels,” he said. “We are developing the kind of trust that is necessary to assure the highest possible support for warfighters.” O For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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Tight budgets demand even better ILS. By Henry Canaday MLF Correspondent
ment, acquisition, test, fielding and support, Building logistics into the design and on through retirement. planning of weapons and other systems ILS benefits include improving reliabilthrough integrated logistics support (ILS) ity, availability, maintainability and safety in has a long history. But it constantly changes logistics. The directorate said ILS is essential as lessons are learned, new tools are develto managing the “big three” of any program’s oped and new challenges are encountered. life cycle: cost, schedule and performance. The core aim of ILS—more reliable assets The major hurdle to effective ILS is finansupported at more affordable costs—is cial constraints. Costs can usually be cut in more essential than ever under today’s tight only three areas: performance, quantity or defense budgets. logistic support. The directorate said, unforEvery Air Force weapon system has ILS tunately, costs are usually cut in logistics. to some degree, according to Air MobilNaval Air Systems Command orgaity Command’s Directorate of Logistics. Air nizes ILS with a life-cycle sustainment plan Force ILS covers many elements, including (LCSP), explained Ildegardo Olea, technical reliability engineering, maintainability engidirector for logistics management integration neering and maintenance, planning for spare at NAVAIR. The LCSP begins at the materiel parts, support and test equipment, mansolution analysis phase of acquisition with a power, training, technical data, computer technology analysis and analysis of alternative resources, facilities, packaging, handling, (AoA) support options. The AoA storage and transportation, looks broadly at all logistics as well as design interface. choices in light of the concept ILS is set up through of operations and other factors. collaboration with the Air At this early stage, NAVAIR Force Lifecycle Managefocuses on key drivers of ment Office and other stakelong terms costs, items that holders. Formal boards are may be unreliable, costly or established to ensure colrequire highly skilled labor. laboration and prioritization “We want to see if we can of resources. The ILS proimprove here, to minimize cess runs from specification Ildegardo Olea the impact,” Olea said. and design through develop10 | MLF 7.10
As technology is developed, NAVAIR establishes the sustainment concept and a framework for execution and sets metrics goals, thresholds and test methods. During engineering and manufacturing development, the LCSP defines support structure and product support package (PSP) requirements. PSP and metric verification methods are established and detailed development and fielding plans are established. The LCSP defines further steps as the system enters production and fielding. But Olea said the toughest steps are the early ones, especially pushing supportability in design. “We are after capabilities, to complete a mission, kill the target or do surveillance. With limited budgets, sometimes performance wins out over supportability.” One of largest benefits of ILS is that the military can gain the expertise of companies whose sole focus is on logistics, said Rosemary Johnston, vice president of federal sales strategy and business operations at Savi. These companies may be experts in logistics as a whole, or in specific elements of ILS, such as part management, test equipment, training, technical data, facilities, package handling and so forth. “This allows the military and Defense civilians to focus on other critical aspects of the program,” Johnston says. “The firms have repeatable processes www.MLF-kmi.com
Alion often brings high-quality engineerthat they have fine-tuned to save manpower ing to a program very quickly to help the and costs.” government with tough ILS challenges, said Savi’s logistics specialties are in packagCharles Fletcher, director of the firm’s Army ing, handling, storage, and transportation and logistics programs and once director of (PHS&T) and in inventory management. operations and plans at U.S. Transportation The firm uses historical and real-time data Command. On technical data, the firm has to keep assets headed in the right direction, a very strong relationship with the Defense exploiting automatic identification technolTechnical Information Center. It also helps ogy (AIT) tools, barcode and both active and with design interface, making sure new equippassive RFID, to save manpower and costs in ment works with older items and simplifying the process. supply chains by using common parts. Johnston said one major hurdle to effecFletcher said ILS has been around a long tive ILS is that there are so many partime, citing the efforts of the U.K. Ministicipants, including military, government try of Defence (MOD) in the civilian and contractor staff. early 1990s to look at life “You must make sure you have cycle costs as an important a tight plan that everyone feels milestone. He noted that U.S. a part of and feels they have services have pursued ILS in invested in.” many different ways, with the Further, the “heart” of Air Force, for example, puteffective ILS is metrics, Johnting responsibility on Boeing ston stressed. “Make sure you for the life cycle cost and have sound metrics that meareliability of the C-17 Globesure both the effectiveness and master. efficiency of the entire team. Charlie Fletcher The first step in ILS is And senior management must to decide on a strategy of manage expectations around support. The U.K. MOD is now putting the those metrics.” full burden of support on equipment manuAlion Science supplies engineering, techfacturers, after further cuts in budgets and nology and operating solutions for defense, disappointment with some internal systems government and commercial organizations. that were supposed to cut costs. “They figure if About half of Alion’s work is done for the they can pick the right provider that firm will Navy. It also works for the Army’s Tank Autobe better qualified to do it,” Fletcher observed. motive Research, Development and EngiHe said 80 percent of U.K. defense vehicles neering Center and night-vision offices, Air are supported by OEMs and MOD is now outForce Space Command, and the Marine sourcing the supply chain. Expeditionary Force.
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That might be one model for U.S. ILS in the future. But there are many others. Fletcher said one big impediment to effective ILS is still the separation of defense funding into acquisition and support accounts, which can make acquisition people seek to stay within their allotment, even if other costs rise down the road. And initial program managers often retire before their products are delivered and accumulate a cost and reliability record, making it difficult to incentivize performance. On the other hand, Fletcher said there is now a much more sophisticated management overwatch of financial, technical and logistical staff and installation managers. ILS means making all of these people accountable throughout the life of a program, he stressed. He believes defense agencies are getting better at the man-machine interface, so operators are not breaking equipment as often and breakages can be fixed more readily. With tighter defense budgets and fewer new programs, Fletcher hopes top engineers will migrate to reliability engineering. But he cautions that this field, while critical, is not as glamorous as designing new systems. “The key to ILS is metrics. You have to establish them, clearly articulate them and measure them against execution. It’s not the kind of thing you put on a company billboard.” ILS means considering all logistic elements when building a product-support strategy, according to Alan Thompson, former director of the Defense Logistics Agency and now vice president of logistics at Honeywell Technology Solutions. Sometimes effective
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something in the field, sometimes you are ILS takes a very specific form. “Performanceout of business.” based logistics (PBL) are an example of ILS Newton said effective ILS means field staff that provides exceptional support, cost saving must have the right information in the right and improved reliability and maintainability,” format. He recalled the Navy’s move to online Thompson said. technical manuals. “That is wonderful if you Honeywell has several PBLs in which it are sitting at a desk, but when you are climbprovides program and supply-chain manageing a mast, there are no laptops.” ment and some engineering support, while Newton said planners must ensure they government depots provide facilities and can support any product before they put it labor. on a ship. “There is a disconnect sometimes The Honeywell exec estimates that, across between installation engineers and logistics platforms, Honeywell PBLs have achieved a engineers.” But he said things are moving 20 percent gain in component or system reliin the right direction, with defense making ability, a 10 to 15 percent reduction in repair total cost of ownership and life cycle cost key cost and shorter logistical response times. metrics. “Long term, they also protect the capability of Newton argued that private support of government depots—that’s huge.” ILS is essential. “The government is too The Defense Department now has an inilarge a bureaucracy to respond tiative to move to an Enterquickly. It takes at least a year prise PBL contract that from learning about a need to Thompson believes would awarding a contract. Look how be very beneficial. PBLs many thousands of new applicahave evolved differently over tions come out each month. The a dozen years in the Army, military is still using barcodes, Navy and Air Force, and while the rest of the world is on they could be made more QR codes.” consistent. Phoenix helps the Navy evalAt Hill Air Force Base, uate the readiness of aircraftHoneywell provides proAlan Thompson carrier modifications, figuring gram and supply-chain out if the logistics is ready three management and engineermonths before installation or if ing for components on the an exception can be made to this C-130 and the F-15, while at requirement. “If the operating Corpus Christi, its PBL just manual is not ready, they can’t supports the supply chain. do testing, so it’s not okay,” he “If we moved to a fuller PBL explained. “But if it’s a coffee there, we could provide maker, it’s okay. We help make real benefits,” Thompson those tradeoffs.” argued. “We do not want For 20 years, NCI has consistency for consistenworked for Program Executive cy’s sake, but to make PBLs Bill Newton Officer Soldier, helping ensure more comprehensive to proeverything a soldier wears or vide more benefits.” touches is supportable and has the lowest life Hurdles to effective ILS through PBLs cycle cost possible, explained Senior Techniinclude differences in practices among the cal Advisor Alan Cartwright. services, and “any time you try to standardize Cartwright has worked in ILS since 1979 you are going to have frictions,” Thompson and once was ILS manager for Army Materiel said. Command, where he worked on the AH-64 The new Enterprise PBL approach has Apache Longbow, the CH-47 Chinook and the picked up momentum in the last six months. Aquila remotely piloted vehicle. It would consolidate a firm’s individual PBLs “ILS has well-established benefits, maxiinto a single defense-wide contract. “We mizing supportability and minimizing cost,” expect to see an RFP soon,” Thompson noted. Cartwright summarized. “Before ILS, the Other managers speak of ILS from operamilitary found that a lot of systems were tional experience. fielded without the consideration of logistics. “Logistic support is critical to sustaining The ILS veteran said software is now a force in operations,” said Bill Newton, now much better than when he started. Among vice president of the Phoenix Group and a major ILS elements, computer resources are former submarine officer. “If you can’t fix 12 | MLF 7.10
increasingly important. Cartwright argued that the most important ILS requirement is that logistics be designed into equipment up front. He recalled that an early mentor insisted that engine compartments of the Bradley fighting vehicle be made easily accessible so that the power pack did not have to be removed to replace frequently repaired items. Other evidence of ILS benefits: Both the Longbow and Chinook have been highly successful, while the Aquila was canceled because it could not meet ILS requirements. Cartwright said the ILS process varies by system, but is always iterative and integrated and is both art and science. “Many qualitative and quantitative tradeoffs must be made between operating and logistics and within logistics to find the optimal mix of ILS elements.” The process is aided by Logistics Support Analysis (LSA) and the LSA Record, which documents the process. “Processes differ depending on the system being developed. For instance, life-saving equipment, such as mine-resistant ambush protected vehicles, was deployed rapidly during conflicts in Iraq and Afghanistan. Other systems take 10 years or more to get into the combat zone.” Cartwright said some acquisition managers are still not as aware of ILS processes and benefits as they should be, although this hurdle is declining. “They must plan for the time and budget to do ILS well and seek the best subject matter experts they can find. It’s not easy to do this because budgeting for ILS adds money and time to the acquisition process. But it pays off in reduced life cycle costs and increased system readiness.” Cartwright pointed out that one ILS improvement made in PEO Soldier was NCI’s development of the Soldier as a System, which means looking at everything the soldier has to carry, especially the weight, to determine the effectiveness of systems as a whole. Cartwright predicted ILS will become more scientific in the future, with more prescribed steps, because there have been many lessons learned. “We have learned how to better customize ILS to fit the systems being acquired. We can also expect software to become more powerful in influencing designs to improve supportability and minimize cost.” O For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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AMCOM Initiatives Ensuring Army aviation’s tactical advantage.
Much of the Army’s rotary wing fleet has been doing frontline work for years. The next year is bound to be a challenge, so Military Logistics Forum wanted to get a sense for how they would manage their assets and resources in 2014. Q: What are the details in the upgrade of the UH60L models to bring them up to similar standards of the M model? With current and projected funding, how many airframes do you expect to upgrade and what is the timeline?
We were fortunate enough to speak with Major General Tim Crosby, Program Executive Officer, PEO Aviation, and Major General Lynn Collyar, commander, Army Aviation and Missile Life Cycle Management Command, about their major initiatives for 2014.
replace these airframes as the average age of the fleet is over 25 years and it is nearing the end of its life cycle. At this time, there is no plan to expand the size of the fleet in the near future. FUA is a commercial off-the-shelf solution that will integrate military communication, navigation, surveillance and survivability systems.
A: The L Digital program recently Maj. Gen Lynn Collyar received a materiel development decision on June 24, 2013. In that decision, the Army AcquisiQ: Is the maintetion Executive (AAE) authorized nance for the utilthe program to execute a costity fleet managed benefit analysis (C-BA) to inform organically or is senior leaders on the optimal utilheavy maintenance ity helicopter fleet mix to address contracted out to capability needs given current and industry? projected fiscal constraints. The AAE further authorized the proA: Our utility maintegram to request a performance Maj. Gen. TIm Crosby nance fleet is primarily plan from the government-owned managed organically at the Corpus Christi government-operated (GOGO) facility that will Army Depot in Texas, where key industry execute the design and integration portion of partnerships contribute to a team effort that the engineering and manufacturing developreturns utility aircraft to units quickly and ment phase of the program. The GOGO facileffectively. ity released a solicitation for subcontracted In terms of further detail, workload at work on October 1, 2013. These documents AMCOM depots is relatively constant, but will validate current government estimates to we have started seeing some reduction from ensure the acquisition community makes an wartime highs with FY13 program loads, and informed decision. The data provided by the this trend appears to be continuing as we C-BA and performance plan will supplement enter FY14. statutory and regulatory documentation in Looking to the future, we expect a consupport of a Milestone B decision anticipated tinued modification to overall depot workload in second quarter, FY14. as re-deployment from theater continues, which, coupled with the potential for further Q: For fixed wing utility aircraft, sequestration and Army reshaping initiatives, what is the average age of the sets the stage for significant uncertainty in fleet? Is there a need for either the overall requirements the Army will place replacement aircraft or fleet on our depots. expansion? That said, there is every indication that our organic industrial base and AMCOM’s A: The fixed wing utility aircraft (FUA) is depots will remain the centerpiece for flexible, a retirement and replacement program for rapid and economically viable support to the the aging operational support airlift fleet of soldier in the field. C-12 and C-26 aircraft. There is a need to www.MLF-kmi.com
As the AMCOM commander, I [Collyar] would also like Military Logistics Forum readers to know that RIMFIRE is a tear-down analysis program out of Corpus Christi Army Depot that analyzes high-dollar value components to determine actual reasons for failures, documenting and archiving those results for further engineering and logistics analysis. A thorough tear-down of components by experienced depot artisans also includes detailed inspection checklists, aimed at discovering trends, expanding component lives, and improving maintenance tactics, techniques and procedures. Q: The armed scout project seems to be a very moving target. What is the current thinking for a platform—buy new, upgrade or a mix? A: All major Army modernization programs are being assessed in light of the current budgetary pressures. This includes assessing the affordability of proceeding with the armed aerial scout developmental program. Army Aviation is balancing between upgrading legacy systems and developing future systems to provide the warfighter with increased capabilities. Q: What is the Army’s budget for ground support equipment and what do you see as 2014 requirements? A: The Army Aviation Ground Support Equipment (AGSE) Product Management Office (PMO) manages three active programs, with another 15 programs in sustainment, consisting of 52 line item numbers and over 33,000 separate components. Our motto is, “Right tools, Right time, Right place.” We are confident that our current and future projected budgets will continue to support fielded systems and bring new capabilities to the aviation maintainer. In 2014 the AGSE PMO will finalize the fielding of over 670 standard aircraft towing MLF 7.10 | 13
system (SATS). The SATS fills the requirement need for a standard aircraft towing system that is capable of repositioning all U.S. Army rotary and fixed wing aircraft and AGSE. Additionally, AGSE will field 67 shop equipment contact maintenance (SECM) vehicles. The SECM is a modified M1079A2 medium tactical vehicle that meets the requirement to provide aviation maintainers with the capability to transport a three-person crew with mission essential equipment, expendable supplies, spares and repair parts to fix or recover downed rotary wing aircraft on site. AGSE will also begin fielding three modernized capabilities in to meet 2014 requirements. By midyear AGSE will begin fielding 23,000-plus new, individual aviation maintainer tool boxes. There are seven different types of tool boxes, with new modernized, aerospace-standard tools, a more robust tool box, and foam shadowed drawers with a component listing, including picture diagrams for ease of inventory and reducing foreign object damage to aircraft. AGSE will begin fielding nearly 1,000 modernized maintenance platforms (MMP). The MMP will provide a stable working platform for Army rotorcraft maintenance activities and enhance the occupational safety environment for maintainers while providing improved mobility over unimproved surfaces and ease of transport on a standard U.S. Air Force pallet. 2014 will also mark the introduction of the non-ozone depleting hand held fire extinguisher (HHFE), developed by the AGSE PMO for extinguishing small cockpit fires in Army aircraft. The HHFE replaces the existing Halon-filled extinguishers with an approved, environmentally friendly sodium bicarbonate extinguishing agent. In addition to these major new system introductions scheduled for 2014, the AGSE PMO continues to modernize existing capabilities, including the introduction of both a temporary and permanent composite repair capability to the battle damage assessment and repair kit and the addition of a composite repair, one-sided expandable shelter, to the Aviation Intermediate maintenance shop set suite. As the crew chief’s PM, the AGSE PMO will continue to provide the repair, recovery and aviation fleet operational readiness support equipment to ensure aviation maintenance can be conducted across the globe and in any operational environment U.S. Army aircraft are found. 14 | MLF 7.10
Q: Can you explain what is involved in the service life and upgrade program for the Apaches and the AH-64E program? A: The remanufacture process of depopulation, pre-modification, technology insertion and final assembly provides zero-time airframes and improved system reliability, [as well as] incorporates unique item identification and condition-based maintenance initiatives while optimizing the continued modernization path for the inclusion of proven advanced technologies to the Apache program. The Apache comprehensive product support strategy utilizes metric driven outcomes enhancing AH-64E life cycle management by reducing the logistics footprint and life cycle costs; achieves best value long-term sustainment outcomes; incorporates awardwinning performance-based logistics; and uses analytical tools to support the decision makers in near-term and future sustainment support strategies to achieve soldier driven requirements focused on a supportable and sustainable system. Q: How are you going about getting all of the UAS stakeholders marching in step from a doctrine perspective so that you can gain synergies from the technologies? A: This is managed by our UAS teammates at Fort Rucker, Ala., or you can also contact the Training and Doctrine Command (TRADOC) at Fort Eustis, Va. From our perspective within the Project Office for Unmanned Aircraft Systems, we continue to lean forward with our five priorities: (1) supporting our forces engaged in overseas contingency operations, (2) executing and improving all of our programs, (3) improving efficiencies in our programs by embracing Better Buying Power 2.0, (4) focusing on UAS futures such as our Pre-Planned Product Improvement (P3I) program for each of the UAS product lines that represent sound investments that are well coordinated with UAS user representatives, and (5) building a world-class workforce. The Army is currently investing in Universal Ground Control Station (UGCS), an upgrade to the current One System Ground Control Station (OSGCS), that will provide additional system flexibility and commonality that will also provide significant reduction in future sustainment costs. We are also investigating a new TCDL antenna system in
response to our requirement for future Ka SATCOM datalinks. The Army is in the midst of UGCS development for Gray Eagle and Shadow UAS programs. Currently, UGCS has demonstrated ground and limited flight capabilities with Gray Eagle UAS using the current TCDL data link. We are confident that Gray Eagle UGCS will meet our requirements on time for a follow-on test and evaluation scheduled for late FY15. Q: What are some other technologies that AMCOM is looking at? A: From the Materiel Enterprise perspective, AMCOM is working alongside the Program Executive Office Aviation on: • • • • • • •
Improved Turbine Engine Program Kiowa Warrior CASUP (OH58F) Aviation Data Exploitation Capability CH47 - 6 different mods in the works JTRS (Joint Tactical Radio System) Integration Improved Data Modem 401 Aviation Light Utility Module Maintenance Cart
Additionally, and as a tactical advantage, we continue to pursue condition based maintenance, as more than 85 percent of our fleet is CBM-equipped. CBM is a great capability for the maintainer and commander on the flight line. It gives aviation soldiers another tool to assess the condition of a part and determine necessary maintenance, rather than the same component presenting a failure mode that requires a maintenance action to be completed immediately. If a component enters the yellow range, one can look at the rate of change to better determine expected remaining useful life on that component. Under combat operations, units may have replaced a component under a yellow indication, but in garrison may now need to “milk” the remaining time of a component to save financial resources. With components under the CBM umbrella, soldiers can make informed decisions with a high level of certainty. O For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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SUPPLY CHAIN
Compiled by KMI Media Group staff
Joint Stars Sustainment The U.S. Air Force has awarded Northrop Grumman Corporation a $178 million contract to continue sustaining the service’s entire E-8C Joint Surveillance Target Attack Radar System (Joint STARS) aircraft. The contract is a continuation of Northrop Grumman’s Total System Support Reliability (TSSR) program, which was first awarded in 2000. Through the TSSR program, Northrop Grumman is responsible for the logistics, engineering, training, mission support, supply chain and depot maintenance support of the Joint STARS fleet at Robins Air Force Base, Ga., and forward operating locations overseas. The program has maintained superior performance ratings throughout the contract’s 13-year history.
Boeing and AFSC PPP Boeing and the U.S. Air Force Sustainment Center (AFSC) have entered into an overarching public-private partnership that will streamline supply chain contracting, saving money and speeding up execution by as much as 10 months. The partnership—the first of its kind— allows the three Air Force logistics complexes that are under the AFSC to immediately execute implementation agreements with Boeing, reducing administrative costs and increasing efficiency. “Boeing is proud to lead the way for industry by developing a new, more efficient and affordable way to do business,” said Scott Strode, vice president and general manager of maintenance, modifications and upgrades for Boeing Defense, Space & Security. In the past, each complex—Oklahoma City Air Logistics Complex, Ogden Air Logistics Complex and Warner Robins Air Logistics Complex—would enter into an individual partnering agreement with Boeing, a process that took 12 to 16 months to complete. The enterprise partnering agreement now in place allows the complexes to move directly to executing the details of the agreement, allowing implementation eight to 10 months earlier. “The new partnering agreement will make our supply chain more agile so we can deliver maximum mission readiness to our customers,” said Ken Shaw, vice president of supply chain management for Boeing Defense, Space & Security. The agreement covers products and services including software, commodities, new technology implementation and others. 16 | MLF 7.10
“By affordably extending the life of the aircraft, Joint STARS remains the world’s premier airborne battle management and command and control system,” said Bryan Lima, Joint STARS program director, Northrop Grumman Aerospace Systems. “Sustainment ensures that the platform remains relevant and continues delivering this critical capability to our warfighters.” In addition to work at Robins Air Force Base, TSSR is supported by key personnel at the Northrop Grumman Manned Aircraft Design Center of Excellence in Melbourne, Fla., the Lake Charles Maintenance and Modification Center, La., and more than 30 major suppliers across the United States.
Engineering Readiness Assist Team Support American Systems, a leading provider of federal IT and engineering solutions, has been awarded a Department of Navy, Commander Naval Surface Forces Pacific Naval Supply Systems Command Fleet Logistics Center contract valued up to $23.5 million. In winning this contract award, the company will continue supporting the Engineering Readiness Assist Teams (ERATs) program. This program was established to assist U.S. Navy sailors in engineering, combat systems and deck departments increase their operational, repair and maintenance knowledge, and combat readiness through a unique and realistic training approach. ERATs utilize a blend of classroom training and practical applications to prepare ship crews for the rigors of operating and maintaining their ship at sea for extended periods of time. The program focuses on expanding the sailor’s basic level of knowledge, establishing a solid foundation of operational readiness through classroom, hands-on and operational training exercises to ensure uninterrupted operations, reduced maintenance and repair costs, and increased warfighter proficiency. “Dedication to supporting the Department of Navy runs deep in the fabric of American Systems’ history and culture,” said Peter Smith, executive vice president and chief operating officer at American Systems. “Real-time preparedness of ship crews improves mission-effectiveness and the safety of all Navy personnel aboard a ship.” Under the terms of the contract, the company will provide services, including six ERATs and one logistics team for one base year and two option years, which began on September 28, 2013.
Support Services for Army Reserve Command VSE Corporation has been awarded two firm fixed price task orders under its Field and Installation Readiness Support Team prime contract to continue the support services to the U.S. Army Reserve Command (USARC) for its 63rd and 88th Regional Support Command (RSC) Logistics Readiness Support programs, based out of Fort McCoy, Wis. The total combined value of both task orders is approximately $63 million. When combined with a task order awarded to VSE on August 23 under its Rapid Response Third Generation contract, the additional awards of the 63rd and 88th RSC enable VSE to continue work previously performed under a General Services Administration task order that expired in July 2013. VSE will work directly with government employees and Army reservists at the two RSCs to deliver effective combat service support to the Army across a 19-state region. These task orders require the storage, supply and maintenance of thousands of pieces of equipment, property accountability, vehicle operations, maintenance management, field and sustainment level maintenance, storage operations, hands-on training support and watercraft maintenance support. “We have assembled a superb team that has proven its ability to work effectively at the 88th and 63rd RSCs, and these awards are a reflection of our long-term history, commitment, and investment with our USARC customer,” said Federal Group President Donnelle Moten. “We are prepared to continue service at the highest level to ensure the units we support have the equipment they need to maximize training opportunities and meet their readiness targets.” www.MLF-kmi.com
SUPPLY CHAIN
Compiled by KMI Media Group staff
Defense Personal Property System Support USTRANSCOM has awarded CACI International Inc. a $28 million prime contract to provide software and systems engineering support for the Defense Personal Property System (DPS). CACI won this contract, which has a 45-day base period plus five one-year options, under the Defense Information Systems Agency’s Encore II contract vehicle. The award is new business for CACI that further expands the company’s presence in its high-growth Business System Solutions market area. DPS is USTRANSCOM’s Web-based system for managing personal property shipments for DoD employees and all servicemembers. This contract award is for Increment III of the system. CACI will provide operations, development, technology upgrades, and systems engineering support for DPS. This includes a focus on software enhancements and engineering services to improve system capabilities, customer usability, and system performance.
John Mengucci, CACI’s chief operating officer and president of U.S. operations, said, “The Defense Personal Property System supports the movement and storage of some 600,000 personal property shipments valued at more than $2.2 billion. CACI offers proven, innovative software and systems engineering solutions and services that will assist the U.S. Transportation Command in keeping this valuable system online and operational 24/7, 365 days a year, and at optimal cost and efficiency.” According to CACI President and Chief Executive Officer Ken Asbury, “CACI continues to see success in our focus on our high-growth markets and solutions and services that deliver productivity gains for our customers and increase value for our shareholders. This contract with the U.S. Transportation Command represents new work for CACI that gives us another great opportunity to assist our government as it works to enhance operations and deliver sustained cost-savings for the American taxpayer.”
Fuel Supply and Storage Supreme Group, a provider of end-to-end supply chain solutions in challenging environments, has been awarded a contract for fuel supply and storage by the Defense Logistics Agency-Energy. The two-year contract, valued at around $550 million, is for the delivery of jet fuel, diesel and motor gasoline to 10 U.S. forward operating bases and one defense fuel supply point in Afghanistan. The contract commenced on October 1, 2013. “We are very happy to have been awarded this contract by DLA, which is a reflection of the customer’s confidence in our proven ability to support the U.S. troops in Afghanistan,” said Michael Schuster, managing director-operations, Supreme Group. “Supreme’s wellestablished Northern Distribution Network (NDN) will be used in conjunction with the Pakistan supply route to furnish the required volumes on a monthly basis.” Supreme provides total end-to-end fuel supply solutions to defense forces and commercial sector clients in some of the most remote and challenging regions around the world. The company, which is the largest single provider of fuel to NATO in Afghanistan, operates 23 bulk fuel installations around the world with a combined storage capacity in excess of 87 million gallons.
Thin, Light and Rugged Getac Inc., a manufacturer of rugged computers, is introducing the V110, the thinnest and lightest rugged convertible and the F110, the thinnest and lightest fully rugged large screen tablet. The V110 is a rugged convertible less than 12 by 9 inches in size, 1.3 inches thick and weighing just over 4 pounds, making it, according to the company, the thinnest and lightest fully rugged convertible ever built. A quick twist of the unique multi-position hinge allows the V110 to transform from a laptop to a tablet, giving users the versatility needed for use in unpredictable environments. The V110 also features a large 11.6-inch display and a full-size, waterproof-membrane backlit keyboard 56 percent larger than the competition’s. Its 88 standard-sized, islandstyle independent keys provide good usability and increased durability.
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The F110 is a large-screen rugged tablet that packs superior performance and a large 11.6-inch display in a compact design. The F110 is less than 1 inch thick and just over 12 by 8 inches in size. At 3 pounds, this rugged tablet is the lightest largescreen, fully rugged tablet ever built. “With the compact, lightweight design of the new V110 convertible and F110 tablet, we’ve changed the rugged industry from devices that were simply portable to devices that are truly mobile,” explained Jim Rimay, president, Getac. “You can see the influences from our customers’ feedback in the weight, the
dual battery design, the large 11.6-inch screen combined with the incredible performance of the latest fourth-generation Intel Core processors.” Both products incorporate the latest fourthgeneration Intel Core i5-4300U (1.9GHz) or i7-4600U (2.1GHz) processors, known as the Haswell platform and designed for speed and efficiency. The i5 and i7 CPUs feature Intel Turbo Boost Technology clocking maximum speeds up to 2.9GHz and 3.3GHz, respectively. In addition, the new Intel HD 4400 graphics provides an unparalleled level of responsiveness and frame rate for both 2-D and 3-D graphics. One of the most useful features is also one of the simplest. Both the V110 and F110 feature dual hot-swappable batteries that allow for endless power by simply “swapping” in a fresh battery without needing to shut down applications or the operating system. Each V110 set of batteries provide up to 13 hours of operation. The F110 battery set provides up to 12 hours of operation.
MLF 7.10 | 17
YoUr GoAlS. oUr SolUTionS.
No Limits. As a global support leader in the provision of end to end supply chain solutions, we are empowered to respond quickly and efficiently in order to deliver high-quality service, on demand, anywhere in the world. Our proud legacy of proven and trusted performance in challenging environments spans over fifty years and 30 nations.
At Supreme Group, we live Supply Unchained. The outcome? Our clients have the freedom to succeed, the freedom to expand and the freedom to overcome the toughest obstacles.
Solutions Provider Gail M. Jorgerson Director of Acquisition U.S. Transportation Command
2013
U.S. Transportation command
U.S. TRANSPORTATION COMMAND
Solutions Provider
Q& A
Developing and Maturing Global Transportation Relationships Gail M. Jorgenson Director of Acquisition U.S. Transportation Command Gail M. Jorgenson, a member of the Senior Executive Service, is the director, acquisition, U.S. Transportation Command, Scott Air Force Base, Ill. She is responsible for all matters related to the program management and acquisition of common-user transportation services, transportation-related services, and information technology support for USTRANSCOM’s global transportation mission and the distribution process mission. She provides acquisition support for more than $7.3 billion in transportation services. She has a broad base of acquisition experience gained through a variety of positions with the Department of Agriculture, Coast Guard, Defense Mapping Agency and Air Mobility Command. She earned a bachelor’s degree in business education from Southern Illinois University in 1983 and a master’s degree in procurement and acquisition management from Webster University in 1985. In 2000 she earned a master’s degree in national resource strategy from the Industrial College of the Armed Forces. In 2005 she was in the Senior Executive Fellows Program, John F. Kennedy School of Government, Harvard University. She joined USTRANSCOM in 1993 as acquisition manager and was appointed to the Senior Executive Service in January 2010. She became the acquisition director in 2011. Q: Tell me about the role of the Directorate of Acquisition within USTRANSCOM? How does AQ support the command strategy? A: Let me begin by saying that our acquisition workforce is a worldclass innovative group of professionals. They fully support the command’s global transportation and distribution mission by working very closely with our industry partners and our customers. Our Acquisition Directorate’s contracting and program management functions are well integrated into the command strategy. We develop and mature relationships with each of our strategic airlift and sealift commercial industry partners, and we build upon their best practices in our contracts. We also collaborate with industry to provide the best service possible to our customers. Because they are so significant to the Defense Transportation System, we consider them as the commander’s fifth component. Commercial industry provides 90 to 95 percent of our wartime capability. Working together, we build acquisition solutions to maintain our overall readiness to support the warfighter. I take great pride in our successes in training and developing our people. Almost 180 of our acquisition professionals are experts in contracting and program management. Our customer-focused staff is highly qualified and highly educated: More than 95 percent have bachelor’s degrees, 57 percent have master’s degrees, and more than www.MLF-kmi.com
95 percent have Level I, II or III Acquisition or Program Management certifications. But what makes this team even more professionally effective is their depth of understanding of the transportation industry. Understanding our strategic partners’ business models and incentive needs makes DoD a better partner in the relationship. We ensure our staff has all required formal courses, and we routinely provide directorate-level training on acquisition topics. On average, our supervisors have more than 20 years of acquisition experience. In addition, through our robust intern we work with new entrants into the acquisition career field entrants to provide them the classroom training and on-the-job developmental assignments to prepare them for journey-level positions. Q: What is the total amount of your annual contract buys and what are some of the key awards? What has been the trend in those key areas? Do you see it stabilizing in the near term? A: We have seen the number of contracts and dollar value drop in the last two fiscal years. In fiscal year 2013, we processed over 4,900 contract actions valued at $5.5 billion, compared to more than 6,000 contract actions valued at $7.8 billion in fiscal year 2012. U.S. Transportation Command | MLF 7.10 | 1
U.S. TRANSPORTATION COMMAND We realize the budget will continue to decrease, but we must also maintain our readiness capability within the transportation industry. We will continue to foster a competitive environment and maximize dollars by awarding best value contracts at a reasonable price. We will do this through constant communication with the industry, seeking mutual best practices as well as clearly defining our requirements. Q: I’d like to focus on a couple of specific areas. How has the USC matured? Has it lived up to expectations? Does the contract have an expected end date or is the next-generation replacement being developed? A: The Universal Services Contract, or USC, has grown from a primarily port-to-port shipping contract to an end-to-end/door-to-door solution for our customers. The contract has evolved to meet the needs of the warfighter in the last 10 years, and through the USC we have achieved incredible things: creating the Northern Distribution Network, cultivating the idea for a commercial multimodal solution to move cargo, and finding unique solutions to satisfy the complex requirements of our customers such as the Defense Logistics Agency. I believe the USC has exceeded our expectations. However, as the world continues to change, so must our contracts. World events requiring U.S. action can happen at any time and any place. Our contracts must provide the flexibility and agility to meet changing needs. I anticipate the USC contract will continue as our premier commercial sealift contract, but USC-8 will see requirements change to meet the future needs of our customers. We have to take the lessons learned from the last 10 years of war and apply those smartly to our future contracts. Q: How are the commercial multimodal contracts working? A: I’m very excited about the maturing of the multimodal contracts. I can say the multimodal contracts are working well and are exceeding our expectations. We are using these contracts to move Department of Defense and other U.S. government cargo globally, door to door, by multiple modes of transportation, including airlift, sealift and line haul globally, to and from multiply locations. This relatively new acquisition incorporates the values of the CRAF and VISA (Voluntary Intermodal Sealift Agreement) partnership, while moving the acquisition forward to meet the evolving capabilities of industry. Through our CRAF and VISA partners, we are capitalizing on existing industry infrastructure and contractor resources to solicit daily spot-bids, reducing contractor risk and driving down overall costs. The not-to-exceed rates established with initial awards were a baseline allowing prime contractors the opportunity to offer lower rates when specifically defined requirements are identified and solicited under this process. We have achieved per pound rates approximately 60 percent below the not-to-exceed contract rates with the multimodal contracts. Q: How have contracts for Civil Reserve Air Fleet carriers evolved? A: Since Operations Desert Shield and Desert Storm, CRAF contracts overall remained consistent, with some adjustments to 2 | MLF 7.10 | U.S. Transportation Command
contract language based on more than a decade of war in the wake of 9/11. During fiscal year 2002, the value of the contracts jumped from $700 million annually to more than $1 billion annually, and continued to climb to a peak of over $3.5 billion in fiscal year 2010. Although contract value was still over $2 billion in fiscal year 2012, the drawdown in Afghanistan coupled with restrained budgets is shifting cargo transportation from air to sea and land. We are forecasting that for fiscal year 2016 and beyond, contract value will decrease to less than $300 million annually. As a result, USTRANSCOM and its component Air Mobility Command are engaged in a thorough study of the CRAF program to determine the balance of DoD’s need for commercial airlift with the requirement for military aircrew training. The study will help us incorporate changes to the CRAF to maintain readiness into fiscal year 2016 and beyond. Q: Have you been ramping up air and sea carrier contracts in anticipation of the retrograde from Afghanistan? What is the estimated overall cost for retrograde? How are you looking to moderate those costs? A: We’ve built enough route capacity to have maximum flexibility in our operations. Options for air direct, multimodal and surface routing provide U.S. Central Command choices in the event of unforeseen political, economic or natural disaster interruptions. At the tactical level, a USTRANSCOM liaison officer supports U.S. Forces-Afghanistan who maintains direct communication, assessments and analysis of events, actions or decisions affecting the strategic transportation network. USTRANSCOM provides route guidance for retrograde and redeployment cargo from Afghanistan using CENTCOM’s priorities of operational flexibility, strategic engagement and cost. The guidance also maximizes the use of routes through Pakistan after meeting minimum route flexibility and engagement requirements. Q: How does USTRANSCOM ensure quality and safety of the aircraft and ships under contract? What kind of quality control authority do you have? A: For airlift, Air Mobility Command manages the DoD Commercial Airlift Review Board (CARB) safety oversight program mandated by federal and DoD regulations. The CARB enforces compliance with quality and safety requirements for commercial airlines providing passenger and cargo charter services for the DoD. If for any reason an air carrier loses its CARB-approved status for safety concerns, DoD ceases using that carrier immediately. Contracting officer’s representatives (CORs) at our most frequently used locations have oversight of contract quality and compliance. Contracting officers train and evaluate the CORs on critical performance items such as aircraft cleanliness, food safety, passenger handling, etc. Poor performance or quality is enforced through future business or price reductions. The USC allows the government to use scheduled liner service on cargo ships. DoD cargo is shipped on the same U.S. flag vessels that are transporting commercial cargo. The carriers are responsible for keeping ships up to commercial operating standards, following U.S. Coast Guard and Maritime Administration rules and regulations. Contractor use commercial quality control processes/plan www.MLF-kmi.com
Superior Shipping Solutions
www.arrcnet.com Tel: (201) 307 - 1626
LEADING THE WAY IN LOGISTICS EXCELLENCE
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U.S. TRANSPORTATION COMMAND
USTRANSCOM Leaders
Gen. William M. Fraser III, USAF Commander
Vice Adm. William A. “Andy” Brown, USN Vice Commander
USTRANSCOM Directors
Col. Shawna O’Brien, USAF J1 Personnel
Capt. Daryl Hancock, USN J2 Intelligence
Maj. Gen. David Post, USA J9 Reserve Component and Commander, Joint Transportation Reserve Unit
Bruce A. Busler, SES AC Joint Distribution Process Analysis Center
2013
Joint Enabling Capabilities Command
Rear Adm. Bret Batchelor, USN Commander
Command Sgt. Maj. Lemuel Brock, USA Senior Enlisted Leader
Air Mobility Command
Gen. Paul J. Selva, USAF Commander
Chief Master Sgt. Andy Kaiser, USAF Senior Enlisted Leader
Maj. Gen. Gregory Couch, USA Chief of Staff
Chief Master Sgt. Martin Klukas, USAF Senior Enlisted Leader
Maj. Gen. Rowayne “Wayne” Schatz Jr., USAF J3 Operations and Plans
Rear Adm. David F. Baucom, USN J5/4 Strategy, Policy, Programs and Logistics
Gail Jorgenson, SES AQ Acquisition
Col. Michael J. Benjamin, USA JA Staff Judge Advocate
Surface Deployment and Distribution Command
Maj. Gen. Thomas J. Richardson, USA Commander
Command Sgt. Maj. Cedric J. Thomas, USA Command Sergeant Major
Brig. Gen Sarah E. Zabel, USAF J6 Command Control Communications & Cyber Systems
James L. McGinley, SES J8 Program Analysis and Financial Management
Col. David O’Brien, USAF SG Command Surgeon
MILITARY SEALIFT COMMAND
Rear Adm. Thomas J. Shannon, USN Commander
Master Chief Petty Officer Kevin Blade, USN Command Master Chief
U.S. TRANSPORTATION COMMAND to ensure quality service is provided throughout the term of the contract and must notify the COR of any problems or failures that may affect performance. CORs monitor contractor performance using standard techniques such as inspections, U.S. governmentgenerated management reports, contractor reports and customer feedback. Q: How similar are USTC’s acquisitions and management systems compared to those in the commercial world? Do your systems allow you to directly communicate and share data with other services and commands—such as DLA? What about commercial partners? A: USTRANSCOM uses many of the acquisition and management systems that allow for government and commercial interaction and data sharing. Most have been developed for USTRANSCOM needs, and certain functions are restricted for government use only. We use PD2 as our primary contract writing tool to build solicitations, award contracts and for other contract actions. It also allows us to report data associated with these actions to other government entities including Congress. USTRANSCOM and Air Mobility Command’s Tanker Airlift Control Center use the Web-based COINS (Commercial Operations Integrated System) to procure and award commercial chartered airlift requirements. DoD members and their families have access to the Defense Personal Property System (DPS), [which] is a Web-based system for moving household goods through the Defense Personal Property Program (DP3). DPS rewards transportation service providers (TSPs) who provide better service at lower rates by giving them repeat business. DPS interacts with DoD personnel, personal property shipping offices, and TSPs to provide online counseling, selecting a TSP, and invoicing. USTRANSCOM’s component command, the Military Surface Deployment and Distribution Command, uses interactive systems as well, allowing customers and contractors to interact and share data. Systems like Global Freight Management and the Integrated Booking System are used to identify requirements and order transportation services. The Carrier ITV Entry Tool is used to track shipments and the Cargo and Billing System is used to verify ocean carrier invoices for payment and bill DoD shippers.
continue our dialogue with the USC, CRAF and multimodal contractors through scheduled carrier meetings and ‘hot wash’ sessions to address any contractual and operational issues. At the strategic level, USTRANSCOM engages industry through the Corporate Executive Acquisition Board to collaborate and share ideas on distribution and acquisition issues. The board comprises representatives from the air, sea and surface carriers and meets on a quarterly basis to discuss top-level transportation acquisition issues. Most recently USTRANSCOM created a Surface Executive Working Group based on the success of the Voluntary Intermodal Sealift Agreement EWG, the CRAF EWG and feedback received from the National Defense Transportation Association meetings. Q: What is your relationship with small business? How much of what you do is contracted with small businesses; is that the right amount or should the number be higher or lower? A: USTRANSCOM has a positive relationship with small businesses. Last fiscal year, we made contact with over 270 small businesses. This interaction gives us a greater understanding of capabilities within the small business community available to meet mission requirements. We consider the information we obtain early in the planning phase of each acquisition to ensure we have maximum participation from small businesses USTRANSCOM exceeded its fiscal year 2013 small business goal of 15 percent set by DoD by almost 2.5 percent. We awarded $1.23 million more to small disadvantaged veteran-owned small businesses compared to FY 2012, and $1.16 million more to Hub zones. We achieved much of the success through small business set-asides. In fact, we awarded about $30.2 million to small business in three of our major IT support programs, where the incumbent was historically large business. We will continue to the trend to support small businesses in fiscal year 2014. Two of the five awards made since October 1 were to small businesses replacing large business incumbents. Program totals are valued at about $17.6 million. Small businesses wanting to learn more about USTRANSCOM programs can access the “Doing Business with USTRANSCOM” website (www.transcom.mil/doing_business.cfm) or contact the small business office at 618-220-7066. Q: Anything you’d like to add about USTRANSCOM Acquisition?
Q: How have you partnered with industry to understand and share best practices, to exchange experiences and take advantage of the parts of their business in common with yours? A: We remain extremely committed to enhancing our relationships with our commercial partners through open communication and trust. We have created forums to help facilitate two-way sharing of ideas. We have increased our engagement with industry at the earlier stages of acquisition through integrated process teams and pre-award conferences. Such activities help the acquisition community better understand industry capabilities and commercial best practices. Following major awards, we put together an after action report that incorporates both negative and positive feedback received from key stakeholders, customers and carriers. We apply the information as lessons-learned for future procurements. Additionally, we 6 | MLF 7.10 | U.S. Transportation Command
A: DoD’s 2010 Better Buying Power initiative mandates defense agencies to “Do More Without More.” USTRANSCOM’s experienced acquisition workforce is carrying out this mandate by establishing best practices for acquiring transportation and related services. Innovative acquisition solutions have resulted in greater efficiencies and increased industry productivity. The declining DoD budget and drawdown from Afghanistan has led to a downward trend of customer requirements, both in volume and level of service. We will continue to work with our customers and strategic industry partners to ensure we can support daily and contingency transportation requirements. We remain focused on maximum operational capability and will employ those acquisition strategies that promote awarding contracts to the provider that achieves the warfighter’s operational objectives at a reasonable cost. O www.MLF-kmi.com
U.S. TRANSPORTATION COMMAND
USTRANSCOM has a number a initiatives in the works seeking solutions to operational, administrative and structural requirements. Utilizing nondevelopmental and more off-the-shelf capabilities benefits industry and the DoD. Comprehensive Financial Services USTRANSCOM is conducting market research to determine the feasibility of a company providing indefinite delivery/ indefinite quantity contract services for USTRANSCOM Program Analysis and Financial Management Directorate (TCJ8). TCJ8’s diverse composition along with the DoD cost culture transformation necessitates on-demand services at any given time. TCJ8 formulates and integrates the command’s budget while focused on the effective and efficient use of the command’s resources. TCJ8 develops command fiscal policy procedures and resolves issues on the use of the combatant commandwide $13.5 billion Transportation Working Capital Fund (TWCF) budget. TCJ8 requires support services to provide financial management/cost analysis, program cost analysis, compliancy, support financial IT, and operational support of logistics and financial information. This analysis and information supports TWCF billings, government accounting and financial analyst functions, resource advisor budget support, acquisition cost analysis, financial analysis studies, command initiatives and business process support, cost modeling, accounting, financial improvement audit readiness, systems accounting functions, billings and revenue support, billing rate development, internal controls and quality assurance, and information technology financial and operational support as required and identified in each specific task.
Transportation Decision Support System USTRANSCOM has issued a sources sought inquiry seeking sources that possess the availability and capability to provide a Web-based geographic information system integrated with automated business rules enabling mission management for www.MLF-kmi.com
transportation professionals. The system may become a primary support platform for a variety of transportation business missions, which fall into two primary categories. The first is mission management for the movement of goods, and the second is transportation infrastructure analysis.
Global Freight Management The Military Surface Deployment and Distribution Command (SDDC) is the surface transportation component of the United States Transportation Command (USTRANSCOM). SDDCs primary functions include worldwide port operations, global traffic management, deployability engineering, and development of integrated transportation systems. SDDC’s Deputy Chief of Staff for Information Management/Chief Information Manager (IM/ CIO) supports SDDC’s mission by designing, developing, implementing and operating standard DoD transportation systems for which SDDC has been assigned responsibility. The Surface Cargo Branch supports the SDDC mission by managing global freight management (GFM). GFM is the capstone automated execution system of the Defense Transportation System for the movement of domestic freight. It is also used to a certain degree as an outside the continental United States shipping tool. GFM consists of a host computer and database located at Scott Air Force Base, Ill. Users access the GFM system through the Electronic Transportation Acquisition (ETA) System via an Internet connection 24 hours a day, seven days a week. USTRANSCOM and DoD relative stakeholders (Office of Secretary of Defense, joint staff, combatant commands, military services, defense agencies, and other departmental organizations) is seeking subject matter experts, functional analysts and additional labor categories who can provide automatic identification technology (AIT) and in-transit visibility (ITV) program support. The AIT/ITV-related projects and implementations would support both
the DoD concept of operations for supply and distribution and the related DoD AIT Implementation Plan, focused logistics, total asset visibility, integration within the DoD supply chain, and those tasks that assist USTRANSCOM in addressing automatic data capture policies and standards, assessing AIT technology, examining future trends, and recommending department policies providing the warfighter the best possible integrated solution. The government intends to award one labor-hour indefinite delivery/indefinite quantity contract resulting from this solicitation which will include a base year and two one-year option periods. The period of performance will be from approximately March 17, 2014, through March 16, 2017. Task Order 1 and future task orders will be issued against the contract. The requirement will be managed by the USTRANSCOM, Directorate of Acquisition, Distribution Process Owner Division, Scott AFB, Ill.
Combined Joint Operations Area-Afghanistan Short Take-Off and Landing Low Cost/Low Altitude Aerial Drop, Cargo Service, Passenger Service, and Combined Service The government intends to solicit written proposals for low cost/low altitude (LCLA) aerial delivery services throughout Afghanistan, Kyrgystan, Pakistan and Uzbekistan. The contractor shall provide one fixed wing aircraft, personnel, equipment, tools, material, maintenance and supervision necessary to perform short take-off and landing LCLA aerial delivery of para-drop resupply bundles, cargo, passenger, and combined air transportation services between locations in the area of responsibility of Afghanistan, Kyrgystan, Pakistan and Uzbekistan. The contractor shall provide no more than 10 hours of flight time per day. The government anticipates contracting approximately 150 hours per aircraft per
U.S. Transportation Command | MLF 7.10 | 7
U.S. TRANSPORTATION COMMAND month and allows six days per month for scheduled/unscheduled maintenance. Aircraft shall be available for services 24 hours per day, seven days per week. Flight missions are intended to originate and terminate at Bagram Air Field, Afghanistan, or other suitable airfields that will support flight operations. The contractor shall provide passenger/cargo aircraft that are twin-engine, fixed wing, unpressurized and have the flexibility to transport cargo (as para-drop resupply bundles or as palletized cargo) and passengers. Total aircraft lift capability will equal a minimum of 4,000 pounds at above 10 degrees Celsius for a 400-mile length stage non-stop during instrument flight rules conditions. Aircraft at a minimum must be able to operate from an unimproved 3,500-foot runway at sea level. Aircraft may operate on runways shorter than 3,500 feet, but such operations must be executed in compliance with the aircraft technical manual for performance, weight and balance. The pilot in command has final authority for all operations and retains responsible for the safe operation of the aircraft at all times. Aircraft must have the ability to hold a minimum of nine passengers with an alternate configuration for cargo only. Aircraft shall have the capability to change configurations as required by USFOR-A. Carriers will be given 48 hours to change configurations.
Agile Transportation for the 21st Century Market research is being conducted to gain industry input as related to an anticipated requirement for Enterprise Capability Development, Integration and Sustainment in support of Agile Transportation for the 21st Century. Inputs will be used to help develop the government’s acquisition strategy in support of this requirement. In addition, responses generated from this market research will be used to assist in determining whether the requirement should be issued as a small business set aside.
(TPS) on behalf of SDDC. SDDC’s mission is to provide surface transportation to meet DoD’s national security objectives in peacetime and wartime. As such, SDDC is responsible for the management and oversight of shipments requiring TPS. They are looking for contractors to provide all personnel, equipment, tools, materials, supervision and other items and services necessary to provide transportation services to, from, within, and between the CONUS, Alaska, and Canada for the movement of arms, ammunition and explosives (AA&E), AA&E hazardous material, classified (secret and confidential), sensitive and controlled cryptographic items, and materials requiring movement with TPS.
CRADA Partners Sought USTRANSCOM, on behalf of SDDC, is seeking non-federal partners (collaborators) from industry and academia for consideration to enter into cooperative research and development agreements (CRADAs). USTRANSCOM/SDDC is seeking CRADA collaborators to explore and advance the military’s ability to create feasible container loading plans which are more effective than the military’s current capability in accommodating irregularlyor complex-shaped items, resulting in more efficient use of container volume and decreased transportation costs. The complex-shaped items typically have a dimension greatly differing from the others, are far from cubical or rectangular in overall shape, and may be separately packed for shipment, making otherwise void spaces in the container unusable for other items, and requiring significant additional handling, packaging and cushioning. The primary container of interest is the typical military ISO 20-foot or commercial 40-foot container; however, adaptability of the techniques to other containers (high cube and flat rack) or transportation methods is also of interest. USTRANSCOM and MSDDC are interested in collaborating on all aspects of the problem, including:
Transportation Protective Service USTRANSCOM Acquisition Directorate has issued a solicitation/request for proposal for transportation protective service 8 | MLF 7.10 | U.S. Transportation Command
• The entire system of accommodating complex items, including methods of automated capture of physical dimensions in field use, data architectures and data storage/ transmission methods, algorithms to
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select the best kind of container and optimize the use of container volume (to maximize container utilization and/or minimize delivery cost) Production of a load plan for an individual container or across a fleet of containers Improved methods of accurately and easily capturing the dimensions of irregularly- or complex-shaped items’ dimensions, in practice in the field at austere locations in the continental United States (CONUS) or beyond CONUS, as well as in well-equipped storage locations or transportation nodes Predicted reliability, durability and affordability (including return on investment) of the techniques Improvements to software algorithms that build optimized container load plans to accommodate complexshaped items Ability to optimize loads which include multiple complex-shaped items in a single container, or across a set of containers Integration requirements for new hardware and software components into existing DoD systems (ICODES as one example) Features and utility of existing systems and techniques currently used outside of DoD, but potentially adaptable to DoD use and the effort required in doing so Methodology for choosing between containerization and breakbulk configuration for individual items Improvements to human-computer interfaces (i.e., better visualization and manipulation of computed loading solutions) Assurance of feasibility and utility of the new techniques in realistic field-use environments, including austere locations lacking data communications, power supplies, etc. Operator training requirements and ownership and maintenance concepts. O
For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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Q& A
Providing Global Mobility and Strategic Enablers to Deliver National Power
Vice Admiral William A. “Andy” Brown Deputy Commander U.S. Transportation Command
Vice Admiral William A. Brown is the deputy commander, U.S. Transportation Command, Scott Air Force Base, Ill. USTRANSCOM is the single manager for global air, land and sea transportation for the Department of Defense. Brown previously served as the USTRANSCOM director of Strategy, Policy, Programs and Logistics (J5/4). Prior to his arrival at USTRANSCOM from Headquarters United States European Command, Stuttgart-Vaihingen, Germany, Brown served as the director of Logistics (J4). He directed logistical support for U.S. forces assigned to the United States European Command theater of operations. He previously served as commander, Fleet and Industrial Supply Centers, San Diego. Prior to assuming his position at COMFISCS, he served as the fleet supply officer at U.S. Fleet Forces Command in Norfolk. Brown hails from Gloucester County, Va. A Naval Reserve Officers Training Corps scholarship student at Virginia Military Institute, he was commissioned in the Navy in May 1980. He received a master’s degree in business administration from the Navy Postgraduate School in 1990 and attended Stanford Business School Executive Training Program in 2004. Brown has served in a variety of sea and shore duty assignments providing him with extensive logistics and management expertise. His initial sea tour was aboard USS John F. Kennedy (CV 67), where he served as disbursing officer, wardroom officer and stock control officer. He served as supply officer aboard USS Leftwich (DD 984) during Operation Nimble Archer and completed his sea assignments as supply officer aboard USS George Washington (CVN 73) during Operation Southern Watch in 2000. Ashore, he was assigned to the Naval Air Systems Command; the former Naval Aviation Supply Office; commander, Naval Air Force, U.S. Atlantic Fleet; Naval Supply Systems Command and commander, Naval Air Forces. During the initial phases of Operations Enduring Freedom and Iraqi Freedom, he was the operations director at the Naval Inventory Control Point, Philadelphia. His awards include the Defense Superior Service Medal, Legion of Merit (four awards), Meritorious Service Medal (four awards), Navy and Marine Corps Commendation Medal (two awards), Navy and Marine Corps Achievement Medal and various www.MLF-kmi.com
other decorations. He is a qualified naval aviation supply corps officer and surface warfare supply corps officer. Brown is a 1989 recipient of the Navy League’s Vice Admiral Robert F. Batchelder Award. Q: As you transition to your new role as USTRANSCOM deputy, do you see the role and responsibilities of the position being the same as they have been for your predecessors? A: I am proud and excited to have been selected as the U.S. Transportation Command deputy commander and to serve General Fraser in leading this fine organization. I don’t see the role and responsibilities of this position changing much from what they have been in the past. My most recent predecessor, Lieutenant General Kathy Gainey, was a great role model. She brought insightful leadership, logistics savvy and common sense to this position. She had a positive impact on USTRANSCOM and helped us solve many complex logistics problems at some very key and historic moments. We want to keep that momentum up. Some of the most interesting times are ahead of us as we deal with a new normal and drawing down from the U.S. Central Command area of operations after more than a dozen years of war. As we turn toward the Pacific and toward Africa, we look forward MLF 7.10 | 19
to creating and nurturing relationships with our international partners and finding creative ways to keep military and commercial transportation fleets viable, as well as leveraging our many enabling capabilities in planning, communications and rapid response in support of our nation’s defense. Q: USTRANSCOM rolled out its strategy last year. What is the status of strategy implementation? A: Together with our partners, we provide global mobility and strategic enablers to rapidly deliver national power and influence—anytime, anywhere. We were deliberate and particularly thoughtful as we developed a command strategy to lead us through changing operating and fiscal environments. Today, the USTRANSCOM team is committed to preserving readiness; achieving information technology management excellence; aligning resources and processes for mission success; and developing customer-focused professionals. Our Enterprise Readiness Center (ERC), formed from existing staff, ensures future requirements are integrated into defense transportation business processes. It evaluates transportation opportunities, develops customer-focused transportation and distribution solutions, and collaborates with our partners to preserve organic military readiness and the viability of commercial partnerships. The ERC has increased both frequency and level of engagement with industry to garner best practices and receive input from carriers on how we can operate more efficiently and effectively. The ERC has also created a partnership with the Defense Security Cooperation Agency for a more comprehensive plan to move foreign military sales shipments, and the center staff has facilitated with others in the command improved multi-modal contracts mainly in support of Afghanistan operations. We restructured our investment management to better align IT with our operational mission. We will achieve our objective of efficient, effective and secure information in a resource-constrained environment through consolidating contracts and by using a single, unifying framework to drive system investment. The strategy gave us clarity to better position the command to deliver essential global distribution and global mobility capabilities after congressional budget sequestration. We clarified roles and functions to focus on core responsibilities and that drove internal staff realignments, streamlined business processes and consolidated contracts to reduce costs. Reducing costs was one of the key areas the military services wanted us to address. Improving our business processes is a journey that will take us several years. We can and will get there. Our customers told us we have room for improvement in human relations and communication. In response, we formed a working group from our staff and components to emphasize four key values: collaboration, trust, empowerment and innovation. Leaders from the corporate world have helped us with workshops on innovative thinking, customer focus, leadership and culture. Our professional development now emphasizes people skills as well as job skills. We created an innovation award to recognize creativity in meeting mission requirements. We’ve also conducted financial and stress management training to help our staff during this period of fiscal uncertainty. 20 | MLF 7.10
Q: How is the USTRANSCOM budget broken out as far as Transportation Working Capital Funds, RDT&E, and O&M levels? Although one can never predict the future, what is the command planning to do to tighten your budget belt? A: The Transportation Working Capital Fund (TWCF) pays for about 99 percent of USTRANSCOM component missions. In fiscal year 2013, the TWCF spent $10.3 billion in support of our global transportation mission. In addition, the USTRANSCOM staff spent $26 million in research, development, test and evaluation dollars for innovative joint technologies to address Distribution Process Owner and Defense Transportation System capability gaps. The command also spent $87 million in operations and maintenance appropriated funds, mostly for the Joint Enabling Capabilities Command. USTRANSCOM is deeply committed to driving down overhead costs. We set a strategic metric to manage overhead within 10 percent of total cost. This is an ambitious goal as our total budget continues to decline as contingency operations conclude. IT programs comprise one of our key areas of emphasis. In the past year we reprioritized and re-baselined our entire IT budget within our strategic goals to reduce command costs and achieve savings. This effort resulted in a $50 million commandwide decrease through fiscal year 2015 and a $100 million decrease through fiscal year 2016. We are reducing our headquarters operating costs in increments. We are also targeting a 20 percent reduction to TWCF headquarters costs at USTRANSCOM and at the headquarters of our Transportation Component Commands. This amounts to a $97 million cost reduction by fiscal year 2019. Our commitment to efficiency extends beyond overhead. We have a proven track record of initiatives to keep our customers’ transportation costs low. In fiscal year 2013 alone, we helped our customers avoid $305 million in transportation costs by better utilizing the DoD distribution system; these efforts include loading our surface containers and airlift pallets more efficiently. We also helped our customers avoid $114 million in transportation costs by directing them to more cost-efficient transportation solutions; examples include shifting from air-direct missions to surface and multi-modal, finding shorter flight paths, and aggregating units to fly fewer airlift missions. Looking ahead, we will continue our efforts to pursue lower-cost transportation solutions that will meet our customers’ needs. It is all about balancing the readiness of our organic fleet of aircraft and ships with the readiness capabilities our commercial partners bring to the table. Q: How is USTRANSCOM evaluating the right mix of organic airlift capacity with that of its commercial partners? What is the current thinking on the best strategy to maximize the Civil Reserve Air Fleet? A: We see achieving the right mix of organic and commercial airlift capacity as a readiness issue. Future requirements are unpredictable and could potentially have an impact on both flying hours for military aircraft and on commercial opportunities. Our focus is to preserve readiness of both organic and commercial fleets. We are taking a hard look at requirements, and we are www.MLF-kmi.com
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conducting a study of the CRAF program to ensure we have the right balance of organic and commercial lift. Our goal is to find out how we can maintain a viable commercial fleet ready to augment our organic forces when needed. We are in this together with our industry partners, and we will continue to maintain open communications and transparency. We must maintain the readiness of the entire Joint Deployment Distribution Enterprise, including our CRAF partners, to serve our nation in times of need. Q: If USTRANSCOM is like most organizations, there is a wide variety of IT systems—both hardware and software—across the depth of the command. What are the challenges to keep those systems operating and communicating with each other? Is there a need for, and if so, a plan to upgrade the architecture of the IT system to bring more commonality? What are the challenges to keep IT systems operating and communicating with each other? A: We rely heavily on IT systems for our day-to-day global deployment and distribution operations. We place a high priority on ensuring these systems communicate with each other and provide decision-ready information to our leaders and our customers. Our proactive approach to IT management mitigates risk and provides best value while ensuring operations are conducted in an effective, efficient and secure environment. Last year, we transformed the means to conduct IT portfolio management, risk assessments and IT budget formulation through a mission area management construct. The construct makes the operational community responsible for synchronizing IT solutions with the investment process to ensure effective, secure and efficient information delivery. Using the construct, we identified an annual IT cost savings of $20 million in fiscal year 2014, an additional $30 million in fiscal year 2015 and another $50 million in fiscal year 2015, which equates to $100 million from fiscal year 2014 to fiscal year 2016. These cost savings were rolled into the baseline through the FYDP. We have also been successful in reducing IT requirement validation times, reducing budget submission cycle times, providing decision-ready staff packages, and reducing IT portfolio funding through best-value enterprise decisions. We are developing an operational blueprint for our strategic business processes to better serve our customers by using mode-agnostic air, surface and multi-modal operations. We are changing IT management from a system-centric to a capabilitiesbased approach for additional cost savings while maintaining the highest levels of customer support. Future mission area management focus is on mode-agnostic transportation supporting multi-modal operations. We’ll move away from a focus on individual systems and manage capabilities and the related IT. The capabilities support our command and enterprise partners, aligned to a plan, order, ship, track and pay structure. We are developing a strategic architecture that improves the integration of USTRANSCOM and our transportation component command processes, and a five-year implementation plan. It’s important, too, that the command will reduce the management of hardware and software where it makes sense and continue to provide improved customer service as the DoD transportation provider of choice. 22 | MLF 7.10
Q: Last year there was some conversation about bringing the Transportation Working Capital Fund systems into a secure environment and protect them from cyber threats. What progress has that effort made, and where do you go from here? A: USTRANSCOM has made significant progress toward moving the TWCF systems into a single, more secure environment. In October, we migrated the Military Surface Deployment and Distribution Command command-and-control and business systems network into the USTRANSCOM network. We began migrating Air Mobility Command’s worldwide mission system and network into our network in September, with a scheduled completion by spring 2014. The result will be a single, more responsive security boundary as well as unified computer network defense services protecting TWCF systems. In addition to network consolidation, we have established a common environment to increase software assurance during software development. We have created a common production environment to host C2 and mission systems for greater efficiency. Our systems have begun migrating to this environment. We are actively participating in DoD’s efforts to create a Joint Information Environment, helping to shape JIE design. Taken together, these steps will help us leverage JIE enterprise services as they come into the field for greater efficiency in providing a secure information environment. Q: Can you elaborate on the 2013 En Route Infrastructure Master Plan and how well you have measured up against project status and goals? Can you offer any insight into the 2014 projects? A: Our En Route Infrastructure Master Plan, or ERIMP, is a valuable tool used to synchronize our long-term infrastructure and access strategy. Through a rigorous analytical process, the USTRANSCOM global posture plan outlines our key overseas nodes we’ll need over the next 10 to 15 years, and identifies gaps or shortfalls at those locations. Since the ERIMP describes what we need to support our geographic combatant command customers, we collaborate closely with their staffs to mutually inform and affect each other’s plans. Although military construction funding is getting extremely difficult to secure, we’ve successfully advocated for our highest priority projects. For example, the Army is now going to fund critical pier improvements at the Military Ocean Terminal Concord (Calif.), and the Air Force has now programmed a key airfield Southwest Asia for fiscal year 2015. We’re particularly excited about the 2014 ERIMP now under development. In addition to identifying key infrastructure shortfalls, the updated ERIMP is going to also address other access gaps. These include creating a list of priority agreement gaps that we need assistance with from geographic combatant commands and the Department of State, and can be used to focus our own strategy for senior leader engagements. In addition, we’ll be highlighting expedient military capabilities for access in austere environments, such as airport and seaport damage recovery, joint logistics over the shore, and the joint task forceport opening team. These critical capabilities are absolutely essential to preserve long-term readiness and ensuring we can deliver anytime, anywhere. www.MLF-kmi.com
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Q: Is it a challenge to align DoD transportation policy and regulations with that of the federal government? Is there a process for variations and how they are addressed and managed? A: With today’s technology, the U.S. government has achieved a level of integration unlike anything we’ve ever experienced. With just a mouse click, we are able to tap into the community mindset, doctrine and policies of most federal agencies. This offers us a tremendous opportunity to align our transportation policies and regulations with those of our partner agencies. The Federal Register provides information on government-wide new or modified processes, policies, regulations and practices put into place by our federal collaborative partners in the Departments of Homeland Security, State and Agriculture, and other federal agencies. For example, we recently implemented an initiative where the Department of State arranges shipment of DoD personal property for military members stationed at U.S. embassies. This initiative originated during a meeting of the Whole-of-Government Logistics Council. The WGLC is a forum that identifies areas for improvement in logistics common across departments. Access to the Federal Register also provides us an excellent forum to submit comments to improve final regulations in areas that have an impact on the Defense Transportation System. Of course, when you consider the nature of our business and similarities among our command and other federal organizations involved in transportation and logistics, there’s always the possibility that new or modified guidance could conflict with DoD established policies and practices and those of other federal entities. As policies and regulations evolve and conflicts are identified, USTRANSCOM in its role as DoD’s distribution process owner coordinates with the military services, defense agencies and combatant commands to implement updates across the DoD transportation enterprise. One way we do this is by capturing evolving policy and procedural updates in the Defense Transportation Regulation, which offers guidance on such various topics as passenger and cargo movement, shipment of personal property and household goods, and global customs policies. Through coordination, the other federal organizations get the opportunity to review updates and recommend changes. Q: USTRANSCOM recently co-sponsored a meeting to stimulate wider interest and inquiry into technical and professional issues involving DoD transportation. What were the take-aways from the meeting, and do you think the meeting met its goals? A: We fully recognize the future impact to our distribution and transportation capability and capacity from sequestration as well as the Iraq and Afghanistan drawdown, and the need to work more closely with our partners. We need thoughtful and deliberate decisions to preserve readiness and satisfy national security objectives while recognizing fiscal reality. USTRANSCOM served as co-sponsor with the National Defense Transportation Association for a fall meeting to emphasize our desire for more collaboration and cooperation with and among our partners. We held roundtable/town hall discussions on the issues of reset and rebalance. The result: Both government and industry leaders openly discussed the state of the 24 | MLF 7.10
Defense Transportation System, challenges and areas of future opportunity. I would say the main takeaway for me is that we are on course with our strategy and focus areas: the need to preserve readiness via our commercial and organic capability; the need to achieve IT excellence to enhance decision-making; better align resources and processes to meet the needs of future operations; and develop a customer-focused workforce to improve our ability to satisfy warfighter requirements. One of our biggest goals was to improve relationships, and the best way to do that is with frequent, honest communication. I can’t think of a better way to establish trust-based, open lines of communication than through face-to-face discussions. Transforming a combatant command is not easy. We will need the help and creativity of our fellow agencies and our industry partners. This meeting set the stage for working together going forward. Q: Have there been any noticeable effects on morale or employee retention following the government-driven furloughs? Has the command been able to do things to better look out for the well-being of its people? A: In looking out for the well-being of our entire workforce, we have put into action several initiatives to develop our personnel into a premier customer-focused team. Our training program encourages individuals to connect the dots of their everyday duties to the bigger picture of the command’s mission. We’re creating a framework for building trust, empowering the workforce, fostering innovative thinking and building collaborative teams. We’ve developed a human capital board to better oversee and align the right resources for our people to accomplish their mission. Fortunately, morale is good and retention is stable. Our people are our greatest assets, so we’ve engaged our workforce in various ways. General Fraser has been deeply concerned, using emails, lunches and blog posts to keep the entire team informed of the potential impact of sequestration and furloughs. We have asked supervisors, managers and coworkers to be aware of the impact of uncertainty on their teammates, and we’ve offered classes on both stress management and financial management to help. Again, we are blessed with a great team of military [personnel], civilians and contractors. We know we have challenges ahead. But we will face them with respect and forethought. Q: Do you have any closing thoughts? A: Yes, I would like to say thank you! I have joined a worldclass team that has been tested in times of war and in times of need. These patriots have risen to every challenge to ensure the finest support for our forces stationed around the world. This team well understands it does not work in isolation. In order to support our warfighters and other customers, we rely on our partners to help us shoulder the load. We are committed to providing effective and efficient services to keep the Defense Transportation System ready for an uncharted future. We have proven our mettle and will be ready when our nation needs us. We will continue to put our team motto into action every day: Together, We Deliver. O www.MLF-kmi.com
Marathon vs. 50-Yard Dash— The DMSMS Dilemma
With new technology emerging at lightning speed, how do we proactively prolong the life of aging equipment while freeing up resources to develop new systems?
By Scott D. Royse
When manufacturers/suppliers for key military system components cease providing needed items or raw materials, the weapon systems our country depends on for national security are put at risk. Thus, diminishing manufacturing sources and material shortages (DMSMS)—the loss or impending loss of manufacturers/suppliers of items or raw materials—is becoming an increasingly relevant issue for the U.S. military as weapon systems age.
Challenge—Keeping Aging Weapon Systems in the Fight Since the mid-1980s, the military has faced growing challenges with DMSMS for several reasons. First, after the Cold War, the Department of Defense began to relax requirements for custom-made mil-spec weapon system parts, which were held to more stringent performance standards than commercial products, and turned instead to commercially available components.
Over the years, these commercial-grade components have begun to fail, but because they are no longer manufactured, the military must find ways to replace them. In addition, rapid advances in technology and the development of more sophisticated systems have compounded the military’s DMSMS challenges because systems are becoming obsolete much more quickly. On top of that, the explosive growth of the commercial computer and communications industries has left DoD in a position of far less influence in the electronic components marketplace. As a result, DoD weapon system sustainment is increasingly dependent on commercial components and is thus threatened by obsolescence.
time to budget, plan and implement resolutions—in essence, solving obsolescence problems before they have an impact. An efficient proactive DMSMS-mitigation process is critical to providing effective, affordable and operationally ready systems by increasing availability and supportability. In order to accomplish this obsolescence management, efforts need to consider each of the following areas: • •
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Proactive DMSMS To keep DoD’s weapon systems functioning, the military needs to take a proactive DMSMS management approach by identifying issues early while there is still
• •
Supply support—available inventory and demand data COTS product availability— component-level availability of commercial-grade parts Obsolescence impact—the effect of component-driven obsolescence issues on weapon systems Readiness drivers—failure rates, repair time metrics, etc. End of support date—the date when the weapon system will be unsustainable due to obsolescence issues.
This proactive approach uses current, complete and accurate technical data to continuously monitor weapon systems’ obsolescence status over time and to predict the end of support date based on these parameters.
Multi-platform Solutions
A KC-135 Stratotanker is seen inside a hangar at Selfridge Air National Guard Base, Mich. During a phase inspection, all of the aircraft’s components are inspected and any necessary maintenance is performed. [Photo courtesy of U.S. Air Force]
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An essential aspect of this proactive DMSMS management approach is conducting integrated multi-platform assessments of obsolescence issues across all DoD weapon system platforms so that obsolescence can be identified, evaluated and resolved based on an understanding of the portfolio of weapon systems. Since MLF 7.10 | 25
defense weapon systems fielded in the same time frame frequently rely on many of the same components, an obsolescence issue in one system can often be tied to a component used in other systems. As such, the military can realize economies of scale by identifying and solving issues across related platforms, thus reducing duplication of effort and cost. Implementing this multi-platform approach to DMSMS management requires an integrated system to analyze and predict component issues across the bill of materials for all related weapon system platforms as well as a system to prioritize work based on military exigency. The process also requires a synergistic effort between representatives from the program office, engineering, logistics, the Defense Logistics Agency, the original equipment manufacturer (OEM) or third-party supplier, and any other organizational representatives who will help manage the process. With these DMSMS management systems in place and strong collaboration between relevant stakeholders, the resulting critical parts support will increase weapon system availability, lower sustainment costs, and increase the military’s war fighting capability.
Independent Assessments Analysis from multiple third-party sources provides a wider scope and a more objective review of weapon system obsolescence issues. There are a number of
cases demonstrating that when the platform/system OEM conducts the analysis, the resolution recommendations tend to be heavily weighted to redesign, resulting in a much larger cost. As noted in the DMSMS Guidebook of Best Practices published by the Defense Standardization Program Office in August 2012, significant cost avoidance can be achieved through independent DMSMS monitoring and surveillance. In one case, for example, an aircraft OEM recommended a radar system upgrade to overcome obsolescence issues; however, an independent third-party analysis revealed an alternative resolution that avoided more than $300 million in costs over a 10-year period. As this example shows, the most costeffective approach to weapon system sustainment often comes in the form of impartial third-party recommendations provided to the government as non-proprietary data. Further, since systematic independent DMSMS analysis produces a comprehensive description of weapon system sustainment issues, the government needs to have complete and unrestricted data rights to the results of these independent assessment efforts.
its budget trying to find solutions for aging systems, leaving less money for modernizing the force with new weapon system procurements. The time has come to stop stove-piping processes by addressing DMSMS issues using a proactive multi-platform approach and by prioritizing DMSMS challenges based on their impact to national security. Each challenge needs to be addressed and resolved exactly once, leveraging the military’s investment, maximizing precious defense dollars and freeing up money for new weapon systems. O
Scott D. Royse is vice presidentnational security and defense programs, NCI Inc.
sroyse@nciinc.com
Preparing for Tomorrow Over the past 30 years, a lack of appropriate planning for parts obsolescence has caused DoD to spend more of
For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
EXPERIENCE YOU CAN COUNT ON » Stability » Consistency » Integrity With more than a decade as editor of Military Information Technology, Harrison Donnelly has the background, relationships and understanding to lead MIT, widely considered the “Voice of Military Communications and Computing” and the most effective and trusted way to reach military IT professionals. His continuity of service guarantees the highest quality of editorial coverage, and makes advertisements in MIT all the more valuable. In a time of turmoil and change in both the defense and publishing worlds, “Hank” is someone who people across the community turn to when they want to deliver a message that makes a difference.
has been published to serve the military, Congress, and the executive branch for 17 years by the same KMI Media Group management.
26 | MLF 7.10
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By Lieutenant General Kenneth R. Wykle, USA (Ret.) Many things in life are cyclic. While each cycle has differences, there are also similarities. This is especially true within DoD. Throughout our nation’s history there have been wars and military conflicts. There is a period of peace, training and preparation, crisis, buildup, engagement and drawdown to peacetime levels. Approximately 20 years ago, our nation’s involvement in Desert Shield/Desert Storm (DS/DS) ended. DoD senior leaders focused on learning from that conflict and took action to prepare for the next crisis. Lessons learned were recorded, studied and programs developed to correct shortfalls. From a transportation perspective, the primary focus was on ensuring sufficient strategic lift (air and sea) was available to deploy and sustain forces. The results were two major acquisition programs—procurement of the C-17 aircraft and the large, medium-speed roll-on roll-off (LMSR) ships. Additionally, action was taken to increase the readiness of the Ready Reserve Force and to ensure the availability of commercial airlift assets by significantly changing the Civil Reserve Air Fleet (CRAF) program. U.S. airlines were incentivized to participate in the program through access to government business. The Sealift Readiness Program was scrapped and a completely new program called VISA (Voluntary Intermodal Sealift Agreement) was developed. VISA, like CRAF, provided sealift carriers priority access to government cargo and gave the government access to a carrier’s entire capability—ships, terminals, material handling equipment, automated systems and established networks. The revised CRAF Program and VISA enabled DoD to transition from providing its own organic capability for deploying and sustaining forces to integrating the commercial transportation industry capability into the Defense Transportation System (DTS). This saves DoD billions of dollars in capital investments. Twenty years later, we are again in the drawdown phase of the cycle, preparing for a return to peacetime levels. Actions are being taken to revise our national strategy, reduce defense budgets, reduce the size of the force structure, eliminate or curtail major acquisition programs, and shift resources toward www.MLF-kmi.com
technology, cybersecurity, special operations and submarines. One piece that appears to be missing is the lessons from DS/DS—strategic lift. With a smaller, more CONUS-based force, sufficient strategic lift will be required to ensure access during peacetime and expand during a crisis. The fleet of C-17s and LMSRs provide the organic strategic lift capability for the foreseeable future. The critical piece requiring vision, innovation, “outside the box” thinking, is the commercial capability. How does DoD ensure the readiness of the commercial capability needed to augment deployment and be the backbone of sustainment operations? It will require a change in culture. DoD needs to more strongly embrace the commercial transportation and logistics industry. There is a lot of talk about partnership and implementing commercial best practices, but in the end it is just rhetoric. Industry appears to be viewed as only focused on profit, when in fact, most reputable U.S. businessmen are patriotic Americans supporting the economy and national security. Where is the disconnect? It is the culture— the obsolete employee. High performing organizations need employees with a variety of experiences who are constantly learning, continually reinventing themselves to stay productive and relevant. Treat service providers as partners and members of the team. In industry, service providers sit down with the customer to discuss the customer’s goals and objectives, and then work together to achieve these objectives. Place as much focus on changing business practices and processes to achieve efficiencies, as in driving down rates and potentially forcing world class companies to stop doing business with the government. Otherwise the result is the lowest bidder providing low quality work. Listen to industry’s advice, challenge their input, and work together to implement the best ideas from both government and industry. Build trust, consult with each other, “test” new processes and systems before implementation, compromise on issues, and find common ground with the service provider. Collaboration as equals is critical to success. The majority of action officers in DoD’s operating commands working with industry
have little if any personal industry experience. They are career civilians or retired members of the military who transition to a career civilian position. Most are very capable individuals working within the bureaucracy, but they have minimal industry experience. They do not have experience working in the segment of industry they are managing for the government. Therefore, they do not understand the impact or potential consequences of the policies, regulations, or contracts they are writing or working to implement. Perhaps it is time to establish a goal of hiring 50 percent of all new midto senior-level government employees from outside sources. A government organization needs both—employees who understand the government bureaucracy and those that understand industry. Commercial industry recruits former military and government employees to work in their government business sectors. This may be an industry best practice applicable to the government. It is time for bold, visionary leaders to bring change to the DoD logistics and transportation culture and operations. Think big like the CEOs of America’s largest corporations. The current director of DLA is thinking big—save DoD $13 billion in six years. What are the big ideas from the lessons learned in Iraq and Afghanistan for changes in the DTS? O
Lieutenant General Kenneth R. Wykle, USA (Ret.), is president of the National Defense Transportation Association. For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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R
Success Comes in
everse
The Defense Logistics Agency is using several methods to decrease material costs as part of its effort to shed $13.6 billion in expenditures by 2019. One area in which DLA expects to drive savings is reverse auctions. Unlike a typical auction where bidders seek to win with a high bid, in a reverse auction vendors lower their prices as they compete to win a contract. Reverse auctions have saved DLA more than $1.6 billion over the past 14 months, DLA Director Navy Vice Admiral Mark Harnitchek said. In reverse auctions, sellers bid online for contracts. These can be contracts for procurements for items needed to send directly to a customer or to be stored by DLA, or for long-term contracts for a term usually lasting five years, said Carmen Pillitteri, a business process analyst at DLA Land and Maritime in Columbus, Ohio. By allowing sellers to view the lowest offer and bid against it, the process creates intense competition between firms, which drives prices down, he said. “Since it’s a competition-based event, we need to have at least two vendors that are quoting and that are competitive with each other,” Pillitteri said. “When they log in, they see their own price, and they also see the current lowest price on the procurement. They don’t know who their competitors are, and they don’t know how many competitors they have in the auction, but they see the prices and have an opportunity to lower their price.” Auctions run for no longer than an hour, Pillitteri said. “We set it up, give the sellers two days to prepare, run it for a half hour to an hour, and then it’s done,” he said. “If someone bids in the last few minutes, the time will be extended by five minutes, so every vendor has an opportunity to put in their best price. But it’s a very definite and relatively short timeframe. That’s one of the best parts about it.” DLA requires reverse auctions for procurements of $150,000 or greater, but reverse auctions can be used for procurements at any price, Pillitteri said. For instance, DLA Land and Maritime requires reverse auctions on procurements at the $25,000 threshold, providing a substantial increase in reverse auction opportunities. As a result, the organization conducted more than seven times as many reverse auctions in fiscal 2013 as it did the previous year, resulting in savings of $34 million. This
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The DLA implements reverse auctions and sees savings. By Amanda Neumann
sum far exceeded the DLA Land and Maritime target of $3.3 million in savings by the end of fiscal 2014, he said. Held almost daily throughout the agency, reverse auctions have also worked well for other DLA field activities, including DLA Aviation in Richmond, Va., which has already exceeded its fiscal 2014 goal of $4 million in savings. From October 2012 to July 2013, DLA Aviation conducted 241 reverse auctions, 49 percent of which were successful and saved the organization $27.96 million, said LaKisha Andrews, DLA Aviation’s reverse auction program manager. In addition, DLA Energy achieved $400 million in savings in fiscal 2013 by using reverse auctions to get better prices and increase competition in awarding fuel contracts, said Anthony Thomas, policy chief of the Procurement Planning Branch in DLA Energy, Fort Belvoir. During fiscal 2013, DLA Troop Support’s reverse auctions resulted in 159 awards, 91 of which were in the clothing and textile supply chain, including eight projected to save more than $1 million each. The largest award, estimated to save more than $24 million, is for a system of load-bearing equipment worn by servicemembers, such as vests and rucksacks. With a goal to save $17.1 million by fiscal 2014, their efforts have resulted in $40.7 million in actual savings so far, said Tom Chenoweth, chief of the Programs Division in DLA Troop Support, Philadelphia. As a Department of Defense combat support agency, DLA provides the Army, Navy, Air Force, Marine Corps, other federal agencies, and joint and allied forces with a variety of logistics, acquisition and technical services. The agency sources and provides nearly 100 percent of the consumable items America’s military forces need to operate, from food, fuel and energy, to uniforms, medical supplies, and construction and barrier equipment. DLA also supplies more than 85 percent of the military’s spare parts. O Amanda Neumann is a public affairs specialist at the Defense Logistics Agency at Fort Belvoir. For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.
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Managing the complexities and challenges of the Afghanistan drawdown. By Stephenie Tatum countries in U.S. Army Central Command’s area of operations, which Major General Kurt Stein, commanding general, 1st Theater is equal to 6 million square miles. Sustainment Command, emerges from a morning brief with his staff “The purpose of the retrograde is to reset and refit our Army. confident they are on track and set for a successful transition next year. By getting this equipment back to our forces, we are protecting the He has just received an update on the progress of the retrograde American taxpayers’ investment in its military, and ensuring our readiin Afghanistan and the status of operations for his command, which is ness for future operations,” said Stein. also located in Kuwait and Fort Bragg, N.C. Stein leads a diverse team of logistics soldiers, government civil“Iraq was hard, but Afghanistan is really hard. Nothing like this ians and contractors, comprised of organic 1st TSC members and has ever been done. We’re making history with what we are doing others from subordinate units who report directly to him—all of here,” said Stein about the complexity of the 1st TSC’s mission in whom dedicate themselves each day to ensuring soldiers receive the Afghanistan. sustainment support they need. In addition, they work The 1st TSC’s mission is to synchronize the moveknowing the clock that is ticking down to the directive ment and responsible drawdown of all equipment and by President Barack Obama that states U.S. troops will personnel out of Afghanistan along ground lines of draw down to 34,000 by February 2014. They must also communication through Pakistan along the Southern set the conditions for the post-2014 mission in AfghaniDistribution Network, or the central Asian states along stan, known as the Resolute Support Mission. the Northern Distribution Network. In addition, the “We have the right people, resources and authori1st TSC provides command and control for logistics ties in place to overcome the challenges and complete units in theater, provides sustainment support to our mission,” said Stein. forces operating in theater, and assists with base cloThe type of equipment being retrograded and sure and transfer. redeployed include mine resistant ambush protected The U.S. currently has about $33 billion (down Maj. Gen. Kurt Stein vehicles, trailers, military generators, radios, navigation from $48 billion) worth of equipment in Afghanistan. systems, weapons and ammunition, to name a few. Made up of more than 20,000 military, civilian and The 1st TSC was responsible for the retrograde in Iraq. The size contractor personnel, the 1st TSC and its subordinate units ensure and scope of the missions are similar. There were 60,000 vehicles and the warfighters have the supplies and transportation assets necessary 90,000 containers in Iraq that had to be retrograded. In Afghanistan to accomplish their missions. As a global sustainment provider, the the U.S. started with approximately 50,000 vehicles and 108,000 con1st TSC supplies food, fuel, water, transportation, ammunition, buildtainers. But anyone involved in both retrograde missions will quickly ing materials and repair parts. Additionally, the 1st TSC manages the point out that the challenges in Afghanistan are far greater. ports, flights and customs points needed to keep people and equip“Many lessons learned from Iraq have been applied with great ment moving 24 hours a day, seven days a week. success in Afghanistan, but comparing the retrograde of equipment The 1st TSC also provides adjunct support in the areas of financial from Iraq to the retrograde from Afghanistan is like comparing apples management, human resources, humanitarian aid distribution, hostand oranges,” said Brigadier General Duane Gamble, 1st TSC deputy nation engagements, and medical care for troops and civilians within commanding general. the command. Soldiers, sailors, In addition to geography and weather, Afghanistan’s transportation Marines, airmen, civilians and infrastructure poses a greater challenge and limits freedom of movecontractors with the 1st TSC ment, especially for logistical convoys. The U.S. must also rely on surare in the fight every day, rounding countries for movement of equipment in to and out of the moving what is needed region. Also, Afghanistan lacks a staging base like Iraq had in neighthroughout the 20 boring Kuwait. The forces in Afghanistan do not need the volume of equipment that was absorbed by the Iraq army, and our coalition forces are also drawing down with us. These are just a handful of the unique challenges the Army faces in Afghanistan. Lastly, Afghanistan is a land-locked country with no seaport to facilitate transportation of materiel. “In Iraq we weren’t fighting to the very end, providing the assistance like we are now,” said Stein, highlighting another key difference between Afghanistan and Iraq. One lesson learned applied from Iraq was the need for a U.S. Central Command Materiel www.MLF-kmi.com
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Reduction Element. The CMRE was established to have a unit that can focus solely on retrograde. About half of their unit is made up of engineer assets that enable base closure, transfer and descope. The other half is made up of logistics units that perform the retro-sort mission. The teams that run the retro-sort yards take in equipment from across the battlefield, sort it, bring it to record and prepare it for disposition in accordance with instructions from Army Materiel Command. Those items that are uneconomical to ship home are divested through the Defense Logistics Agency Disposition Services. “The difference between Iraq and Afghanistan is the CENTCOM Materiel Recovery Element. It is one of our key lessons learned from Iraq. The capabilities they bring to the table are decisive in our retrograde operations,” said Stein. “The CMRE allows our units performing the train, advise and assist (TAA) mission with our Afghan partners Surrounded by tri-wall boxes used to segregate supplies and equipment that will be sent out of Kandahar Airfield, of the 349th Quartermaster Company, 749th Combat Services Support Battalion, California Army National to focus on that mission,” said Gamble. “The TAA mis- members Guard, check though sorted equipment. [Photo courtesy of U.S. Army National Guard/by Sgt. Eddie Siguenza] sion is the priority. The CMRE is a combat multiplier. In Iraq, units had competing priorities: train their Iraqi partners The proof is in the numbers. Since June, retro-sort yards have put and retrograde. In Afghanistan, the CMRE is able to focus solely on more than $100 million back into the Army’s inventory, and more retrograde in order to allow that commander on the ground to focus than $800 million since January 2012. Since August, the 1st TSC has on their mission.” reduced the total container count by more than 17,000 and retroColonel Todd Heussner, commander of the 43rd Sustainment graded more than 1,200 vehicles. Brigade, served as the CMRE until October. The unit made history. “We were successful in Iraq, but it was not perfect. The Army is a His unit was only the second unit to serve in this function. There is learning organization. We took those lessons learned from Iraq and we not any doctrine on how to serve in this role. Doctrine on retrograde are applying them to Afghanistan,” said Gamble. in general is limited as well. Heussner and his team approached their Logistical planning for the redeployment and retrograde in mission from a business perspective. Afghanistan is not just the work of the 1st TSC. This team effort is “It’s important we don’t allow our assets to be idle,” said Heusspossible with the help of the U.S. Transportation Command, U.S. Cenner. “We take a business approach, through our entrepreneurial tral Command, International Security Assistance Force, U.S. Forcesleaders. If our assets are sitting idle, it costs the American taxpayer Afghanistan and U.S. Army Central. Though separated by multiple money. And we are here to save money. That’s why we get our assets time zones, the 1st TSC and its team of teams work day and night to out to the customer.” ensure the retrograde of personnel and equipment out of Afghanistan The CMRE’s forward retrograde elements consist of several teams is a success during one of the most challenging times in our history. to assist in the retrograde mission. Instead of having logistical hubs The 1st TSC’s progress remains on track and they are building where everyone brings equipment to them, they go out to forward relationships along the way. A new chapter is being written every operating bases and perform their mission. day as the First Team reduces rolling and non-rolling stock while “Our soldiers work hard, in austere conditions,” said 2nd Lieustill sustaining the warfighters and conserving equipment that can tenant Daniel Krus, 227th Quartermaster Company, 68th Combat be used in the future. As December 2014 draws closer, the 1st TSC Sustainment, CMRE, and the officer-in-charge of the joint sort yard will continue to be a decisive enabler in setting the conditions for at Forward Operating Base Shank. “We take in all types of equipment the Resolute Support Mission and our enduring commitment to the strewn across the battlefield in our area of operations. From there we people of Afghanistan. sort it, catalog it and prepare it for disposition. And our efforts have In the end, the goal is to close out a decade of war in a way where saved the American taxpayer hundreds of millions of dollars.” the Afghans can take full responsibility for the security of their nation. “My soldiers are doing a great job,” said Staff Sergeant Elmar The 1st TSC is confident we can meet the deadlines regardless of the Tomas, 227th Quartermaster Co., 68th CSSB, CMRE, and the noncontingencies because we have the right people for the job. commissioned officer-in-charge of the joint sort yard at FOB Shank. “The Army is about people. Our soldiers and civilians do tremen“Not only are we putting millions of dollars back into the Army’s dous work. I continue to be amazed by their dedication to duty and inventory, but we are also saving soldiers’ lives by keeping them off personal sacrifice every day. Our young leaders are stepping up every the roads. By performing this mission forward and bringing our capaday, making things happen. I couldn’t be more proud of their efforts,” bilities to the warfighter, we don’t have to put anyone on the roads to said Stein. O move this equipment to a central location.” “Our mission is unique. We take materials as far forward as posStephenie Tatum is with 1 TSC Public Affairs. sible, so it keeps troops off the road,” said Private First Class Dwight Mathews, a material retrograde team specialist with the 227th For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories Quartermaster Co., 68th CSSB, CMRE. “We save lives and money. at www.mlf-kmi.com. It’s truly awesome.” 30 | MLF 7.10
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March 3, 2014 Defense Maintenance and Sustainment Alexandria, Va. www.pblusa.com April 7-9, 2014 Sea-Air-Space Exposition National Harbor, Md. www.seaairspace.org
January 27-29, 2014 Tactical Power Summit Washington, D.C. www.tacticalpowersourcessummit. com
April 15-16, 2014 National Logistics Conference Washington, D.C. www.ndia.org/meetings/4730
February 19-21, 2014 AUSA Winter Huntsville, Ala. www.ausa.org
May 12-15, 2014 AUVSI’s Unmanned Systems Orlando, Fla. www.auvsishow.org/auvsi2014
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The Publication of Record for the Military Logistics Community
Cover and In-Depth Interview with:
Lt. Gen. Raymond V. Mason Deputy Chief of Staff of the Army, G-4 Logistics
Asset Visibility How are tracking devices and systems being used on equipment being transported out of Afghanistan?
Features Retrograde Logistics The Surface Deployment and Distribution Command looks at the role it plays in organizing and moving the drawdown from Afghanistan. Smart Devices for the Logistician Smartphones, tablets and small laptops offer logisticians global information at their fingertips.
Calendar
January 14-15, 2014 AUSA Army Aviation Symposium Arlington, Va. www.ausaaviation.org
January 2014 Vol. 8, Issue 1
Special Section
Special PULL-OUT SUPPLEMENT
December 3-5, 2013 Defense Logistics Alexandria, Va. www.defenselog.com
NEXTISSUE
Power Grids More efficient power distribution, whether CONUS or deployed, means lean fuel and more savings. RDECOM Logistics Support Support for the Army’s research, development and engineering elements.
BONUS DISTRIBUTION: AUSA WINTER I ns e rt ion O r d e r D e a d l in e : J a nu a ry 2 8 , 2 014 A d M at e r i a l D e a d l in e : F e b r u a ry 4 , 2 014
C o n t a c t J a n e E n g e l a t 3 01. 670 . 570 0 or jane@kmimediagroup.com
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INDUSTRY INTERVIEW Military Logistics Forum Colonel John Bryant (Ret.) Senior Vice President of Defense Programs Oshkosh Defense As the senior vice president of defense programs for Oshkosh Defense, Colonel John Bryant (Ret.) leads the development, production and sustainment of all vehicle and product platforms and programs for Oshkosh Defense, integrated product support and contract administration. Bryant brings a 28-year history of service with the Marine Corps to his role at Oshkosh. Q: What are Oshkosh’s strengths and how can you best partner with the military to meet its objectives? A: At Oshkosh Defense, we’ve been mobilizing military and security forces around the globe for more than 90 years. We’ve been able to do this because we never stop innovating—innovating to deliver new tactical wheeled vehicle (TWV) capabilities and to improve efficiency for our military customers. Today, our U.S. armed forces need innovation more than ever. We learned in Iraq and Afghanistan that our enemy would engage very simple, low-tech threats, such as IEDs. Looking ahead, one thing that’s clear is that future battlefields will bring an unpredictable combination of terrain, tactics and threats. Combine this with current budget challenges facing DoD, and new ideas and solutions are the only option. Our innovations leverage our experience in-theater, like our joint light tactical vehicle (JLTV) solution, the Oshkosh light combat tactical all-terrain vehicle. We learned from the mission profiles and performance of our M-ATV in Afghanistan, and injected findings into six generations of design, development and testing for our JLTV solution. This has allowed us to deliver a vehicle that can travel 70 percent faster over off-road terrain than the M-ATV, which is the current standardbearer for protected, off-road mobility. Q: What do you bring to the table in helping DoD meet its efficiency and budgetary challenges? 32 | MLF 7.10
A: Beyond the need for protected mobility from their vehicle fleets, the U.S. military also needs platforms that are flexible, so fleets can be modified and improved across the entire life cycle, without breaking the bank. HMMWVs were designed in the early ’80s. They’ve served well, but they were never designed for the threats warfighters face today. You put armor on a HMMWV and it’s overweight, which means you start impacting performance. The Oshkosh JLTV solution is designed with room for growth, to be adaptable and able to support our troops for the long haul. We also developed our JLTV solution to account for maintenance and upgrade costs across the vehicle’s decades-long life cycle. The Oshkosh integrated product support team was involved at the earliest stages of vehicle design. They conducted a wide array of logistics engineering to optimize system life cycle cost and readiness. The U.S. military has turned to Oshkosh for sustainment support—from technical manuals and parts supply to training and remanufacturing—across dozens of vehicle variants that span the light, medium and heavy spectrum. We have a unique understanding of vehicle systems, and are continuously improving and optimizing our sustainment services to keep life cycle costs down. Q: How is Oshkosh positioned to deliver support and savings to DoD while continuing to grow? A: Vehicle services and support are becoming a bigger piece of the puzzle in helping
the military reduce sustainment costs. One way we work to lower these costs is in how we manage our own company. We employ lean processes across our operations. It’s our culture. We have a longstanding history of providing low-cost solutions that meet or exceed requirements, delivering on-time and within budget. Lean initiatives are a continuous process. Recently, at our Oshkosh-based warehouse, we improved storage density to generate millions in annual cost avoidance while improving our ability to deliver parts quickly and correctly. Driving lean throughout our business processes every day allows us to best serve our warfighters and pass savings on to our customers. We’ve also invested in expanding our service and support capabilities. For example, over the past several years we’ve built a dedicated team of Oshkosh command, control, communications and computer (C4) integration specialists and engineers. These folks have experience in systems requirements, software, networks, electromagnetic compatibility, electrical and mechanical packaging, and thermal analysis. With this capability and our expertise as a TWV OEM, Oshkosh Defense can deliver vehicles with fully tested and tightly integrated C4 equipment. Some OEMs design a vehicle with a bolt-on approach for the C4 equipment. A thirdparty integrator then comes along to install the equipment, often through trial and error. This disjointed approach can be risky, commonly requiring disassembly of the vehicle. It also usually takes longer and can cost much more. Performing C4 installation work inhouse can improve full-system quality while reducing cost for the military. We factor mechanical, electrical and user interfaces into the vehicle design process from the very beginning, so overall system performance and user experience are optimized. O www.MLF-kmi.com
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