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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