Department of the Army Historical Summary: FY 1975

VIII.

Logistics

During fiscal year 1975, the Army logistics community shouldered a considerable portion of the Army's readiness requirements, provided for the personal equipment and clothing needs of its soldiers, supplied and distributed materiel to allied nations, and supported the increase to a standing Army of sixteen divisions-all this under austere economic conditions. This chapter gives the highlights of supply and maintenance, transportation, military aid, logistics systems development, and logistics management.

As part of the response to the August 1974 Chief of Staff directive calling upon the Army to identify savings in men, money, and materiel in order to meet the needs of a sixteen-division Army, the Deputy Chief of Staff for Logistics established Project LEAP (Logistical Efficiencies to Increase Army Power). By the end of the year this comprehensive review of Army logistics policies, missions, and activities had led to fourteen changes in the management of logistics resources, representing a saving of approximately $2.5 million and 1,189 military and civilian positions. Most of the savings represent cost avoidance and do not reflect the cost of contracting or civilian replacement. Additional savings are expected as the review continues. Issues being analyzed by the LEAP task force include the Division Logistics System, wholesale and retail logistics operations, stock reductions at installations and within units, Military Standard Requisitioning and Issue Procedures response time requirements, and replacement of nondivisional combat service support units by civilian contractors.

The Logistics Studies Steering Group (LSSG) held three sessions during the year. On 11 December 1974 the group met to review the status of Army logistics studies in view of budget constraints for contract studies and the impact of new developments such as Project LEAP and the Defense Logistics Studies Information Exchange (DLSIE). The 18 June 1975 session discussed 146 proposals for future logistics and management studies. Areas of possible duplication were eliminated, studies

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were recommended for inclusion in the Logistics System Master Plan, and all logistics studies were screened prior to their review by the Study Review Council.

The Logistics Models Working Group (LMWG) assisted the LSSG in managing logistics studies by insuring that maximum use was made of existing logistics models and that duplication in the development of new models was avoided. The five LMWG meetings held during fiscal year 1975 primarily reviewed Army Materiel Command logistics support models. The capabilities of integrated logistics support models were also reviewed to insure compliance with Department of the Army policy. These meetings provided a valuable information exchange and contributed to the refinement of the DLSIE catalog of logistics models.

The July 1974 edition of the Army Logistics System Master Plan (LOGMAP) contained a number of revisions to improve the document's use as a management tool and to tie it more closely to the Planning, Programming, and Budgeting System. These changes included the following: expanding the scope of LOGMAP to include significant features of the post-1980 logistics system; assuring that LOGMAP was compatible with the objectives and actions prescribed in the Department of Defense Logistics System Plan and with objectives established by the Assistant Secretary of the Army (Installations and Logistics); consolidating LOGMAP's general goals into one overall objective—achievement of an improved logistics system; and assigning Army staff responsibility for each LOGMAP initiative.

During fiscal year 1975 the Army furnished about fifty-five percent of the assistance supplied under the Interservice/Interdepartmental/Interagency Support Program. In an effort to conserve men and money, many support functions that would reduce costs to the federal government, yet would not primarily benefit the Army, were transferred to other agencies. By the end of the fiscal year, thirty-eight agreements had been transferred, resulting in a cost reduction of $1.086 million. The Army also fed its interservice agreements into the Defense Supply Agency's Retail Interservice Support Program Computer Bank, thus permitting quick retrieval of details of the agreements and the identification of additional savings.

On 30 September 1974 new regulations covering the Army Equipment Status Reporting System went into effect. In general, the new rules standardize and simplify methods and procedures for processing data and correct weaknesses in the

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quarterly status reports submitted by active Army and reserve component units. Specific improvements included removal from quarterly reporting requirements of information available elsewhere; use in the field of a unified printout format, standardized updating procedures, and standard data processing editing criteria; better verification of information by using the Unit Identification System for positive identification of registered property accounts; and the assignment within major Army commands of responsibility for the support required by units within their areas.

In other logistics management matters, planning continued for a single small arms central registry for all Department of Defense components, and Congress appropriated the funds needed by the Army to operate the registry, which forms part of the Weapons Management Improvement Program. Conversion of federal stock numbers to the new thirteen-digit national stock number system was completed. The Army worked with the Navy and the Air Force in drafting a joint document to standardize guidance and procedures pertaining to logistical support for multiservice communications systems. The Army also participated with the other military services and the Defense Supply Agency on expanding the application of vertical materiel management concepts and procedures throughout the Department of Defense.

Progress continued this year on the Army Materiel Command's (AMC's) Five Year Automatic Data Processing Program. Installation of the AMC Logistics Program/ Hardcore Automated portion of the Commodity Command Standard System was completed at the Army Aviation Systems Command, the Army Missile Command, and the Army Troop Support Command, and started at the Army Tank Automotive Command, the Army Electronics Command, and the Army Armament Command.

Extension of the Division Logistics System (DLOGS) to the reserve components was completed in seventeen of the eighteen National Guard divisions and brigades initially scheduled to receive the system. Conversion of the remaining two Regular Army divisions not yet covered by DLOGS is scheduled for completion early in fiscal year 1976.

Development and use of the systems and subsystems that comprise the Integrated Transportation Management Infor-

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mation System continued during the year. The Army adopted the Standard Port System (SPS) component of the Terminal Operations and Movements Management System (TOMMS) for general use at major overseas water terminals, corrected deficiencies uncovered during trials at Bremerhaven and Rotterdam, and put the Army version of SPS into operation at the ports of Pusan, Naha, and Yokohama. The Army began development work on another TOMMS component, the Movements Management System. At the close of the fiscal year the Army staff was reviewing the Administrative Use Vehicle Management System before seeking approval from the Assistant Secretary of the Army, Financial Management.

Development of the Standard Army Maintenance System moved forward during the year; general tasks for the new system were approved, and work began on expanding these into detailed functional requirements.

A number of refinements, including the addition of data on guided missiles and large rockets, increased the capability of the Standard Army Ammunition System to provide automated management support at the theater level. Future development efforts will extend the system to below theater levels both overseas and in the United States.

Development of the Selected Item Management System­-Expanded continued during the year. This system will correct the deficiencies of the basic Selected Item Management System and will provide greater control of post, camp, station, and depot stocks.

During the year $523.3 million was expended for depot materiel maintenance and support activities: $343.1 million for overhauling unserviceable equipment, $169.7 million for maintenance engineering and other support activities, and $10.5 million for training.

Use of the term "Backlog of Maintenance and Repair (BMAR)," the new designation given to Backlog of Essential Maintenance and Repair by the Office of the Secretary of Defense, became effective with end of fiscal year 1974 reporting requirements and for the preparation of fiscal year 1975 command operating budget submissions. All unfinanced maintenance and repair projects that represent valid requirements were to be reported as BMAR. The seriousness of the backlog problem was indicated by a breakdown of the $950 million

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estimate for fiscal year 1976 for maintenance and repair of real property: $436 million was for annual maintenance and repair, while $514 million was for the backlog.

Another factor impairing maintenance was the lack of modern maintenance facilities, particularly among troop units. In 1973 the Army estimated that $750 million was needed to upgrade or replace substandard maintenance facilities. In 1975 this figure had increased to nearly $933 million.

By the beginning of fiscal year 1974 Army depot maintenance facilities at Sagami, Japan; Camp Carroll, Korea; and Machinato, Okinawa, had reverted to direct and general support work. The Army Materiel Command's Taiwan Materiel Agency continued to perform depot maintenance on items shipped to Taiwan following the cease-fire in Vietnam. The backlog of equipment to be overhauled had been cleared up by 30 June 1975, and the agency was scheduled to be discontinued on 30 September 1975.

Reduction of depot maintenance facilities in Europe received increased impetus following approval of recommendations made in a March 1975 study: that cost savings could be achieved without reducing operational readiness by transferring substantial portions of the depot maintenance performed in Europe to Army Materiel Command depots in the United States. The Schwaebisch Gmuend Maintenance Plant was closed, and the Boeblingen Maintenance Plant was being phased out and will be closed by 31 December 1975. Appropriate work was transferred to facilities in the United States, and general support maintenance that had been performed at depot level was turned over to lower echelon general support units. A follow-up study should identify additional depot maintenance functions for transfer to the United States, and depot maintenance at Pirmasens and Kaiserslautern may also be terminated. Transferring the government-owned and contractor-operated U.S. Army Maintenance Plant, Mainz, and the Rubber Fabrication Facility, U.S. Army Maintenance Plant, Ober-Ramstadt, to the Army Materiel Command was also considered.

The first Army regulation on Integrated Logistic Support was published in April 1975. Other Army publications dealing with materiel requirements, research, development, and acquisition were revised to reflect the policy of integrating logistical considerations, including maintenance, with the materiel acquisition process.

To improve aviation maintenance, field testing of the

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computer Model for the Analysis of Vehicle Inspections Systems (MAVIS) began in August 1974, and will continue for about one year. The initial test involves UH-1 and CH-47 helicopters. MAVIS will be extended to the AH-1G and OH­58 helicopters some time in the coming fiscal year. Test data collected and analyzed to date indicates that the phased inspection method incorporated in the new system will reduce both the ratio of maintenance time to flying time and the time aircraft remain out of operation while awaiting maintenance. The On Condition Maintenance program permitted a twenty-five percent reduction in the amount of depot maintenance scheduled for the UH-1 during fiscal year 1975. Aircraft improvements during the year required approximately 500,000 manhours to complete. At year's end the backlog remained at about 600,000 manhours, a manageable figure that represents a considerable reduction from the 2,900,000 man-hour backlog that existed in fiscal year 1972 when the Aircraft Modification Clean Up Program began.

Fiscal year 1975 Army stock fund obligations amounted to $3.6 billion in support of $3.4 billion in sales. Obligations were $400 million above those for fiscal year 1974 and sales were $500 million higher. Although the greatest factor causing the increase was inflation, requirements for the 16-division force, the tank program, and expanding foreign military sales also contributed. Because standard methods for recording price changes could not keep pace with rapidly increasing costs for new procurement, a new, mechanized system was installed to expedite listing of price changes at Army National Inventory Control Points (NICP's). During installation of the new system NICP's were unable to record price changes except by off-line methods. The Office of the Secretary of Defense authorized the NICP's to apply a temporary surcharge of fifteen percent in fiscal year 1976 to recoup losses sustained during the price change moratorium.

Total obligational authority for secondary items financed under the Procurement Appropriation (formerly PEMA) in fiscal year 1975 was $277 million, and $243 million was obligated. Carry-over of unused fiscal year 1975 funds into fiscal year 1976 will be permitted if the funded requirements remain valid. The number of parts and assemblies returned by users in fiscal year 1975 was at about the same level as in fiscal

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year 1974, a leveling off that signals a return to pre-Vietnam War rates.

The Back Order Validation program continued to help conserve supplies and materiel. Of the 854,978 requisitions referred for validation during the year, 84,268, valued at $463.3 million, were canceled.

In January 1975 the Assistant Secretary of Defense (Installations and Logistics) approved a plan completed by a joint task force the previous October to eliminate duplicate wholesale inventories of nonconsumable items within the Department of Defense. By the close of the fiscal year, 396,234 joint-use nonconsumables had been classified and tentatively placed under a single manager for procurement, cataloging, disbursement, and depot maintenance. Under the integrated materiel management concept, each service will continue to determine the need and fund its requirements for a particular item and maintain accountability for the item upon receipt.

The Army took several actions during fiscal year 1975 to improve the Care of Supplies in Storage (COSIS) program in light of deficiencies revealed by the 1974 Army Audit Agency survey noted in last year's report. The position of program manager was filled; a number of Army publications on depot storage were revised; a COSIS course was added to the curriculum of the joint Military Packaging Training Center; and the Army Materiel Command completed two studies on COSIS-related subjects.

The Army started converting its supply publications to microfiche, beginning with a limited edition of Supply Bulletin 700-20. The new format is being tested at Camp McCoy, Wisconsin; Fort Hood, Texas; and Fort Sill, Oklahoma. Preliminary results indicate general acceptance of microfiche.

Army property disposal operations have been reduced sharply since the transfer of functions to the Defense Supply Agency last year. Demilitarization of condemned, obsolete, and surplus ammunition and explosives cost $73.1 million; combat materiel originally costing $2 million was donated to municipalities, veterans' organizations, and museums; and an equivalent of $1.6 million was realized in credits or proceeds under a program that permits procurement officials to trade in or sell certain categories of nonexcess items that require replacement. The Pacific Utilization and Redistribution Agency, which was responsible for assuring maximum use of excess personal property in the Pacific, was transferred to the Defense Supply Agency on 1 February 1975.

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During fiscal year 1975 the Army shipped about 5,039,000 measurement tons of cargo via the Military Sealift Command and approximately 61,400 short tons of cargo and 351,400 Army-sponsored passengers via the Military Airlift Command. (A measurement "ton" equals forty cubic feet.)

During the final phase of the Vietnam Campaign, transportation agencies kept constant track of cargo en route to Vietnam and exercised the high degree of control required in a very sensitive and dynamic situation. Data on shipment, receipt, and lift of cargo was used in decision making, coordinating changes in requirements, rerouting shipments under way, and advising other Department of the Army staff elements on movement cost priority and transportation resource availability and allocation.

The number of movements by Special Assignment Airlift Missions (SAMM) increased due to Operation NEW LIFE and Operation NEW ARRIVALS. Fifty-five SAAM's moved 5,000 persons and 2,500 short tons of cargo between the continental United States, Hawaii, and Guam, and between various continental installations and refugee centers at Fort Chaffee, Arkansas, and Indiantown Gap, Pennsylvania.

Military Standard Transportation and Movement Procedures (MILSTAMP) were extended overseas on 1 December 1974, and the regulation governing the program was rewritten and simplified. Also, a MILSTAMP training course for first­line supervisors was established at the Army Transportation School, Fort Eustis, Virginia.

Early in the year the Army completed moving the nuclear weapons located at forty-eight inactivated Nike Hercules missile sites to Army depots. By the close of the fiscal year, the Army had nearly completed movement of Sprint and Spartan nuclear warheads from depots to remote launch sites in North Dakota. Army and Air Force personnel associated with the operation, named the GREEN MITTENS project, took every precaution to assure the safe transportation and installation of the warheads, including the use of CH-47 helicopters and C-141 aircraft.

The Army continued to integrate containers into current and future logistics systems. The two major areas of concern continued to be the offshore discharge of nonself-sustaining containerships and an effective system for shipping ammunition in commercial containers. The deployment of cranes with ships was selected as the interim solution for offshore dis-

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charge. Efforts continued to develop restraint systems that will permit safe and effective use of commercial containers for ammunition.

The Army's watercraft inventory declined from 1,200 to about 950 during the year as disposal of obsolete and unserviceable craft continued. Approval of recommendations contained in the February 1975 Trans-Hydrocraft Study established a new family of Army watercraft and will reduce the types of craft maintained from 78 to 12 by 1985: 2 amphibians, 3 landing craft, 3 harbor craft, and 4 barges. A contract was let for two 30-ton air-cushion vessels for use as lighters, with delivery scheduled during March and April of 1976.

The Army's rail fleet consists of approximately 9,000 pieces of equipment ranging in age from seventeen to thirty-three years. During the past year the Army participated in a review of the condition of the U.S. rail system, gathering data on rail service requirements in the midwest and northeast in order to develop an Army position on the proposed abandonment of trackage and curtailment of rail service within those sections of the country. Work continued on a five-year depot maintenance program for diesel and electric locomotives and on upgrading and modernizing the Army's rail fleet.

The Do It Yourself Moving Test Program began in January 1975. An interim evaluation reveals that the program is successful and is well received by service members. As of 30 June 1975, 217 moves were made from the six test installations at a saving of $74,000. Based on these results, it is anticipated that the program will be extended Army-wide during the next year.

To improve air passenger service, Port-Call Centralized Assignment Procedures were modified in October 1974 to give Advanced Individual Training installations greater flexibility in the use of reservations made for graduates who were unable to move as originally scheduled. The Air Force, in coordination with the other military services, will conduct a six-month test program during the coming year to determine the feasibility of making international reservations directly through the Military Airlift Command Passenger Reservation Center, rather than through reservation facilities at the service level. Elimination of this intermediate step should reduce port-call time requirements. The movement of passengers on scheduled commercial flights at charter rates (Category Y service), in lieu of charter airlift, received widespread acceptance among those served and resulted in substantial fuel savings. For example, from Decem-

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ber 1974 to March 1975, conversion of eighty-three round trip charters to Category Y service saved 3,789,000 gallons of fuel. Despite both user satisfaction and fuel savings, the continuation of this service was in doubt because of objections raised by the Civil Aeronautics Board and the airlines that provide contract service.

Data on the seizure of drugs, narcotics, and contraband in Army Post Office mail and at passenger terminals overseas and in the United States indicate that Army support of the Department of Defense customs inspection program has been effective in deterring trafficking in such items. Improved training programs for military customs inspectors provide the latest technical information from U.S. Customs Service advisers. The experience gained by the overseas commands in support of the inspection program has permitted a relaxation of Department of the Army-imposed inspection requirements, and has enabled the commands to establish their own inspection standards within prescribed limits.

The Mechanization of Selected Transportation Movements Reports (MECHTRAM), an automatic system for processing data of worldwide tonnage and passenger movements on a monthly basis, has, since fiscal year 1974, provided timely movement and unit-cost information. Automated overocean transportation forecasting procedures allow major overseas commands, the Army Materiel Command, and other Department of Defense and Army shipping agencies to submit short-range and long-range movement requirements via AUTODIN. Data compiled in management reports compatible with the MECHTRAM performance reports facilitate detailed comparison of forecasted requirements with actual performance. The forecasts are adjusted as required to reflect the latest policy guidance and are then developed into worldwide movement programs. Automation also provides a more accurate transportation budget using cost data based upon worldwide tariff rates.

The Army military construction budget approved by Congress for fiscal year 1975 amounted to $656.8 million, as compared to the Army's request for $856.3 million and the President's amended budget request of $740.5 million. A number of reprogramming actions started during the year would increase funds available for construction projects, but

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none had received congressional approval by year's end. A total of $68 million was appropriated for the medical and dental construction program described in last year's report. Construction contracts of approximately $108 million were awarded for the Army Materiel Command's Munition Production Base Support (PBS) program, and design started on a number of new PBS projects that will cost another $93 million.

The President's fiscal year 1976 budget proposed $961.9 million in total obligational authority for Army construction. About sixty percent of the request, excluding NATO and general authorization requirements, was for soldier-oriented projects. The request also included $33.1 million for energy projects, $36.7 million for nuclear weapons security, $147 million for stations for sixteen divisions, and $88.7 million for one-station training.

Savings in construction costs engendered by the value engineering program amounted to $20 million in fiscal year 1975. Training, management support, and improving the content of value engineering change proposals submitted by contractors received major emphasis during the year. The number of change proposals developed climbed to 319, as compared to the year's goal of 230. The Army, concerned that the design of its buildings is esthetically and environmentally suitable, participated in the Federal Design Improvement Program administered by the National Endowment for the Arts. In October 1974 the Army Corps of Engineers sponsored a design improvement seminar to consider problems related to design quality and the rapid completion of military construction projects. New design guides were being prepared for different types of facilities, including recreation and physical fitness centers, noncommissioned officer and officer clubs, general education centers, libraries, chapels, service schools, and administrative and office facilities.

During fiscal year 1975, Army engineers contracted for approximately $500 million in construction for other federal agencies and foreign governments; the Air Force, with $280 million worth of such projects, received over half the support. The Army worked with other agencies in representing the United States on the U.S.-USSR Joint Committee on Cooperation in the Field of Housing and Other Construction. Six working groups were formed, with an Army engineer named chairman of the group dealing with building in extreme climates or unusual geological conditions. In addition to better U.S. relations with the Soviet Union, the objective was to

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improve our technology base through the exchange of information.

The Army cooperated with the Navy and Air Force in identifying common applications for the work each has done in developing theater-level facilities. This effort will reduce duplication and achieve more standardization. For example, final design drawings for three standard-size hospitals using modern, relocatable, paneled structures, developed by a contractor for the Navy at a cost of $2 million, have been adapted by the Army for its own use. In another case, the Army began work on preliminary design drawings of maintenance facilities for wheeled and tracked vehicles in divisions, separate brigades, and support units. The other services will review the product, and their suggestions will be considered for inclusion in the final design.

During the year the Army announced a number of changes in the status of various installations. Frankford Arsenal, Pennsylvania, will be closed. Army depots at Savanna, Illinois; Pueblo, Colorado; and Lexington, Kentucky, will be down­graded to depot activities. Fort Hamilton, New York, will become a subinstallation of Fort Dix, New Jersey. Plans for the disposition of a portion of Fort Meade, Maryland, and portions of Fort Story, Virginia, and Camp Swift, Texas, have been held up due to Congressional opposition.

At the close of the fiscal year the Army controlled approximately 12,732,484 acres of land throughout the world. These holdings had an acquisition value, with improvements, of nearly $13 billion. Land acquisitions during the year totaled 156,689 acres at a cost of $91,184,809, including 8,539 acres costing $7,789,763 obtained for other federal agencies. Most of the purchases (approximately ninety-three percent) were for civil works. The purchase of land and the extinguishment of mining claims at White Sands Missile Range, described in last year's report, will be completed if requested funding is provided in fiscal year 1976. About 11,030 acres remain to be acquired. The Army spent $9.8 million during the year to assist 2,401 persons who were affected by Corps of Engineer projects, chiefly in the form of replacement housing benefits to homeowners and fixed payments to displaced farmers.

During the year, the Army disposed of 32,383 acres having an acquisition cost, with improvements, of $73,816,802. An additional 11,934 acres valued at $135,141,724, including improvements, were reported as excess to the General Services Administration.

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Better management of the Army's real property is the goal of the Integrated Facilities System, a three-part package consisting of management of existing facilities, planning of new ones, and planning and management of new construction. Development of facilities management continued throughout fiscal year 1975. A systems integration test in November 1974 was moderately successful and led to prototype evaluation tests at three Virginia Army posts. The tests were in progress as the fiscal year ended.

The Department of the Army Physical Security Review Board was established in September 1974 to evaluate concepts, management systems, doctrine, construction programs, and supporting materiel systems for physical security within the Department of the Army. The board consists of a representative from each Army staff agency, and a nonvoting representative from the Training and Doctrine Command, the Army Materiel Command, and the Army Criminal Investigation Command. The Chief, Law Enforcement Division, Human Resources Development Directorate, serves as board chairman. Since its inception, the board has undertaken two specific studies to improve security programs for arms, ammunition, and explosives. The first study concerned physical security of conventional arms, ammunition, and explosives. As a result, the Secretary of the Army approved sixty-two actions for upgrading security. The second study concerned physical security of chemical munitions and agents; the report is currently being staffed. A third study will be undertaken early in fiscal year 1976 on security of conventional arms, ammunition, and explosives while in transit.

The Joint-Services Interior Intrusion Detection System (J-SIIDS), which is designed to insure the security of arms rooms, was approved for use on 12 June 1975. Initially, it will be installed in 3,600 active Army and Reserve Officers' Training Corps units and will also be tested in selected Army National Guard units. If the test is successful, and if new procurement costs are competitive with commercial equipment, the system will replace commercial devices already installed in reserve component units as they become obsolete or require extensive repair. Development of an advanced J-SIIDS that will provide better protection for large indoor areas and will be compatible

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with commercial alarm monitor equipment used at civilian police stations got under way during fiscal year 1975.

The Army approved plans for the Facility Intrusion Detection System (FIDS) late in fiscal year 1974, and full-scale development began in the first quarter of fiscal year 1975. This detection system is an extension of J-SIIDS that will be applicable to the interiors of all military facilities, including those housing the most sensitive intelligence material. Development work will continue through fiscal year 1976.

A Defense Department survey of conventional ammunition stocks and facilities in the Pacific, conducted during the period 20 January-8 February 1975, uncovered a number of Army security and safety deficiencies. To correct these shortcomings, a five-year upgrading program for conventional ammunition storage facilities in Okinawa, Hawaii, Japan, and Korea has been developed. The program will get under way in fiscal year 1977.

Authorizations for the U.S. share of the NATO infrastructure program amounted to $112.8 million—$84 million in the Military Construction, Army, portion of the fiscal year 1975 budget and $28.8 million carried over from previous years. Total funding of $88 million consisted of $69 million in new obligational authority, $4 million in recoupments, and $15 million in unobligated, prior year appropriations.

Efforts to arrange for a wartime line of communication in Europe made considerable progress during the year. The project, Minimum Required-Logistical Augmentation, Europe, calls for opening and operating a line of communication through certain Western European coastal countries to Central Europe. It relies on existing host nation capabilities and government-to-government agreements for logistical support. Following successful negotiations for most of the required technical agreements, the Commander-in-Chief, United States Army, Europe, started action to obligate $8.1 million in NATO infrastructure funds for the design and construction of project facilities.

In July 1974 the Office of the Deputy Chief of Staff for Logistics, United States Army, Europe (USAREUR), and the Army Logistics Center began project LEADER to integrate echelons-above-division doctrine, the Standard Army Intermediate Level Supply Subsystem, and the Direct Support System

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within USAREUR. The goals of the project are to provide additional supply management capabilities within corps support commands and the 1st Support Brigade, establish a theater­level materiel management center, develop plans for a smooth transition from peacetime to wartime, and conduct wartime logistical support operations in accordance with approved doctrine.

The supply of conventional ammunition to South Vietnam and Cambodia was drastically reduced during the year. Funding of the Vietnam portion of the program was transferred from Military Assistance Service Funded to Defense Assistance, Vietnam. Control passed from the Army to the Office of the Secretary of Defense. Despite funding limitations, stocks on hand remained high and there were no ammunition shortages. Expenditures were exceeding programmed amounts at the time South Vietnam fell, however, and shortages would have developed had the war continued. Ammunition supply to Cambodia was satisfactory until just before the pro-U.S. government surrendered, when all ammunition had to be flown in because of the deteriorating tactical situation. Ammunition shortages due to funding constraints would have developed had the Cambodian struggle been a prolonged one.

During the Vietnam conflict the Okinawa depot complex had an active depot supply and maintenance support mission for western Pacific activities. It stored and maintained allied war reserves and operational stocks and received a large portion of the vehicles and supplies returned by U.S. Army, Vietnam, both before and after the cease-fire. Since 1972 the depot has had much materiel to dispose of.

As part of the reorganization of U.S. forces in the western Pacific, the U.S. Army Base Command, Okinawa, was redesignated U.S. Army Garrison, Okinawa (USAGO). Support missions away from the island were to be eliminated. The USAGO island support mission will be reduced to a small installation supply activity and storage of prepositioned war reserve stocks. Original plans for reducing the Okinawa depot complex called for a completion date of 31 August 1974, but nearly 200,000 short tons of supplies, much of which was in unprotected outside storage, remained to be identified and disposed of at the beginning of fiscal year 1975; accordingly, the date was changed to 31 March 1975. In November 1974 a nineteen-man

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Army Materiel Command task force arrived in Okinawa to assist in the drawdown. The task force rewrote and streamlined local operating procedures and helped local personnel carry out inventory, identification, and disposition actions. The completion date was moved back again, this time to 1 July 1975, but even this date proved optimistic due to local labor difficulties and inventory and identification problems. Completion of the drawdown is not expected before 15 December 1975.

The Army contributes substantially to U.S. foreign policy goals, military security objectives, and economic well-being through its international logistics activities. Since the Military Assistance Program (MAP) began in 1950, the U.S. has supplied $19 billion in grant aid and $17.5 billion in foreign military sales. The Army's role during fiscal year 1975 in support of these programs, as well as other international logistics activities such as coproduction, cooperative logistics, and international logistics management, is outlined below.

The Army's MAP program in fiscal year 1975 amounted to $800 million, including $366 million in new authorizations. Actual deliveries to thirty-three countries of $1.2 billion in goods and services included materiel provided under Military Assistance Service Funded and Defense Appropriations, Vietnam. The undelivered MAP balance, as of 30 June 1975, was $500 million. Assistance to Cambodia and South Vietnam, a major part of the aid program at the beginning of the year, had halted by year's end. Aid to Laos was also terminated.

During the year, the value of materiel and logistical services provided under the Army's foreign military sales program reached the highest level in its 25-year history. Sales were made to sixty countries and five international organizations. Orders amounted to almost $3.8 billion for the year as compared to less than $2.4 billion in fiscal year 1974. Actual deliveries through the fourth quarter of fiscal year 1975 totaled almost $1.5 billion, with over $6 billion in goods and services remaining to be delivered. Major recipients included Israel (over $700 million), Kuwait ($120 million), and Jordan ($66 million). On 5 February 1975 the U.S. suspended military assistance and sales to Turkey. The ten-year embargo on arms sales to Pakistan was lifted later in the year.

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During fiscal year 1975, Indonesia, South Korea, Thailand, and Switzerland joined the ranks of countries having bilateral agreements with the United States for coproduction of such items as M16 rifles, PRC-77 tactical radios, mortars, and certain tactical vehicles. In another major cooperative logistics activity, the Army, through arrangements with eighteen countries and NATO, provided repair parts and logistical services for major end items and weapons systems of U.S. origin. Support in 1975, which is funded by the recipients, was valued at about $220 million.

In December 1974, a new Chief of Staff regulation was published better to define major Army staff responsibilities in security assistance matters and to facilitate effective working relationships among the Army staff, the Army Secretariat, the Office of the Secretary of Defense, and other agencies. The regulation specifically designated the Director of International Logistics, Office of the Deputy Chief of Staff for Logistics, as the officer on the Army staff responsible for security assistance matters. This regulation also established the Army Security Assistance Coordination Group to coordinate security assistance. Permanent members of the group are the Director of International Logistics, who serves as chairman, the Director of Strategy and Security Assistance, and the Deputy Director of Materiel, Plans and Programs. Representatives of other Army staff agencies are invited to attend when matters in their areas of responsibility are to be discussed. The chairman also invites representatives of the Army Secretariat and the U.S. Army Materiel Command when necessary. The International Logistics Directorates at both Headquarters, Department of the Army, and the Army Materiel Command have been reorganized along regional lines to manage foreign military sales and grant aid more efficiently and effectively.

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