Cost-Wise Readiness Providing Flexibility for the Future Force 6 February 2013

Transcription

1 Cost-Wise Readiness Providing Flexibility for the Future Force 6 February 2013 B. Keith Roberson Executive Director AMCMOM Logistics Center AMCOM Logistics Center U.S. Army Aviation and Missile Command 1

2 OPTEMPO Goal: Cost-Wise Readiness N METRICS Data Accuracy Integration Cost ($/OPTEMPO HR) Readiness Cycle Time MTBF Error Rate MTTR Reliability Obsolescence Unit Cost Inventory PLT CWT ALT RWT Stock Availability Fill Rate RBOM/PBOM QDR 2 nd Destination TAT Charges Cost Retrograde Pipeline Time On-time Delivery Cost Phase Reset RBOM AIM Overhaul PBL Delivery Progress Tracking Calibration Diagnostics Our Goal: Drive Down Total Ownership Costs & Increase Readiness ECP PBOM RBOM TM Updates AWCF Contracting PBL PROCESSES Reliability Design to Cost CTR LORA Obsolescence Mgmt RELIABILITY 0 AMCOM Logistics Center U.S. Army Aviation and Missile Command 2

3 Implementing Cost Wise Readiness Strengthen Consideration in System Acquisition Process. APB? Benchmark and Track Sustainment Costs Identify & Pursue Opportunities for Improvement and Cost Reduction Drive Transparency and incentives for Reliability Into Supply Chain Thru PBLs & PPP Agreements Benchmark, Track, and Improve Reduced O&S Cost AMCOM Logistics Center U.S. Army Aviation and Missile Command 3

4 Reduced $ Reducing Cost of Spares Lower TT PEG Requirements $2.5B in Spares Costs Annually NEOF Time Based Removals Quality Issues Bad Pubs/Training Corrosion Error/Accident Inherent Reliability (Keep Spares Operational) Supply Chain Process Improvement Product Improvement / Re-design Process Improvement Improved Processes Improved Reliability Improved Supply Cost-Wise Readiness Goal: Reduce Spares Costs by $130M Annually Opportunities Redesign CBM Fleet Mgt Lean Depots Corrosion Prevention Improve Quality Re-look Recap Stds Competitive Sourcing Structure PBLs/PPP and incentives to achieve these same goals AMCOM Logistics Center U.S. Army Aviation and Missile Command 4

5 Cost Wise Readiness Pilot Program Target Top 200 Spares Drivers Focused Initiative on Top Cost Driver T700 engine Target Top Non-reliability Demand Drivers Corrosion NEOF (No Evidence of Failure) Ensure Field Units are Performing Modular Engine Repair Per Maintenance Concept Capture Inventory Savings by Speeding Supply Chain and Reducing ASL Size Apply T700 Lessons Learned to Remaining Top 200 Aviation and Missile Cost Drivers (Blades, Transmissions, Dynamic Components) Use AWCF as Leverage to Redesign Components for Reliability Improvement (Longer Term Initiative) Along with PM Modernization Programs AMCOM Logistics Center U.S. Army Aviation and Missile Command 5

6 T-700 Engine E2E Supply Chain Initiative ENTERPRISE: DEPOT NICP / PM UNIT Value Proposition Metrics: - Decreased TAT - Increased Reliability - Decreased Inventory - Decreased Inventory - Reduced Cost - Transparency - Lower production Cost - Decreased ALT /PLT - Longer TOW - Reduced Customer $ PBOM/RBOM Accuracy Improvements Cold Section Module Hot Section Power Turbine Module Accessory Module Modify PPP Contract To Reduce Inventory Component Repair Parts Transition to Pull System Build/Deliver Engines OR Modules Commercial Contractor Transparent Forecast to Reduce Supply Chain Depot Stores Store 1 week of Finished Engine Inventory Eliminate ~$60M Inventory AMCOM Logistics Center U.S. Army Aviation and Missile Command 6 X ASL Receipt w/in 3 days of PR Reduce Unserviceable NEOFs Build trust to reduce inventory UNIT Module Repair Training Unserviceables Transparency of Demand / inventory Data is a Must!

7 Contracts Providing Improvement Aviation Center Logistics Command (ACLC) Logistics Support Facility (LSF) Aviation Field Maintenance (AFM) AMCOM Logistics Center U.S. Army Aviation and Missile Command 7

8 Aviation Center Logistics Command (ACLC) Supporting the Training of Future Aviators Supporting USAACE Through Oversight of 5 year $1.98B Avn Maintenance Contract (Over 4,300 Contractors) Perform Maintenance on 624 Helicopters (TH-67, Mi-17, EH/UH-60A/L/M, AH-64D, OH-58A/C, OH-58D, CH-47D/F, TH-1) Daily OPTEMPO : Over 500 launches from 6 Airfields, Using 16 Stagefields, 72 Remote Training Sites, Live Fire Range, 3 Hot FARPs Covering an Area Larger than South Carolina (32,300 Square Miles) Order >$1M in Parts Perform over 60 Maintenance Test Flights Complete 7 Phase Inspections Contract Status: Transition from Old to New Contract: 1 Feb - 30 Mar 13 New Contract Implementation: 1 Apr 13 Contract is Hybrid Firm Fixed Price for FAA standard TH-67 Fleet of 182 and Cost Plus Incentive Fee for the Green Fleet Aircraft Annually: Maintain & Improve >1M Square Feet of Maintenance Facilities (Grow to 1.3M in 2013) Support over 268K Flight Hours for FY13 Conduct over 1000 Air and Ground Recoveries Conduct over 3500 Annual Inspections AMCOM Logistics Center U.S. Army Aviation and Missile Command 8

9 Logistics Support Facility (LSF) Mission: Provide Quick Reaction Contract Vehicle for Modification & Logistics Support of US Army Aviation & Other Customers PEO Aviation FMS Programs USAF Contract provides Manufacturing, Integration & Technical Support Competitively Awarded Small Business Set Aside IDIQ Contract - 5 Year Ordering Period Multiple Award IDIQ Contract to a Minimum of Two Contractors Expedited Award Process - Streamlined Competition of Task/Delivery Orders Overarching IDIQ Performance Work Statement Defines the Scope of Tasks (i.e) Modifications to Army Aviation Platforms and Associated Logistics Support Contractors Required To Meet Industry Quality/ Performance Standards of ISO 9001, AS9100/9110, FAA FAR Part 145, DCMA GFRC. AMCOM Logistics Center U.S. Army Aviation and Missile Command 9

10 Aviation Field Maintenance (AFM) Contract Moving from Use of USAF Contract Field Team (CFT) Contract to Dedicated Army AFM Contract One RFP w/ Split Award (1Yr Base - Four 1Yr Opts) Up To 5 Different Contractors / 3 Minimum Five Geographical Regions: CONUS - 4 Regions - Up To 4 Contractors / 3 Minimum OCONUS - 1 Region - 1 Contractor Pricing: Regional Site Management Firm Fixed Price (FFP) Resets & Priced MWOs Cost Plus Incentive Fee (CPIF) CAB Pass Back Support (4 CONUS RASMs) - FP LOE Rates CAB Pass Back Support (OCONUS TASM) - FP for Core & T&M Rates Incentives Based on Reduced Labor Costs, Turn Time, Quality Standardized Army Contract Management and Oversight AMCOM Logistics Center U.S. Army Aviation and Missile Command 10

11 AFM Contract Support Regions Based on Aircraft Density (~3 CABs Per) RASM-Pacific RASM-West RASM-Central RASM-East RASM-P 646 Aircraft Assigned to Region RASM-W 716 Aircraft Assigned to Region Contract Administration AMCOM / ACC Contract Management Each Region Contract Oversight Each Location ** PACOM Aircraft Not Include Will Transition to AFM Korea RASM-C 1,117 Aircraft Assigned to Region Honduras TASM-OCONUS Germany Sinai RASM-E 868 Aircraft Assigned to Region TASM-O 275 Aircraft Assigned to in 2014 Region SWA AMCOM Logistics Center U.S. Army Aviation and Missile Command Aircraft SWA

12 Advantages of AFM Contract Ability to Right Size Aviation Maintenance Support Structure Provides Synchronized Army Solution For Aviation Maintenance Support Eliminates Duplication of Effort and Capability Army Makes Decisions on Army Contracts Creates Flexibility to Move Work/Resources To Best Meet Army Needs Distributes Work Between Systematic Manner More Responsive to Mission Requirements Provides Army Standardization for Contractor Operations and Consistent Contract Oversight Garners Efficiencies and Cost Reductions Through Contract Structure AMCOM Logistics Center U.S. Army Aviation and Missile Command 12

13 Questions? AMCOM Logistics Center U.S. Army Aviation and Missile Command 13