AMC scores impressive $230 million in cost savings, avoidance for OEF in 2012
March 4, 2013
- Army.mil: Current Operations News
- U.S. Army Materiel Command
- U.S. Army Sustainment Command
- 1st Theater Sustainment Command
- U.S. Army Aviation and Missile Life Cycle Management Command
- U.S. Army Communications-Electronics Command
- Joint Munitions Command
- U.S. Army TACOM Life Cycle Management Command
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BAGRAM AIRFIELD, Afghanistan (March 4, 2013) -- Personnel from Army Materiel Command's four life cycle management commands deployed in support of Operation Enduring Freedom, achieved total cost savings/avoidance valued at $230,270,013 during calendar year 2012.
The figure is more impressive because three of the commands base their reports on 60 percent of the cost listed in the Army Master Data File commonly known as FED LOG. The full value was more than $393 million.
In addition to the direct cost avoidance, money was saved by not having to send replacement parts or equipment to Afghanistan or send equipment back to a source of repair in the U.S, and reduced intra-theater equipment moves.
Aviation and Missile Command senior system technical representatives and logistics assistance representatives accounted for $68,152,421.36 of the total.
They achieved their results by three primary methods: maintenance engineering calls (MEC) that authorize depot level work to be completed in theater and eliminating the need to return aircraft to a source of repair in the U.S.; training Soldiers and units; and retrieving equipment turned in at retro sort yards operated by sustainment brigades and at Defense Logistics Agency Disposition Services yards, said Gary Cope, AMCOM senior command representative to the 401st Army Field Support Brigade.
Cope said AMCOM personnel sort through containers and tri-walls that usually have a mix of items to find and retrieve AMCOM components from retro sort yards and DLA-DS yards. Components found in the yards are usually serviceable or repairable.
In looking at the projected drawdown of forces and equipment, Cope said overall savings will be affected.
"As units start to drawdown and turn in equipment to the retro sort yards throughout Afghanistan, we are expecting a spike in cost savings in that area," he said. "However, we may see a reduction in cost savings for MECs as more aircraft are sent home."
Cope added that all SSTRs, and logistics assistance representatives, or LARS, are responsible for accounting for and reporting cost savings/avoidance to AMCOM management.
Communications-electronics Command personnel added $104,772,909.28 to the total according to Michael Eaton, CECOM senior command representative.
"The CECOM LCMC Logistics Assistance Program consisting of Sensor, IT-Radio, IT-Switch, Long Haul Transmission, LOG-IT, Avionics and Power and Environmental equipment specialists achieved cost savings/avoidance by training Soldiers on repairs, fault identification and smarter troubleshooting techniques that resulted in a reduced demand for replacement parts, timely repairs and reductions in man-hours per repair," Eaton said.
Eaton said CECOM logistics assistance representatives provide assistance by site visits, telephone calls and emails.
"They work closely with unit sustainment and logistics personnel to reduce equipment down time and extend mean time between equipment failures," he added.
Eaton said he expects a surge in cost savings with the planned drawdown of forces and equipment due to the LARs recovering more equipment. He said he thinks the LARs will be supporting higher densities of tactical power generation and network equipment that will result in additional cost savings.
The Quality Assurance Specialists (Ammunition Surveillance) and the ammunition LARs contributed $28.4 million to the total cost savings/avoidance said Thomas Evans, Joint Munitions Command senior command representative.
"Our cost avoidance is gained by recovering ammunition returned from the Warfighter," Evans said. "When ammunition is returned to the Ammunition Supply Points in country, our QASAS personnel inspect and classify the ammunition. If the ammunition is determined to be serviceable, the QASAS will return it to the stockpile in a serviceable condition code for use."
Evans said his personnel work in very austere conditions usually outside or in unimproved facilities without heat in the winter or air conditioning in the summer.
He added that JMC has received guidance to retrograde as much serviceable ammunition as possible, so he expects JMC cost savings/avoidance to grow.
Evans noted that JMC cost savings/avoidance figures reflect the cost of the item.
TACOM LARs deployed to support OEF contributed $28,944,682.88 in cost savings/avoidance during 2012.
"Cost savings/avoidance are part of each TACOM LARs weekly report and are achieved in the normal course of their daily support," said Keith Hutchinson, TACOM SCR. "TACOM LARs report the savings when their actions result in a direct savings or avoidance for the Army."
"Savings can be achieved through training. For example, when a LAR becomes aware that a unit is about to replace a major component and provides on-the-job training on proper troubleshooting techniques," Hutchinson said. "Frequently during the course of that instruction they determine that the component was not in need of replacement merely proper servicing."
Hutchinson added that the TACOM LARs save many engines, transmissions and other major components by training Soldiers.
"TACOM LARs also realize cost savings when they locate parts, components and even end items in the DRMO [DLA-DS] yard which are serviceable and can be returned to the system or can be provided to a unit which would otherwise have had to requisition the items, again this results in major savings each year," Hutchinson said.
Hutchinson said he expects the planned drawdown will impact the overall savings amount but the TACOM LARs and others will experience abundant opportunities in the retro sort and DLA disposition yards as units and FOBs are retrograded and closed.
The LCMC personnel engaged in cost savings/avoidance are some of the many 401st AFSB personnel who exercise good property accountability practices daily to ensure equipment is brought to record and good stewardship of resources.