Ammunition Program Restructure

1. Ammunition Program Restructure Plan: • Context • Progress of the Ammunition Program Restructure (APR) Project • Status of the Ammunition Program elements • PMB 14/07 endorsed Ammunition Program governance model Col Dan Rivière Materiel Group J4 (Mat J4) and Ammunition Program Restructure (APR) Team LeadCFLA Ottawa Chapter, 20 May 2014

2. Perspective (PERI) Personnel: • Vast array of “A&E Practitioners”: Ammunition Technical Officers (ATOs), Explosive Engineers (EEs), Ammunition Technicians (ATs), Civilian Ammunition Technicians (CATs); AWTs, NWTs, EOD Operators, Civilian Contractors, Allies (military and Civilian) • Supply Management Equipment • Ammunition is about half of DND’s $6B inventory • Over 40% of the GoC total inventory holdings • 12% of Net Value of all DND/CF non-infrastructure materiel assets (capital assets + inventory) • Annual procurement of ammo and explosives involves expenditure over $140 (significant reductions in the past years) • Much of it under MSP, which is strategically important to Canada Readiness (through Governance): • The program has been restructured multiple times • Until recently managed in a highly decentralized framework, guided by the « Ammunition Board » • Ammo Program crossed Strategic, Operational and Tactical responsibilities across L1, L2 and L3 HQs – Critical Mass versus Organizational Depth • L1 ATA function resided in L3 HQ with minimal / ineffective influence on L1 planning Infrastructure: • Roughly 350 licensed 3rd and 2nd line Ammunition facilities at 28 locations for storage and supporting activities including workshops, transit, hardstand and laboratories, distributed across Canada • Weakness in management of DND’s ammo program therefore has a significant impact on: • CF operations and readiness • Defence industrial capabilities • Canada’s Public Accounts 2

3. Inventory Management Requirements Determination The Challenge • Notwithstanding overall success in supporting ops, governance review identified multiple problems: • Inability to coherently address inventory data currency and accuracy problems, and Horizon 2 and 3 planning requirements, affecting ops and public accounts • Basis for requirements unclear and not well aligned with readiness management, meaning uncertain justification for expenditures • No strategic planning of stockpile positioning and distribution • No strategic planning design for infrastructure • Poor integration of business systems driving up business costs, which resulted in customized ammo-unique solutions • Overlaps, gaps and uncertainty in authorities, responsibilities and accountabilities (ARA) hindering decision making and leaving critical gaps (e.g. demilitarization) • Lack of strategic level performance and risk management reporting on the program • Ad Hoc specialist personnel selection, training and professional development (force generation), as well as retention and leadership development problems. • Terms of reference of the ammunition board (AB) do not provide authority to make strategic decisions and execute the program • Issues tabled at the board were mostly at the tactical and operational level and were not linked to program outputs and outcomes Demand – Allocn Reconciliation Support Capabilities (PERI) Governance and Integration Warehousing and Distribution

4. Commodity: Quality ammunition efficiently delivered on time to support CAF ops & trg Capability: Effective ammunition support capabilities Accountability: Accurate inventory and financial data Outcomes « Virtual Team » Regulator (DAER) Integrator (J4 Ammo) EPM (DAEME) Project Integration Program Mgt Policy and Doctrine Support Capability Mission: The Program • To oversee strategic-level management of the ammunition & explosives (A&E) program, with the view to • providing a comprehensive mechanism for A&E policy and support capability management, and • enabling strategic surveillance, collaborative readiness planning and Joint, Interagency, Multinational and Public (JIMP) information exchange Pillars:

5. (and beyond) Focus: FE Focus: FG « Road to APR » APR AO Cursit LD Obj - Steady State • NFO • Continuous improvement + process optimization AA “Go” FOC IOC Phase 1: Plan + Prep Phase 2: Mobilize + Outreach Phase 3: Implement + Optimize +6m (31 Mar 2014) +12m (15 Sep 2014) (0): MIP sign-off (16 Sep 2013) Conditions for IOC • Orient: retreat (kick-off) conducted • Res secured ($, pers, infra, sys); pers transfers staff work initiated • Training initiated • APR (Core) Tm assembled • TORs developed and communicated • Fin and HR authorities delegated. • Project Control Office (PCO) estab. • AB evolved to APOC; last AB forum held (closed). • Temporary/Minimum manning levels for J4 Ammo Br (Policy, Program and Sp Capability Sections) are reached (14). • Track 1: NICP/EPM functions consolidated under LEPM/DAEME. • Track 2: New J4 Ammo Branch activated under DCOS Mat. • CJOC functions realigned (internal). • - IOC: (Tracks 1-2) Achieved. Conditions for FOC • Revitalized governance model and APOC TORs endorsed by PMB • APOC forum held. • Manning levels for J4 Ammo Br (Policy, Program and Support Capability Management Sections) optimized (15-20). • Pers transfers approved and completed (as per MIP; relocations internal to Mat Gp and from external). • Training completed (Program, Performance and Risk Management training essential). • Transition/ integration of J4 Ammo Br into Mat J4 completed. • APR PCO transitioned into Mat J4 Sec. • FOC: ADM(Mat) declared • APR Project Closure and transition to steady state • Ammunition Program: Report back to PMB (on annual basis or as req). Pre-Conditions • VCDS/ DCB approval, received • Options Analysis, completed • Mgt framework, with exec leadership in place, established • MIP signed-off by ADM(Mat) • Res (pers, $, infra, sys) made available to the APR Tm • TOA from Study Ld to APR Team Ld, completed 5

6. Current posture – Assessment and Progress 6

7. Mandate: To provide strategic advice and make recommendations to the Programme Management Board (PMB) on all aspects of the DND/CAF Ammunition & Explosives, linked to its intended outcomes. Outcomes: Effective management of: • Ammunition as a commodity, • Ammunition Support Capability, and • Accountability. Composition: Reps preferably at Col/EX Level Core Membership • SJS J5 (Co-Chair) • DCOS Mat (Co-Chair) • VCDS: DDFP (in direct support) • SJS J34 • CJOC: J4 and Comd CMSG • ECS (RCN, CA, RCAF) • CANSOF • CMP • ADM(IE) • ADM(S&T) • DAER • Mat Gp: DGLEPM, DGMSSC, DGIIP, J4, DAEME, DLP Supporting Membership • PWGSC • CFEOD • ADM(IM) • Mat Gp: DGMEPM, DGAEPM, DGMPD(Air), DGMPD(L&S), DMG Compt, DMGOR, LBI • Coordination: Mat J4 Ammo Secretariat Program Elements: The primary focus of APOC is to assist CAF/DND senior leadership with decision support and advice as it affects performance of and risks to the ammunition program. It facilitates a collaborative forum to enable cross-functional coordination and monitoring of the ammunition program elements: • Program planning and management • Policy and doctrine • Support capability management • Requirements management • Ammo equipment program management • Ammunition personnel management • Infrastructure • Regulatory • Systems management Meeting and Reporting Frequency: • Quarterly or as required Ammo Program Oversight Committee (APOC):Terms of Reference 7

8. Requirements Determination Inventory Management SJS 1.4 A&E Rqmnts Planning (Align with FP&R) ADM(Mat) (MSSC) 2.1 A&E Inventory Mgt (Modernize management of and rationalize commodity) Demand – Allocn Reconciliation Governance and Integration Support Capabilities (PRICIE) ADM(IE) 4.2 Real Prop Rationalization (Optimize Footprint) CJOC (CMSG) 2.2 A&E Warehousing-Distr (Optimize space and movement) Warehousing and Distribution Opportunity: Ammo Program in support of Defence Renewal Ammo Program Pillars • SME advice • Decision support