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Disposition of “Unneeded” US Equipment

Briefing to BG Terry

21 May 09

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“Unneeded” US equipment

• As the US Army begins to draw down forces in overseas theatres over the next few years it is anticipated that much of the equipment will no longer be needed.

• The Army Materiel Enterprise must develop a plan to ship and dispose of equipment not needed after the war effort. Shipment and disposal of unneeded equipment will be very costly.

• Army/AMC are exploring redistribution options.

• USASAC has been tasked to explore Foreign Military Sales (FMS) as an option in disposition of this equipment as FMS customers may have a need for some of the equipment.

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General Redistribution & Disposal Process

• Identify equipment no longer needed by the US Army (Army/AMC)

• Redistribute to requirements in other theaters (Army/AMC)

• Redistribute to other US DoD/civil requirements (Army/AMC)

• Sell/grant through Security Assistance program (USASAC)

• Donate to Foreign Customer (Army/AMC)

• Dispose through DRMS (Army/AMC)

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Issues

• The process & key players for identifying equipment not required by the US Army need to be better defined and documented by the Army Materiel Enterprise

• The details and key players for the redistribution and disposal steps need to be better defined and documented by the Army Materiel Enterprise (except for Security Assistance)

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Actions Taken by USASAC• As the AMC lead for Foreign Military Sales (FMS)

actions, USASAC has developed a web-based tool to alert potential customers of equipment available for transfer through FMS programs.

– Web site will be hosted by USASAC on our existing International Customer Information portal

– – Equipment will be identified by Nomenclature, NSN/DODIC,

Condition Code, Manufactured Date and Location.

– This web site will list ‘long supply” equipment (identified by the Army/LCMCs) available for sale.

– The web site will also list “excess” equipment approved by DSCA for transfer to qualified countries on a grant or sales basis.

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Recommendation

• Recommend AMC sponsor a Lean Six Sigma (LSS) project to map out the processes necessary to identify, redistribute, sell, donate and/or dispose of unneeded equipment in the most efficient manner.

• LSS Team membership should include AMC G-3/5, USASAC, DA G8, DASA (DE&C), PEO/PMs, DLA and LCMC item managers.

• USASAC has prepared a draft LSS Project Charter to jump start this action

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“Draft Charter”

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BACK UP SLIDES

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Long-Supply (LS) / Excess Defense Articles (EDA)

ForceStructureChange

PotentialLong Supply

G-8Coordinate

G-8RetainLS ?

Store

N

OtherServices

Transfer toAF/Navy

LSFMS

Sell OnLOA

N

N

Y

G-4

G-3/5/7

AMC

COCOMs

Y

Y

=

RetainN

Y

Store

DRMO

DEA CMH FMS OtherServices

GSA

EDA

12

SPurchaser

Requests forEDA (LOR)

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Army G3ForceStructureChanges 1

Army G8/G4ReconcileInventory vs.Requirements 2

DetermineExcess MaterialAvailability 3

AMC TransmitsSurvey Message 4

AMC PreparesEDA Requests 6

SufficientAssets

Available8

NO

YES

DASA(DE&C)Submits ArmyPosition toDSCA 9

1

DASA(DE&C)Proposes EDAAllocation 11

DSCA DevelopsDOD Position 12

-Includes DoS & DoC Position

-Industry impact-Regional balance-SCG-Arms Transfer Policy

EDA CORCOM(DoS, DoC, JCSJ5, DSCA) 13

Allocation PlanApproved 14

Notification Required

15

NO

YES

1

DSCACongressionalNotification 16

DSCA IssuesAuthorizationMessage 17

AMC PreparesFMS LOA

19

AMC FMS CaseImplementation

20

E

Joint VisualInspection

18

DASA(DE&C) coordinatesWith ARSTAF 7

MTCR

DSCA Staffing

10

Track EDA offers andDeliveries 21

Excess Defense Articles (EDA) Process