Original Date: 06/23/1997
Revision Date: 01/18/2007
Information : Paladin Teaming Contract
Letterkenny Army Depot (LEAD) and United Defense, Limited Partnership (UDLP), Paladin Production Division, have entered into a partnership to upgrade the Paladin M109A6. This is a very unique and aggressive cooperative effort on the part of both the Depot and UDLP.
Prior to the 1990s, two separate industrial bases were needed to maintain and renovate Army assetsan organic base and a private base. Both sectors were noncompatible and had excess capacity. As the Army started to significantly downsize, it was obvious to both sectors that the organizations needed to integrate and partner where possible if they were to survive as manufacturing organizations. Senior Army leadership, as well as LEAD and private sector companies, recognized the need to create an integrated industrial base where private companies team with government organizations to reduce excess capacity and complement each other’s manufacturing expertise. The Army funded a producibility evaluation task team to study companies in order to minimize the learning curve and encourage a joint effort with an existing government facility.
Partnership A “Best Value” contract was awarded to UDLP, Paladin Production Division, to upgrade the M109A6 Howitzer at LEAD. The partnership was entered into between the Project Manager Paladin, LEAD, and UDLP. The roles and responsibilities were subsequently agreed upon, and a team venture was initiated at LEAD. UDLP entered into a facility use contract. A key part of the partnership agreement was the Paladin Integration Team. This team, through the use of Integrated Definition Modeling, clearly defined the roles, responsibilities, and processes for which each partner would be accountable.
Teaming Under the mutual agreement, each party was responsible for distinct facets of the upgrade program. UDLP was responsible for all parts, make or buy; assembly of turrets; integration of turrets with chassis; and final vehicle test, inspection, storage, and shipment. LEAD was responsible for disassembly of incoming assets; refurbishment of the M109A6 chassis; testing of automotive/carrier systems; and final vehicle painting.
Program Results By mutually supporting each partner, several significant savings have been achieved. All M109A6 have been delivered two months ahead of schedule to the customer, Project Manager Paladin. Every M109A6 is delivered in unconditional status with no quality issues. Significant administrative changes and costs have been reduced or eliminated. The joint management team has been able to waive 30 Department of Defense/Army regulations, thereby helping the joint venture succeed. The staffs hold joint quality reviews and have joint resolution of manufacturing/management problems. This unique teaming arrangement, through the acquisition strategy, has allowed the Army to reprogram $46 million.
By each side focusing on its respective strengths and committing to teaming, each partner is in a win-win situation.
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