.. "Business as usual, during alterations". This r; could well have been the sign hung on the door of the Army Materiel Command in July 1963. During FY 1963 AMC was doing business as usual , while consolidating the resources of the former technical services into a single organization. The massive job of materiel management, development and production was done with many notable accomplishments recorded. Many resources were brought to bear-buildings and installations, manpower, capital equipment and monies-to meet the materiel demands of the Army during FY 1963. This report presents a review and analysis of the effort put forth by this command to provide . the soldiers in the field the military materiel necessary to do their j9b. It incorporates performance statistics, highlights and accomplishments of all the elements within the Army Materiel Command carrying out the full range of responsibilities assigned under the Army reorganization. INDEX Section 1-AMC-General Page Installations and Activities .......................... . 4 Personnel. ........................................ . 5 Financial Resources FY-1963........................ . 6 Financial Resources FY-1964........................ . 7 Section 11-AMC-Material Management Research and Development . ....... . ................. . 9-22 Financial Resources .......................... . 10-11 Managerial Accomplishments ............ ... ... . 12-13 Technological Accomplishments ........ . ....... . 13-19 Unresolved Managerial Problems .......... . .... . 19 Foreign Intelligence Program ............ .. .... . 20-21 Procurement and Production ................... .. .... . 23-42 PEMA Program Execution ....... . ............ . 24 Contracting Activities ..................... . ... . 25-30 Operation of Procurement Offices .............. . 31-33 Quality Control .............................. . 34 Small Business and Labor Surplus Areas ... ... .. . 35-36 Reserve Industrial Facilities .................... . 37 Standardization ......... .... ................. . 38 Value Engineering ............................ . 39-40 Engineering Activities ........................ . 41 Materiel Readiness ................................. . 43-50 Distribution Planning Studies ........ .... . . ... . 45-46 Confirmatory Type II Test .................... . 47 Establishment Major Item Data Agency ........ . 48-49 1 Supply and Maintenance... ...... . . .... . .. . . .. . . . .... . 51-62 Supply Performance..... . . . ... .. ..... . ... .. . . . . 52-55 Major Overhaul .......... . ......... . ........ . 56-57 Depot Deactivation . .. . ..................... . . 58 Depot Operations . . ... . . . .. ... ....... . ....... . 59 Status of O&M,A Funds ..................... . 60 Transfer of Personnel Spaces to DSA . ...... .... . 61 Mutual Security ............... . ... . . . ... . . . ... . ... . . 63-74 Mutual Security Grant Aid Program . .......... . 64 Mutual Security Civilian Aid .. . ....... . ..... .. . 65 Military Assistance Sales . . .......... ..... . .... . 66-68 Test and Evaluation ... . . . . .. . . .. ........... . ........ . 69-74 Accomplishments....... . . . ...... . . .. .. ... ... . 70-72 Problems ........ .. .. .. ... ... .......... .. ... . 73-74 Section ill-Project Management 75-100 General . ..... . .. . ...... . ........ .. ..... . ....... . .. . 76-78 Personnel... .. .. . . . . . ..... .. ..... . ...... . .. . .. .... . 79 Funding Resources ....... . ......................... . 80 Master Plans (PM2Ps) ..... . ........................ . 81 Army Aircraft and Weaponization ................... . 82-85 Army Aircraft Highlights ... ... ...... . ......... . .... . 86-89 Rockets and Missile Highlights ........ . ............. . 90-92 Communication and Electronics .................. . .. . 93-95 Combat Vehicles Highlights .. . ...................... . 96-97 Communication and Weapons ...................... . . 98-99 CBR Posture ...................................... . 100 Section IV-AMC Support Comptroller....... . ................................ . 101-118 Cost Reduction.............................. . 102-106 Financial Management .... . ...............·... . 107-114 Program Management .............. . ......... . 115-118 2 ~ Installations and Services ............................. 119-132 Status of Installations. . . . . . . . . . . . . . . . . . . . . . . . . 120 Installations for Sale. . . . . . . . . . . . . . . . . . . . . . . . . . 121 Local Maintenance............................ 122 Family Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Military Construction Program ................. 124-125 Commercial and Industrial Review Program ...... 126 Operating Equipment Maintenance Program ..... 126 Services Program......... . . . . . . . . . . . . . . . . . . . . 126-128 Communications and Pictorial Program. . . . . . . . . . 128-129 Security and Intelligence Program.... . . . . . . . . . . . 130 Explosive Ordnance Disposal Program. . . . . . . . . . . 131 Personnel and Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133-154 Manpower Utilization......... . . . . . . . . . . . . . . . . 135-137 Training Accomplishments . . . . . . . . . . . . . . . . . . . . . 138-139 Military Personnel....... . . . . . . . . . . . . . . . . . . . . . 140-144 Civilian Personnel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145-154 Data Systems....................................... 155-160 General. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156-157 Accomplishments ............................. 157-160 Inspector General. ................................... 161-163 Judge Advocate ..................................... 164 Management Science. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165-168 Administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169-17 4 Safety Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Chaplain Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175-178 Public Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179-182 General Counsel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183-186 3 THE SIZE OF IT ... THE PHYSICAL PLANT 11 287 MILLION SQ. FT. OF BUILDINGS 113 MILLION SQ. YARDS OF SURFACED AREAS 31,000 MILES OF ROADS 3.5 MILLION ACRES OF LAND 1,400 MILES OF RAILROAD TRACK 3,100 MILES OF ELECTRIC DISTRIBUTION SYS. 170,000 HORSE POWER OF BOILER PLANTS 973 MILLION CUBIC FT. OF HEATING SYS. THE SERVICE FACILITIES 11,000 UNITS OF FAMILY HOUSING 134 POST SUPPLY FACILITIES 326 COMM. CTRS., TELE. EXCHANGES, AND PHOTO LABS 3 3 POST EXCHANGES 62 RESTAURANTS 62 EQUIPMENT MAINT. SHOPS 38 THEATRES 111,000 TELEPHONE LINES 17 5 RADIO NETS 102 OPEN MESSES 4 178,722 388 PERSONNEL ACTUAL AMC STRENGTH AS OF JUNE 1963 ,339 I I CIVILIAN I MILITARY TOTAL OFF.&W.O. ENL. tf\.."WWl'l" a,J••;..'I-' ,_,1\IV1\1 ..~ I I 11\'t:f~r~~~J;l ECOM I 10,640 I 474 1,944 I 13,058 1'\~~/~U.>llfl MICOM I 10,881 I 358 7771 12,016 MOCOM I 13,230 336 200 13,766 MUCOM I 24,687 660 1,823 27~170 S&MC 59,767 1,081 1,746 62,594 TECOM 11,361 1,263 7,654 20,278 WECOM 12,056 93 35 12,184 CL ll ACT I 13,990 I } 824 1,120 I 17,656 HQ AMC I 1,727 I TOTAL I 158,339 I 5,089 15,2991 178,722 5 PEMA $3.960 BIL. OBLIGATED-3,066.2 OTHER $104.6 MIL. OBLIGATED-78.3 MIL. TOTAL $8.015 BILLION INCLUDES 804.3 CARRYOVER TOTAL UNOBLIGATED $1,149 BIL. (14.3%) 6 ASF $1.652 BIL. OBLIGATED-1, 512.4 O&MA $1.044 BIL. OBLIGATED-1 I 040.0 RDT&E $1.254 BIL. OBLIGATED-1,170.7 ESTIMATED TOTAL $8.666 BILLION ASF $1.312 BILLION PEMA O&MA $1.000 BILLION $4.853 BILLION RDT&E "--·'~ [.-. ,... , 'l I $1.396 BILLION OTHER $105.0 MILLION MAP-FAMILY HOUSING-MCA-ETC 7 MILLIONS$ 300 400 500 600 $ 1.254 BILLION ROT &E RESEARCH MANAG EXPLORATORY DEVELOPMENT ~uu.ra D:~~~~~~~T ~119to{1~.2%) , I I ED ENGINEERING 568.0 (45.3%) DEVELOPMENT ~ I I REPRESENTS: (6.6%) •93% OF TOTAL ARMY RDT&E IMANAGEMENT •15% OF ALL AMC FUNDS AND ~A.i1~5.0{13.~%) SUPPORT .,._------------ofOPERATIONAL DEVELOPMENTS $ 1.171 OBLIGATED IN FY-63 10 AMC programmed $1.254 billion in RDTE funds during FY 1963 for the portion of its R&D Program devoted to that year. This was 93 % of the total number of RDTE dollars given to the Army as a whole, and 15% of all funds programmed by AMC in FY 1963. The $1.254 billion was distributed within AMC as follows: a. $612 million to six of the seven major subordinate commands for the performance of their missions. b. $559 million to all project managers as a group. $525 million of this was distributed to project managers through four of the major subordinate commands; the balance of $34 million was distributed directly to project managers by AMC Headquarters. c. $83 million to the AMC Headquarters for direct allocation to other than project managers. Of this amount $67 million was allocated to the eight Army Laboratories reporting directly to AMC Headquarters. The total RDTE dollar obligational authority of $1.254 billion for AMC in FY 1963 consisted of $1.157 billion in new AMC funds, $44 million in carry-overs from FY 1962 and reimbursables (automatic orders from outside AMC) of $53 million. Of this $1.254 in RDTE dollars, $1.171 billion (93.3 %) was obligated during FY 1963 even though contracting and programming procedures underwent major change in this period. Phasing for the FY 1963 RDTE funding program (including project managed items) consisted of 5.3% for research, 15.8% for exploratory development, 15.2% for advanced development, 45.3% for engineering development, 13.2% for management and support and 5.2 % for operational development. Of interest is the fact that the Zeus project represented 49.2 % of all RDTE funds devoted to advanced development work and 33.2% of all RDTE funds devoted to engineering development work in the AMC during FY 1963. 11 RESEARCH AND DEVELOPMENT FY-1963 Exclusive of project managed items, the total RDTE program was conducted 44% in-house and 56% on contract with industrial companies, laboratories, universities and the like (out-of-house). MANAGERIAL ACCOMPLISHMENTS 1. Memorandum of Agreement between AMC and CDC identifying areas of responsibility and interest in R&D matters pertaining to materiel testing and evaluation; procedures for processing QMDOs, QMRs, SDRs, in-process reviews; visits, reports and other media. 2. Agreement between AMC and Chief Signal Officer on service testing of strategic communication equipment. 3. Memorandum of Understanding between AMC and Chief of Engineers pertaining to R&D of mapping and surveying equipment for the field armies. 4. Consolidation of the Army's nuclear effects R&D programs. This consolidation has placed the direction and control of approximately 20 competitive technical service activities and programs into the hands of 3 mission oriented, non-competitive commands and 3 AMC laboratories. 5. Establishment of AMC-CDC Ad Hoc Committees to review and eliminate non-productive or marginal projects or tasks. Seven committees were set up in the commodity areas of Electronics, Weapons, Nuclear, ChemicalBiological, Air Mobility, Ground Mobility, and General and Support Equipment. 6. Transfer of Army Food Radiation Laboratory from Atomic Energy Commission to Natick Laboratories. 7. Establishment of a single focal point and uniform procedures for processing of R&D Determinations and Findings. 8. Activation of Materials Advisory Group for better management of materials research. 12 9. Establishment of a Long Range Technical Planning organization to forecast the probable growth of knowledge in science and technology, to prepare long range technical objectives, and to provide comparative concept evaluation. The technical forecast is of value to the tactician by predicting materiel capabilities which might be available and to the R&D planner in predicting technological growth and capabilities which might be achieved if funded or purchased, as well as of value to the scientist and technician by pointing to potential gains in many fields, and thus stimulating interdisciplinary concepts. Technical objectives are set for the materiel capabilitieswhich are considered as both necessary and probably achievable within 20 years. (About 350 technical·objectives are currently undergoing review and refinement through cooperation of AMC elements and through consultation with CDC.) Comparative concept evaluation is the evaluation of technical avenues of approach toward solution of tactical needs. Detailed analysis of competing technical approaches toward achieving a technical capability and a similar analysis of components of proposed systems are expected to reveal technical feasibility or areas requiring" breakthroughs" or advances in the state-of-the-art before developments should be undertaken. The system of evaluation under development will allow assignment of numerical values to such factors as risk, research and development time, military effectiveness or worth, and cost. 10. Consolidation of technical intelligence activities into the Foreign Science and Technology Center. 11. Centralized the responsibility of maintenance support and inventory control of all non-standard training devices used by CONARC, at the Electronics Command. TECHNOLOGICAL ACCOMPLISHMENTS The following are representative examples of such accomplishments for FY 1963. Some are breakthroughsin research and exploratory development. Others indicate completion of the development cycle. Classified exampleshave been deliberately omitted, but would serve to expand the list. 13 RESEARCH AND DEVELOPMENT FY-1963 1. Tracking Mount The Human Engineering Laboratories developed and tested a free tracking mount which, when used to track and fire on a moving target (up to 30 mph) at 2,000 meters, made it possible for relatively untrained gunners to keep their error down to 1 meter. The mount is relatively inexpensive, light, and simple to operate and maintain. The method of tracking developed will permit the Army to utilize it as a part of a weapon system such as an anti-tank weapon system. Such an accurate tracking mount coupled with current state-of-the-art ammunition will permit the reduction of the total error down to a level never previously achieved. This is now possible because the human error aspect of the total error has been very significantly reduced. 2. Filter Limiter for "Non-Jam" Systems The Harry Diamond Laboratories have designed and fabricated a new type of combination filter limiter for front-end use in radar-type fuzing. By means of this filter limiter, which takes advantage of the r-f signal limiting and filtering properties of an Yttrium Garnet (YIG) crystal, the Army is approaching a condition where fuzes are "unjammable." To attempt to jam our new fuze systems, the jamming power required on the part of the enemy will approach and exceed the limiting thresholds in current state-of-the-art limiters. The new type of filter limiter is frequency selective, thereby limiting the jamming signal to a specific band and thus permitting low level target signals of differing frequency to be received irrespective of the jamming signal. 3. Fast Neutron Source The research capabilities of the Nuclear Defense Laboratory were utilized to develop a source of fast neutrons. The developed source of fast neutrons provides a necessary tool to satisfy several very high priority requirements for neutron cross section measurements. These measurements are within the scope of a very high priority military requirement as stated in the document entitled "Army Requirements for Nuclear Weapons Effects Research (U)." 4. Irradiated Food The Transfer of the U.S. Army Radiation Laboratory from the Atomic Energy Commission to the Natick Laboratories, Natick, Massachusetts, on 5 November 1962 allowed the Army to commence work in this laboratory 14 under the license granted by the AEC. Dosimetry and related problems were worked out so that on 26 November, the first food item (bacon) was irradiated in the laboratory, 5 weeks earlier than was planned. Acting on the evidence presented by the Army, the Food and Drug Administration has approved Cobalt 60 irradiated bacon for consumption by the general public. During the first three months of Army operation, the Radiation Laboratory irradiated approximately6 tons offood (ham, chicken, pork, bacon, shrimp, and carrots) for subsequent tests at Fort Lee and for wholesomeness tests by the Surgeon General's office. Irradiation of food stuffs minimizes the need for refrigeration since sterilized food can be safely stored at room temperature over a long period of time. With the concurrence of the Army Medical Service, the Natick Laboratories has prepared a petition to the U.S. Food and Drug Administration to clear electron-sterilized canned bacon at levels as high as 8 Million Electron Volts. This was the first petition to be submitted to U.S. health officials to clear (In electron-sterilized food item. Last month, a petition was forwarded to the FDA to clear Co-60 irradiated white potatoes at a dose level adequate to inhibit sprouting during storage. 5. Mauler Fuze From inception of the Mauler Missile program, the fuze was regarded as a problem because of weight and space considerations. The Harry Diamond Laboratories undertook a crash program to provide a fuze which meets system performance requirements within the weight and space limitations. The system was taken directly from research into delivered hardware for missile flight in a 6-month period. Laboratory pre-flight measurements were verified by tests and the fuze was phased into the Mauler program resulting in a significant improvement in the total weapon system. 6. High Burning Ratio Rocket Solid Propellants Certain rockets and missile systems require extremely high acceleration. Development by the Missile Command of a specially shaped aluminum ingredient for applicable solid propellant compositions along with catalysts has enabled the Army to demonstrate increased burning rates up to three times the nominal rates. This has been achieved without degradation of ballistic properties, storage capability or introducing radar attenuation problems. Obtaining the required high burning rate of the booster propellant solves one of the problems associated with systems such as SPRINT. 15 7. Night Vision Intensifier Tube FY 1963 represents the culmination of a highly sustained and concentrated pioneering research and development effort by the Mobility Command which led to the development of a new fiber optic image intensifier tube. The new tube utilizes fiber optical image coupling to achieve improvement in the image quality of 100% over previous tube types as well as considerable reduction in size and weight. It required the solution of a large number of highly complex photo-electronic and electron-optical problems. . The new fiber optic image intensifier tube provides the Army with the general capability of seeing in the dark passively under starlight illuminating conditions. The immediate application areas for the new tubes include a night vision periscope for the General Sheridan vehicle, a series of night vision sights for crew-served and hand held weapons and general night observation telescopes. 8. Infrared Surveillance System The first Defense Department Operational Infrared Surveillance System was introduced into the Army Supply System. Infrared Surveillance System ANfUAS-4 developed by the Electronics Command is an airborne infrared strip mapper utilized in the OV-lc Army aircraft. The ANfUAS-4 has a cockpit display and a real time data link capability which will permit a ground observer to view, in real time, the imagery being obtained by the equipment in the aircraft. 9. Material Failure The Army Materials Research Agency was asked by the U.S. Army Weapons Command to investigate a failure of breech tube in an XM70 weapon. The weapon suffered the breech tube fracture while being used to establish range data on certain ammunition. The assignment was conducted by visual examination of the breech tube fragments at the failure site, locating the fracture origin, and conducting post mortem microscopic and mechanical tests on the fragments. It was determined that the failure was a classic brittle fracture with the fracture origin located at a heat check about one inch forward of the breech end of the tube. AMRA recommended that subsequently produced tubes should be double tempered at 850°F to 900°F to achieve a yield strength of 170,000 to 190,000 psi, at which strength adequate resistance to crack propagation would be obtained. Test results verified the assurance of adequate toughness of breech tubes for the XM70 weapon. 16 AMRA's rapid diagnosis of the cause of failure permitted the Army Weapons Command to take promptcorrective action by introducing suggested modifications into prototype production at Rock Island Arsenal within three weeks of tailure. Furthermore, the prompt action of the Weapons Command in adopting the suggested modifications permitted adherence to the original schedule for Marine Corps Pre-registration and Demonstration firings. 10. New Howitzer Weapon The suitability for Army adoption of the 105mm Howitzer XM 102 has been proven by the WeaponsCommand. This is significant due to the improvements provided over present howitzers in range, lethality, mobility,reduction of crew, implacement time, delivery by helicopter or by parachute, and movement over inland waterwaysby flotation kits. 11. Gun Barrel Wear Reduction Major reduction in heavy gun barrel erosion has been achieved, based upon coordinate effort of the Munitions Command and the Weapons Command, by addition of titanium dioxide and paraffin wax on a cloth liner in the cartridge case or on the periphery of the propellant charge. Tube wear is reduced by as much as a factor of five. The significance of this will be far reaching in that gun condemnation no longer depends on bore wear, and gun lifewill be limited largely by fatigue. The number of replacement guns in the supply system can be reduced markedly. 12. Target Location System Service test of Visual Airborne Target Location System AN/UVS-1 was initiated in FY 63. The Visual Airborne Target Location System AN/UVS-1 is the only equipment available in the military designed to providethree dimensional target location information independent of map data with an accuracy which will permit first round for effect fire. 13. Helicopter Engine T63-A-5 Engine was qualified and FAA certified during FY 63. This is a 250 HP gas turbine engine intended for use in the light observation helicopter. Approximately 7 million dollars of engineering development funding were spent over a period of five years for this engine. 17 14. Vehicular Radio Set Radio Set AN/GRC-106 was type classified as Std-A. It is a 400 Watt PEP, single sideband vehicular radio set operating in the frequency range 2.0 to 30 megacycles. It will provide approximately 50 miles voice or CW communication while operating from a jeep. This represents one of the first items that met expedited development objectives of AR 11-25. The QMR was approved for the AN/GRC-106 in mid 1960, contract was placed in mid 1960, and the item was type classified in November, 1962. Placement of a production contract in FY 64 is expected. 15. Universal Engineer Tractor, Crawler The ability to materially improve the work effort of an item of equipment without loss of mobility and utility and without an increase in physical size or weight represents the problem presented by the QMR for the development of the UET (Cr). From an engineering standpoint, earth ballast appeared to be the most logical approach. This approach presented a serious problem requiring the tractor performance in either an empty condition 26,000 lbs. or in the ballasted condition 50,000 lbs. The obvious work effort as a dozer or work tractor at 50,000 lbs. was desired. This development program through completion ofthe engineering design tests has successfullydemonstrated that the ballasted concept was sound. This development has resulted in the establishment of a combat engineer tool which will be the primary item of earth moving equipment for the engineer squad and which will, in addition, be the squad carrier, armored and amphibious, and will perform the earth moving functions of dozing, scraping (8 cu. yd. capacity), grading, and hauling. This unit will have mobility equal to the tracked units of the combat arms. An In-Process review has been held and the item accepted. Six (6) units are scheduled for ET/ST procurement. The units are presently scheduled for type classification during 3rd Qtr FY 65. 16. Trackporter ATAC in just 3llz months designed and fabricated a new articulated type tank transporter which has been nicknamed "the trackporter." The vehicle was completed in June 63 and is now under test at the Detroit Arsenal to determine concept suitability. This unusual vehicle promises significant improvement if concept suitability is demonstrated, including lower cost (25% less), improved maneuverability (i.e. 25ft. street intersection capability), lower axle loading (40% less), utilization of truck tractor now in the system, and reduced weight (33%). · 18 17. Mobile Floating Assault Bridge/Ferry The challenge of providing the modern Army with a means of crossing water obstacles without loss of attack momentum was met in record time by the development of the Mobile Floating Assault Bridge/Ferry currently undergoing Engineering Service Tests. No existing equipment in the current supply system is capable of meeting the inherent capability of this amphibious bridge to travel with the march column and to enter a stream without pause for equipment preparation or shore assembly. Once in the water the equipment can be assembled into ferries or into a 400 foot bridge in one hour. Within 18 months from the time a contract was awarded, 12 units were produced, tested and delivered to the U.S. Army Engineer Research and Development Laboratories for initiation of Engineer Tests in April 1963. Type classification of the bridge is scheduled for 3rd Quarter FY 64. UNRESOLVED MANAGERIAL PROBLEMS (Close of FY 1963) 1. Consolidation and realignment of mission-transfer of combat vehicle mission from Mobility Command to Weapons Command and consolidation of atmospheric research laboratories (held up by higher authority). 2. Restructuring AMC RDT&E programs into meaningful categories of program element designations. 709-414 0-63-2 19 500 .. - FOREIGN INTELLIGENCE PROGRAM 400 MAJOR PROJECTS 39 1. The technical intelligence activities of the former technical services were successfully consolidated into a single Army foreign science and tech nology intelligence system under AMC. This system, 300 operated under the supervision of the AMC Director of Research and Development, consists of the techni cal Intelligence Division of AMC, the U.S. Army 200 Foreign Science and Technology Center, the Directorate of Missile Intelligence of the U.S. Army Missile Command, a number of specialized TD intelligence 100 detachments based in the U.S. and overseas, and designated Foreign Intelligence Officers in each of AMC's major subordinate commands and principal 0 PROGRAM FY-63 ACTUAL FY-63 laboratories. 2. The objectives of this consolidated foreign intelligence system are: (1) to provide all-source world-wide foreign intelligence support to all ele ments of AMC, with particular emphasis directed towards its maximum effective employment in the development, production, supply and maintenance of optimum military equipment and supplies for the U.S. Army. (2) To provide all-source world-wide scientific and technical intelligence support concerning Army related materiel and sciences to non-AMC elements of the Army and to nonArmy elements of the U.S. Government. 3. The consolidated system has been notably successful in meeting its objectives. Its accomplishments have included essential intelligence reports to many principal agencies of the Government from the President down. Its products have had specific impact on the Army's research and development program and on national defense and foreign policies. 20 4. The AMC intelligence system started the year with 116 major projects inherited from the former technical services, and received requests for 355 additional major projects during FY 1963. Of the total471 requests received for major projects, 8 were not accepted for FY 63 and were programmed for FY 64. Of the 463 major projectsprogrammed or accepted, 393 were completed (including 64 continuing projects), 31 were cancelled due to changedrequirements or duplications, 14 were rescheduled to FY 64 due to lack of resources or basic information, and 25 are in varying stages of completion ranging from initial drafts through being in printing. 5. Of the 2,020 requests for minor projects and briefings received during FY 1963, 1,128 were accomplished.In addition, 98,993 intelligence documents were collected and disseminated in response to requirements of AMC elements, and 457 foreign materiel items collected and evaluated. 6. Personnel shortages, primarily in the electronics field, continue to be the major problem facing the AMC foreign intelligence system. Not only are personnel authorizations for FY 64 approximately 90 man-years less than established requirements, but also personnel actually on-hand are about 40 short of current authorizations. Intensive efforts are being made to fill authorized vacancies during the first quarter of FY 64, and a plan for a phased increase in authorizations throughout the balance of FY 64 is being submitted. 7. The Department of the Army reorganization disrupted lines of communication with the Army's TOE Technical Intelligence Detachments overseas. AMC has initiated a project with CDC, OACSI/DA and DIA to develop means for improving working channels between such overseas units and AMC's foreign intelligence systemthe Army's only scientific and technical intelligence facilities (other than medical). 8. The establishment of the Defense Intelligence Agency (DIA) with its extremely broad powers to control the scientific and technical intelligence efforts of the services, coupled with the lack of guidance from DIA, is requiringcontinuing and repetitive coordination of actions. This will probably continue until DIA is more firmly established. 9. Finally, this first year's operations have developed certain areas in the AMC regulations governingforeign intelligence operations which require strengthening. A series of eight draft regulations has been developedand is being coordinated with interested agencies prior to publication. It is believed that publication of these revised regulations will assist materially in future operations. 21 P&P-PEMA PROGRAM EXECUTION FY-1963 $BILLIONS 4 I I I I 3.912 DA APPROVED TO AMC I ____. -3.2 I I --....---l183 I / --- 3 I AMC""" ~ \TARGETS,__ ----2.5 "-.. ./ -, GOAL-Obligation of $3.22 \ billion of PEMA program in -1.6 FY 1963. TOTAL OBLIGATIONS SCOPE-Total obligational authority for PEMA was $3.9 I 2 billion. 0 JUL AUG--- SEP OCT NOV DEC JAN FEB MAR APR MAY JUN - -- - ----· --~- ACCOMPLISHMENTS-Obligations of $3.183 billion were achieved against the goal of $3.2 billion. The FY 1963 obligation approximates that of FY 1962 ($3.162 billion) obligated by the Technical Services. The freeze on hiring early in the year coupled with restriction on overtime and the establishment of unrealistic goals by DA Staff caused AMC to fall short of its 3rd quarter goal by $0.6 billion and its mid-year goal by $0.2 billion. In consideration of the extensive organization and management problems which confronted AMC, the command's performance has been recognized as outstanding by the Department of the Army. 24 P&P-CONTRACTING ACTIVITIES-INCREASE OF COMPETITIVE PROCUREMENT FY -1963 ALL PROCUREMENTS-ALL FUNDS %COMP INITIAL AMC TARGET 41.4% 40 AMC REVISED 38.6% - v30.~ /" 36.3 GOAL-To utilize price com 30 25.2 v / petition in 38.6% of all procurements. 20 20.8 v SCOPE-The purchase ofspe cialized military items involves unique problems which tend 10 to limit the opportunities to buy competitively. In FY 1962, 27.8 % of procurement by the technical services was placed competitively. 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ACCOMPLISHMENTS-36.3% of the total AMC procurements in FY 1963 were placed competitively. $77.6 million of net savings are attributable to price competition for end items previously procured non-competitively. These savings reflect a 31 % reduction from prices previously paid for the same items. 25 P&P-CONTRACTING ACTIVITIES-REDUCTION OF CPFF CONTRACTS FY-1963 % CPFF 50 46.3 PERFORMANCE ~vvACTUAL 40 41.1 .......... 38.~ 34.6", 30 31.1\ \ 24.1% AMC TARGET GOAL-To reduce value of contracts placed under CPFF ' contracts to 24.1% of total 20 22.2~-20.3 19.9 19.6 19.11 l/1 18.2 contract value. 10 / FY 64 GOAL / SCOPE-In FY 1962 the percentage of value of CPFF contracts to total Army con tracts was 27.3%. JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN ACCOMPLISHMENTS-Goal was exceeded by a reduction of CPFF contracts to 19.1 % of the total by AMC in FY 1963. It is estimated that savings of $65.0 million were realized by the shifts from CPFF contracts to incentive basis. A significant contribution to the attainment of this reduction was provided by the successful formulation of incentive factors and milestones by which the contractor's performance under the NIKE-ZEUS program could be gauged. 26 $MILLIONS 1,200 106. 11 1,000 v v 7~ 800 v I 600 v GOAL-To adapt maximum NO. CONTRACTS 38 ... number of procurements to 400 incentive arrangements. j """'-- v ./ 200 _Vv SCOPE-In FY 1962, procurements were primarily on a Cost Plus Fixed Fee basis. JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN - ACCOMPLISHMENTS-In FY 1963, AMC adapted 106 procurements of over a million dollars each. to incentive arrangements compared to a total of $50 million in incentive arrangements in FY 1962. 27 P&P-CONTRACTING ACTIVITIES-FORMAL ADVERTISING FY -1962-63 707.2 $ MILLIO 600 I ' ~ I 500 42ty/ I 439.3 ,1 I 400 FY 63. ,.,~ I , v 300 ,.,.--~--· ,, .,_, 255.2 200 ~ 1 19o// ~ ~FY 62 100 ./., ~./ 128.4 47.0-o' ...... --~· .......... ~ ~:.-...........-· 41.6 0 JUL AUG SEP_j OC~ NOV DEC JAN FEB MAR APR MAY JUN ---. J % 20 % 10.3 10 % 5.9 0 I 28 GOAL-To increase use of formal advertising in procurement over FY 1962 level. SCOPE-The Technical services in FY 1962 placed 9.7% of their procurement through formal advertising. ACCOMPLISHMENTS-In FY 1963, AMC succeeded in placing 16.1 % of total procurements through formal advertising amounting to $707.2 million. P&P-CONTRACTING ACTIVITIES-LETTER CONTRACT AWARDS FY-1962-63 ACTIONS OF $1.0 MILLION & OVER $MILLIONS 600 ---/I 110 500 k- .---..---v 400 1-FY 62 A WARDS ) / 300 51 GOAL-To effect maximum ~ reduction in use of letter con~ tracts. ,V I : 200 / FY 63 AWARDS v vv ---/ SCOPE-In FY 1962, the technical services placed 110 letter contracts valued at $543 100 __...,..i v ' million. JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN I ACCOMPLISHMENTS-The use of letter contracts was reduced to less than half in FY 1963; 51 valued at $296 million. Each of these letter contracts was converted to a firm definitive contract in less than six months. Of the 51 letter contracts, 15 were placed in NATO-Hawk program due to non-availability of complete requirements statements. 29 PROCUREMENT INSTRUCTIONS Eighty-five (85) percent of the AMC Procurement Instructions was issued during FY 1963. The balance will be completed and distributed by the end ofOctober 1963. AMC Memorandum 715-1,20 November 1962, established the AMCPI Clearance Committee to review and approve materiel proposed for the AMCPI. Representation on this committee includes members from the Procurement and Production Directorate, the Research and Development Directorate and the Office of the General Counsel. MULTI-YEAR PROCUREMENT In FY 1963, AMC made its first multi-year procurements to test this new procurement method. The Military Standard Air Cooled Engines (I :Y2, 3 & 6 HP) and Truck, 5 Ton, 6 x 6, and the truck engine were selected as items most suited to test this new procedure. The contracts for the small horsepower engines cover three-year requirements (FY 63-64-65). The truck and truck engine contracts cover two years (FY 63-64). The principal advantages derived from multi-year procurement are continuity of production, lower prices through increased competition, and savings in administrative cost both to the Government and to industry. Additional advantages are amortization of start-up and tooling costs over a greater quantity of vehicles and better negotiating relationship between contractors and sub-contractors. The reaction of industry has been very favorable. 30 P&P-OPERATION OF PROCUREMENT OFFICES FY -1963 Performance FY62 FY63 %Change $ Value of Contracts Executed $ 4.5 Billion $ 4.2 Billion Minus 7% Number of Contracts Executed 357,487 346,923 Minus 3% Average $ Value of Contracts Admin 3.1 Billion 4.7 Billion Plus 52% Average Nr of Contracts Under Admin 58,872 93,014 Plus 58% $ Value of Materiel Inspected 4.0 Billion 4.7 Billion Plus 18% Funds Cost of Operations (O&MA 2210.1) 92.3 Million 93.4 Million Plus 1% Personnel Personnel Utilization (O&MA 2210.1) 11,335 9,891 Minus 12.7% AMC had a difficult job during the first year of operation to keep cost and personnel utilization within the FY 62 level in view of an increase of over 50% in contract administration workload and an increase of 18% in inspection workload where 70% of the effort of procurement offices is devoted. In addition the FY 63 actual end strength for this activity (O&MA 2210.1) of 9,891 personnel represents a 12.7% reduction from FY 62. 31 P&P-OPERATION OF PROCUREMENT OFFICES FY-1963 Operating costs for FY 63 were increased by $4 million to fund the civilian pay raise. Savings offsetting a part of this cost were effected by AMC through consolidations and other improvements, as follows: Regional Offices Agency Consolidation Midwestern Regional Office of Signal Corps } Chicago Procurement DistrictField Liaison Representative, Chemical Corps Western Regional Office of Signal Corps Los Angeles Procurement District San Francisco Chemical Procurement District San Francisco Procurement District Savings resulting from consolidation: Average strength of personnel-104 Salaries and other costs -$543,000 Space -12,900 sq. ft. Chemical Procurement Chemical materiel, including end-items obtained from Industry and components required for Chemical Arsenal mapufacture, were procured by the U . S. Army Chemical Procurement District, New York. In order to more efficiently manage Chemical materiel procurement by bringing the procurement personnel into close proximity with the requirements and the research and development personnel, the New York Chemical Procurement District was abolished by 22 July 1963, and the functions of that office transferred to the Edgewood Arsenal Procurement Agency for contract execution and to appropriate U.S. Army Materiel Command Procurement Offices, for contract administration and inspection. In addition to better management, approximately 60 spaces were saved in the transfer. Effective 1 July 1963 the COR, purchasing contract administration, inspection and industrial readiness planning activities performed by the Corps of Engineers districts and divisions for AMC were transferred to AMC districts. Likewise, port packing activities performed by the Corps of Engineers for AMC were transferred to Supply 32 and Maintenance Command. The geographical boundaries applicable to the Corps of Engineers COR and planningelements were adjusted to conform to the present AMC procurement district boundaries. Transferred to AMC bythe Engineers as identified resources to perform procurement functions were 863 personnel spaces and $6.1 million. Spaces being authorized by AMC to perform these functions have been reduced to 802 pending justification of their need by the procurement districts. During the 2nd Qtr FY 63, the Mechanization of the Contract Administration/MILSTRIP processes at allof the eleven procurement district offices became operational during this period providing a standardized system of data recordation and reporting between installations on a mechanized basis. Results achieved included improvementin the data processing time cycles and overall data control ; elimination of duplicating manual files and the advantages of a centralized and controlled single data recordation point at each installation. It is expected that substantial savings will be achieved as the system becomes more adaptable to the districts' needs. 33 During the first year of AMC operations the following significant actions were initiated to improve the quality control operation of AMC: At request of the National Security Industrial Association (NSIA) initiated a very comprehensive review of the present AMC quality assurance program. A final report from NSTA is expected in September 1963. A single Army inspection organization with uniform inspection administration procedures was established combining all of the existing Technical Service on-site inspection operations and assigning these responsibilities to the eleven Army procurement districts. The consolidation was made effective 1 July 1963. A comprehensive quality assurance system has been established within AMC. Specific responsibilities of the major subordinate commands for control of materiel quality has been established. A new regulation covering all aspects of Product assurance was initiated jointly by R&D and P&P Directorates and the Supply & Maintenance Command which provides uniform guidance to field elements of AMC. A uniform calibration system was established within AMC. Key Inspection responsibilities for control and review of all procurement inspection operations was established within the Commodity Commands. Uniform AMC publications for quality assurance including the Test Pamphlets of the T & E Command have been established. Th~se publications will replace the proof manual series. 34 P&P-SMALL BUSINESS AND LABOR SURPLUS AREAS FY-1963 Army Materiel Command Directives and Procedures for the accomplishment of an effective Small Business program throughout the AMC operating elements are published and distributed. Small Business and Labor Surplus advisors are appointed in principal procurement offices of the AMC Major Subordinate Commands and other operating elements. AMC participation in local and regional "business opportunities meetings," procurement clinics, exhibits and fairs has greatly assisted industry (both small and large) in learning about the changes occasioned by the DA reorganization. The Defense Subcontracting Small Business Program has been modified and implemented by AMC permitting closer surveillance of contractors subcontracting programs with a minimum interference by the military departments. AMC procurement and Small Business personnel have continued to fully cooperate with the Small Business Administration in assisting small business with "Set-Asides," participation in R&D programs, and processing of certificates of competency. In addition, AMC has fully implemented DA requirements for the unilateral "Setting Aside" of procurements under $50,000. AMC has fully supported the Labor Surplus area program promulgated by the Defense and Army Directors of Economic Utilization. Test procedures, where 100% of AMC procurement would be channeled to Labor Surplus firms, were used on 22 selected AMC procurements in an amount of $23 million. In addition, preferential treatment was accorded Labor Surplus area firms in an amount of approximately $35 million and approximately $900 million without preferential treatment, for a total of approximately one billion dollars for FY 63. 35 P&P-AWARDS TO SMALL BUSINESS FY-1962-63 $MILLION 1000 ~--~--~--~--~--~--~--~--~--~--~--~-- 800 l,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,.,.,.,.,.,.,.,,,.,,,.,,,,,,,.i I I I TARGET.J I mmm~t~i~iM!~~~~i~fl!~ W~!!!!!i~!!M!!!!!!I!i!t • • __ _ 600 400 GOAL-To award 13.8 % of total contract value to small business during FY 1963. 200 1---~f--~- SCOPE-In FY 1962 16.98 % ($761 million) of total contract value was awarded to small business by units, now part of AMC. JUL IAUG I SEP I OCT INOV I DEC I JAN I FEB IMAR I APR IMAY IJUN ACCOMPLISHMENT-The AMC assigned goal of 13.8% in FY 1963 was exceeded by award of 14.2% to small business. The reduced goal and accomplishment results from the transfer of responsibility for large quantities of items susceptible to small business contracting to DSA such as clothing, subsistence and small automotive items. Additionally, procurement for Civil Works activities included in the FY 1962 Army goal are not a responsibility of AMC. It is anticipated that FY 1964 will show some increase in this area. 36 $34.9 MILLION 25.1 The maintenance of reserve industrialfacilities was severely curtailed in FY 63because of the shortage of O&MA funds andthe priority requirement for the retention ofexperienced personnel in operations supporting current procurement. A comprehensive survey and study of allArmy owned industrial plants was undertakenand from this was developed a hard core listof reserve industrial plants required for postM-Day production under the P-Day Concept.A detailed plant-by-plant survey indicated$25 million was needed to provide essentialmaintenance. The DCSLOG was briefed on the ability of Army-owned industrial plants to meet phased mobilizationproduction schedules under the P-Day Concept and adequacy of funds available to maintain these facilities. AMCwas informed that effort would be made to place this activity within the PEMA Program if at all possible. Theincrease in capital equipment procurement resulted from delivery of FY 1962 orders. The requirements for underutilized active plant capacity support were funded for chemical plants only in FY 62. 709-414 0 -63-3 37 GENERAL The first year's operation under AMC has been marked by the successful consolidation in AMC of the standardization operations formerly in the Standards Division, DCSLOG, and the Offices of the Chiefs of the Technical Services, and by the reassignment and decentralization of management responsibilities from the Chiefs of the Technical Services to the Major Subordinate Commodity Commands. These have been accomplished with little or no slippage in standardization planning or project execution. No complaints have been received from Headquarters, Defense Supply Agency or from the other Military Departments. A noteworthy increase in the demands by DSA centers for standardization support occurred during FY 63 and can be expected to increase even further. ACCOMPLISHMENTS Support to procurement through updating and revising existing specifications and the issue of new specifications was continued as highest priority effort. Quality of specifications as well as numbers was emphasized in all commodity areas. Issue of high reliability electronic parts specifications, updating quality assurance provisions of subsistence specifications and continued close cooperation with industry in annual revision of commercial vehicle specifications are significant examples of specification progress. The Army standardization program contributed substantially to that portion of Secretary McNamara's Cost Reduction Program concerned with item reduction. Over 16,000 items were declared non-standard through the Military Supply Standard procedures. PROBLEMS High priority is properly given to the preparation and revision of specifications in support of procurement. This includes both intra-Army procurement as well as Defense Supply Agency procurement of items transferred to DSA for management. The Defense Supply Agency Centers additionally are stressing item reduction. This entails As a matter of policy, -Army supportconsiderable Army standardization support and application of resources. of all DSA activities is accorded high priority. Preparation of engineering standards for application to new design and during production engineering is allocated lower priority and, as a result of inadequate total resources, this activity suffers. Cooperative effort with DSA and the other Military Departments is being made to determine possible means of overcoming this problem. 38 VALUE ENGINEERING SAVINGS I 5 10 15 20 25 II AMC GOAL (ASSIGNED BY DA) z i~:r~ I. The overall AMC effort $24 in the performance of value engineering is best reflected in li\\~ll l!li\; the fact that the dollar goal for "elimination of goldplating" established under Secre GOAL tary McNamara's Cost EXCEEDED Reduction Program was ex $11 MILLION BY OVER ceeded by 100%. Against a 100% goal of $11 million, AMC installations reported savings I through value engineering exceeding $24 million. 2. Active programs of in doctrination and training in value engineering and techniques have been and are currently being held at installations in the materiel commands. Over half of the top management and supervision personnel in the field have attended orientation and indoctrination presentations on value engineering. Approximately 115 persons have been specially trained as value specialists. Value engineering courses are taught at the Army Management Engineering Training Agency at Rock Island Arsenal. Air Force, Navy, Defense Supply Agency, as well as Army, personnel have been in attendance at every session. 3. The Headquarters AMC Value Analysis element has been responsive to continual and innumerable 39 P&P-VALUE ENGINEERING FY-1963 demands from Army Staff and Defense levels for participation in policy and program development and for publicity material in the form of hardware displays and written material. AMC furnished examples were included in Secretary McNamara's annual report to the President on the Cost Reduction Program. Contractors'. reluctance to accept and comply with the value engineering provisions in the current ASPR has hampered the application of value engineering to procurement contracts. This area is under current investigation. Imposition of the current high priority reporting and auditing requirements of ARll-20 upon existing extremely limited value·engineering staffs at the various commands, installations and activities has diverted the efforts of these personnel from their original assignment in the development ofcost saving proposals and instructional work with technical personnel in their respective areas. No relief is foreseen with respect to reporting requirements of the Cost Reduction Program. Ifthe growth DOD has directed for the value engineering program is to be realized additional personnel must be transferred from lower priority programs to support the value engineering program. 40 P&P-ENGINEERING ACTIVITIES FY-1963 An important trend in engineering during FY 1963 has been the changes of production type materiel. AnAMC directive has been issued to minimize engineering changes in items being procured under fixed price contractsto insure retention ofthe advantages ofcompetitive procurement. Another directive to minimize and control changesof all production-type materiel is under preparation. This latter directive has as its objectives the elimination ofmarginal changes; the assurance of adequate and commensurate high-level review and coordination where expenditure of major resources'is required to accomplish changes; the introduction of changes other than emergency changeson a phased or block basis; and finally the redirecting for research and development processing and funding,changes which involve major modifications. A number of cooperative efforts on engineering matters with other Defense agencies were undertaken inFY 1963. Along with Navy, Air Force, and DSA a policy and procedure for the provision by the Military Departments of engineering support for those multiple user items assigned to DSA for management and procurement isbeing developed. Required engineering support is to be provided in each Federal Supply Commodity Class or appropriate segment by a designated Engineering Support Activity in one of the Military Departments. Although the departments have provided service ofthis type prior to establishment of DSA, it is anticipated that additional resourceswill be required for this purpose in the future predicted on the increased emphasis on competitive procurement (requiring more complete procurement packages) and on DSA's stated intention of providing a higher level ofprocurement and management operations than existed before. The impact on resources cannot be accurately esti mated until data required to be provided by DSA Centers has been reviewed and analyzed. The question of the Armyfurnishing DSA with engineering support on a reimbursable basis is being studied by AMCCP. DSA is additionally being assisted in developing a technical data program in view of its bearing on itemsmanaged by DSA but in which Army has a using interest. Also in the technical documentation area, AMC is representing Army on a new DOD Committee on Technical Logistics Data and Information under Secretary Morris. Studies being undertaken by this Committee will havea far reaching effect on the acquisition and management of technical data at all levels of the Defense establishment. 41 MATERIEL READINESS FY -1963 DISTRIBUTION PLANNING STUDIES The Department of the Army, for the past several years has tried various methods to establish a system by which distribution of principal items of materiel to the U.S. Forces can be controlled, rationed and redistributed inaccordance with assigned mission and priority of the Force concerned. Because of the complexity of this program, none of the systems tried have been completely successful. During the 2nd Quarter FY 1963, the Department of the Army (DCSLOG) requested the Army Materiel Command (Director of Materiel Readiness) to undertake this task and establish procedures for the development and flow of Distribution Planning Studies for principal items. From December 1962 through March 1963, several draft regulations were prepared and coordinated withthe commodity commands, MISMA and interested elements of the AMC Hqtrs. A draft regulation for test purposes was approved in March 1963. The commodity commands were requested to prepare Distribution Planning Studies for approximately 350 items with a cut-off date of 31 March 1963, in accordance with the draft regulation and formats prescribed therein. These studies are being submitted to DCSLOG for approval. The Distribution Planning Study system provides that for each selected item of equipment, the AMCcommodity command will determine the total quantity authorized for each major claimant (USAREUR, USARPAC,USCONARC, etc.). This quantity is the computed initial issue allowances (TOE and TA), maintenance float, opera tional projects, and special authorizations (items in excess of authorized allowance and as otherwise authorized by competent authority but not as yet included in an approved operational project). Related to this authorization is theinventory for each major claimant as determined through the asset reporting system and as adjusted to reflect recent shipments to or from the major claimant that are not considered to be included in the reported inventory. From this relationship a "current need" is established. Considering the unobligated assets on hand in CONUS depots and assets due in from overhaul and production, distribution is recommended to fill the current need through a time period consisting of eight fiscal quarters. In addition, programmed troop changes affecting each item is indicated as an increase or decrease to the computed authorization in the respective time period. Recommendations for distribution will also consider these changes within appropriate priority. Further, an estimated replacement quantity isindicated for the appropriate time period, and distribution is recommended accordingly. 45 MATERIEL READINESS FY-1963 DISTRIBUTION PLANNING STUDIES The ultimate objective of this system is to have an approved distribution plan for each newly adopted, combat essential principal item prior to receipt of the item into the supply system and for each principal item for which there are insufficient assets to meet all current needs. The Distribution Planning Studies will be prepared semi-annually, with changes to each plan adjusted as they occur. The Distribution Planning Studies of the 350 selected items are currently being reviewed by DA; they will be submitted to the appropriate commodity commands as they are received for implementation to the major commands concerned. In this connection the major commands were advised on 19 August 63 that these studies will be submitted to them by the commodity commands and comments and recommendations were solicited towards improving the plans. It is anticipated that the final Army Regulation on Distribution Plans will be published by December 1963. 46 CONFIRMATORY TYPE II TEST FOR NEWLY ADOPTED MAJOR ITEMS Initial distribution plan for newly adopted equipment normally provides that first production items willgo to schools and test facilities and not to troops. It takes considerable time to obtain user reaction for newlyadopted items. Experience indicates that troop use ofmateriel is highly important to obtain a measure of performance for determination ofequipment failures. Operational capabilities and maintenance requirements by troop experienceare normally far more valid and substantive than those obtained in school. This fact was confirmed in a personalletter from CINCUSAREUR to the Chief of Staff, DA on 10 Nov. 1962, in which he expresses concern over thedeficiencies found in Europe on some new equipment introduced to that command. On 28 November 1962, the CG, AMC requested DA approval to conduct confirmatory type II test ofnewly adopted equipment by TOE type units in order to preclude time consuming retrofit programs on selecteditems of new equipment by intensive testing in the field. On 4 February 1963, DA gave approval to this concept on condition that such tests be coordinated with CG, Combat Developments Command. During February-May 1963 actions were initiated to establish appropriate procedures for conductingconfirmatory type II tests ofearly production of new equipment. The draft procedures were prepared in coordination between AMC-DMR and AMC-R&D. However, in May 1963 this function was assigned to the Directorate of Materiel Readiness. On 19 June 1963, AMC Regulation No. 70-3 was published which prescribes detailed procedures and responsibilities for type II confirmatory tests. Currently there are 6 items approved for type II test during FY 64 and 9 items for FY 65. 47 ESTABLISHMENT OF A MAJOR ITEM DATA AGENCY (MIDA) While each major subordinate command manages its own assigned major items, there existed a need for an agency within the AMC complex to centrally collect and maintain major item logistics for the purpose of evaluating the overall major item posture, to include, directing imbalances of equipment in the hands of troops, recommending plans for distribution of new equipment, recommendations for equipping various units for deployment raised constantlyunder contingency plans-also to provide quick answers on materiel readiness to questions from higher authority. To accomplish the above, plans were initiated in November 1962 to establish a Major Item Data Agency under the · operation control of the Director of Materiel Readiness. The Major Item Management Supply Agency located at Letterkenny Army Depot, Chambersburg, Pennsylvania was chosen as the agency to be transposed into a MIDA, by having its present function transferred to the appropriate major subordinate commands. Accomplishments: To date, the following actions have been accomplished towards the establishment ofMIDA. a. Coding ofFunctions and MISMA's Personnel-During the latter part ofJune, a board, composed of members from the commodity commands, Personnel and Training Directorate, MISMA, and Materiel Readiness Directorate met and coded the functions and personnel from MISMA to the commodity commands and MIDA. appropriateAlso, items currently supply managed by MISMA were assigned by mutual agreement to the commodity commands concerned. b. Table of Distribution (TD-MIDA)-On 12 July 1963, a TD for MIDA, authorizing 283 spaces (278 civilians and 5 military) was issued by the Personnel and Training Directorate for planning purposes, pending receipt of DA authorization to establish MIDA. c. Letter to DA-On 18 July 1963, a letter prepared by D/P&T setting forth civilian personnel. . answer has beenImplications and requesting authority to establish MIDA, was dispatched to DA. To date, no received from DA on this letter. No difficulties are anticipated. d. Transfer of MISMA's Functions-A team from MISMA has visited MOCOM, WECOM, MICOM and MUCOM to coordinate the transfer of functions from MISMA to these commands. The commands have agreed to take the functions over by 1 October 1963. This date can be met, provided that the DA authority to establish MTDA is not unduly delayed. 48 MATERIEL READINESS (MIDA) FY-1963 0 In assuming new missions at MJDA, arrangements have been made with the Letterkenny Depot to furnish MIDA 8 hours of computer time, until MJDA acquires its own computer which is now planned for November I 963. New missions assigned to MIDA now are: a. Asset Data-MIDA is now prepared to receive world-wide asset data (AR 711-5) and furnish this data to the commodity commands. b. Gross Requirements Computation-MIDA will compute gross requirements for major items and furnish it to the commodity commands for use in the preparation of the next Materiel Planning Studies and Army Materiel Plans. MIDA will assume its full intended mission on a time phased basis, as its currenl mission is phased out,and its ADP equipment is made available, it is planned that MIDA will be fully operational by 1 January 1964 provided that the ADP equipment and personnel resources are made available. 49 PERCENT OF ON TIME SHIPMENTS- STOCKED &, NON-STOCKED ITEMS 100 ~--~--~--~--~--,---~--~--,---,---~--~-- 90 ~--+---+---+---+---~--~--+---~--~--~--~--~ The objective of 80% on 80% ON TIME OBJECTIVE 80 ,__ time shipments was operative under the Technical Services. ----·--·--·--·--·--·--·--·--·-- While it has not been reestab lished since the Army reorgan 7oL-~--~~~-+--4-~---r--~~~jt~~~ ization, it is considered a 65.2 I LH H. I 65.5 desirable and attainable target. The net line items due for shipment ranged from 159,900 in July to 488,600 at the height of the Cuban situation in 50 October. The monthly average due for shipment amounted to 343,600. 40 On-time shipments ranged from 50.8% in August to 68.5% in May. The monthly average for on-time shipments JUL IAUG I SEP I OCT I NOV I DEC I JAN I FEB I MAR I APR I MAy I JUN was 61.6% of the average net due for shipment. Low on-time shipments were due to two factors (1) Out-of-stock position on 10,554 stocked items and (2) unduly short time frames under MILSTRIP procedures which do not allow sufficient procurement time for non-stocked items. Both of the foregoing are under study to develop means for corrective action. 52 SUPPLY AND MAINTENANCE-SUPPLY PERFORMANCE FY-1963 AVERAGE LINES PER MONTH-BY COMMAND NOV THRU JUNE FY 1963 THOUSANDS %ON TIME so 100 150 ELECTRONICS I 64.5% DUE MISSILE I 71.3% Full year data notavailable on this chart. 159.2MOBILITY I 60.4% 96.1 MUNITIONS I 70.2% WEAPONS I 69.2% 53 LINE ITEMS OUT OF STOCK THOUSANDS JAN-JUN FY 1963 12 ~--------~--------~--------~--------~------~ The number of out-of stock items has increased 10,554~ 43.5% since January 1963. This problem is reflected in the chart dealing with items on back order. The problem is concentrated in the Electronics and Mobility Commands. Cause and · corrective .&i::::. action is under active study in SMC. 6 3 ;;:·:·:······ .·.·.····:··-·,·.·.····················· ··················· JAN* FEB MAR APR MAY 10,338 7,357 7,225 9,412 8,989 * Data prior to Jan. 63 is incomplete. 54 LINE ITEMS ON BACKORDER 1,000 ITEMS 200 .-~ J ,, , ...... ,, ,, 1"' ,...... ,, ..-' l,oo ' .....,,.,.,. ,,' NON ARMY ~ , """" 150 ,'4 ~~ ,' ~ ii AI I~ I I I I I l 100 ,. I I I I I~ so L~ ,;..&: ~..~ _,. JULY AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN MONTH 79.7 149.3 144.1 174.5 ARMY 9.4 23.9 28.3 31.9 OTHER 55 GOAL-Honor all valid requisitions. Maintain minimum items on back order. SCOPE-Line items on back order increased from 35,800 in August 62 to 206,000 in July 63. ACCOMPLISHMENTSThe majority (67% 30 June '63) of items on back order are " stocked items." The increase in back orders will be remedied when the upward trend in outof-stock items is reversed. ( 0 & MA-BP 2310) In FY 63 $132 millionMILLIONS OF DOLLARS was spent to rebuild equipw..,>,..,>n7'7'7'TI7,..,7..,.7'7'77'T.7r:l7"'77"7"77Tl7n7'7'7'7"77,...,7"2A I I ment valued at $782 million. 7 6.7 DOLLAR VALUE WEAPONS Typical of items rebuilt were: 693 each ABC-M9 &COMBAT M7 Flame ThrowersVEHICLES 493 each M48 Series Tanks16 each Laundry TACTICAL & UnitsSUPPORT 7,329eachANfVRC-VEHICLES 12 Radio Sets 27 each CH 23 ObELECTRONICS & servationHelicoptersCOMMUNICATIONS 1,229 each Nike AjaxEQUIPMENT Guided Missiles 64 each 20-Ton Crane ShovelsAIRCRAFT 24 each LCM(8)Landing Craft MISSILE Each dollar invested in the rebuild of material re EQUIPMENT turned $5.95 worth of serviceable equipment to inventory 190.4 and use. All OTHER* * Transportation, Engineer & Quartermaster Type Equipment. 56 SUPPLY AND MAINTENANCE-MAJOR OVERHAUL FY-1963 M-47 TANK 175 GOAL-Overhaul 533 M47Tanks for Mutual Security inFY 1963. (The original goal 150 I of 526 was revised to 533 in Ir---,I I the 3rd Qtr FY 63). : : SCHEDULE SCOPE-The FY 63 program 1251 ! I / required overhaul of 533 I tanks. The FY 64 programcontains 245 M47 tanks and 100 . .. -~334 M48's. ·---- ACCOMPLISHMENTS-There was considerable slip- I 751 . '"lWIII page during the first part of I the year which was offset byincreased production as the ·-------~ year progressed. The goal ,,,,,,.,,,,,,,,,,,, ./ACTUAL 50 I !'''''''''''''''''~ • ''~''''''''''''''''' II was met. 25 JUL IAUG I SEPT I OCT INOVI DEC I JAN I FEB I MAR I APR IMAY I JUN I MONTH TOTAL 20 40 145 78 62 62 20 20 20 20 20 19 I SCHEDULE 526 26 73 38 98 53 46 49 49 35 22 24 20 I ACTUAL 533 57 709-414 0-63-4 STATUS OF DEACTIVATION MAJOR ITEMS REPAIR PARTS PERSONNEL GOAL-Release depots that are being deactivated to GSA 25% 50% 75% 25% 50% 75% 25% 50% 75% by 30 June 1964. ROSSFORD TOLEDO, OHIO ,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,, SCOPE-Five (5) depots are in process of deactivation to improve supply performanceand economy by disposing of installations that are notrequired. 11•••1I ,,,,,,,,,,,,,,,, RARITAN METUCHEN, N .J. ACCOMPLISHMENTS Major Items have been phased out of all depots. Repair Parts phase out is complete except at Raritan which will be com •illllll••• BENICIA BENICIA, CALIF. §lill pleted by 30 Sept 63. Civilian Personnel phase out is complete except at Raritan and Benicia. (Mt. Ranier com~~~~~~~ ",,,,,,,,,,,,.,.. pleted July 64). Personnel will MT. RANIER "'''''''''''''''''' ,,,,,,,,,,,,,,,,,, ,,,,,,,,,,, ,,,,,, be phased out of Raritan and TACOMA, WASH. ,,,,, I''""'' ~~~~~~ ~~~~~--Benicia by 30 Sept 63. Necessary clean up and decontami ! I nation will be completed by 30 June 64. LOUISVILLE I ''''''''''''''''''''''''''''''''' ,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,, LOUISVILLE, KY. 58 CARE & PRESERVATION-PROCESSING 100,000 TONS 14 12 10 AVAILABLE FO} PROCESSING '' {' '''}'{{ ,,,,,,,,,,, 8 6 ~A~J!J-OVER 4 '}';' { 2 PROCESSED 1ST QTR 2ND QTR 3RD QTR 4TH QTR 963,000 923,000 887,000 936,000 264,000 218,000 181,000 193,000 699,000 705,000 706,000 743,000 59 GOAL-Process 872,000 tons during FY 63. SCOPE-Total amount available for processing during the year averaged 927,250 tons. The quantity carried over at the end of the year exceeded quantities carried forward at the beginning of the year by 27,000 tons. Higher funding level required in FY 1964 to reverse this undesirable trend. ACCOMPLISHMENTSProcessed 853 , 000 tons. (97.8% of goal.) .I AVAILABLE PROCESSED CARRY-OVER SUPPLY AND MAINTENANCE-STATUS OF O&MA FUNDS FY -1963 $MILLIONS 600 ., I , , FUNDING PLAN/ ~~ .,., , ., '""" _,<~'~ 400 ,, , , ,, ,,'--ACTUAL OBLIGATIONS r- FORECAST OBLIGAT7 , .,, 200 i~ v, ,,,~ ,.,.,.'' ,.' ,.,."'" JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 142 289 415 554 519 514 541 556 - GOAL-I00% utilization of programmed fund resources. SCOPE-During FY 63 556 mil dollars in O&MA funds were provided to approximately fifty (50) installations engaged in supply and maintenance activities. ACCOMPLISHMENTSCumulative obligations during FY 63 amounted to 554 million dollars or within .4% of established goal. $MILLIONS OF DOLLARS CUMULATIVE OBLIGATIONS ANNUAL FUNDS 60 THOUSAND _____.;; 6 5900 ;; ;;;; ;; ;;;; SCHEDULE,;; J;;; ;;"4300 ;; 4 ;; ;; ;; ;; ;; f;2999 2 , , , , , , , , I /~ACTUAL " 1 r2 I 3 I 4 1l2l3T4 1121314 FY-1963 FY-1964 FY-1965 GOAL-Transfer of 3,091 spaces to DSA during FY 63. SCOPE-Present plans require transfer of 5,911 spaces to DSA by end of FY 65. ACCOMPLISHMENTS During FY 63 2,999 personnel spaces were transferred to DSA. This was 92 less than scheduled. They will be included in amount to be transferred during FY 64. 61 ARMY MATERIEL COMMAND 404,000,000 AMC 1,239,000,000 AMC EXPENDITURES OBJECTIVE VS ACTUAL FY -1963 GOAL-Deliveries (expendiOBJECTIVE tures) of at least $560,000,000during FY 63. ACTUAL SCOPE-The Army MaterielCommand's in-house portionBALANCE 677,000,000 of the FY 63 Grant AidProgram, including prioryear orders, amounted to$1,239,000,000. AMC BALANCE DELIVERY SCHEDULE (EST.) ACCOMPLISHMENTS FY-64 310,000,000 FY 63 expenditures amounted to $562,000,000 or $2,000,000 more than the acceptable goal. FY-65 BEYOND 223,000,000 FY-1965 64 The International Development Program is administered by the Agency for International Development Aid in the Department of State. The objective of the program is "cooperative development of economic strength among nations of the free world." Material and economic support is provided to assist in reconstructions, rehabilitations, and developments urgently needed to supplement defense efforts and improve relationships. Requirements for materials and services are placed on the basis of urgent and critical needs. The Army portion of the program averages approximately $30,000,000 per year. FY 1961 $30,000,000 FY 1962 $30,000,000 FY 1963 $32,000,000 65 GOAL-Deliver materiel valued at $362,000,000 to Military FY-1963 PROGRAM $1,164,000,000 Assistance Sales customers. SCOPE-The Military Assistance Sales Program, includ FY-1963 ing prior year orders was 397,000,000 DELIVERIES valued at $1, 164,000,000. (See tributing most to the program.)BALANCE next page for countries con llllllllllllllllllll I 767,000,000 OF PROGRAM I ACCOMPLISHMENTSFY 63 deliveries amounted to $397,000,000 or 9.6% more than the established goal. This was an increase of$210,000,000 FY -1964 BALANCE DELIVERY SCHEDULE (76%) over FY 62 deliveries of$187,000,000. 388,000,000 66 MUTUAL SECURITY-MILITARY ASSISTANCE SALES FY -1963 GERMANY ORDERS-~~~-~~(L~>N DELIVERIES BALANCE ITALY ORDERS lilll:lliilllililij\li:liillilliiilil:ililll~94.4 GOAL-Make maximum ef fort to reduce Federal Republic DELIVERIES of Germany Military Assistance undelivered orders. The BALANCE goal (established 31 March1963) was to effect deliveriesamounting to $276,300,000. BELGIUM SCOPE-The Federal Repub ORDERS ~~~34.7 lic of Germany program rep DELIVERIES resents 67% of the totalMilitary Assistance Sales ProBALANCE gram. Deliveries to thiscountry in FY 63 amountedto 77% of total accomplishOTHER ments. ORDERS ~--111:\\1\li\:jjjjj·\j:jj\jijjjjj\ . l\jl\l:j:j\j\·lii:iliiliii:Jj\\llillljljj:j:l\ll:\ ~249.9 ACCOMPLISHMENTS Deliveries to the Federal DELIVERIES Republic of Germany amounted to $305,900,000 or BALANCE 210.1 10.7% more than the 31 March63 goal. 67 In the Army reorganization, AMC was assigned total responsibility for test and evaluation of military materiel for the Army. The Test and Evaluation Command was established as a centralized agency to fulfill this responsibility on a basis of coordinated test programs. Its mission is to plan and conduct engineering and service tests of Army materiel for AMC, provide test and evaluation services and support to the sponsoring development and production commands and project managers; and participate in the planning and preparation for troop tests involving Army materiel. Nineteen separate and unique installations and activities carry out this program. ACCOMPLISHMENTS 1. Howitzer, XM102 USATECOM received from the CG, U.S. Army Weapons Command, a request for concurrence in reducing the time scheduled for engineering and service tests of the Howitzer, Light, Towed, 105-mm, XM102. The time originally scheduled for these tests in the original weapon system plan was eight months. By integrating the engineering and service test plans, and by concurrently conducting engineering and service tests, this command scheduled and successfully completed the tests of the XM102 in only four months, or one-half the time originally planned by the U.S. Army Weapons Command. 2. Ammunition Safety Release Tests The addition of necessary ammunition safety release tests to the engineering tests of Selected Ammunition, increased the cost of the hardware and testing by approximately $1,500,000 over that originally planned by Picatinny Arsenal. USATECOM modified engineering test plans to provide for maximum utilization of data obtained during engineer design tests, and reduced the number of service test rounds by integrating engineering and service test requirements. This resulted in a reduction in cost of $1,400,000 for Selected Ammunition alone, with subsequent substantial savings to be realized in the over-all reduced testing program. 70 TEST AND EVALUATION FY-1963 3. Howitzer, XM104 USATECOM desired to reduce the time and cost originally planned for the conduct of engineering and service tests of the Howitzer, 105-mm, Self-propelled, XM104. By utilizing data obtained during the engineering design test of the XM104, and by integrating engineering and service test requirements to eliminate unnecessary duplication, it has been possible to realize a substantial savings in resources and time. Initial engineering and service test plans prepared by OCO and USCONARC listed a requirement for five pilot models and a testing time of six months. Current requirements as developed by USATECOM for a concurrent engineering testing service testing of the XM104 are two pilot models and three months net testing time. 4. Safety Release USATECOM was assigned the responsibility for determining that an adequate safety test was con ducted during each engineering test. The purpose of this was to permit this command to issue a Safety Release in accordance with USAMC Regulation No. 385-12 and USATECOM Regulation No. 385-6. The Safety Release is a statement pertaining to the safety of, or the hazards involved to personnel when using new materiel. The SafetyRelease includes as a minimum information pertaining to operational limitations and specific hazards peculiar tothe system or components thereof. Aberdeen Proving Ground has published OPM 10-100 which provides detailed procedures for the conduct of safety tests of artillery, mortar, and recoilless rifle ammunition. This document provides guidance for insuring that uniform and adequate tests are conducted to provide the necessary information for USATECOM to issue a Safety Release. 5. Development of LASER Facilities and Testing of Equipment of LASER The Director of Electronics Testing was the USATECOM point of contact for LASER. A draft regulationcovering both the development of LASER instrumentation and test facilities within the command and the testingof LASER devices was prepared. 6. Acquisition of a Litton Computer In competition with other USAMC major subordinate commands, other commands of the Department of the Army, the Air Force, the Navy and other Department of Defense agencies, USATECOM was successful inacquiring a Litton Computer which was declared excess at Fort Meade. Despite the fact that many agencies indicated that the computer could be used without additional costs, the USATECOM justification for the Dugway Proving Ground, which objectively cited normal operating and maintenance costs, was considered superior to the others presented. The savings to the command through the acquisition of this computer will exceed $100,000. 71 TEST AND EVALUATION FY-1963 7. Swamp Fox II Swamp Fox II was an environmental project conducted in the remote jungle area of Panama during August to November 1962. This tropical operation was a joint venture by 25 Government and civilian agencies, with the Transportation Board furnishing commanding, troop, operational and logistical support. A total of 35 vehicles were evaluated ranging from lightweight scooters to the Robin Nodwell Model 200. One hundred and forty-six personnel participated in the evaluation, and of this total, seventy-nine were Transportation Board per sonnel. Initial finding substantiated previous project conclusions that transportation support of military operations in the tropics is feasible. Promising mobility characteristics were noted in a number of evaluated items. 8. Topo-Antarctica 1963 Topo-Antarctica 1963 was the second of the topographic support series of Antarctic projects conducted in conjunction with the U.S. Geological Survey, National Science Foundation, and the U.S. Navy. Three UB-IB Iroquois helicopters were used for the second season in this remote area of the world by Transportation Board Pilots during the period October 1962 to February 1963. Five pilots and six enlisted men represented the Transpor tation Board in this environmental operation. The three UH-IB helicopters were flown a total flight time of 225 hours and the operating altitudes ranged from sea level to 14,000 ft. A total of 1,515 traverse miles of heretofore uncharted area were mapped. Topo-Antarctica is a continuing joint military endeavor with operational, command and logistical support under the direction of the U.S. Navy (Operation Deep Freeze) and aerial topographic support supplied by the Transportation Board. On 4 February 1963, at 0151 hours (Antarctic time), the three UH-IB Iroquois helicopters providing support for topographic survey operations in Antarctica landed at the South Pole, marking the first rotary wing aircraft landing at this point. 72 1. Worn Condition of Avionics Test Items A major problem has been experienced throughout the period in obtaining valid test data on avionics items due principally to the worn condition of the equipment provided for test. This problem was particularlyevident at the U.S. Army Arctic Test Board. Items provided for test during the 1962-63 winter test season had, in most cases, already undergone laboratory, engineering and service tests. As a result, the items were so nearly worn out that acquisition of valid data was virtually impossible. Assistance from the U.S. Army Electronics Command has been requested to minimize this problem. 2. Loss of ANJMPS-25 RADAR In the spring of 1963, it was decided by USAMC that to support tests elsewhere, the U.S. Army Electronic Proving Ground would have to give up the ANJMPS-25, a long range radar of high accuracy, which was located at Oatman Mountain as part of the Surveillance System Test Facility. The loss of this radar has adversely affected the ability of USAEPG to support tests of PFNS, the Canadian CL-89 Drone and possibly the Ryan Firebee. At the close of this period an over-all plan for replacing this lost capability was being prepared to include both short and long term considerations. 3. Funding Level of the Field Test Facilities The Electronic Proving Ground Field Test Facilities are comprised of three essentially independent parts, i.e., the Electromagnetic Environmental Test Facility (EMETF), the Surveillance Systems Test Facility (SSTF) and the Common Test Facility (CTF), and is operated by CG, USAEPG, in the Fort Huachuca-Yuma, Arizona complex.The funding of these facilities under a single line item causes such an intra-relationship that any action in one area causes a reaction in the other two. During the course of this year, the cancellation of the SD-5 Drone Program with the resultant reduction of funds caused a problem of maintaining the SSTF at a minimum operational level for other scheduled programs. This was resolved. Concurrently with this, the programmed reduction from $13.5 to$9.5 million in the over-all line item for both FY 64 and FY 65 impact of this cut must be borne by the EMETF. At this funding level the SSTF and EMETF will be maintained at minimum operational capability and the programmed development of the EMETF into Phase IV cannot be accomplished. This limits the EMETF to the testing of communications equipment, and precludes the testing of electronic equipments, such as radars. At the close of this period action was initiated to obtain the necessary additional funds to allow the continued, orderly programmeddevelopment of this facility. 73 o TEST AND EVALUATION-PROBLEMS FY-1963 4. Electronic Instrumentation and Test Facilities A major continuing problem was the review of the current, and planning for the future development of electronic instrumentation and test facilities within USATECOM. The major purpose was to preclude development of unnecessary duplicative facilities, reduce where feasible existing duplication of facilities, and properly load the facilities. In this area continual emphasis was placed on maintaining the state of the art, and looking forward to future programs to insure that adequate test facilities are developed. 5. Pilot Requirements The command's requirement for 213 pilots exceeds the manning level of 107 by approximately 100%. An error in determining pilot MOS's authorized for this command resulted in failure to include those positions which required pilots identified with a prefix 6 MOS. A reclama has been forwarded. A study of the valid pilot requirements of the command has been instituted with the aim of determining the validity of our stated pilot requirements. 74 ROLE OF THE PROJECT MANAGER / l'ii1f211 / ..-ntcii PRIME RESPONSIBILITY ~ r?W!r£-\ DELIVERY TO TROOPS -( w}U \JJ \U }ll \U RAPID TECHNOLOGICAL ADVANCES REQUIRE THE FIELDING OF NEW WEAPONS AND SYSTEMS ON A TELESCOPED TIME BASIS. TO MEET THIS PROBLEM, AMC ADOPTED THE PROJECT MANAGER SYSTEM OF MANAGEMENT TO PROVIDE A SINGLE MANAGER TO ACCOMPLISH THE PLANNING, DIRECTION AND CONTROL OF TASKS AND RESOURCES TO MOVE A WEAPON OR SYSTEM QUICKLY AND EFFECTIVELY FROM FEASIBILITY TO TROOP USE. EACH PROJECT MGR. HAS BEEN GIVEN FULL LINE AUTHORITY TO ACT FOR THE COMMANDING GENERAL IN HIS AREA OF EFFORT. 76 • MOHAWK • CARIBOU • CHINOOK • FIRE SPT AERIEL SYS.S • IROQUOIS • LOH • AIRCRAFT WPN • AACOMS • CCIS-70 • AN/VRC-12 PRC-25 • RADAS • SATCOM • SURV SYS S MQM-58-A • UNICOM/STARCOM • GEN PURPOSE VEHICLES • COMBAT VEHICLES • GEN SHERIDAN/SHILLELAGH • M60 TANK • MAIN BATTLE TANK • HAWK • HERCULES • LANCE • MAULER • PERSHING • SERGEANT • ZEUS/'X' • BZ (CHEMICAL} • DAVY CROCKETT • M-14 RIFLE • AR-15 RIFLE • SELECTED AMMO • DESERET (C/B TEST} • NBC (CB WARNING} • GENERATORS • SPECIAL WARFARE 77 HOW THE PROJECT MANAGEMENT SYSTEM OPERATES ... HOW DOES PROJECT MANAGEMENT OPERATE IN AMC- The Project Manager for a designated major weapon or equipment system organizes the technical, administrative, and manufacturing talents necessary to study the requirements, establish performance parameters, determine system design, assess problems, select sources, set up schedules and programs, assign tasks on a formal basis both in-house and contract basis, and provides for the overall management direction and control of the project from concept to operational deployment. Project Management personnel are systemoriented experts assigned to this operation from commands and installations of AMC. Every Project Manager has the equivalent authority to speak with the authority of the Commanding General insofar as his assigned project is concerned. SINGLE SOURCE CONTACT-Because he controls his dollar resources, the Project Manager has direct authority to "buy" at once, a substantial amount of support assistance in house, and from outside contractors. Because he is wired into .the top management, he is able to cut red tape decision delays from weeks to hours or even minutes. THE FIRST YEAR-Because of this special attention given to Project Management, considerable progress was anticipated, however, after only one year of operation, the benefits derived from this organization have already exceeded the anticipated gains and on this basis, the goals previously set for these managers have been further expanded. In numerous cases, the finished product has been accelerated within a much earlier time frame than would have been possible under some less advanced system of management. For example, availability of reversible pitch propellers for the CARIBOU aircraft in the Southeast Pacific was decisively and promptly assured through the Project Management Organization. Had it not been for a Project Manager focusing attention on this supply, it is doubtful the propellers would have been available to the user so promptly. The same is true of the manner in which the availability of armed helicopters were pushed into that theatre. The early decision to eliminate the auto pilot requirement from the large CHINOOK helicopter can be attributed to the effective decision making process incorporated in these vertical management procedures. This particular example resulted in a program saving of $5 ,000,000. The broad delegations to speak and act in the name of the Commanding General have worked well. Experience has confirmed the belief that Project Managers would use this delegation wisely and prudently. An independent staff evaluation is made of project managers' performance for the CG, AMC. As we enter FY 64, there is every reason to look for further outstanding accomplishments to result from the Project Management Organization within the Army Materiel Command. 78 PERSONNEL 3000 2000 1000 •======:=;=;=~=;= ·~·=·=·=·= ·=·= ; = i=== =====:=;= ; =;=;=·=· = 0 1 ·= ·=·r·= ;=; ====:== =;=-=·=·= · =·= ·= · = ·=·=·=·=·:r;=::::: : :;:-=-=-= · =·=·=-=·=·=·=·=·=;=;:=;t·= · =·=·=·=·=-=-= · =· =·=· =·= · : ; = ;: : : :::·=· r·=· =-=·= · = ·=·: · ;·; ·; ·· ;·:-=· =-=-=·=-=·= {= ·=·=;=;=::;.; -:-: 1 JUN I AUG 1962 1963 1963 AS OF THIS DATE, ALL BUT TWO PROJECT MANAGER'S TD'S HAVE BEEN APPROVED, (AR-15 RIFLE AND GENERATORS). AS REFLECTED IN THE ABOVE CHART, THE "ON BOARD" STRENGTHS, AFTER FOLLOWING A STRAIGHT LINE PROJECTION FOR ABOUT 6 MONTHS, BEGAN TO SLOWLY RISEDURING THE PAST 3 MONTHS (15 APRIL ON HAND: 1883-15 JULY ON HAND: 2133). AT THE ENDOF THE 3D QTR, ONE-THIRD OF THE PROJECT MANAGEMENT ORGANIZATIONS HAD LESS THAN 50% OF THEIR AUTHORIZED STRENGTHS ON HAND. BY THE END OF THE YR, FOUR ORGANIZATIONS OR 11 % HAD 50% OR LESS OF ATZD PERSONNEL ON HAND. ALTHOUGH IT IS ANTICIPATED THAT CERTAIN CRITICAL SKILLS REQUIRED BY PROJECT MANAGERS WILL CONTINUE TO BE A DIFFICULT RECRUITMENT PROBLEM, THE GENERALOUTLOOK INSOFAR AS PROJECT MANAGEMENT PERSONNEL ARE CONCERNED APPEARSTO BE BRIGHT. 79 709-414 0-63-5 APPROVED PROGRAM-$4.2 BILLION EXCLUDES .9 BILLION CARRYOVER FUNDS & AUTO ORDERS RECIEVED TOTAL PROJECT ROT & E $.54 BILLION I$2.3 BIL. (54%) MANAGED I $1.9 BIL. OTHER BY MILLIONS OF DOLLARS COMMAND PROJ MGD MUNITIONS PR:;::D ~!~.=E~~A~~O=~~.~R~T&E 118.7 425.6 WEAPONS OTHER r~ ,. I 863.8 376.0 PROJ MGD :~~fl...3!r;~J!W~i!: (89.9%} MISSILE OTHER MOBILITY 718.2 OTHER ELECTRONICS PROJ MGD OTHER 145.3 I 399.5 283.6 (60.1%} HEAD'QTRS OTHER 80 STATUS OF PROJECT MANAGED MASTER PLANS-PM 2 Ps FY -1963-64 % CUMULATIVE 100 ,..------------..-~---------, I 15 SEPT I I I I 75 I FORECAST I I THE PROJECT MANAGER MASTER PLAN I I (PM 2P) PROVIDES THE MEANS BY WHICH THE COMMANDING GENERAL MAY BE APPRAISED 55% OF THE TIME PHASED PROGRAM OBJECTIVES 50 OF EACH PROJECT MANAGER AND THE PROGRESS IN THE EXECUTfON OF THESE OBJECTIVES. A~~:H~~oAAJ\JJIJIJIIIjlljlljj:ljljiji j 25 o I I _. I FY 1963 FY 1964 ANALYSIS As the fiscal year ended, PM2 Ps had been prepared for all systems except MOHAWK, FIRE SUPPORT AERIAL SYSTEM AND CCIS-70 (Partial submissions only were prepared for Aircraft Weaponization Iroquois and Selected Ammunition.) 55% OF THE MASTER PLANS HAVE BEEN APPROVED BY THE COMMANDING GENERAL. SINCE SEVERAL OF THE PLANS PREVIOUSLY SUBMITTED HAVE ONLY MINOR DEFICIENCIES WHICH ARE IN THE PROCESS OF BEING CORRECTED, IT IS EXPECTED THAT 100% OF THE PLANS WILL HAVE BEEN RECOMMENDED FOR APPROVAL BY DECEMBER 1963. 81 PROJECT MANAGEMENT-THE ARMY AIRCRAFT AND WEAPONIZATION FAMILY FY -1963 0 0 TYPES MISSIONS I. Observation ............. . . . .... . ........OH-13, OH-23, 0-1, QtU4fSiJ% 2. Utility-Transport-Tactical. .. . .......... U-8, U-IA, U-6, UH-19, U-9, :ttfPt 3. Light Transport. .... . ............. . .. . ... CH-21, CH-34 Project 4. Medium Transport. . . . . ................. J!lH47Af CH-37, GV~2H Managed 5. Combat Surveillance......................OV-1 6. Aircraft Weaponization . .. .... ............®.:NM:t XN:M2 ®M>t1 :XNVS: :Mf-6 XNN22:M1ss11e Lahnch.efi AIRCRAFT POPULATION AND COSTS IN ~~~g 2,950 ~ VALUE $789 MIL. SERVICE ROTARY 3,050WING FIXED Total No. of Prime Contractors..... .. . . , 20 ON WING VALUI: S:i~f}i;5177777777777777777777Ji Total No. of Prime Subcontractors.. . . . . . 100 $417 MIL. CONTRACT ROTARY 1,087} Total No. (Estimated) Vendors........ . . . 7000 WING Total No. of contractual actions per year. 20,000 AIRCRAFT WEAPONI.Z.ATION POPULATION AND COST (LESS AMMO) AIRCRAFT WEAPONIZATION 371 VALUE $4.2 MIL. Total Contractors-86 .IN Majority of Subsystems Mfd. In-House SERVICE ON VALUE CONTRACT 1,032 $30.6 MIL. 82 AMC I~ ,~ TECH SERVICES •! ... FY -63 AMC FORECAST ,.I 10,000 _.,.. ~9706 I ~.,.--•• ... .... , ... :::::::::::::::::.. · 1 I I , (#_.:.j_-t--_ ~~ I ,~ , , -;l- ~~ I I ;; I 6000 ~illl't,lilllliil~I'm 11111!111!1,"1111!llll!ill~ 21 ~'lll,,ll!:i','ll"llli"llll'l,ll,lll\ij,f!lil oi!;if!li!!!ii;!i!,'f,it;!tl!li!;;,I![!'Jil!ifti,Iii;f]'1 FY -1961 FY-62 FY-63 FY-64 FY-65 FY-66 FY-67 FY-68 &PRIOR 83 NEW AIRCRAFT ADVANTAGES OLDER AIRCRAFT NEW AIRCRAFT 1. Increased speed-Range-Ceilings Mission load. 2. Versatile for-Cargo-Passengers-Medicalevac. Air Assault, etc. 3. Adaptable for new weapon systems. 4. Low Silhouette-designed to live with troops. 5. Designed for ease of maintenance. 1. Increased speed range-ceiling-versatility. 2. Increased cargo and troop carrying capacity. 3. Decreased cost per ton mile and per passenger seat per hour. 4. Army's first tactical (STOL) transport. 1. Increased visibility-speed-ceiling. Electronic surveillance-day and night photography, and target lqcation missions. 2. Operates in all weather conditions. 3. Versatile-able to adapt to wide variety of missions and weapons systems. 1. Provides for increased logistics capability. 2. Increased cargo payload-Aero Medical and troop carrier capability. 3. Decrease in operating cost per ton mile. 4. Ease of maintenance keyed to mission requirements. 5. Water landing capability. 1. Improved observation, target acquisition. Reconnaissance and command control. 2. Designed for reliability and ease ofmaintenance. 3. Designed to live with troops. 4. Versatile for a variety of missions. 5. Suppressive fire capability. 84 Type XM-22 Missile Type M-6 Quad. Gun Type XM-5 Urenade Launcher Range-3500 Meters Range-l000 Meters Type XM-3 Rocket Type XM-2 Machine Gun Range-1500 Meters Range-2000 Meters Range-800 Meters Status Developmental Status Operational Status Developmental Status Operational Status Operational(LP) (Std "A") Experimental (LP) (LP) These are 1st Generation weapon subsystems for air mobility and suppressive fire. All of these weapons have been type classified except the XM-5 and are presently undergoing further operational testing in the Pacific theater and the Air Assault Division. During FY 63 these items came under AMC project management. First production quantities of the M-6 Quad. Gun were delivered to the user, and this item became Standard "A." Initial production of XM-3 Rocket Launchers began and the R&D program for aircraft weaponization for FY 63-68 was definitized and formalized. In the suppressive fire role, these weapons fulfill a much needed requirement by the Army where no previous capability existed. 85 Within the.past 12 months first flight tests were conducted on LOH type helicopter built by Bell, Hiller & Hughes Aircraft Companies. Each Company is now building 5 aircraft for competitive evaluation by the Army next fiscal year. One of these will be selected for production. The T63 Engine, which is to be used in these test aircraft received FAA certification and passed the 150 qualification test this fiscal year. In addition, the T65 Engine is being tested for possible future use in the LOH. This program is on schedule. Type Light Observation Helicopter Speed-110 Knots Range-300+NMStatus-Development During FY 63, 6 OV-lC Mohawks equipped with external stores were shipped to South Viet Nam for Project Warpath and 2 Mohawks were shipped to the Federal Republic of Germany for evaluation. The AN/APS-94 SLAR installed on the OV-lB was type classified Standard "A". In addition snow skis were installed and successfully tested during FY 63. Mohawk production will cease with FY 64 production due to aDA decision to eliminate 11 Aircraft Surveillance Companies from active Army Type Observation-Surveillance and Reserves. This program is on schedule at the present time. Speed-200 KnotsRange-400-1600 NMStatus-Operational This Helicopter is being delivered to the user in larger and larger quantities. During FY 63, 20 Iroquois Helicopters with external stores were shipped to South VietNam. The FY 64 Program was approved and UH-1 Iroquois the first production UH-lD was accepted. In addition Congressional Type-Utility-Tactical approval of FY 63 add-on buy of 90 aircraft was obtained and EngineerSpeed-110 Knots ing and Service Test of the UH-lD was completed. This program is Range-210 NM on schedule. Status-Operational 86 CV-2 Caribou Type-Tactical Transport Speed-187 Knots Range-1179 NM Status-Operational Type-Med. Transport Helicopter Speed-130 Knots Range-200 NM Status-Development The FY 63 production contract was awarded on schedule. Reversible propellers were tested and will be installed on FY 63 produc tion aircraft. 1 Unit was equipped with 18 aircraft and deployed to VietNam. The YCV-7 an improved version ofthe CV-2 is being developed. Contracts for 4 development aircraft were awarded during FY 63. FY 64 contract of CV-2B Caribou has been deferred pending results of a com paritive evaluation of USAF and USA Transport Type Aircraft. This is presently, and will continue to cause a slippage in the FY 64 Milestones until results at this comparative evaluation are announced. The first production type Chinook helicopter was accepted bythe Government on 18 Dec 1962, just three years and seven months after the development contract (Letter of Intent) was signed. Early decision was made to incorporate the uprated L-7 Lycoming Turbine Engine in production helicopters beginning Nov 1963. Production schedule was revised to give an increased production rate, thereby making up lost productiontime. Service test was begun and several important capabilities requiredby the MCs have already been successfully demonstrated, such as transport of all essential components of the Pershing Missile System; the dayand night time troop jumps made from the helicopter; and, the transport of numerous internal and external loads. This project was placed under project management on 1 August 1962. The Chinook program is on schedule, however because Time Change Components are not reachingtheir programmed TBO (Time between overhaul). The spare parts situation will become critical in FY 64. Also, additional PEMA funds will be required to support existing and projected increased flying hour programs for FY 64. 87 PROJECT MANAGEMENT-SIGNIFICANT ACCOMPLISHMENTS FY-1963 ARMY AIRCRAFT, FISCAL YEAR 1963 DURING THE FIRST YEAR OF OPERATIONS, OUTSTANDING RESULTS HAVE BEEN OBTAINED IN THE MANAGEMENT OF THE ARMY AIRCRAFT EFFORT UNDER THE PROJECT MANAGEMENT CONCEPT OF OPERATIONS. ECONOMY-Reconfiguration of Air Force owned Pratt & Whitney R-2000-4 engines for the balance of the CARIBOU Aircraft Program instead of buying new engines will enable the Project Manager to effect a savings of 39V2 million dollars without degrading performance. CUSTOMER SATISFACTION-The early deployment of the 61st Aviation Company in FY 63 was threatened when serious shortages CARIBOU and deficiencies in CARIBOU equipment were noted. Through direct liaison with industry and Army agencies, the Project Manager overcame these shortages and aircraft performance problems in time to meet the deployment date, thus avoided a later expensive retrofit program overseas. TOTAL RESPONSIBILITY REDUCES REACTION TIME-By working across all command lines, the LOH Project Manager conducted a total evaluation program to measure hardware and contractor performance against Army standards, requirements and doctrine. For the first time, the Army is conducting a selection evaluation in an all Army environment which will measure reliability as a function of aircraft availability, logistics, field maintenance, and manpower resource requirements, on a telescoped time schedule. 88 PROJECT MANAGEMENT-SIGNIFICANT ACCOMPLISHMENTS FY -1963 MEASURED FINANCIAL SAVINGS-As a result of concerted effortand vested authority, the MOHAWK Project Manager was ableto recover approximately 6.5 million dollars of prior year PEMAfunds. These funds were able to provide 16 additional aircraftfor the llth Air Assault Division modified to accept armament;replacement of repair parts provided to unprogrammed SVN(Warpath) operation; provide related weaponization requirements; and support of other aircraft financial shortages due toincreased costs. UPRATED ENGINES FOR CHINOOK-During FY 63, production ofLycoming T55-L-5 Gas Turbine engines for the Chinook hasbeen converted to a higher rated (increased liP) L-7 Version anestimated 12 months in advance of the time it would have takenunder more conventional systems of management. This will permit the early introduction of the improved engine into theCHINOOK production aircraft beginning in November 1963and will result in the provision of the ARMY with CHINOOKhelicopters possessing increased capability at a much earlierdate than would have otherwise been expected. ELIMINATION OF AUTOPILOT IN CHINOOK-Through the use ofthe vertical management procedure, a firm and early decisionwas made to eliminate the autopilot from the CHINOOK as a"nice to have" item. This action resulted in a program savings ofapproximately five million dollars. DEADLINE SET BY ENEMY IS MET-Within an incredibly short time,external stores and helicopters were married in design, joined onthe production lines ... tested at our proving ground and shippedto the field forces for use in Vietnam. 89 Type-Surface-to-Air Speed-Supersonic Range-Over 200 nm Status-Operational Type-Surface-to-Air Speed-Supersonic Ceiling-38,000 ft. Status-Operational Type-Surface-to-Air Speed-Supersonic Range-75 nm Status-Operational Outstanding successful testing during the past 12 months marked the completion of development of the PERSHING Missile. Recent activation of 3 PERSHING Battalions and completion of initial training and equipping of .~he initial PERSHING unit will assure the timely operational deployment of this system presently scheduled to take place early in FY 64. This highly mobile, versatile ballistic missile system replaces the Redstone that has been "on board" in Europe since 1958. During FY 63, the role of HAWK to search out and destroy supersonic aircraft was expanded to include the requirement for an Anti-tactical Ballistic Missile (ATBM) capability. The recent addition of a Hi-Power illuminator has significantly improved the effectiveness of this system. The HAWK is presently in production in five NATO countries and is operationally employed in Europe, Panama and the Pacific. The SERGEANT became operational earlier this year with the deployment of an American unit together with the Federal Republic of Germany (FRG) unit to Europe. As the replacement for the liquidpropelled CORPORAL, the Solid-Propellant SERGEANT is more mobile, reliable and accurate. Its inertial guidance makes it invulnerable to electronic countermeasures. The SERGEANT units were deployed with 100% of combat essential items, and socc, of basic loads of repair parts. This level of achievement unprecedented in the fielding of Guided Missile Weapons Systems, is largely attributable to Project Management. 90 PROJECT MANAGEMENT-ROCKETS AND MISSILES HIGHLIGHTS FY-1963 Type-Surface-to-Air Speed-Supersonic RangeStatus-Development Type-Surface-to-Air Speed-RangeStatus-Development One of the most recent missile systems to enter development, the MAULER has been designed to destroy supersonic enemy aircraft, short-range ballistic missiles and rockets in defense of forward combat elements in the field. Progress during the past year was climaxed with the successful firing of the First Guided Test Vehicle in June. The use of MAULER project to test the effectiveness of PERT TIME/COST Management System in the development of Army materiel during the past year has proven to be most successful. During the latter part of FY 62 and early FY 63, the REDEYE program suffered a major technological setback. rollowing a reorientation of the development program, recent test results of a new seeker and control system have been most encouraging. In June, a direct hit was made when REDEYE was fired against a drone target. REDEYE is now scheduled for Release to production in October 1963 with continuing development of an improved model. Development of Nl K£-ZEUS during FY 63 was highlighted by numerous successful intercepts of Inter-Continental Balli st ic Missiles. Initiation of a quicker reacting SPRINT Missile as part of the NIKE "X" program during the latter part of this Fiscal Year will give N I K £-ZEUS an added punch. Type-Surface-to-Air Speed-Hypersonic RangeStatus-Development 91 The NIKE-HERCULES system has been operational since 1958 and is widely deployed in the US and overseas. The major effort in FY 63 was directed towards the provision of an improved system. This included the release to production of the Tf simulator, the provision of an improved HIPAR which is presently being installed, and the 3D Radar which will be used to improve the system's reaction time. Type-Surface-to-Air Speed-Supersonic Ceiling-Excess of 150,000 ft. Status-Operational The newest addition to the Army Family of Missiles is LANCE which entered development this fiscal year. This second generation missile is being developed as an economical lightweight general-purpose missile to provide greater fire support for the Army Division. Engineering model vehicle design is scheduled for completion this coming fiscal year with initial flight testing to begin early in FY 65. (In June, the decision was made to give full mobility to the towed launcher which will further increase the flexibility of this system.) Type-Surface-to-AirSpeed-SupersonicRangeStatus-Early Development Deliveries of the ENTAC from the French Government continued through FY 63. The FY 63 procurement contract was under negot1ation as the fiscal year ended. Slippage in delivery of the FY 62 buy necessitated a revision of the delivery schedule. The use of Tactical Equipment for Training Purposes in lieu of the S58 simulator precluded delay of the Training Program until S58 simulators were delivered late in the fiscal year. Type-Surface-to-AirGuidance-Wire Guided Warhead-Shaped Charge Status-Production 92 MQM-58-A DRONE STATUS OF FY 63 PROGRAM EXECUTION The Army's need for this system has placed it in limited production concurrently with development. The final limited Production contract for one system was awarded Aerojet General Corp. for a value of $11.9 million in March 1963, as scheduled . Fifty percent is to be s.ubcontracted among approximately I 0 companies. In January 1963, the project manager succeeded in converting the Yuma Test Station drone flight test facility from an industrial to a government operated facility under control of USATEC. This change is (ln example of expediting action by centralization of the decision-making process through the Project Management Organization. It effected a million dollar cost reduction for the Army, and amplified the flight test status from solely R&D effort to include preparation for acceptance and user testing of the Limited Production System. The system is on schedule. I These short-wave frequency modulated transistorized two-way radios of modular construction have been designed to provide reliable radio-telephone command communications between military vehicles, crew-served weapons and ground troops. Due to the logistic and operational disadvantages of mixing old and new radio equipment, it is planned to equip USAREUR with these new radios as a package, with all associated equipment provided at the same time. Initial shipments for distribution to troops began in June 1963. Deliveries as scheduled from FY 63 and FY 64 procurements are necessary to support the current installation schedule. For example, there is possibility of slippage on AM-1780 Amplifiers. Contracts for approximately 18,500 radios for a value of $28 million were awarded to private industry during FY 1963. 93 PROJECT MANAGEMENT COMMUNICATION AND EL(CTRONIC SYSTEMS FY -1967 Ground Control System for Satellite Communication The U.S. Army Satellite Communications Agency (SATCOM) has the responsibility for all Army activities relating to satellite communications systems including the extensive surface communications environment required for the Defense Satellite Communications Program. The most outstanding accomplishment of the Army's SATCOM project during FY 63 has been the 's SYNCOM "right-on-schedule" completion of the ground communication terminals to operate with NASA Communication Satellite. The SYNCOM first launch, successfully accomplished in February 1963 was supported by fixed satellite communication stations at Ft. Dix, N.J., and Camp Roberts, Calif., a transportable ground station at Lakehurst, N.J., and by the satellite communication ship USNS Kingsport which was deployed in the harbor of Lagos, Nigeria. 94 UNICOM (Universal Integrated Communications) is the title of an all-service defense communications system proposed by the DA. The concept envisions highly automated facilities utilizing the latest electronic techniques and the proposed system is expected ultimately to replaceexisting manual relay centers throughout the world. FY 63 project execution was highlighted by expeditious procure ment of high priority items through the Project Management organization. In December a requirement for 19 Communications Centrals were required l on a crash basis to supply ORRICK and other urgent needs. The Project Manager was able to complete all deliveries by 30 May, an accomplishment which is considered outstanding in light of the many problems encoun UNICOM/STARCOM tered in fabricating equipment comprised almost entirely of governmentfurnished equipment. The cost of these centrals, while not precisely determined, are considerably below the cost of similar equipments under commercial contract. STARCOM (Strategic Army Communication System) consists of ~ continental, overseas and intercommand communications-electronics facili_;_. ..> :--;;::~ ' ~ ties. There are over 100 STARCOM items with separate PEMA contracts.\;·,L__/ \ . The procurement value in FY 63 amounted to approximately 150 million \~~~·· ~. / dollars. \ ,. ..' -c ~ CCIS-70 will provide automatic handling and display of infor , f mation in the Field Army. Two random Access Computer Systems have been procured and will be made part of the systems test bed to be utilized for evaluation of the intelligence subsystem. CCIS-70 I The capability of Mobidic C and two Basicpacs have been expanded so that the fire support subsystem can be evaluated as a Division Complex. A five year Technical Assistance Contract was awarded June 1963, for a value of approximately $5 million each year. Seventh Army has requested an ADP capability as soon as possible and on 18 June, the Army Chief of Stafl approved honoring Seventh Army's request for Basicpac and Militarized ADP Support. AMC will provide an ADP capability ·by furnishmg Tactical Operation Centers (TOC's) and communication li~ks to subordinate command and support agencies. 95 709-414 0 -63-6 During the past fiscal year, the Army's ability to carry out its role to shoot and move was greatly enhanced with the delivery of new I05 and 155 Self Propelled Howitzers. Development of these items was completed and initial production quantities were delivered this past November. These combat vehicles were Type Classified Standard "A" in June of this year. Contracts for FY 63 procurement were award~d this past February on a fixed-price incentive fee basis. Equipped with diesel engines, these vehicles have greatly improved cruising range, and extended ammunition ranges over systems they are replacing. The-Command and Reconnaissance role of the Army was greatly improved with the deployment of the M114 Command and Reconnaissance vehicle this past December.This highly mobile amphibious vehicle is used in roles where light aqnor protection is required. Completion of development and successful testing of the Infra Red Fire Control system in FY 63 has greatly improved the combat performance of this vehicle. The provision of IR searchlight further adds to the capability of this vehicle to perform at night as well as during daylight hours. FY 63 production schedules were met. These tanks have been operational in Europe since December 1960. 96 During FY 63, the Armored Personnel Carrier, M113 underwentmajor improvements including dieselization which has significantlyextended its range of operations. The application of a commercial transmission resulted in a $2 million saving in procurement and support.Because of the versatility of this vehicle, it has been adopted as the chassisfor several major self-propelled weapons as well as missile launchers andcarriers. The M ll3A l is rated as one of the finest vehicles of its classin the world. Development of the Armored Reconnaissance vehicle plannedfor use by the Airborne Division is continuing as a high priority effort.During FY 63, the first three R&D pilot vehicles were produced andtested. This vehicle is presently in the advance production engineeringphase of development. When it is available, it will provide. major improvements in mobility and firepower over its predecessors. Development of the Shillelagh surface-to-surface missile systemduring FY 63 p-roceeded from Applied research into Engineering Designand Testing. The current year's effort was climaxed with successful testingof the missile launched from the combination gun-launcher at White SandsProving Ground and Alaska. This system will provide greatly superior firepower, combined with greater accuracy at longer ranges than itspredecessors. The first application of the Shillelagh will be with theSheridan Vehicle. 97 PROJECT MANAGEMENT AMMUNITION AND WEAPONS FY -1963 The DAVY CROCKETT system has given Armor and Infantry troops a low yield nuclear capability at close range. It dwarfs in firepower anything we have ever known in the immediate area of the battle line. It gives small units a volume of firepower heretofore obtained only from massed heavy artillery. During FY 63, the system was given a mounted mobility capability with the Ml51 Jeep. This system can also be stowed in the M113 Type-Suttace-to-Surface Armored Personnel carrier which gives it an additional flexibility.Range-2000-4000 meters Status-Operational Also, during this past year, the project manager shifted from negotiated sole-source procurement to competitive procurement with a resultant savings as great as 50% in certain major components. Production of the Ml4 Rifle continued with three major industrial producers in FY 63 as all production schedules were met. A major accomplishment was in the negotiation of production contracts wherein a 25% savings was realized over previous year contracts. During the latter part of FY 63, plans were made to procure 85,000 of this new small-bore rifle for use by paratroopers and anti-guerilla type fighters. This is one of the most recent items to be placed under the Project Management Organization in AMC. 98 PROJECT MANAGEMENT AMMUNITION AND WEAPONS FY -1963 AMMUNITION There are over 1,000 separate items in the supply system ranging from small calibre (.223 cal.) to large projectiles (280mm), including small rockets, land mines, grenades and flares. Approximately 300 of these items are normally under procurement at the same time. These items are made up of high explosive, chemical, nuclear, other selected ammunition and flame and smoke. Types include armor penetrating, anti-personnel and anti-materiel, ground burst fuzes (PD), air burst fuzes (VT) of the mechanical, electrical, and barometric types. Included in above is approximately $400 million for Selected Ammunition. Selected Ammunition is a project managed commodity. A government investment of over $98 million for specialized production facilities has been provided to establish a production base. The value of deliveries has increased over 200 percent. Ammunition for a value of $274 million was delivered in FY 63 as compared to $91 million delivered in FY 62. Significant cost reductions have enabletl the project manager to return $55 million to the Air Force and Navy in hard cash savings. Chemical, Biological and Radiological Weapons and Defense Within the Department of Defense, it has been established that a posture of strength in chemical and biological weapons and defense is essential to national security. Chemical and Biological systems are emerging in response to an increasing demand for flexibility in our national ability to apply force against aggression. These systems offer the capability of producing either lethal effects or mild and temporary incapacitation. Effects can be controlled to cover very large areas or areas as small as a single strong point. Thus, Chemical and Biological weapons are unique in the role of graduated deterrence. The awareness of the tremendous potential of CBR continued to be emphasized at all levels of operation in FY 63 because any weakness here would be an invitation to the use of these weapons by other forces. Against an unprepared nation, their use can be decisive. During FY 63 the level of Army funding for the CBR Program was approximately $106.8 million. This was the third full year of an expanded program. Most of the total effort was invested in basic and applied research and in the exploratory development of new concepts for CBR weapons and defense. During FY 63, defense was the largest single effort area in the program in terms of funding level. The "exploratory development" portion of the defense systems program supports applied research and feasibility studies on improved respiratory protection, collective protection, detection and early warning against the presence of CBR agents, and decontamination. Within the CBR effort there are project managers in three areas: BZ NBC Deseret 100 -0 - Early in March 1963, AMC launched a formal Cost Reduction Program with the objective of reducing the cost of logistical activities through more efficient management. This program is supported by all echelons of the Command as a matter of highest priority. The savings goal of $227 million set for FY 1963 has been substantially increased to $524.5 million for FY 1964. The AMC program is integrated with the Army and DOD Cost Reduction Programs, and in FY 1963 the AMC goal represented about 60% of the Army total and 12% of the DOD total. The AMC Program Manager is responsible for the development and execution of the program throughout AMC. Support is furnished by the Program Budget Advisory Committee, the Cost Reduction Coordinator, and the Information Officer. Directors in Headquarters, AMC and the Commanding General, Stlpply and Maintenance Command, are responsible for the implementation of the program in assigned areas. They have appointed a Cost Reduction Officer for each area to execute these responsibilities. At major subordinate commands, and at installations and activities, Cost Reduction Coordinators and Cost Reduction Officers have been designated to carry out the program. Improvement in methods and reduction in cost are continuing objectives of the Army, and a number of improvement programs have been in effect for many years. The unique features ofthe Cost Reduction Programs are: Consolidation of improvement efforts into one program. Definition of specific areas for improvement effort. Establishment of monetary goals for savings to be achieved in each area over a three-year period. Quarterly reporting on progress toward goals. Validation of savings reported. Cost reduction savings are achieved in three ways: Buying Only What We Need. Buying At The Lowest Sound Price. Reducing Operating Costs. Under these broad headings twenty-three cost reduction areas have been defined. Dollar savings goals were established in FY 1963 in fourteen of these areas by AMC. Specific goals were assigned to major subordinate commands, and in turn, to installations and activities, in order that commanders would know what is expected of them. 102 Hq, AMC Staff Identification No. Cost Reduction Area Responsibility I. BUYING ONLY WHAT WE NEED a. Refining the requirements calculations: l. Major items of equipment DMR 2. Initial spares provisioning SMC 3. Secondary items SMC 4. Technical manuals SMC 5. Expanding and maintaining the DefenseIndustrial Production Base DPP b. Increased use of excess and long supply inventories in lieu of new procurement: l. Equipment and supplies SMC 2. Idle production equipment DPP 3. Excess contractor inventory DPP c. DSA inventory drawdown (not applicable to AMC) d. Eliminating goldplating (Value Engineering) DPP e. Inventory item reduction SMC II. BUYING AT THE LOWEST SOUND PRICE a. Shift from noncompetitive to competitive procurement DPP b. Shift from CPFF to fixed or incentive price DPP c. PERT (deferred) 103 Hq, AMC Staff Cost Reduction Area ResponsibilityIdentification No. III. REDUCING OPERATING COSTS a. Terminating unnecessary operations (base utilization) DIS b. Standardizing and simplifying procedures: 1. Consolidation of 16 requisitioning systems into SMC 1 on 7/1/62 (MILSTRIP) 2. Consolidation of 81 transportation documents SMCinto 1 (MILSTAMP) 3. Reduction of contractor reports DRD c. Consolidating and increasing efficiency of operations: 1. DSA operating expense (not applicable to AMC) 2. DCA and communication system savings DIS 3. Improving transportation and traffic management SMC 4. Improving equipment maintenance management SMC 5. Administrative vehicle maintenance management SMC 6. Improving military housing management DIS 7. Improving real property management DISSMC 8. Preservation, packaging, and packing To qualify as savings in the Cost Reduction Program, reductions in cost must be: Documented and measured in terms of quantity, unit price and dollar value, Reduced by the amount of any offsetting costs that are readily identifiable and directly incurred to effect the saving, andSubject to verification by the Army Audit Agency. 104 COMPTROLLER AND PROGRAMS-COST REDUCTION FY-1963 ESTIMATED SAVINGS...FY-1963 BUYING ONLY WHAT WE NEED REFINING REQUIREMENTS CALCULATIONS INCREASING USE OF EXCESS & LONG SUPPLY INV. ELIMINATE GOLDPLATING INVENTORY ITEM REDUCTION BUYING AT LOWEST SOUND PRICE SHIFTING TO COMPETITIVE PROCUREMENT SHIFTING TO FIXED OR INCENTIVE PRICE CONTRACTS REDUCING OPERATING COSTS INCREASING EFFICIENCY OF OPERATIONS GOAL I 130.4 38.0 66.0 25.6 .8 78.0 42.0 36.0 19.1 19.1 SAVINGS 315.3 110.6 173.7 25.3 5.7 142.6 77.6 65.0 17.4 17.4 ------~~------ TOTAL 227.5 475.3 105 AMC COST REDUCTION GOALS FOR FY -1964 FY-64 389.5 BUYING ONLY WHAT WE NEED REFINING REQUIREMENTS CALCULATIONS 11 0.5 INCREASING USE OF EXCESS & LONG SUPPLY INV. 252.0 ELIMINATE GOLDPLATING 26.0 INVENTORY ITEM REDUCTION 1.0 105.0 BUYING AT LOWEST SOUND PRICE SHIFTING TO COMPETITIVE PROCUREMENT 55.0 SHIFTING TO FIXED OR INCENTIVE PRICE CONTRACTS 50.0 30.0 REDUCING OPERATING COSTS INCREASING EFFICIENCY OF OPERATIONS 30.0 524.5 106 COMPTROLLER AND PROGRAMS FY-1963 STOCK FUND The Office of the Secretary of Defense approved a single Stock Fund Charter for AMC with effective date 1 July 1962. This charter consolidated six charters from the former technical services and was further expanded to include Guided Missile and Rocket Systems Parts; Air Transportation Secondary Support Items; and SpecialWeapons Parts, Tools and Equipment which had not previously been managed and financed through the use of the Stock Fund. Under this single AMC Stock Fund Division, the obligation authority approved for FY 63 amounted to $I .6 billion. This is approximately 87% of the total Army Fund Stock Fund. During this first year of operationunder one AMC Stock Fund Charter, $I 00 million was returned to the Army Reserve Account to augment the Military Personnel Army Appropriation. The obligation authority initially approved for FY 64 was $1.5 billion. AMC OPERATING PROGRAM FY 63 An AMC Operating Program Document for FY 63 was issued 1 July 1962. In April1963, the 5-year AMC base program FY 64-68 Basic Document was issued. The target year FY 64 of this 5-year base program is the AMC Operating Program for FY 64. Accordingly, the necessary changes in program documentation, techniques and procedures have been made to meet the requirements for implementation of the DA 5-year program guidance. ARMY INDUSTRIAL FUND Approval was secured from the Secretary of Defense for a single AIF charter for AMC. This approval consolidated the twenty-one AIF installations which were transferred from the technical services. As of 30 June 1962, these installations had a total capital investment of $117.8 million, including a total cash allocation of $106.4 million. The development and implementation of an AMC manual covering AIF financial administration brought all installations under uniform policy, procedures and reporting requirements. Further financial management improvements are anticipated during FY 1964 as a result of the centralization of AlF accounting policies and procedures within Headquarters, AMC. (Millions) FY 63 Annual Sales Forecast $759.8 FY 63 Annual Sales 808.3 FY 63 Annual Cost 807.0 Net operations for the same period totaled $1.3 million which is well within the goal of 1% of sales established by the COA. The sales forecast for FY 1964 is $763.7 million. 107 ARMY STOCK FUND FY -1963 $MILLIONS SALES AND OBLIGATIONS 1800 r--- CUMULATIVE 1600~----------------------------------------------------------------~====~ ~::::::;::: l UNAPPLIED ISSUES 1400 !-------------------------------------~ Ft/:{/1SALES 1200 1----------~COMMITMENT~S-------~~~~-~ l--------~~==~o~a=L~IG=A=r~~~oN~s----------_j~~~~~~~ 1000 800 1 ~ 7?J.:~~a ~~~~~~~~~~l~i~l 6oo ')t:::::::rm:t'::::::::::::u 4001 ~172~ 1;:·:.:,1·. ~. ~: ~~: :.j~(~ 200 I I FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER (PRELIMINARY) 108 $THOUSANDS HQ,AMC MISSILE MUNI TIONS S & M T & E 30 60 90 120 150 180 210 240 270 WEAP0 NSa.........l ••••••••• ~ ••••••••• l ••••••••• ~ ••••••••• 109 ARMY INDUSTRIAL FUND-CAPITAL INVESTMENT FY-1962-63 JUNE 62 VERSUS JUNE 63 $THOUSANDS 5 10 15 20 25 30 35 HQ,AMC MISSILE 1 M UN ITI0 N S I>>>>>>>> >>>>~,,,,,,7,,,7j,,,,,,,,,,,),,,,,,,,,,,,J,,,,,,,,,7,),,7777777>>>>>>7777777777777! 36231 S & M 16432 T & E WEAPONS 110 PROGRAMMING AND CONTROL OF MAP REIMBURSABLE FUNDS FY 1963 A centralized method for programming and funding of MAP reimbursements was established with funds being retained under control of AMC Headquarters. Prior to the establishment of AMC, each Technical Service established its own methods of reimbursable funding applicable to procurement office operations in support of the Military Assistance Program (MAP). These systems varied widely in their application. With the establishment of AMC, a uniform method for handling MAP reimbursements was essential. UNIFORM FUNDING POLICIES AND PROCEDURES IN FY 63 During FY 63, funding policies and procedures, based on a single system for AMC, were released to the field through the media of letters and other guidance materiel such as policies and procedures were developed.An AMC regulation setting forth uniform funding policies and procedures is scheduled for publication in the first Quarter FY 64. This will provide one single funding policy and procedure document in the interest of improvingthis aspect of financial management at all levels of Command and will supersede the piece-meal issuance of policythat took place during the first year of the AMC organization. Financial reporting and evaluation of fund usagewill be on a uniform basis throughout the AMC complex. ACCOUNTING AND REPORTING SYSTEM FOR FINANCIAL MANAGEMENT OF ARPA ORDERS AMC Regulation 37-8 dated 26 June 1963 established an accounting and reporting system for financial management of ARPA orders. This was the first Regulation within the Department of the Army that prescribesestablished financial policies and procedures for the support of ARPA. Formerly, the Office of the Director of the Advanced Research Projects Agency (ARPA) placed its orders directly with subordinate agencies of the military departments, as well as with chiefs of the Technical Services and the Office of the Director of Research and Development, Department of the Army (CRD). This direct placementof orders resulted in considerable dispersion and division of ARPA orders among many Army installations and activities. Following the reorganization of the Army and AMC assumption of responsibility for furnishing ARPA orders financial reporting, the widespread dispersion of these orders was recognized as a weakness in financial management. This weakness needed to be overcome by the establishment ofan appropriate accounting and reportingsystem for support of ARPA. 111 COMPTROLLER AND PROGRAMS-O&MA FUNDS FY -1963 THOUSANDS OF DOLLARS 25,000 50,000 75,000 100,000 125,000 150,000 105,827 H0 ,AM c lr::::r::::::n: ::r:.:::: -::: i :ili:: ili:m::: :;f?Wn:::r::: ::::: ::: w:w:::::rr:::,: ::r :rr:r:r::m::::::rw:n::::::::m::,m::m::::::mm:::::r:::r::w::::rrm::m:r)m:r:: m' M IC0 M m:::tit:::::::::~:r:r::::::::r:::::m::r:t::m:::::::rr:::r::m::::r: ::::::::m:::rr: :m:::::rr:::l' . M 0 c0 M lrt::r:::::::::::m::::r::r:::r:::::::::r::::::::t,::::::;,::::::;,:-::m-::: ::::::::::::::::: ::::::::::rr:::r:: ,:::::m:::::::r: i'f :::::::::::::::::::::::::: :t::: t;ttttff:t:m::::: ::::::::::::: r::::::):'?::::::::::::::::::::::: ::r::r:::::::::m::::::::n::n:;:::::rr:::::r:f MucoM 1::::::::: ::rr::::::r:: :::r: :::::::: :~ :: ::::;:.: ::r::::: :n::::::::::r:' ::: ::r:m:::::r :): ::::::::::::::,.,: :: ::::r r r::rrrr:: ::,::;::~,:::;:::;:: .llations with family housing for the major purposeof increasing the efficiency of the overall family housing program. The Family Housing Management Account, which funds and accounts for all transactions associated with family housing, was placed in effect on I November 1962. For the first time, operation and maintenance costs for family housing are being identified. FY 1963 PROGRAM Units Served 11,121 O&M Costs $10,584,000 Avg Cost per unit $952* Army Cost per unit $962 FY 1964-66 PROGRAM UNITS AMC Gross Reqmts 18,974 Program Level (90% of Gr. Reqmts) 17,077 Available Units 15,053 Deficit 2,024 FY 1963-66 CONSTRUCTION PROGRAM UNITS FY 63 164 authorized FY 64 505 (includes 200 trailer sites)FY 65 680 Total 1,349 Unprogrammed 675 *The per unit figure is low because S&M Command failed to utilize and returned approximately $.5 million too late in FY 1963 for the other commands to fully utilize. 123 Greater emphasis has been placed on utilization offamily housing with the objective of obtaining maximum and proper utilization. Current DA target is 95 percent occupancy. The occupancy rate for AMC as of end of 3rd Quarter was 90.2 percent. The. 4th Quarter was 91.7 percent. Actions being taken to improve the occupancy rate include disposal of substandard housing not required, placing housing at GOCO installations on the inactive list and placing greater emphasis on increasing the occupancy rates. Excellent progress was made during FY 1963 in reducing the number of inadequate quarters in AMC. · Initially AMC had 2,791 units designated inadequate and operated on a rental basis. As of 1 July 1963, there were 1,428 inadequate quarters. Disposal of these inadequate quarters does not necessarily reflect an increase in our requirements as many were excess to the requirement of the installation. AMC has requested approval to retain 1,054 of these units beyond 1 July 1965. These are inadequate but safe units which cannot economically be improved to adequate standards but their retention is justified to meet continuing needs. MILITARY CONSTRUCTION, ARMY (MCA) PROGRAMS The FY 1963, AMC MCA Program, defended by the Technical Services, consisted of 19 projects estimated to cost $17,230,000. This program represented only 1.7 percent of our long range construction requirements, and was 13.1 percent of the Army-wide FY 63 MCA program. The largest project ($7,200,000) was for construction of NIKE-ZEUS facilities at White Sands Missile Range. This project is underway and scheduled for completion during FY 1964. Projects Added to FY 1963 Program Night Vision Lab-$2,246,000-Ft. Belvoir, Virginia Propellant Mixer Facility $107,000-Redstone Arsenal, Alabama Projects Deleted from FY 1963 Program* Dynamometer Lab $318,000-Aberdeen Proving Ground, Maryland Aircraft Paint Shop-$248,000-Sharpe Army Depot, California Signal R&D Lab-$7,171,006-Ft. Monmouth, New Jersey *These projects deleted because existing Government owned and commercial facilities considered adequate to meet Army requirements. 124 INSTALLATIONS AND SERVICES FY -1963 AMC NEW CONSTRUCTION MASTER PLAN(Dollars in Thousands) BY COMMAND TOTAL FY 64 MCA Program FY 65 MCA Program Balance to be Pro (Not Yet Authorized) (Not Yet Authorized) grammed (Future) COMMAND Projects Est Cost Projects Est Cost Projects Est Cost Projects Est CostHQ, AMC 52 95,632 3 3,813 9 41,014 40 50,805 Electronics 94 62,634 1 475 1 520 92 61,639 Missile 109 100,704 3 4,211 2 2,000 104 94,493 Mobility 6 6,721 0 0 I 1,683 5 5,038 Munitions 251 164,789 3 499 5 7,736 243 156,554 Supply & Maintenance 774 310,465 7 3,755 24 II, I25 743 295,585 Test & Evaluation 385 211 ,901 I I 7,552 7 I7,005 367 187,344 Weapons 48 18,099 0 0 1 75 47 18,024 TOTAL AMC I,719 970,945 28 20,305 50 81 ,158 1,641 869,482 Th e FY 65 AMC MCA Program-Present DA policy limits AMC to a maximum proposed MCA programof I0 percent of the estimated cost of the total AMC Long-Range construction requirements. The program submittedto DA was 13.6 percent of the Long-Range requirements. This exceeded the 10% limitation because of the requirements for NIKE-ZEUS-X facilities ($29,100,000), and for acquisition of 2,040,019 acres of land at White SandsMissile Range($ 10,000,000) , both added to the program after our initial submission. The program has been reducedto 50 projects. The $81.1 million cost is 22.8 percent of the presently planned Army-wide MCA program. 125 COMMERCIAL AND INDUSTRIAL REVIEW PROGRAM This is a program to review the functions and activities performed by Defense personnel that could be obtained from a commercial or industrial source. A schedule of review called for examination of 123 acti.vities within AMC; this goal was exceeded and 129 were reviewed. Of these, continued operation appeared justifiable except in the case of "Mining Sand and Gravel" at Dugway Proving Ground, where the costs associated with the activity were out of proportion to the benefits derived. OPERATING EQUIPMENT MAINTENANCE PROGRAM Due to the difficulty experienced in the equipment maintenance area, action was begun to permit control for establishment of equipment maintenance shops at class II installations to be assigned the major command element of the installation. In February 1963, a new DA regulation AR 750-7 was published, which stipulated that "Maintenance of operating equipment at class II installations will be performed as directed by the Commanding General, AMC." SERVICES PROGRAM A variety of functions fall under the Services Program. These include both nonappropriated and appropriated activities: a. Exchanges Eight main Exchanges serve 30,000 active duty personnel. Sales in 1963 totalled $15% million; this met the target set for AMC by the Army and Air Force Exchange Service, and produced a net profit of $740,000 for Army and Air Force Exchange Service. Consolidation of Exchange activities in close geographical proximity is being studied by the AAFES. Results of these studies will be considered in FY 64. b. Restaurants Twenty-three (23) direct operated restaurants had sales of more than $3V2 million during FY 63 and realized a net profit of approximately 6% of sales, well above the 4% DA criterion. This profit plus $250,000 net profit from 41 concessionaire operated restaurants has provided funds for better restaurant services and equipment and enabled the civilian welfare funds to support their programs. 126 INSTALLATIONS AND SERVICES FY -1963 c. Open Messes Eighty-three (83) open messes serve more than 30,000 members in the AMC complex. They range inmembership from 15 to more than 2,000. Current Army regulations require that membership in these messes be predominantly military; 54 messes meet this standard but 29 do not. A waiver has been requested for 13 isolatedmesses and a request for waiver is being prepared for messes supporting major subordinate command headquarters based on military-industrial relationships and protocol requirements. There will be some problems in the continuedoperation of other messes not meeting the military membership requirements but most can be resolved by the local Board of. Governors. d. Theaters Fourteen (14) AMC installations have 35 mm Theaters. Although only 4 made a profit and 10 did not,there was an overall net profit for the year. To reduce the number of losing theaters, one has been closed and another will be closed. e. Supply Operations In compliance with FY 63 policies, 16 ofthe 17 installations visited have consolidated their supply functions,and the other is in process of consolidating. f. Commissaries Seventeen AMC commissaries were certified by the Secretary of Defense for continued operation for aperiod of one year as required by the Appropriation Acts. Application for 3 additional Commissaries are underconsideration. Total annual commissary sales were $23.8 million. Appropriated funds of $2.94 million are required to support these commissaries which serve 29,370 AMC military personnel. In comparing commissary prices withcommercial prices, the total monthly savings to customers is estimated at $21.00 per month per family. 127 g. Laundries Procurement of equipment for laundry modernization was initiated in conformance with the Department of Army Five-Year Program. COMMUNICATIONS AND PICTORIAL PROGRAM During FY 1963, it was difficult to obtain qualified personnel to support the Communication and Pictorial Program. Of the 78 personnel authorized, only 36 were in the program at the end of FY 1963. This shortage has seriously hampered the conduct of the program. A series of command regulations were published and implemented providing a pattern for uniform organization and structure. Facilities Class IV Signal Development Projects. $M 1 2 3 4 5 6 --PROGRAMMED 131 PROJECTS ISSSSSSSSWhSS-SS0~''uu' onnn. I ~ APPROVED DEFERRED The establishment of AMC brought together 130 communication facilities, many of them out of date or using equipment in need of repair or replacement. To remedy the situation, 131 projects were programmed for FY 1963. Seventy-five percent of the projects were completed. Deferred actions consisted of communications center modernization and large dollar value telephone central office replacement projects which could not be supported by DA due to equipment and funding (central procurement) limitations. Among the 32 projects not implemented, a total of 8 involved secure voice and teleconference facilities for Headquarters, AMC, and the 7 subordinate commands. These were deferred because of non-availability of approved crypto equipment but are included in the FY 64 program. 128 INSTALLATIONS AND SERVICES FY -1963 Autodin All AMC installations are to be integrated in the Automatic Digital Communications Network (AUTODIN).Integration action is planned for a total of 65 installations by FY 65. Instructions have been sent to the first eighteeninstallations. Integration is being accomplished. Sacramento Army Depot, Lexington Army Depot, Tobyhanna Army Depot, and U.S. Army Electronics Materiel Agency are already operational. Ballistic Missile Re-Entry System Project, Green River, Utah During FY 1963, the Ballistic Missile Re-Entry System Project required the installation of a communications plant in support of operational and administrative requirements. Although the Mountain States Telephoneand Telegraph Company (MST&T) target date of 15 June 1963 for long distance facilities could not be met,expedited action was obtained. MST&T also brought Congressional pressure to bear regarding governmentownership of the Green River telephone plant on the basis that this was a commercial-industrial activity. The AMCposition regarding government ownership as the most economical was successfully defended at DOD level, and thefacility has been certified for government ownership. Installation of the 200-line automatic dial exchange is nearingcompletion, and installation of cable distribution facilities will begin on 5 August 1963. Commcenter Headquarters, AMC, is dependent on an existing commcenter that is not adequate. The necessary Class IVSignal Projects to establish an adequate commcenter to include teleconferences, secure voice and AUTODIN inaddition to normal facilities was initiated and approved. Site preparation has been funded. Supply action and design engineering are in progress. Operations OCRD transferred to AMC the responsibility for production and distribution of the (a) QuarterlyClassified Army Research and Development Film Report, (b) Semiannual Unclassified Army Research and Development Progress Report Film and (c) Army Category 2 motion picture films. Procedures were established in AMCR 108-1 to obtain information for 4 R&D Film Reports and 2 R&DProgress Reports each year. During FY 1963, two Film Reports and one Progress Report were made. Category 2 films are official DA films produced and acquired for research and development purposes. Although procedures for obtaining approval for Category 2 films have been published in AMCR 108-2, many arestill produced or acquired by elements of the command without authority or approval. 129 SECURITY AND INTELLIGENCE PROGRAM The AMC Preservation of Order and Intelligence Activities (exclusive of technical and counterintelligence) were established and in operation during FY 1963. Diverse security functions were fused into a combined operation, which, while understaffed at the end of FY 1963, was functioning as an effective and responsive staff element. As a result of several management improvements and procedure simplifications, the major objectives of the Security and Intelligence Program were achieved. CID Operations A plan was submitted for the reorganization and redistribution of AMC resources for Criminal Investigation Detachment (CJD) operations. If this plan is approved, the CID will provide greater coverage and be more responsive to the needs of AMC installations and MSC's. Criminal Actions-FY 1963 Offenses Military Per M Civilian Per M Class I (Felony Equivalent) 9.7 .67 Class II (Misdemeanor Equivalent) 44.4 .18 Compared to world-wide Army crime rates, AMC rates are higher in all categories. Interim physical security standards and a guide for the utilization of intrusion detection systems were issued during FY 1963. An AMC Security Manual to include these standards was initiated.. An AMC Security Liaison Unit was established at Ft. Holabird, Md., to reduce the transmission time for intelligence dossiers, from the Counterintelligence Records Facility (CRF) to Headquarters, AMC. Safeguarding of Military Information (SMI) Program. Procedures were established for the investigation of security violations and review of violation reports. One hundred thirty security violations were committed during FY 63 in Hqs, AMC, and in MSC's and separate installations. The security violation rate for AMC in FY 1963 was generally equivalent to that experienced by the Technical Services. 130 EXPLOSIVE ORDNANCE DISPOSAL PROGRAM The Explosive Ordnance Disposal Program (EOD) was established and in operation during FY 1963. During February 1963, Army Regulation 75-I 5, Responsibilities and Procedures for EOD, was revisedand printed and in March 1963, AMC prepared and furnished to other commands the U.S. Army EOD Program.The U.S. Army EOD Program received DA approval in June 1963. U.S. ARMY EOD PROGRAM FY 1963 co:_::~ j :!.!iliii!IJ\lliill'i~'i~ • ; ..:; >::··•·•·•·•······· t i.! i ···i ·>. r• 5 .. · ·tti' wlsl.J% CDC :f::?l4.6% 86 ACTIONS In December 1962, since the responsibilities of the Technical Escort Unit, Edgewood Arsenal, Maryland,are so closely aligned to EOD, the staff supervision of this function was assigned to Headquarters, AMC. Accomplishments of this Unit are shown below : 18,900 M ISSIONS COMPLETED-All TYPES 1':::::::: II/ ::::: 1 JULY 1962 -30 JUNE 1963 :::::::: :::::::: {) :::::::: ::::: :::::::::::: 8,216 :::::: :::::: }) >: ::::::: 217 800 ················· :::::::::::::::::::::::::;::::::::::::::::::::::: ::::::::1 ESCORTS OF CHEMICAL DEMILITARIZATION DISPOSAL OFTOXIC ITEMS AGENTS OF CHEMICAL CHEMICAL AGENTSIN TONS FILLED MUNITIONS IN TONS 131 709-414 0 -63 -8 MANPOWER UTILIZATION GOAL: Effect orderly reduction of civilian manpower spaces in accordance with reduced authorizations.SCOPE: During Army reorganization, 169,678 civilian spaces were identified with the mission of AMC.ACCOMPLISHMENT: Civilian spaces identified for transfer to AMC were initially reduced by 567 for application against other Army requirements, leaving an initial authorization of 169,111 to AMC. As of 30June 1963 the AMC strength of 158,334 was 371 below the DA authorization of 158,705. This representeda net reduction of 10,119 spaces from the AMC base point figure for 1 August 1962.Manpower utilization surveys, limited by DA reorganization and hiring restrictions, were conducted only during the second half of FY 63. Nevertheless, 2,831 manpower spaces were saved as a resultof examining 40,619 military and civilian spaces, in 41 installations and activities surveyed, as shown inthe following table: Manpower Spaces Surveyed FY 63 Manpower Spaces Saved FY 63 Tot Tot Off wo Enl Mil Civ Off wo Enl Mil CivHQUSAMC 618 6 1,516 2,185 14,066 +76 +64 +140 +270 USASMCOM 204 5 255 464 10,659 +11 + 2 +17 +30 +725USAWCOM 17 2 19 3,100 2 +2 +107 USAMUCOM 6 6 142 +2 +2 27USAMOCOMUSAMICOM 14 14 2,415 +3 +3 +66 USAECOM 118 10 651 779 1,864 +12 4 +84 +92 2 USATECOM 946 105 6,302 7,353 8,373 +122 6 +760 +876 +551TOTAL 1,923 126 8,771 10,820 40,619 +224 8 +925 + 1,141 + 1,690 Tables of Distribution (TDs) were received and reviewed in Hq., USAMC, during FY 63 asfollows: Type ofTD No. Reviewed & Approved No. Not ApprovedHq, Major Subordinate Command 7 0Class II Activities Reporting Directlyto CG, USAMC 50 14 135 P&T-ANALYSIS OF CIVILIAN MANPOWER REDUCTION ADJUSTMENTSManpower I Aug 1962 30 June 1963 Depot Utilization Miscellaneous Base Point Authorized Actual Transfers Closures Surveys Adjustments Headquarters AMC 1710 1710 1727 ----Major Sub Commands 153004 142146 142622 -3480 -1522 -459 +2022 ECOM 11615 10675 10640 -704 ---232 +383 MICOM 11144 10845 10881 -24 --+112 12651 13255 13230 +535 -+202 +268 MOCOM MUCOM 25220 24863 24687 -113 --+520 S&M 68826 59102 59767 -4376 -1522 -+588 TECOM 11504 11369 11361 +515 --429 +196 WECOM 12044 12037 12056 +687 ---45 -+436 CLASS II ACTIVITIES 13662 14401 13985 +635 -AMC AGGREGATE 168376 158257 158334 -28451 -15222 -4593 +24584 Undistributed 735 448 DCSPER AUTHORIZATION 169111 158705 - 136 ACCOMPLISHED BY AMC DURING FY-1963 DA Directed Reduction - -7413 -387 -386 -401 -764 -4409 -417 -649 -414 -7827 Net Reduction 1 1ncludes transfers between Major Subordinate Commands -and AMC Class II Activities and transfers in and out between AMC and other DA and DOD Agencies including -10858 transfer of 3212 to DSA and 393 from USCONARC. -940 2 FY 63 phase down of Benecia, Raritan, Rossford and Mt. Ranier Depots scheduled for inactivation in FY 64. -299 3 Reflects manpower utilization surveys of White Sands +604 Missile Range, Engineer Research and Development Labo-357 ratories, Signal Research and Development Agency, and U.S. Army Aviation and Surface Materiel Command. -9724 4 Includes: Support for CBR Agency and Headquarters -135 Major Subordinate Commands above the source of spaces-7 identified by DARPO; increases for Project Managers; +739 DOD Project 112 and coverage of overstrength at U.S. Army Signal Supply Agency due to slippage in transfer of -10119 employees to Defense Electronics Supply Agency. 137 P&T-TRAINING FY-1963 ACCOMPLISHMENT Wholesale Logistics Training • U.S. Army LQgistics Management Center, Fort Lee, Va. Presentation of 14 formal courses of instruction in logistics management area to 60 class groups totalling over 2,300 students both military and civilian of all armed services both U.S. and foreign. Funds programmed to support the center operation, travel and per diem of U.S. students amounted to $1,262,000. • U.S. Army Management Engineering Training Agency Presentation of 48 courses of instruction in management concepts and techniques to 192 class groups totalling over 3,500 students both military and civilian of all armed services and defense agencies both U.S. and foreign. Preparation of publication on Total Decision Making Process by the Department of Management Planning progressed through the first draft. Funds programmed to support the agency operation amounted to $747,000. • Joint Military Packaging Training Center Presentation of 9 formal courses of instruction in packing, packaging, preservation handling of goods and materiel to 67 class groups totalling more than 1,500 military and civilian personnel both U.S. and foreign. Due to close out of Rossford Army Depot, JMPTC was relocated at Aberdeen Proving Ground, Maryland, effective I July 1963. Funds programmed to support the center operation amounted to $389,000. 138 • Technical Requirements Training Training applicable to common AMC activities, termed centralized training, is conducted inover 85 courses at 12 installations. Over 5,000 personnel participated in the program mainly from AMC and other Army sources with some participation by other services. Training restricted to one installation, termed installation training, was conducted throughout AMC under direct control of the commander con cerned. A program to define, identify and document the training activities conducted in-house throughoutthe AMC complex to maintain and improve the technical proficiency of military and civilian personnel was instituted. • New Equipment Training and Related Functions New equipment training andfor introduction was accomplished on over 50 systems or itemsboth in CONUS and overseas commands. Technical familiarization courses were conducted on suchitems as Mauler, Redeye, XM454 to familiarize those managers with an inherent interest on all aspectsof the systems.Training and Support Panels have been established in each commodity command to further thetimely exchange of information.A Memorandum of Understanding was prepared and signed by CG's, AMC, USCONARC, andCDC delineating responsibilities. 139 MILITARY ASSISTANCE TRAINING PROGRAM FY -1963 No. Countries No. Individuals Cost OVERSEAS TRAINING Supported Involved $M Mobile Training Teams (MTP) 20 68 Instructors 55.0 AMC MAP Funds Contractor Technicians (CT) 22 238 Instructors 4000.0 AMC MAP Funds CONUS TRAINING Observer Training 15 50 Trainees 25.0 AMC MAP Funds Orientation Tours 30 202 Visitors Unified Command Funds NATO Tours 12 80 Visitors Unified Command Funds AMC participates in MAPT by providing Mobile Training Teams and Contractor Technicians to conduct training overseas under the direction of U.S. Missions or Military Assistance Advisory Groups (MAAGS). The command also participates in MAPT by providing on-the-job type observer training for foreign nationals who cannot be programmed to regular school courses and by cooperating in orientation tours for high ranking foreign nationals. AMC met requirements placed on it by the Department of Army and furnished assistance to the Agency for International Development (AID). Problems that were met included: a. Providing a means for reimbursing commanders for civilian personnel furnished to MTP. Previously, commanders had been reluctant to furnish personnel because their services were not reimbursable. b. Arranging for MAP funds in FY 64 for MTP and CT to be allocated to AMC where they will be controlled by AMC Hq. Previously, they had been held within DA which imposed additional administration to accomplish program objectives. 140 ACCOMPLISHMENT: During Fiscal Year 1963, military personnel data collected from Department of the Armyand major subordinate commands was processed from a manual operation into a complete machineaccounting operation capable of supporting all short-range management needs by the end of the 3rdQuarter. This was a full quarter earlier than anticipated, thereby permitting early consideration of management systems to support long-range planning for specialist and other skill requirements. The machine accounting system permitted this headquarters to identify officers and warrant officersassigned to AMC by name, grade, MOS, educational background, etc., and associate them with theproper command element. The system also identifies officer and warrant officers gains and losses, therebyfacilitating the process of requisitioning and providing information for presentation to Department of theArmy in support of officer and warrant officers requirements. The machine accounting system in support of enlisted personnel does not include the names of personnel but is completely responsive to enlisted personnel management needs. This system identifies enlistedpersonnel by grade, MOS, and unit, both authorized and assigned, and supports an assignment procedure, without requisition from subordinate units, for personnel in grades E-6 and below. In addition, the systemsupports editing of manual requisitions for enlisted grades E-7, 8, and 9 without manual effort. Equally as significant as the development of a machine accounting system is the officer and warrantofficer single-line requisition procedure (AMC Form 1036) and the job descriptions developed for eachColonel in the Army Materiel Command. These actions, in combination, have reduced requisition lag timeover 25% and will save an estimated $50,000 in man hours and materiels during the first year of use. 141 AMC OFFICER PERSONNEL STATUS FY -1962-63 Projected Mid-Nov 62 Mid-June 63 Mid-Nov 63 AUTH ACT AUTH ACT AUTH ACT HQ USAMC*........... . 779 600 840 729 882 707 USASMCOM........... . 1,214 I , 187 1,097 981 1,052 814 USAWECOM........... . 85 82 115 78 108 80 USAMUCOM .......... . 624 654 598 779 580 642 USAMOCOM........... . 390 358 367 308 316 276 USAMICOM........... . 373 391 366 302 332 260 1, 150 1,267 I , 161 1,276 1, 196 I , 121 USATECOM ........... . 763 488 463 474 403 USAECOM............. . 547 -- TOTALS........ . 5, 162 5,302 5,032 4,916 4,940 4,303 7 Undistributed *INCLUDES CLASS II ACTIVITIES 4,947 6,000 ACTUAL 5,000 I--AUTHORIZED 4,000 ------3,000 142 Projected 31 Aug 62 AUTH ACT 31 Jan 63 AUTH ACT 31 May 63 AUTH ACT 30 Sept 63 AUTH ACT HQ USAMC* ........... . 486 491 1,143 1,023 1,090 1,116 1,083 1,078 USASMCOM ........... . 1,938 1,757 1,833 1,832 1,854 1,779 1,581 1,595 USAWECOM ........... . 32 35 37 39 37 36 37 33 USAMUCOM .......... . 1,704 1,762 1,690 1,927 1,780 1,869 1,463 1,624 USAMOCOM ........... . 199 247 208 219 220 206 191 184 SAMICOM ............. . 776 785 801 900 797 826 704 719 USATECOM ........... . 8,705 9,301 8,083 8,541 7,924 8,115 7,224 6,942 USAECOM ............. . 1,954 2,163 1,914 2,096 1,922 2,021 1,677 1,767 TOTALS ........ . 15,794 16,541 15,709 16,577 15,624 15,968 13,960 13,942 • INCLUDES CLASS II ACTIVITIES 17,000 ACTUAL 16,000 AUTHORIZED ~' 15,000 '~... -~ ~ 14,000 ~-..... 143 During Fiscal Year 1963, the Army Materiel Command was allocated 2, 762 mobilization designation spaces formerly assigned to the various technical services and Department of the Army agencies. These spaces were distributed to the various subordinate commands and separate activities with the exception of 445 which were retained in Headquarters, AMC. The distribution of spaces is as follows: Headquarters, AMC. . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Electronics Command. . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Missile Command. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Mobility Command............................. 233 Munitions Command. . . . . . . . . . . . . . . . . . . . . . . . . . . . 507 Supply & Maintenance Command. . . . . . . . . . . . . . . . . 724 Test & Evaluation Command. . . . . . . . . . . . . . . . . . . . . 120 Weapons Command............................. 39 Separate Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 144 P&T-HEADQUARTERS-STAFFING PROGRESS FY-1963 PERSONNEL AMC MISSILE MOBILITY ELECTRONICS WEAPONS MUNITIONS T & E S & M TOTAL MAJOR SUB COMMANDS 145 ( PERCENT OF PLACEMENT ) CONUS LESS AMC AMC TOTAL MISSILE MOBILITY ELECT R0 NIcs JUUUUUULrULU/////L/(U//lj/lj//.L.fA WEAPONS MUNITIONS TEST AND EVAL u ATl ON t',U£/L£LL£LL4/£U£££UUL(fL£.ULLLL£££VLLLLL£/J SUPPLY AND MAlNT. HQ,AMC & OTHERS * VL£ljLLLLLLL(LL//L£/£LLL4£L/LL£LLULU(£££££UI1 *Includes Hqs. SMC, all procurement districts and the Natick and Harry Diamond Laboratories. Generally, there was a short-fall throughout the AMCcomplex during FY 1963 in meeting recruitment needs, except in Supply and Maintenance and Munitions Comm > > > > > > > > >'> > > > > > > > > > .a. > > > , > > > > > >'> > > > > > > > • will be granted almost excluMAINT. sively to Wage Board employees. All Major Subordinate HQ,AMC & OTHERS •. ,,,,,,,,,,,f,,,,,,,,,,:,,,,,,,,. Commands within the AMC complex will be urged to asI~ UNDER--+j~D/A GOAL •I• OVER "'I sure appropriate recognition for the "blue collar" category *Includes Hqs. SMC, all procurement districts and the Natick and Harry Diamond Laboratories. of personnel during FY 1964. 154 During FY 1963, AMC operated a total of 136 Automatic Data Processing and Punch Card Machine installations. Sixty-nine (69) of these are Automatic Data Processing installations, and 67 are Punch Card Machine installations. Included in the hardware installations were 142 computer applications in the following categories: BUSINESSLARGE SCIENTIFIC BUSINESSMEDIUM SCIENTIFIC BUSINESS SMALL #//A 52 SCl ENTIFIC W///////////////////////////////////// The estimated cost of data processing was $54.9 million in the following areas (in thousands): RESOURCE COSTS COSTS BY FUNCTIONAL AREA Equipment $24,711 Logistics $26,446 12,422 Personnel 27,053 R&D Supplies 3,176 Management & Control 15,906 Training 166TOTAL $54,940 TOTAL $54,940 Personnel staffing required for Management Information Systems activities was (approximately) 2,021 people, AMC-wide. 156 Data Systems Office obtained approval of 26 actions for the acquisition or augmentation of ADPE duringFY 63, with 9 other ADP actions in process. Those approved and in process were in the following areas: APPROVED IN PROCESS Business Applications Business Applications 3 Major changes 13 Scientific Applications 6Minor changes 6 9 Scientific Applications Major changes 6 Minor changes I 26 ACCOMPLISHMENTS AMC MANAGEMENT INFORMATION PROGRAM-MASTER PLAN, FY 64-68 In planning for establi shment and operation of the AMC Management Information System (AMC-MIS),FY 63 was viewed as the " forecast" year. Accordingly, AMC FY 64-68 plans concerning the AMC ManagementInformation Program were developed and announced to AMC Headquarters and Major Subordinate elementsthrough the media of an AMCR and Master Plan Brochure, presently being staffed throughout AMC. The directive and brochure together provide information concerning : a. Factors which have influenced the content and structure of the AMC-MIS. b. Operational and management areas presently undergoing systems study. c. Policies, roles and relationships, and actions required for establishment of an AMC-wide MISthrough the systems design, applications, and implementation and initial operational phases. 157 DATA SYSTEMS FY -1963 d. Media and techniques which are to be used AMC-wide in designing and implementing the AMC-MIS. e. The operational and management modules and cells and their definitions which will be used to plan and control systems design processes. During FY 63, AMC has set in motion a significant number ofmanagement information system development efforts in support of the AMC Management Information System objectives. The projects listed below provide an indication of the status of these efforts and the direction of their current emphasis. SUPPLY' AND DISTRIBUTION SYSTEM The Supply and Maintenance Command completed a study of existing AMC supply systems, and recommended an AMC Standard Supply and Distribution System. AMC in its report to DA recommended centralized supply and distribution management at the NICP level, which will be implemented (in phases) upon receipt of DA approval. In consonance with the development of the AMC Standard Supply and Distribution System, Project SPEED, an integrated electronic equipment system, continued to be implemented at the depot level, and developmental work was initiated for an AMC standard NICP ADP configuration. PROJECT MANAGEMENT The development of a total project management system was undertaken. First, drafts of the system were completed and reviewed; in the interim, project management procedures were installed to provide uniform project management and control by project managers. A test application of PERT/COST procedures was made and evaluated for inclusion in the project management system. As a corollary to the total project management system, AMC participated in the DOD Line of Balance Gr9up effort to develop a method of transition from PERT/COST to Line of Balance costing techniques. DEFENSE CONTRACTORS PLANNING REPORT AMC implemented Phase I of the DOD requirements for the establishment of a uniform system of collecting data for use in procurement management operations and industrial planning. The DCPR requirements are currently being applied in selected aircraft and missile systems; future applications will be implemented as directed by DOD with target date of second quarter FY 64. 158 ESTABLISHMENT OF AMC MAJOR ITEM DATA AGENCY (MIDA) A single agency (MIDA) is being established within the Army Materiel Command for maintenance oflogistics data on PEMA and other selected items; system logic and specifications were developed, and action wastaken for the selection and acquisition of ADPE. MIDA is planned to be operational the second quarter of FY 64. COMMAND MANAGEMENT SYSTEM Comprehensive review was made of the structure, procedures, and operation of the Command Management System as applied by the former Technical Services (inherited by AMC). The Command Management structurewas tailored to meet the needs of AMC, and procedures published to integrate program authorization processesinto an AMC system. Staffing work was carried on in the areas of fiscal programs, field work ordering and reporting systems, and R&D non-technical management data systems; the staffing will result in significant changes in theseareas during FY 64. PROCUREMENT AND PRODUCTION A complete and standard EAM system of operation for procurement di stricts in the area of contract administration was installed. A uniform application of a standard EAM system was extended to the procurementfunction in January 1963, with complete implementation during 1963. Efforts completed will result in expansionof mechanized processes into the secondary support areas of Procurement and Production during FY 64. REPORTS CONTROL Reports Control activity included the review of 837 reports, resulting in the elimination of 266, and the establishment of 56 new reports. A net reduction of 210 reports was accomplished. OTHER SIGNIFICANT AREAS Data Systems Office, AMC, participated in, and contributed support to many significant Army and DOD projects, studies, and ~efforts, including the development of an R&D Management Information System and anautomated Scientific and Technical Information System (STINFO); various tasks of the DA AUTOPROBE effort;Army implementation plans for the DOD-MAP Manual; development of the Improved Data Interchange (IDI) System for the orderly mutual exchange of information between the military services and industry; developmentof a DOD joint implementing regulation on Military Standard Transportation Movement Procedures (MI LSTAMP). 159 DATA SYSTEMS OFFICE OPERATIONS A total of 38 conferences and briefings were conducted by DSO personnel during FY 63. Twenty-eight (28) of these were within AMC in fulfillment of the staff planning, guidance, coordination and review responsibilities of this office. Ten (10) briefings were presented to Army and other groups outside the AMC complex. DSO personnel expended 822 mandays in making 276 visits to AMC Major Commands and installations. Policy guidance and procedures relative to the AMC Management Information System were published in the following areas: Number of Publications Areas Covered 4 Doctrine, concept, and program guidance 7 Policies and procedures 2 Techniques 2Reports management 15 TOTAL MAJOR PUBLICATlONS 160 INSPECTOR GENERAL FY-1963 The command Inspections Division conducted annual general inspections with all areas of operationinspected. Special inspections were conducted by the AMC IG Field offices in New York, Chicago and San Francisco.These special inspections were restricted to procurement operations. All scheduled inspections were conducted. The Inspector General's office also has the responsibility for coordinating and preparing the AMC positionwith respect to inspections conducted by other Inspector Generals such as DA, DASA and US CONARC. A most sensitive and important responsibility assigned to the IG is to conduct investigations and inquiriesas directed by the Commanding General. Closely related is the responsibility for processing and resolving complaintsand requests for assistance received from individuals. These actions are, primarily, referred to the subordinatecommand. FY 1963 Activities GENERAL INSPECTIONS 29SPECIAL INSPECTIONS 63COORDINATION OF OTHER INSPECTIONS 76INVESTIGATIONS & INQUIRIES 16INDIVIDUAL COMPLAINTS & REQUESTS FOR ASSISTANCE 700 The AMC Inspector General Office is staffed by 14 military (2 under-strength) and 16 civilians. 163 JUDGE ADVOCATE FY-1963 The goal of the Staff Judge Advocate is to provide the Commanding General and his staff with competent and complete legal seryice in all fields of law except those pertaining to business and commercial law. The following activities are cited for FY 1963: Legal Assistance Program-This function is established pursuant to AR 608-50. During FY 1963 four hundred problems of varying complexity were processed to completion. Military Justice-The Staff Judge Advocate has a supervisory responsibility in this area. Cognizance was maintained of the disciplinary actions in the subordinate commands. For the ten-month period from I August 1962 through 31 May 1963 the following disciplinary actions occurred: • General Courts-Martial 28 • Special Courts-Martial 334 • Summary Courts-Martial 443 • Article 15, UCMJ Punishment 3,297 This is not considered to be an excessive number of disciplinary actions when related to a military strength of I6,000 personnel. The court-martial figures are consistent with the world-wide Army average. Claims-All claims by or against the government within the contemplation of the 25 series of Army Regulations, except those pertaining to appropriated funds, are processed by this office. Staff visits to the Staff Judge Advocate office of each major subordinate command were not accomplished due to lack of personal and travel funds. The T / D for this office is five attorneys (3 military and 2 civilian). The military complement was filled in December 1962; no civilian attorneys have been assigned. 164 0 MANAGEMENT SCIENCE-ACCOMPLISHMENTS FY -1963 The initial year of AMC's operation has been marked by major efforts on the part ofAMC and subordinate agencies to organize the installations and activities which were transferred to AMC and to define their missions and functions. A number of actions involving .the redesignations and transfer of jurisdiction of activities which reflect their realignment within AMC were handled through the issuance of DA or AMC General Orders. The following are some of the more significant changes affecting field installations and activities initially transferred to AMC: Significant Redesignation and Consolidation Actions Agency Redesignation/ Consolidation Technical Service Depots Army DepotsU.S. Army Foreign Science and Technology CenterTechnical Intelligence Agencies Army Quartermaster Equipment and Parts Commodity Center} Army Engineer Maintenance Center I Army Mobility Support Center Quartermaster Purchasing Agency Ordnance Procurement Districts } Chemical Procurement Offices Army Procurement Districts Signal Procurement Offices Army Aviation Board }-Army Transportation Aircraft Test & Support Activity Army Aviation Test Board Army Signal Aviation Test and Support Agency Technical Service Arctic Test Activities Army Arctic Test Board Army Aviation Test Office, California Army Aviation Test Activity Army Advent Management Agency Army Satellite Communications Agency Army Military Assistance Program Logistics Agency Mutual Security Agency (reestablished) USAMC Support Activity at Cameron Station Discontinued 166 MAJOR ORGANIZATION PROJECTS IN PROCESS BUT NOT COMPLETED 1. Disestablishment of Major Item Supply Management Agency and establishment of Major ItemData Agency. 2. Publication of AMC Organization and Mission (ARI0-11). 3. Mission Responsibility Plan for Combat Vehicles and Their Components. 4. Feasibility of consolidating T & E activities at Fort Eustis and Fort Lee, Virginia. 5. Analysis of Supply Management Responsibility for fire control items. 6. Implementation of approved recommendations in AMC Procurement Organization Study. MANAGEMENT IMPROVEMENTS Four hundred and fifty-eight improvements were reported in the first semi-annual AMC ManagementImprovement report of FY 1963. The AMC report to staff contained 42 selected improvements considered to bethe most outstanding among those submitted. The balance of improvements were published in "Plow Back" anddistributed throughout the AMC complex for possible application.Specific objectives for improving AMC operations in FY 1964 were published in "Management Improve ment Objectives for FY 1964."The AMC Work Measurement Program policies and guidance were published. A report requirement willpermit an evaluation of command effectiveness and reflect the attention devoted to this management tool.A plan for a work measurement system to be integrated into the total management process is scheduledfor completion by the Army Management Engineering Training Agency staff by 15 November 1963. MANAGEMENT RESEARCH Based on a comprehensive review, recommendations were made and approved by C/ S relating toresponsibilities of the AMC Board, ALMC, AMETA and JMPTC in long-range planning, mid-range planning,concepts, doctrine and training. 167 Records Management Approximately 75% of AMC Headquarters records were surveyed in FY 1963, and due to travel fund limitations, only field activities in the Washington area were surveyed. About 35% of the headquarters files have been converted to The Army Functional Files System (TAFFS) and a great deal of work must be done to integrate, destroy, or retire files carried over from the technical services. During FY 1963, 120 linear feet of records were retired to the Federal Records Center, and an indeterminate volume destroyed. These actions released a quantity of filing equipment thus reducing requirements for new equipment. Over 400 AMC personnel have received formal TAFFS training. AMC Commands Welfare Fund Thousands of Dollars Transferred to AMC $575.6 Committed by Technical Services:Dividends $222.9 Grants 196.4 TOTAL 419.3 Uncommitted Balance 1 September 1962 156.3 Received during 663.3 Available for Disbursement 819.6 Disbursed 1 Sept 62-30 June 63: Dividends $397.3 Grants 267.4 TOTAL 664.7 Uncommitted Balance 30 June 1963 $154.9 170 FY 63 PRINTING COSTS PRODUCTION OPERATING DOLLARUNITS COST COST PERCOMMAND/ IN STALLATI0 N /ACTIVITY (000) ($000) 1,000 UNITS Research & Engineering Center 13,447.5 74.4 5.53 Electronics Command 142,204.8 859.8 6.04Missile Command 161 ,930.7 943.7 5.83Mobility Command 103,763.0 541.9 5.22Munitions Command 93,892.7 706.6 7.52 Supply & Maintenance Command 373,283.8 2,012.2 5.39Test & Evaluation Command 77,760.3 540.1 6.95 Weapons Command 249,831.1 601.2 2.41 Total Field Printing Plants 1,216 , 113 .9 6,279.9 5.16HQAMC * 12,776 .0 * - Total AMC -$19,055 .9 *In c ludes Departmenta l and HQ printing p e rfo rmed by De fe nse Printing. N o reca p re p o rt a va il a bl e to id e ntify producti o n units. 171 ACCIDENT / INJURY RATES---1962 ( TECH SVS ) VS 1963 ( AMC ) GOAL-To reduce the AMC FY I 963 accident and injuryACCIDENT RATE rates by IOo/n over FY 1962. FY 5 15 20 25 ACCOMPLISHMENT-The ARMY FY 1963 Accident/ Injury rates AIRCRAFT for AMC were considerably lower than the FY 1962 experience under the former Technical Services: 5 During the first year of existence, AMC qualified forMILITARY consideration by DA for the PERSONNEL Award of Honor or Merit. It is estimated that approximately 40 AMC Commands and In -3.3 OTHER stallations will be eligible forI PERSONNEL __ F/////~UUUf'/LLL/.1 2 .1 (-1s.2 %) AMC Safety Awards for their FY I 963 accident records. CIVILIAN AMC installations and PERSONNEL activities received 4 Awards of Honor and 6 Awards of ARMY Meritfrom the National Safety MOTOR Council during FY 1963. VEHICLE Awards of Honor require 3,000,000 or more man-hours of injury-free operation and Awards of Merit requireA wards of Honor I ,000,000 or more man-hours I. Tooele Army Depot -3,726,341 man-hours without a disabling injury of injury-free operation. 2. Watertown Arsenal -3,088,816 man-hours without a disabling injury 3. Rock Island Arsenal -4,580,056 man-hours without a disabling injury 4. Red River Army Depot-S, 181 ,468 man-hours without a disabling injury 172 Awards of Merit I. USA Overseas Supply Agency, San Francisco-I, 130,860 man-hours without a disabling injury 2. Volunteer Ord Works-I, 122,932 man-hours without a disabling injury 3. Springfield Armory-I,512,705 man-hours without a disabling injury 4. USA Support Command, Chicago-I, I OJ, 160 man-hours without a disabling injury 5. USA Electronics Material Support Agency, Ft. Monmouth-1 ,351,248 man-hours without a disablingInJury 6. Watervliet Arsenal-2,829,976 man-hours without a disabling injury Significant accomplishments during FY 1963 included: a. A representative of AMC served as a special safety advisor to the U.S. Atomic EnergyCommission for Operation Ivy Flats. b. Action was taken to alleviate a hazardous condition concerning the Nike Hercules WeaponSystem. c. The AMC Safety School was established and 337 students were graduated. d. A special course on Selected Ammunition Safety was established at Picatinny Arsenal. e. AMC participated as the DA member of the Armed Services Explosives Safety Board Work Groups in order to assist in formulating DOD test criteria for solid propellants, explosives quantity distance criteria for liquid propellants and revision of fire fighting instructions for military explosivesduring transit. f. A total of 132 actions were processed in connection with applications to AEC for radiologicalmaterial licenses. g. Down-wind hazard distances were established for the storage of toxic chemical munitions. h. Arrangements were made with HEW, Department of Agriculture, and Department of Interior to obtain import permits for etiological and ecological specimens. 173 709-414 0 -63-10 CHAPLAIN ACTIVITIES FY-1963 Accomplishment During FY 1963, a well rounded program was implemented covering Religious Education, ReligiousServices, Pastoral Care and Character Guidance Instruction. Increased quarterly attendance, particularly inReligious Education and Character Guidance Instruction, show increasing interest on the part of AMC personneland close cooperation between Chaplains and Commanders. Problem Areas a. The TECOM TD vacancy at Aberdeen Proving Ground made it impossible to implement the supervisorychaplain program required by AMCR 165-1. The APG Chaplain was appointed as Acting TECOM Chaplainbut the requirements of the APG chaplain program precluded the TECOM/APG Chaplain from carrying out asupervisory role. Finally, a TECOM Chaplain was assigned by .Department of the Army, Office of the Chief ofChaplains and will report for duty on or about 23 September 1963. b. All chaplains assigned to the White Sands Missile Range are presently assigned to HQ, Fourth U.S.Army, Chaplain Section. Since the Commanding General and a majority of the personnel assigned to the Commandare responsible and responsive to the Commanding General, HQ, AMC, it is believed the chaplains also shouldbe assigned to AMC. Exploratory talks on the change of assignment have been held between the AMC Chaplain,the Office, Chief of Chaplains, and the White Sands Missile Range Post Chaplain but the problem has notbeen resoIved. 177 CHAPLAIN ACTIVITIES-ATTENDANCE FY-1963 THOUSANDS OF PERSONNEL RELIGIOUS SERVICES CHARACTER GUIDANCE 100 200 90 I I I == .·. . . ·:·:·:• .J 190 80 I I ·~tfllfl''f?'•···• ,••• '• .,•f•••·'•· ·•.........................,... ........ ''••t 180 70 170 60 10 20 30 40 10 20 30 40 PASTORAL & MISCELLANEOUS RELIGIOUS EDUCATION 120 90 80 110 70 100 60 90 I f .. .T I 50 10 20 30 40 10 20 30 40 The general increase in attendance during the second quarter is normal due to increased religious activity during the Fall and Christmas period. The third quarter indicates the normal post Christmas slump whi le the fourth quarter reflects the increased activity associated with Lent and Easter. The Character Guidance program showed continual increase attributable to standardization and formalization of the program by regulation and command-wide compliance. 178 INFORMATION PROGRAM FY-1963 1. The Information Program of the Army Materiel Command was developed and implemented during Fiscal Year 1963 with the over-all purpose ofinsuring understanding and support ofAMC through the dissemination of timely and accurate information consistent with national security. The Information Program was conducted with two basic objectives: a. To solidify an accurate "image" of AMC as the successful realignment of the Army's research, development, production, procurement, storage, distribution, and maintenance functions into a single, integrated organization -geared to meet today's modern military requirements. b. To highlight the accomplishments of AMC in the streamlining of organization, performance under pressure, and demonstrated efficiency and economy. 2. The Information Program was directed toward two major audiences, each of whose understanding and support is essential, in some degree, to the accomplishment of the AMC mission: a. Internal-AMC military and civilian personnel, most of whose careers were affected, directly or indirectly, by the establishment of AMC as a new Army organizational element, and all of whom are concerned with its successful operation. b. External-Members of Congress, scientific and industrial elements, civic and community leaders, all types of news media, and the general public, all of whom possess some involvement or interest in AMC activities. 3. Operations of the AMC Information Program embraced the full range of informational techniques including special events, demonstrations, "open house" tours, press conferences, speeches, ceremonies, receptions, exhibits, formal messages, posters, fact sheets, brochures, press kits, magazine articles, news releases, pholographs, motion pictures, and radio-TV coverage. a. Typical national-scale information projects included: 1. Two formal Pentagon press conferences for CG, AMC, for ASD (PA) and representatives of major national news media, with supporting press kits, briefing charts, and verbatim transcripts. 180 INFORMATION PROGRAM FY-1963 2. Development of concept and materiel for five special AMC editions of national trade magazines. 3. Arrangements for national on-the-scene news media coverage of four major firing demonstrations of missiles, rockets and/or conventional weapons with a top of 150 news media representatives at the White Sands Missile Range firing demonstration for President Kennedy. 4. AMC First Anniversary Observance, including use of every type of information technique and medium at national, regional and local levels. 5. Continuing program to acquaint industry with realigned Army research, development and procurement structure, including preparation and dissemination of series of new publications, i.e., "The Changing Face of U.S. Army Materiel Procurement" (40,000 copies); " The New Contractors Guide" (50,000 copies); and "Opportunities for Industry" (I0,000 copies, including 5,000 disseminated by AUSA). Industry requests for these publications already are exceeding initial press runs. 4. Volume of Information Program operations is indicated by the following tabulation of selected routine items and actio ns accomplished at the national level. (This includes only actions performed directly through Headquarters, AMC. and does not include comparable actions at the subcommand and installation/activity level.) a. DOD and D/A Press Releases - 156 b. AMC Fact Sheets - 46 c. National Magazine Articles - 48 d. Scheduled Exhibits - 52 e. Speech Drafts - 36 f. Press Coverage of Special Events - 12 g. Press Interviews - 486 h. Replies to Written Inquiries - 1,953 I. Replies to Telephone Inquiries - 5,360 J. Manuscript Clearances - 2,016 181 5. The AMC Information Program faces no major problems except those imposed by an insufficiency of professional Information personnel at HQ, AMC, and at most field elements. This insufficiency of personnel has had three over-riding effects upon the national Information Program: a. Long-range planning and programming activities, as regards both Information operations and the integration of Information operations into over-all AMC and Army operations, have barely met formal requirements and have contributed little or nothing to practical day-to day operations; b. Dealings with the press, radio, TV and other news media have been disproportionately concerned with handling routine news releases, fielding press queries, and "putting out fires", with a minimum remaining capability to devote to aggressive, dynamic "selling" of AMC; c. Development and publication of the Contractors Guide, Opportunities for Industry and similar vital informational materiels within established deadlines has been possible only through inordinate overtime by the personnel involved. 6. Accurate estimate of the total volume of news media coverage, the full "impact" achieved by the AMC Information Program, and the resultant AMC "image" achieved through the Program, is impossible without resorting to commercial clipping services, audience ratings, opinion surveys and similar techniques beyond the capabilities of this Command. However, the national, regional and local actions cited herein demonstrate the quantity, quality and variety of techniques which are continuously utilized by AMC Information Officers at all levels, individually and collectively, to tell the AMC story. Commercial evaluation of comparable programs by private industry have consistently demonstrated a measurable "dollar-and-cents" value of an information program of this magnitude. 182 ..... 00 w GENERAL COUNSEL FY-1963 ( ACCOMPLISHMENTS 1. Adversary Proceedings Each month there were I0 to 12 new appeals, 6 to 8 bankruptcies, 3 to 4 claims, l or 2 contract adjustments,several mistakes in bids and 2 or 3 suits in which AMC was involved arising out of the business and commercial mission of the comm(:lnd. Counsel was provided on these matters under PL85-804, requiring correspondence, conferences and outside contracts. The time frame required to complete cases in each of these areas ranges from two weeks to a year for claims and one to ten years on litigations. 2. Procurement Significant actions handled in the procurement area: a Provided lecturers to JAG School, AF Logistics School and AMETA. b Participated in draft of International agreement between Italy and the United States, providing for production of a quantity of Mll3 Personnel Carriers in Italy. c Assisted Department of Justice in preparing cases involving AMC before the US Court of Claims. d Drafted and consolidated delegations and redelegations of procurement authorities. e Reviewed first incentive type contract utilizing the Pert Cost System on a full scale basis. 3. Legal Services a Tax Area-Majority of tax cases handled dealt with state and local taxation of Fixed Price and CPFF contracts. b Congressional Inquiries-Reviewed 165 congressional inquiries related to award, protests and contract performance. c Legislative Area-Reviewed and commented on two bills for private relief and a proposed law relating to conflict of interest by retired officers. d Fraud Area-Reviewed FBI reports citing 80 contractors for attempted or perpetrated irregularities. These irregularities ranged from evasion of testing requirements, concealing the use of rebuilt parts and misrepresentation of cost data to bribery and giving gratuities to Government procurement personnel. 185 There were 40 reports of investigation of Government procurement personnel staffed during the year. Thirty-six reports for suspension or debarment of contractors from the bidders' list were submitted to ASA, I & L. 4. Patent Law a Developed and recommended to the Adjutant General a complete revision of the Army Functional Filing System (TAFFS) as it pertained to patents, inventions, copyrights etc. These recommendations will appear in next revision to AR345-210. b Completed action on ten administrative infringement claims. c Drafted a special licensing agreement between the U.S. Government, a U.S. firm and a British firm. d Conducted two royalty investigations which indicated the Government was entitled to free licenses under certain patents and will thus save hundreds of thousands of dollars. There remained, at the end of FY 1963, 1300 patent applications pending. About 75% of these are e being processed by field agencies with HQ, AMC performing the balance. 186 U. S. GO VERNM ENT PRINTING OffiCE ; 1963 0 -709 · 4 14