1. Program Executive Office Ammunition
11-13 May 2004
Presented By:
Mr. Matthew T. Zimmerman
Associate PEO Ammunition – Industrial Base
Presented To:
NDIA Small Arms Symposium

3. PEO Ammo
MISSION
Develop and Procure Conventional and Leap-Ahead Munitions Combat Power to Warfighters
GOALS
Field Precision Munitions & Smart Weapons
Improve and Sustain the Conventional Stockpile
Satisfy the Customer, Achieve Excellence
Grow World-Class People and Teams
Our vision is to get conventional and leap-ahead combat power in the hands of warfighters
Our goals are stated simply enough. The top two priorities are to get…..
Precision-Guided Munitions into the Inventory,
and to improve… Conventional Munitions

4. Systems - Indirect Fire
PEO Ammo Organization
PEO Ammunition
BG Paul Izzo PEO
Mr. Kevin Fahey DPEO
Industrial Base
Mr. Matt Zimmerman
APEO Industrial Base
Washington, D.C.
Liaison Team
Close Combat
Systems
Mr. Jim Sutton PM
Combat Ammo
Systems - Indirect Fire
COL Nate Sledge PM
Maneuver Ammo
System - Direct Fire
Mr. Bill Sanville PM
Joint Services
COL Jeff Gwilliam PM
Networked Munitions/ Munitions / Countermine
Demolitions /
Non-Lethal
Medium & Small Caliber
DEMIL
Mortars
Excalibur
Large Caliber

5. PEO Ammo Main Objectives
Unify & Integrate Ammunition Management Under One Single Chain of Command…by Consolidating Responsibility and Resource Management in the PEO
Develop a Unified Munitions Acquisition Strategy
Integrate Requirements…Training, War Reserve, & Modernization
Include SMCA Mission
By Munition Family
Identify and Optimize Key Business Processes
Develop and Implement an Industrial Base
Strategy (Organic and
Commercial)
Common Themes From
PNNL Study, GAO Study,
and Rand Study
Authority and Accountability…
For Meeting Full Military Requirement For all Ammo Families

6. Where We Are Today Single Manager for Conventional Ammunition (SMCA)
ASA(ALT) Named SMCA – 8 Jan 2003
PEO Ammunition Named SMCA Executor – 16 Apr 2003
Section 806 Authority Assigned 16 April 2003
SMCA Charter in Service Review
All FY04 Service Funding Goes thru PEO Ammunition
PM’s are Engaging Other Services
Formed SMCA Acquisition Council
Completed Executive 6 Sigma Black Belt Program
Implementing Ammo Enterprise
Metrics – Covering All SMCA Functional Areas
All Major Issues Resolved
Moving Forward With Execution
Measuring Improvements

7. Single Manager for Conventional Ammunition (SMCA)
DOD D
DOD I
SMCA Key Objective: Achieve the Highest Possible Degree of Efficiency and Effectiveness Acquiring Conventional Ammunition
SMCA Functions:
RDTE
Production Base
Acquisition
Supply & Maintenance
Demilitarization

8. Ammunition Enterprise Definition
The Ammunition Enterprise is the integration of people, infra-structure and processes required for ammunition life cycle management to support the warfighter.
JMC-PEO Ammo - ARDEC

9. RDA FY 04 PEO Ammo Budget Total
Total: $1,799.6M
(12%)
(3%)
(39%)
(14%)
(32%)
Source: FY05 PB
PM Combat Ammunition Systems
Artillery Ammunition
Artillery Fuze
Mortar
PM Maneuver Ammunition Systems
Large Caliber
Medium Caliber
Small Caliber
RDTE $184,067
WTCV $10,027
OPA $39,224
Ammo $339,633
RDTE $26,521
Ammo $670,148
PM Close Combat Systems
Mines, Countermines & Demolition
PM Joint Services
PEO Industrial Base
Demil
RDTE $133,615
OPA $17,884
Ammo $108,881
RDTE $30,937
Ammo $181,626
PEO Ammo
RDTE $31,595
Ammo $25,446

10. FY04 PEO Ammo Funding ($M)
Total=$1,799.6M
Industrial Base
Total=$131.22M
PAA Total= $109M
RDTE
($406.7M)
RDTE
$22.22 IF
$32.35
WP MOD (plus-up)
$24.30
Procurement
1,392.9M
IF (Plus Up)
$25.31
ARMS
(Plus Up)
$7.00
The left pie chart shows our overall FY04 PAA and RDTE funding. The dotted line sections represent the percentage of our funding dedicated for industrial base projects. The chart on the right provides a break-out of our specific industrial base funding which totals approximately $140M ($118M PAA Activity 2; $22M RDTE).
Our $22M RDTE funding funds our Life Cycle Pilot Process program having the goal to improve product affordability and mitigate manufacturing deficiencies by prototyping advanced manufacturing techniques for transfer to Industry.
The Production Base Program consists of Industrial Facilities (IF), Maintenance of Inactive Facilities (MIF), Lay-away of Industrial Facilities (LIF) and Armament Retooling and Manufacturing Support (ARMS) programs.
Industrial Facilities (IF) :
Corrects environmental and infrastructure deficiencies
Replaces obsolete or worn production equipment
Maintenance of Industrial Facilities (MIF)
Maintains laid-away production equipment and facilities
Lay-away of Industrial Facilities (LIF) (EP2000):
Preserves and stores production equipment and facilities for future use or disposal.
Armament Retooling & Manufacturing Support (ARMS)
Funding to permit commercial use of Army Ammo Plants and equipment to reduce cost of ownership, reduce product cost and retain workforce skill sets
WP MOD: The $24M is a congressional plus-up to complete the construction of a new White Phosphorous Load, Assemble and Pack production line at Pine Bluff Arsenal (for Artillery and Mortar rounds).
IF Plus-Ups: $14M Small Cal, $3.5M Med Cal Links, $3M Riverbank AAP Flex Manufacturing, $3.5M Flex LAP line for Modern Munitions (Kansas), $1.5M Arsenal Support Program Initiative (Pine Bluff)
MIF
$5.8
LIF
$9.7
ARMS
$4.57
IF=Industrial Facilities
MIF= Maintenance of Industrial Facilities
LIF= Layaway of Industrial Facilities
ARMS= Armament Retooling & Manufacturing Support (ARMS)
WP MOD= White Phosphorous Modernization
Production
Base Support
Program
Source: FY05 PB

11. Section 806 Summary Procurement Approach Distributions
Public Law , Procurement of Conventional Ammunition
Permits SMCA to Restrict Procurements to Sources within NTIB
FY03 Procurements
FY04 Procurements 19 39 21 42
$1274.7M
$205.2M
$421.3M
$2430.4M 64 10 40 52
$223.9M
$860M
$321.4M
$26.2M
FY03 Sec 806s
Army 34
$1689.7M
USN 61
$435.1M
USMC 3
$19.4M
USAF 14
$2187.4M
TOTAL
112
$4331.6M
FY04 Sec 806s
Army 98
$377.4M
USN 17
$24.3M
USMC 24
$19.9M
USAF 27
$1009.9M
TOTAL
166
$1431.5M
PEO Ammo Delegated Section 806 Authority Nov 02
Competition Limited to the NTIB
Full and Open
Sole Source
Small Business Set Aside

12. Small Arms Ammo Production History
Years
1944
1950
1956
1962
1968
1974
1980
1986
1992
1998
2004
2010
500
1000
1500
2000
2500
KOREA
VIETNAM
WWII
Multiple
MFGs
Remington Arms
Olin
ATK 12
Plants 3 2 1
Plant
USA
Millions of Rounds

13. Requirement Increases (Produced at Lake City)
Unknowns associated with live fire training and OIF Supplemental
Increased requirements due to Chief of Staff training surge
Source: Integrated Conventional Ammunition Procurement Plan
FY04 Draft Execution Price List Quantity

14. Small Cal Ammo Scenarios
POM FUNDING
(ALL SERVICES)
DESIRED SURGE CAPABILITY
GOAL ALL SERVICES
LCAAP CAPACITY
ALT. SOURCE
UNFUNDED
REQUIREMENTS
What is monthly Velocity?

15. Small Caliber Ammunition
.50 Cal: A large number of soldiers commented that the M2 machine gun is “…the best weapon in the Army”
They successfully engaged and destroyed targets (light armor, buildings and personnel) between meters without experiencing any major malfunctions or breakages on the weapon system
7.62mm: Coax machine gun and loader machine gun were most widely used weapons for tanks
Ammunition and weapon systems performed very well
5.56mm: Most soldiers considered M16 weapon series to be very accurate regardless of the version or sighting system
One sniper team spotter employed his M16A4 (equipped with a high powered scope) against targets at 600 and 800 meters with first round hits in each case

16. Industrial Base Strategic Plan
7 Overarching
Strategies
30 Tactical
Strategies
Single Manager for Conventional Ammunition (SMCA)
Industrial Base Strategic Plan: 2015
Volume A
3 November 2003
Program Executive Office Ammunition
SFAE-AMO
Picatinny Arsenal, NJ
Strategic Goals:
1. Transform to Meet Current and Future Requirements
2. Modernize Utilized Manufacturing Capacity
3. Balance Industrial Base & Acquisition Management Risk
4. Operate Efficiently and Effectively
5. Incentivize Industry to Reinvest in Capital Equipment and Processes
Sample Overarching Strategies:
A key product from our Industrial Base IPT is our ammunition Industrial Base Strategic Plan. The Plan is a dynamic document that represents our goals and tactics to position the industrial base to respond to current and future requirements. We will continue to use 6 Sigma principals and update the plan annually due to the dynamics of global events and the upcoming BRAC. (Hand out plan). Its initiatives and strategies provide the underpinnings for optimizing acquisition planning and decision making that affect the preparedness of the ammunition production base.
Strategic Goals:
Transform to Meet Current and Future Requirements > strategies focus on change management principals to increase overall operating efficiencies while mitigating costs associated with Underutilized Capacity and antiquated infrastructure.
2. Modernize Utilized Manufacturing Capacity> strategies focus on planning resources to improve existing manufacturing equipment (organic and commercial) and implementing Science Based Production disciplines. Science Based Production disciplines will ensure we understand the manufacturing process to avoid another small caliber links situation; i.e., the production line is moved but the process is not under control nor fully understood, thus resulting in problems
3. Balance Industrial Base & Acquisition Management Risk > strategies focus on managing by ammo families and synchronizing procurements to avoid surge spikes while sustaining required capabilities. We will also balance the need to pay more for a product in order to sustain the capability.
4. Operate Efficiently and Effectively> strategies focus on deploying 6 Sigma and Lean methodologies across industrial base operations.
5. Incentivize Industry to Reinvest in Capital Equipment and Processes> strategies focus on ways to encourage private investment into the production base. One strategy is to incorporate into acquisition contracts government matching of private investment for improving a production capabilities.
1. Acquisitions Will Determine and Posture the Production Base.
2. Acquisitions and Investments Will be Synchronized to Assure Required Manufacturing Capabilities Remain Available.
3. Opportunities for Greater Joint Service Activity Will be Identified and Implemented.
Outlines Goals and Tactics to Shape the Industrial Base

17. GOCO Production Base Outlook
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
Chamberlain
BRAC05
Scranton
Norris
Riverbank
Valentec
Louisiana
FY03
Radford
ATK
FY99
Lake City
Kansas
Facilities-Jul 24
Principal Strategy:
Lone Star
1-Align Facility Use Contracts w/ BRAC05
Day &
Zimmermann
MTI
Miss.
2-Pursue Feasibility and Overall Business Case for Sell, Long Term Lease, and/or Capability Consolidation (Pending BRAC Outcome)
Milan
General
Dynamics
American
Ordnance
Iowa
BAE Syst
OSI
Holston
= Contract term expires
Facilities-Jun 23
= Decision or actionable point

18. Summary – The Ammunition Enterprise is …
Supporting Current Operations/Planning Future
Improving Ammunition
Life-Cycle Practices
Focused, Well-Trained Workforce
Leveraging World Class Capabilities & Technologies
Vital to the development of products for the Future Joint Force