Commercial Technologies

for Maintenance Activities

1

Readiness at Best CostCTMA Program Overview

A Joint NCMS/DoD Partnership

Greg Kilchenstein Debbie Lilu

Director, Enterprise Mx Technology CTMA Program Director

Office of the Secretary of Defense, MPP National Center for Manufacturing Sciences

Maintenance Challenge

40

50

5963

81 8184 83 83 84

79 7975

$40

$50

$60

$70

$80

$90

$100

01 02 03 04 05 06 07 08 09 10 11 12 13

FY2001 - - 2013

FY 2015 DoD Budget

Military

Personnel:

$140.0

Procurement:

$102.8

RDT&E: $64.0

Operations &

Maintenance: $248.7

Other: $9.5

$565.0B **

Systems Supported by

DoD Mx

35K 884

237 15KMaintained by: 618K DoD/ Private-sector personnel

Maintenance cost:

~$73.3 billion

** Source: DoD Maintenance 2015 Fact Book

DoD’s military

equipment is valued at

$601 billion

Billions

Cost of Mx Doubled Since 2001

Maintain Readiness with

Significantly Reduced Funding

• Unprecedented Budgetary Pressure

• High Sustained OPTEMPO

• Aging Weapon Systems/deteriorating

Material Condition

• Obsolescence

• Increasing Sustainment Costs

Maintenance Technology Insertion is a Key Factor to Success

Comm./electronics,

Support equipment,

Other systems

356K

CTMA OVERVIEW

3

over 303Multi-participant

projects by FY 2016

17Awards forinnovation

$75MApplied in OSD &

Congressional funds

$115MService-directed

funds applied

$151MIndustry cost

share contributed

$450MCost savings

to date

$8BTotal projected

savings by 2023

92%Technology transition

rate since 2005

CTMA is the only DoD-wide

program focused solely on

maintenance improvements

Last updated: 10-16 Mod 8

NCMS/CTMA TRACK RECORD

4

71%38%

25%15%

13%17%

44%52%

0% 20% 40% 60% 80%

Cost Savings

Mx Avoidance & Reliability

Environmental

Mx Management Improvement

Project Impact

% of Projects Impacting Major Mx Criteria

33%

92%

49%

92%

0% 20% 40% 60% 80% 100%

1998 to2005

Completed2005+

Deployment Rates

% of Dollars Applied to CTMA Projects Resulting in Transition

% of CTMA Projects Transitioned in Maintenance Operations

$0

$5

$10

$15

$20

$25

$30

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Mill

ion

s

Total CTMA Funding Profile $186,806,599

Congressionally-Directed Funds Service-Directed Funds

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

202

1

202

2

202

3

Cumulative Results

$8BActual

Projection

$450M

$10M

A UNIQUE COLLABORATIVE STREAMLINED APPROACH

• Cooperative Agreement

• Streamline business process – 45 days cradle to execution

• Leverages industry innovation

• Facilitates cross industry / cross service collaboration

• Requires industry investment

• Evaluate / Demonstrate / Validate

• Communicate / Champion / Outreach – DoD Wide Transition

Timeline to Procurement

The CTMA Product:

0 5 10 15 20 25 30 35

CTMATraditional

Months

CTMA initiatives are moving forward to transition while

traditional development efforts are still initiating contracts.

• Existing cooperative agreement with broad applicability

(FAR compliance not required)

• Military Interdepartmental Procurement Request (MIPR)

(Ease of funding transfer from services to the CTMA contract vehicle)

• MIPR normally accepted within 1 – 2 days

(At this point funds have been committed)

• Streamline CA 30 – 45 days(Time that MIPR is issued to contract mod,funds have been obligated)

COOPERATIVE AGREEMENT

INITIATIVE EXECUTION VALUE

• Well staffed technology transition professionals

• Funding available for business development

• Streamline process execution

• Business to business contracting

• Working in parallel for project formation andproject execution

• Expedient and seamless

• Leverage government funding

• Streamlined technology transition

Try it before you buy it

INITIATIVE EXECUTION VALUE (CONT.)

• Turn key operation

• Streamlined well documented process

• Government sponsor can focus on steering, requirements development, evaluation of capability (SME)

• NCMS focuses on blocking / tackling, meeting coordination, accounting, contracting and reporting

• NCMS is responsible for coordinating and delivering the reports, business case analysis project data

• NCMS is a technology transition leader• Focus on transition

CTMA AWARENESS AND OUTREACH

9

• Cross-pollination

• CTMA Connector - Highlight activities and

technologies

• Joint Technology Exchange Group

• Technology Calls

• Industry Days / Technology Showcases

• Partners Meeting

• Partnerships: AMMO, JIT, ECRC,

America Makes Mx and Sustainment

Advisory Group, Composite Maintainers

• DoD Mx Symposium

Changing Mx Paradigms

Advanced NDI

Data Interoperability

EWIS

3FAST

Cold Spray

Automated Laser Coating Removal

Synthetic Instrumentation

Additive Manufacturing

“Big Data” Analysis

Intermittent Electronics Repair

“CTMA is changing the very nature of

DoD maintenance” ~ Bill Black, Col USMC retired

CTMA: Legacy of Success; Relevance

Going Forward

• Masterful technology transition provides solutions to problems

• CTMA is a force multiplier for available resources (gov’t, industry, academia)

• Initiatives consistently produce substantial benefits

• Delivers value across multiple DoD focus areas

• Collaborative streamlined business process

• Mx Technology is a key element in DoD’s strategy to reduce life cycle O&S costs

• Mx costs will continue in order to maintain legacy assets

• Collaboration creates unity of efforts and enables leveraging resources

Formation

Approval

Closeout

Transition

Execution

Release Report Showcase Technology Develop Requirements Document Promote Benefits across DoD

Define Need Define Concept ID Potential Technologies Qualify Potential Technology Providers

Prepare Documentation Submit for Approval Notify Project Participants Initiate Sub-Awardee Agreements

Kickoff Meeting Finalize Tasks, Deliverables Track Progress, Resolve Issues Monthly, Quarterly Reporting

Assure Deliverables Met Quantify Benefits, Transition Plan Prepare, Issue Final Report Closeout Sub-Awardee Contracts

CTMA Collaborative Project Process

12

TECHNOLOGY SHOWCASEPURPOSE

• Purpose – bring industry and specific DoD Mx facilities together

• Industry is onsite to develop deeper understanding of DoD Mx operations

• DoD artisans are exposed to technology capabilities that can benefit their operations

• OSD, Depot Mx, Industry and CTMA/NCMS alignment

Fulfill Depot Technology Needs / Gaps