Defense Logistics: New 12O-mm Tank Training Round Procurement Will Result in Savings.
Abstract
In March 1975, the Department of Defense designated the Army as the Single Manager for Conventional Ammunition with responsibility for procuring conventional ammunition common to all military services. As the single manager, the Army has relied on government-owned and private sector facilities to meet its conventional ammunition requirements. However, with the reduction in ammunition budgets and declining requirements, the Army has significantly downsized the number of government-owned plants in recent years and currently has eight plants producing ammunition. One of these is the Radford Army Ammunition Plant, which historically has produced propellant used in making ammunition. - Tank training ammunition in fiscal year 1999 amounted to about $205 million, or 24 percent of the total Army conventional ammunition budget, and, therefore, has a significant impact on the ammunition production base. In 1995, faced with dramatic reductions in ammunition requirements, the Army attempted to reduce costs by awarding multiyear firm fixed-price contracts covering fiscal years 1995 through 1998 for the production of 120-mm tank training rounds to two contractors, Alliant Techsystems and Primex Technologies. In addition, a 1993 study of the propellant production base showed that Radford's ability to compete for propellant business was declining and the Army needed Radford for its wartime replenishment mission for propellant. Therefore, both contractors were required to purchase the training round propellant from Radford. In 1999, the Army entered into new contracts for tank training rounds with the two contractors covering fiscal years 1999 through 2003. Because the Army believed that Radford's industrial capability no longer required special protection, it allowed the contractors to purchase propellant competitively. As a consequence, one contractor chose to purchase propellant from a private company.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1999
- Accession Number
- ADA371073
Entities
Organizations
- United States Government Accountability Office