Roadblock

The Army, Navy and Air Force are pursuing 10 pilot programs each to test concepts for streamlining logistics support for both new and existing weapons. Most pilots are designed around two general concepts-shifting more responsibility for weapons system performance to contractors, and increasing weapons reliability by inserting new, more easily maintainable technologies into existing systems. While the pilots are in various stages of implementation, the services have defined their programs as follows:

Army

• M-1 Abrams Tank

  The Army has identified four initiatives to cut operation and support costs to this legacy system: 1) Partner with industry to overhaul engine components using contractor parts and technical support with government labor and facilities; 2) Reduce fuel consumption by 30 percent and increase reliability through an engine-replacement program; 3) Implement a technical support program to replace obsolete parts, improve safety and provide post-deployment software support; and 4) streamline the process for providing spare and repaired parts to the field through direct-vendor delivery, electronic data interchange and electronic commerce. Anniston Army Depot and General Dynamics have formed a partnership to rebuild the M1A1 to extend service life, improve reliability and reduce operation and support costs.

• AH-64 Apache Helicopter

  The Army is reviewing how it might salvage plans to modernize the Apache fleet through a prime vendor support plan that was shelved last year. The plan, which teamed Apache manufacturer Boeing with Lockheed Martin, provider of a key electronics package, would have given contractors responsibility for modernizing the aircraft by turning over spare parts' management to them. But the Army Working Capital Fund, which manages the spares, stood to lose at least $50 million in the plan, which would have jeopardized other Army programs. The Army still is working to reconcile its goals for supporting Apache without adversely affecting the fund.

• RAH-66 Comanche Helicopter

  While Comanche won't be fielded until after 2005, the Army has begun a detailed analysis of all repairable items to determine ways to reduce life-cycle costs through maintenance and technology integration with other Army aircraft programs.

• CH-47 Chinook Helicopter

  The Army is refining a database to precisely measure operation and support costs and helicopter downtime. Initial baselines for some components have been completed, and the Army is analyzing ways to improve support to the fleet through various means, including improved data collection and upgraded technical manuals.

• Crusader Artillery System

  The engine-replacement program for the Abrams was extended to the Crusader in the form of the Abrams-Crusader Common Engine Program, whereby the Army expects to reduce life-cycle management costs of both systems. The Crusader program was recently restructured to reduce the size and weight of the artillery system, which is to be fielded in 2008.

• Fire Support Command and Control

  This is a tactical data system for field artillery. The Army has established a team to coordinate development of new systems with support of existing systems to avoid duplication and ensure interoperability of new and legacy systems. The goal is to cut operation and support costs by 20 percent by 2005.

• Guardrail Common Sensor

  This is a corps-level airborne intelligence collection system that provides real-time targeting information to commanders throughout the battlefield. Because it integrates many separately developed, technically sophisticated subsystems, it does not fit neatly into the Army's traditional support structure for sustaining weapons. To provide better support for the systems and the warfighters who rely on them, the Army has established teams of stakeholders to provide a single source for program support.

• Heavy Expanded Mobility Tactical Truck

  The Army intends to upgrade about 30 percent of its heavy truck fleet through an extended service program agreement between Oshkosh Truck Corp. and Red River Army Depot, although funding for this recapitalization program is uncertain. In addition, the Army is expanding the number of line items directly provided by the contractor and using direct-vendor delivery for items managed by the Defense Logistics Agency.

• High-Mobility Artillery Rocket System

  While the HIMARS multiple launch rocket system is still in development, the prime contractor is to have responsibility for life-cycle management. The Army is coordinating with the users as well as logistics support personnel to reduce total ownership costs and expects several initiatives to have a direct impact on the service's ability to control costs with the currently fielded multiple launch rocket system.

• TOW Improved Target Acquisition System

  The ITAS program is expected to reduce total ownership costs of the tube-launched, optically tracked, wire-guided (TOW) system by reducing the number of components to be supported and eliminating support equipment and scheduled maintenance. The Army is pursuing a fixed-price support contract for supply and maintenance, which will tie the contractor's profit to the weapons' readiness level.

Navy

• Aviation Support Equipment (Consolidated Automated Support System, or CASS)

  The Navy is incorporating the best practices of many supply support programs into one. The goals are to improve reliability and turnaround times for repairs and to reduce costs. The Navy doesn't expect to have program cost data until December 2001, but it is projecting annual savings of $1.2 million-savings that have been reflected in Navy budget programs.

• Common Ship

  This program includes 22 separate initiatives designed to subject product support to competition and to modernize ships by upgrading spare parts and components. More than 125 ships have been involved in the pilot. The Navy projects that it will save $230 million and has built anticipated savings into its budget.

• CVN-68 Class Ships

  Similar to the Common Ship program, the CVN-68 Class Ships program aims to cut total ownership costs on aircraft carriers by reducing maintenance and improving reliability. By using improved paints and coatings and other components requiring little or no maintenance, the Navy anticipates substantial savings, although it has not yet built the funds into its budget.

• LPD-17

  Although the first LPD-17 transport ship isn't expected to be delivered until late in 2003, the Navy expects to achieve huge savings ($4.5 billion over the course of the 12-ship program) by contracting out most logistics support. Actual cost data to substantiate the strategy won't be available until 2005. Anticipated savings has not been reflected in future Navy budget plans.

• H-60 Multi-Mission Helicopter

  The Navy is reducing logistics infrastructure for its fleet of helicopters by cutting the number of models from seven to one basic airframe with three variants. Under the resulting Helicopter Master Plan, the Navy will turn to virtual prime vendor support for parts and material for all levels of maintenance as well as remanufacturing. By 2005, the Navy expects to cut operation and maintenance costs for the fleet by about 35 percent. The current budget reflects near-term estimated cost avoidance.

• EA-6B Prowler

  By improving support for intermediate maintenance at Naval Air Station Whidbey Island, Wash., the Navy increased the number of engines repaired per quarter from 12 to 21. Also, the Defense Logistics Agency is pursuing a virtual prime-vendor contract for engine parts.

• Medium Tactical Vehicle Replacement

  Through electronic commerce/electronic data interchange and direct vendor delivery agreements with a prime contractor, the Navy anticipates saving about $30 million on repairs and reduced inventory.

• Standoff Land Attack Missile

  By using commercial components, restructuring maintenance and establishing a commercial depot alongside the production facility, the Navy has reduced annual operation and support costs by about $2 million.

• Advanced Amphibious Assault Vehicle

  Although this program is still in the program-definition and risk-reduction phase, the Navy has identified several initiatives for streamlining logistics support. Savings estimates won't be available until 2004 or later.

• CG-47 Class Cruiser (Smartship)

  This program tests commercial practices such as competitively sourced product support, modernization through spares, and prime-vendor support in an effort to upgrade obsolete engineering and navigation equipment, improve maintenance and services, and reduce sailor workload. The program is an attempt to upgrade virtually everything from shipboard food service to sailor safety to navigation. Results are to be demonstrated in September 2001.

Air Force

• Airborne Warning and Control System

  The Air Force is partnering with industry to provide support for its block 40/45 mission computer upgrades. The hardware-all commercial off-the-shelf products-is to be contractor maintained; software support is more likely to be maintained by the Air Force.

• Cheyenne Mountain Complex Integrated Command and Control Program

  Under a best-value contract, the Air Force will transfer all logistics support to a single contractor over a period of several years. The contractor will integrate support across the complex in conjunction with Cheyenne's evolving mission.

• F-16 Fighting Falcon

  The Air Force has established performance-based agreements with suppliers and shifted total logistics sustainment for certain avionics upgrades to contractors in an effort to improve aircraft readiness and reduce support costs.

• C-5 Galaxy

  By incorporating upgraded avionics and commercial, off-the-shelf engines and by making other upgrades, the Air Force expects to improve aircraft reliability and reduce overall maintenance costs. Performance-based contracting and revamped agreements with Defense repair and supply sources are key to this initiative.

• C-17 Globemaster III

  A "flexible sustainment" contract is designed to maximize the benefits of the open production line and minimize the instability within the government depot structure. Goals include improved readiness through better data management, reduced operation and support costs through proactive management based on reliability analysis and technology improvement, partnering between industry and government, and contractor performance guarantees.

• Joint Surveillance and Target Attack Radar System

  A sole-source system integration and support contract with Northrup Grumman will provide logistics support, whereas the Air Force will retain contracting, budgeting, requirements development and engineering authority. The contract will buy a level of support defined in terms of aircraft availability and will reduce total ownership costs. Northrup Grumman is to integrate all sustainment activities and have insight into those activities it does not directly manage.

• B-1 Lancer

  To better support the long-range bomber, the Air Force is forging service-level agreements with all organic supply-chain managers that will establish metrics to define responsibilities and measure performance. Under a long-term public-private partnering arrangement, the Air Force expects to improve aircraft readiness and reduce support costs through improved information and supply-chain management, ordering, and depot maintenance.

• F-117A Nighthawk

  Contractor Lockheed Martin Skunk Works has total responsibility for supporting these tactical aircraft. The cost-plus-incentive contract provides for a 50-50 sharing of all cost reductions. This is the most mature of the Air Force pilot programs, and it already has generated $27.8 million in savings as well as improved aircraft performance.

• C/KC-135 Stratolifter/Stratotanker

  The Air Force established a four-year performance-based contract with a one-year option with Boeing to cut repair times in half by 2002. The strategy is intended to dramatically increase aircraft availability and cut maintenance costs.

• Space Based Infrared System

  The Air Force is proposing a performance-based support contract that would cover the entire life cycle of the system, beginning in development. The arrangement would give the contractor responsibility for virtually everything except operating the system.