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Rethinking governance of the Army's arsenals and ammunition plants

Author: J BondanellaBruce J HeldWilliam M HixMichael HynesDavid E JohnsonAll authors
Publisher: Santa Monica, CA : RAND, 2003.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
With a large industrial base consisting in part of fourteen ammunition plants, some of which are mothballed, and two arsenals that manufacture ordnance items such as gun tubes, the Army has more capacity than it needs or anticipates it will need. This report assesses options for managing this industrial ordnance base. It identifies a range of problems, including the absence of a strategic vision, lack of investment  Read more...
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Additional Physical Format: Print version:
Rethinking governance of the Army's arsenals and ammunition plants.
Santa Monica, CA : RAND, 2003
(DLC) 2002154485
(OCoLC)51095520
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: J Bondanella; Bruce J Held; William M Hix; Michael Hynes; David E Johnson; Ellen M Pint; Art Pregler; Jerry M Sollinger; Mike Stollenwerk; United States. Army.; Arroyo Center. Military Logistics Program.; Rand Corporation.
ISBN: 0833033220 9780833033222 1598752278 9781598752274
OCLC Number: 855304987
Description: 1 online resource (xxxv, 317 pages) : illustrations
Contents: Introduction --
Building the Nation's Foundry: The Evolution of the Army Ordnance Industrial Base --
Problems and Issues --
A Strategic Vision and Options for Achieving It --
The Privatization Option --
Federal Government Corporation Option --
Summary Comparison of Options --
A Recommended Strategy --
Appendix A: Depot Duplication --
Appendix B: Replenishment --
Appendix C: Model of GOCO Competition With Uncertainty --
Appendix D: Budget Impacts and Descriptions of Facilities --
Appendix E: Valuation of Parcels.
Other Titles: Rethinking governance of the Army's arsenals and ammunition plants (Online)
Responsibility: W. Michael Hix [and others].

Abstract:

With a large industrial base consisting in part of fourteen ammunition plants, some of which are mothballed, and two arsenals that manufacture ordnance items such as gun tubes, the Army has more capacity than it needs or anticipates it will need. This report assesses options for managing this industrial ordnance base. It identifies a range of problems, including the absence of a strategic vision, lack of investment capital, declining workload and high costs, and a requirement for expertise that falls outside the Army's primary areas of competence. The study proposes a strategic vision and explores four options for managing the arsenals and ammunition plants--privatization, creation of a federal government corporation, consolidation, and recapitalization on multifunction posts--drawing on economic theory, business literature, and U.S. law. It weighs the options from different perspectives, including feasibility, economic viability, and risk posed to national interests. The study recommends that the Army privatize ten of the eleven ammunition plants now owned by the government but operated by contractors, retaining one along with the ones owned and operated by the government as a hedge against the risk of losing the capacity of the privatized plants. It also recommends that the Army create a federal government corporation to run the two arsenals.

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