United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1999-11-22 monographic deposited born digital 15 p. GA 1.13:NSIAD-00-34 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-34 P0b002ee180377664 f:ns00034 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-00-34 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-00-34 NSIAD-00-34 Private sector procurement Army procurement Ammunition Military cost control Military land vehicles Department of Defense contractors Reductions in force GOCO Multiyear contracts Defense contingency planning 120mm Tank Training Round Hydra-70 Rocket Apache Helicopter Cobra Helicopter F-16 Aircraft Letter Report NSIAD Pursuant to a congressional request, GAO provided information on the Army's 1999 multiyear contracts for the procurement of 120-mm tank training rounds, focusing on: (1) whether the Army's actions in 1999 resulted in savings on the purchase of 120-mm tank training rounds; (2) the effect the Army's decision to no longer direct that propellant be purchased from the Radford Army Ammunition Plant had on plant overhead and employment; and (3) the potential effect the decision would have on Radford's wartime replenishment mission.<p/>GAO noted that: (1) the Army could achieve about $52 million in savings over a 5-year period from its 1999 contracts for the procurement of 120-mm tank training rounds if all contract options are exercised; (2) the Army expects to achieve the savings based on a negotiated decrease in price per round from the 1995 to the 1999 multiyear contracts; (3) however, a decision by one of the contractors to use a propellant producer other than Radford resulted in a 50-percent reduction in Radford's propellant business for the tank training round program; (4) to absorb increased overhead costs due to the loss of business, the operating contractor at Radford negotiated price increases for propellant with the Army for two new contracts totalling at least $14 million; (5) another result of the Army's decision to no longer direct that propellant be purchased from Radford was that the contractor reduced its workforce at Radford of 1,200 by 185 personnel; (6) these personnel reductions required the contractor to incur certain employee separation costs and affected the contractor's retirement funding liabilities; (7) the Army recognized that the 1999 multiyear contracts could affect Radford's operations but believed the impact would be minimized because Radford was in a competitive position to win other Department of Defense contracts; (8) the loss of propellant work does not affect Radford's ability to meet its wartime replenishment mission; (9) Radford's facilities have the capacity to produce about 100 million pounds of propellant per year but currently are only producing 10 million pounds per year; (10) with additional personnel, this provides more than adequate capacity for Radford to meet its replenishment requirements; and (11) Radford officials stated that as long as the propellant lines are operating, they would be able to replenish propellant in accordance with requirements contained in Defense Planning Guidance. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-34/html/GAOREPORTS-NSIAD-00-34.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-00-34/pdf/GAOREPORTS-NSIAD-00-34.pdf GAO/NSIAD-00-34 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-00-34 Letter Report GAO/NSIAD-00-34; Defense Logistics: New 120-mm Tank Training Round; Private sector procurement Army procurement Ammunition Military cost control Military land vehicles Department of Defense contractors Reductions in force GOCO Multiyear contracts Defense contingency planning 120mm Tank Training Round Hydra-70 Rocket Apache Helicopter Cobra Helicopter F-16 Aircraft