Original Date: 04/06/1998
Revision Date: 01/18/2007
Best Practice : Partnering Initiatives
As part of Government reinvention, the Anniston Army Depot (ANAD) is partnering with the private sector. Partnering at ANAD involves business relationships with the private sector to enhance system efficiencies and increase capabilities of both sectors by working together through formal partnerships.
The Combat Vehicle Industrial Base is composed of the private sector which includes Original Equipment Manufacturers (OEMs), such as General Dynamics Land Systems Division and United Defense Limited Partnership, who produce defense vehicle systems; and the public sector, which includes depots and arsenals that have the responsibility for sustaining the OEM-produced vehicle systems through repair, overhaul, modifications, and upgrades.
The Combat Vehicle Industrial Base of the past reflects a private sector and public sector operating separately and independently, which produced an atmosphere where each sector competed for, rather than shared, the workload. Because of continually shrinking defense dollars, under-utilization of resources, and privatization, both sectors realized that continuing to function separately, independently, and to compete for the same workload were no longer options. Thus, changes and new business relationships were required to remedy the problems of a past environment.
ANAD established 24 working partnerships of the following three types:
1. Workshare (or direct funded):
Co-production efforts where ANAD and the industry partner each independently contribute a pre- determined amount of resources (e.g., skills, manpower, equipment, facilities) to a program. Terms are arranged between the two partners and the Program Manager. The Program Manager directs funding to the Depot and the private partner through a contract.
2. Direct Sales (or behave like a subcontractor):
Partnering agreements where ANAD performs services for private industry as a subcontractor under the authority of various sections under Title 10. The majority of ANAD’s direct sales are authorized under 10 USC 4543 which specifies that the service cannot be commercially available in the United States. The Program Manager awards a contract to private industry; private industry contracts with ANAD.
3. Facility Use:
Partnering agreements where public and private entities use underutilized ANAD facilities available under the authority of the Federal Acquisition Regulation (FAR) Sub-part 45 and the Army’s Supplement to the FAR, or through an inter-service support agreement with a Program Manager or with a major subordinate command. The private entity pays for all utilities and costs incurred. ANAD reassumes the facility when the private entity is finished with the facility.
As a result of these new partnership opportunities, the private sector established operations within the Depot fences in under-utilized facilities, employing under-utilized resources from both sectors. This reduced the overall industrial base infrastructure and maintained a skill base in both sectors. As a result of partnering, ANAD retained revenues of $147 million and one million man hours; increased facility utilization by 14% avoiding costs of $2.5 million; and avoided involuntary workforce separations. ANAD’s business management office is responsible for marketing and managing partnership opportunities with the local, regional, and global public and private businesses.
For more information see the
Point of Contact for this survey.