Rethinking Governance of the Army's Arsenals and Ammunition Plants

By W. Michael Hix; Ellen M. Pint et al. | Go to book overview

Appendix D
BUDGET IMPACTS AND DESCRIPTIONS OF FACILITIES

In this appendix, we provide summary estimations of how privatizing 10 of the 11 GOCO AAPs will affect the Army's budget.1 We then provide short descriptions of each Army ammunition plant, with data on physical characteristics, production lines, and employment, along with nonproprietary information on ordnance revenues and other government costs of operation. We begin with the four GOCO LAP plants proposed to be privatized in FY04 (Iowa, Kansas, Lone Star, and Milan), followed by the three GOCO metal parts plants proposed to be privatized in FY05 (Louisiana, Riverbank, and Scranton), the energetics and small-caliber LAP plants proposed to be privatized in FY06 (Holston, Radford, and Lake City), and the remaining GOCO metal parts plant (Mississippi). We then present information on the GOGO arsenals (Rock Island and Watervliet) and the GOGO ammunition plants (Crane, McAlester, and Pine Bluff), including estimated effects on the Army and federal government budgets resulting from the creation of an arsenal FGC for Rock Island and Watervliet.


SUMMARY BUDGET EFFECTS OF PRIVATIZATION

Table D.1 shows estimated effects on the DoD budget of privatizing 10 of the Army's 11 GOCO ammunition plants2 under a relatively conservative set of base case assumptions. For the status quo, we assumed that ammunition costs (including production costs, production base support, LIF, and MIIF), the Contracting Officer's Representative (COR) budget, and agriculture and forestry revenues would remain the same as in FY01. We used projected environmental remediation costs provided by U.S. Army Operations Support Command (OSC) through 2014 and spread remaining liability in 2015 equally over FY15–FY21.

____________________
1
We show only the total values for all 10 plants to avoid revealing proprietary data on individual plants. Budget projections and other proprietary data on individual plants are available to authorized Army personnel in a proprietary appendix.
2
We did not consider the impacts of privatizing Mississippi AAP, since it is located on land owned by NASA.

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