Department of Defence Chief Logistics 1 EXCESSIVE STOCK MANAGEMENT WITHIN THE DEPARTMENT OF DEFENCE...
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Transcript of Department of Defence Chief Logistics 1 EXCESSIVE STOCK MANAGEMENT WITHIN THE DEPARTMENT OF DEFENCE...
Department of Defence Chief Logistics
1
EXCESSIVE STOCK MANAGEMENT WITHIN THE DEPARTMENT OF
DEFENCE
Portfolio Committee on Defence
26 August 2003
Department of Defence Chief Logistics
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DOD DELEGATIONPresenter:Major General T.A. Ntsibande - Chief Logistics
Representatives:SA Army – Brigadier General I.R. JohnsonSA Air Force – Major General E.H. DertSA Navy – Rear Admiral (JG) T.M. ButlerSAMHS – Brigadier General H. WallisDOD Log Sup Fmn – Brigadier General B. LinksLogistics Division – Colonel M.J. Craig
Department of Defence Chief Logistics
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AIM
To inform the Portfolio Committee on Defence on the progress made with the management of excessive stock in the DOD
Department of Defence Chief Logistics
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SCOPE• History
– Modus Operandi
• Current status within the DOD– ARMSCOR initiative– Present Situation– Problems encountered
• Current actions taking place in– SA Army– SA Air Force– SA Navy– SA Military Health Service
Department of Defence Chief Logistics
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HISTORY
• 1998 Auditor General report• SCOPA• Reasons originally given for
excessive stock position– Weapon and equipment stockpiling
during embargo period– Transformation process– DOD still determining new Force
Design
Department of Defence Chief Logistics
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Modus Operandi
• Each Service and Division manages own disposal plans
• Reports progress on a monthly basis to Chief Logistics
• Progress managed at top level
• Streamlined disposal process
• Use ARMSCOR as disposal agent
Department of Defence Chief Logistics
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CURRENT STATUS
• During 2003/2004 financial year 171 disposal plans are being managed to the total value of RB 4,812.
• Plans are being managed by– SA Army: 31 Plans – RB 2,445– SA Air Force: 98 Plans – RB 1,695– SA Navy: 34 Plans – RM 643,2– SAMHS: 8 Plans – RM 29,229
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Armscor Initiative
• ARMSCOR presently being used as an agent to manage all Cat 1 equipment that is to be disposed of, on behalf of the DOD.
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Present Situation• Disposals
– 3 Auctions – RM 5.1– 11 Tenders – RM 4.9– Donations to Namibia (144mm ammo)RM 90,45 (2 839 tons)
• ARMSCOR– 102 transactions Stock Sales – RM 155 – Stock Transfer of Cat 1 equipment - RM 325
• Problems– Ammo Disposal Plant– NCACC– Ledger values
Department of Defence Chief Logistics
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Problems Encountered• Ammo Disposal Plant
– 141 000 tons of ammunition– Average age – 17 years old– 90% out of manufacturers warranty (10 -11 years)– 67 000 tons expired, obsolete, redundant, re-workable,
or un-serviceable– Safety not guaranteed by manufacturer– Need a safe environmentally friendly disposal
capability– Request for proposal to industry on 4 Jul 2003– Response has been received
• NCACC– Local buyers have to register with NCACC – lengthens
process
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SA ARMYCURRENT SITUATION• The SA Army’s only approved force
structure is that of the transitional force design.
• Until such time as the affordable structure is approved no responsible down scaling can be done of (any) serviceable equipment.
• For this reason only obsolete and beyond economical repair equipment to the book value of RB 2.445 has been programmed for disposal.
Department of Defence Chief Logistics
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SA ARMYAPPROACH TO DISPOSAL • The main focus of effort concentrated on
the Auditor Generals concern that in the SA Army’s case there is excessive stock in the depots.
• With this in mind armoured vehicles, air defence and vehicle platforms were concentrated on to decrease the monetary value of the stock.
• Other systems will be handled concurrently with the view to decreasing the number of items.
Department of Defence Chief Logistics
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SA ARMYARMOURED VEHICLE SYSTEMS • The Army has standardised on the following
Armoured systems Ratel Mk 3, Rooikat Mk 1 (Lot 3) and Olifant Mk 1A for the medium term and Olifant Mk 1 B for the long term..
• Ratel Infantry Fighting Vehicle MK 1&2 (99) RM 325 (31 Oct 02 – 29 Aug 03).
• Ratel Mk3 Infantry Fighting Vehicle 3 (100) RM 320 (sold).
• Ratel Mk 3 Infantry Fighting Vehicle (155) RM 487 (30 Jun 03 –26 Sep 03).
Department of Defence Chief Logistics
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SA ARMYARMOURED VEHICLES (CONT) • Rooikat Armoured Car PPM (28) RM 196 (3
Mar 03 – 25 Nov 04).• Rooikat Armoured Car Mk 1 (6) RM 84 (3
Mar 03 – 27 Feb 04).• Eland Armoured Car (80) RM 23.5 (on
marketing list 27 Apr 03).• Olifant Tanks Mk 1A (14) RM 68 (on
marketing list 25 Mar 03).
Department of Defence Chief Logistics
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SA ARMYINFANTRY • After previous widely publicised disposal
efforts very little remained. The routine expiry of parachutes for safety reasons were also included
• Rifle Magazines ( 134 000) RM 6 (On stock list)
• Parachutes (2 300) RM 2 (3 Sep 03 -11 Nov 03)
Department of Defence Chief Logistics
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SA ARMYARTILLERY
• The GV1 25 pdr down graded to ceremonial and burial duties only the last remnants of the 140mm not donated to Angola
• GV2 140 mm Gun ( System) RM 9 (3 Apr 03 -27 Feb 04)
Department of Defence Chief Logistics
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SA ARMYAIR DEFENCE ARTILLERY • The Air Defence has standardised on the 35 mm
Mk 5 system and all other systems now obsolete
• 35 mm Mk 1 System (100 Guns) RM 1,103 (19 Mar 03 – 2 Feb 04).
• 20 mm (117 Guns) RM 115 (4 Mar 03 – 2 Feb 04).
• 14.5 mm (24 Guns) RM 6 (4 Mar 03 – 2 Feb 04).
• 23 mm (32)m RM 96 ( 29 Jul 03 – 20 Jun 07).
Department of Defence Chief Logistics
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SA ARMYCLOTHING • Major effort here was to rid the SA Army of
the remaining odd sizes of Nutria clothing not enough to issue even a single units intake.
• Nutria Clothing (System) RM 41 (On stock list)
• Obsolete Women's Clothing (Various) RM 7 (20 Jul 03 - 29 Mar 04)
• General Commodities (Various) RM 9 (20 Jul 03 - 29 Mar 04)
Department of Defence Chief Logistics
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SA ARMY B VEHICLES
• Samil Vehicles in Vehicle Reserve Park (1704) RM 283
(Transferred to Armscor for sale)
• Samil Vehicle Spares (Various) RM 64 (2004/2005)
• Samil Vehicles at Units (1,049)
RM107 125 978 (2004/2005)
Department of Defence Chief Logistics
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SA ARMY
C VEHICLES
• 580 C Vehicles will be phased out in the short to medium term
• C Vehicles (73) RM 3 191 000 (12 Feb 03-15 Aug 03)
Department of Defence Chief Logistics
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SA ARMY
FUTURE INTENT
• As soon as the Affordable Force has been approved by the Minister the SA Army will determine surpluses and initiate a second major wave of disposal
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SA AIR FORCE• Imperatives
– SCOPA resolutions
– Treasury Regulations
– Revenue accrued from sales
• 98 disposal plans– Consolidated into 7 groups
• Total value – RB 1,695
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SA AIR FORCE
• Impala Mk I and Mk II aircraft– 38 aircraft, 11 on tender in Mar 03– NCACC authority awaited– Start date – 15/1/1997– Expected end date – 31/12/2003– Value – R5 430
Department of Defence Chief Logistics
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SA AIR FORCE
• Mirage F1 aircraft– 21 aircraft including spares– Gabon interested in 6 aircraft– Start date – 09/09/1997– Expected end date – 31/12/2003– Value – RM 520
Department of Defence Chief Logistics
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SA AIR FORCE
• Cheetah C and D aircraft– 3 Cheetah D dual seat aircraft– 17 Cheetah C single seat aircraft– Brazil interested in 14 aircraft– Start date – 12/03/1999– Expected end date – 31/12/2003– Value – RM 2 (Cheetah D)– Value – R 0 (Cheetah C)
Department of Defence Chief Logistics
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SA AIR FORCE• Alouette III Helicopters
– 3 aircraft– 7 stripped down airframes– Stripped down airframes on tender in
March 03– Awaiting NCACC authority– Start date – 06/02/2002– Expected end date – 31/12/2003– Value – RM 1
Department of Defence Chief Logistics
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SA AIR FORCE
• Boeing 707 aircraft– 2 aircraft including spares– Spanish firm registered interest– Need to return aircraft to flying
condition. ARMSCOR investigating– Start date – 06/02/2002– Expected end date – 31/12/2003– Value – RM 1
Department of Defence Chief Logistics
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SA AIR FORCE
• C-47 TP Dakota aircraft– 2 aircraft – 1 fuselage– 2 aircraft recently sold. Finalising
sale.– Start date – 01/02/2002– Expected end date – 31/12/2003– Value – RM 6
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SA AIR FORCE
• Spares, engines, armament and tools
– 40 plans
– 11 plans on tender in Mar 2003
– Start date – 01/06/2002
– Expected end date – 31/12/2003
– Value – RB 1,135
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SA NAVY
Current situation:– Qty 34 disposal plans
consolidated into 7 groups (sub-plans) to value of RM 643,2.
Department of Defence Chief Logistics
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SA NAVY• Current actions taking place:
– Ordnance Spares at Depots (7 sub-plans)• EOD/IEDD Equipment• Mk 44 Torpedoes• Non Ops Small Arms• R4 Rifle Accessories• 40/60 Weapons System• Gun Mountings 40/60 Mk 5• 20mm Guns and Mountings
Department of Defence Chief Logistics
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SA NAVY
– Ordnance Spares at Depots (cont)• Start Date: 28/09/00• End Date: 30/09/03• Value: RM 2,29 (excluding 40/60
Weapon System as value still awaited)
Department of Defence Chief Logistics
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SA NAVY– TON Class Minesweepers (6 sub-
plans)• SAS KIMBERLEY (platform)• SAS EAST LONDON (platform)• SAS WINDHOEK (platform)• SAS WALVISBAAI (platform)• Influence Sweep Gear• Minesweeper Inventory
– Minesweepers• Start Date: 18/07/00• End Date: 22/10/02 (sold on tender)• Value: RM 2,6
Department of Defence Chief Logistics
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SA NAVY– Minesweeper Influence Sweep Gear
• Start Date: 18/07/00• End Date: 22/11/02 (to be sold on
tender)• Value: R380 184
– Minesweeping Inventory• Start Date: 03/04/00• End Date: 26/03/04• Value: Awaited
Department of Defence Chief Logistics
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SA NAVY– Warrior Class Strike Craft (10 sub-plans)
• SAS JAN SMUTS (platform)• SAS SHAKA (platform)• SAS SEKUKHUNE (platform)• SAS RENE SETHREN (platform)• SAS ADAM KOK (platform)• SAS ISAAC DYOBHA (platform)• SAS GALESHEWE (platform)• SAS JOB MASEGO (platform)• SAS MAKHANDA (platform)• Strike Craft Inventory
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SA NAVY (cont)
– Strike Craft• No 1- 3 No 4 No 5 No 6 No 7- 9• Start Date: 03/10/01 03/10/01 01/10/04 01/01/04
02/07/07• End Date: 20/12/02 16/09/09 11/05/05 07/09/06 05/06/09• Value: RM 90,0 RM 30,0 RM 30,0 RM 30,0 RM 90,0
– Strike Craft Inventory• Start Date: 07/01/08• End Date: 11/12/09• Value: Awaited
Department of Defence Chief Logistics
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SA NAVY– Daphne Class Submarines (5 sub-plans)
• SAS SPEAR (platform)• SAS UMKHONTO (platform)• SAS ASSEGAAI (platform)• Submarine Spare Inventory• Submarine Weapons (Torpedoes)
– Submarines• No 1 (sold) No 2 No 3 • Start Date: 15/02/01 16/06/02 16/09/02 • End Date: 08/11/01 13/05/04 11/05/04 • Value: RM 120,0 RM 120,0 RM 120,0
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SA NAVY– Submarine Spares Inventory
• Start Date: 01/04/02• End Date: 14/05/04• Value: Awaited
– Submarine Weapons (Torpedoes)• Start Date: 01/08/03• End Date: 14/05/04• Value: Awaited
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SA NAVY– Support Ships (1 sub-plan)
• SAS FLEUR (platform)– Start Date: 21/07/03– End Date: 12/03/04– Value: RM 2,5
– Small Boats (5 sub-plans)
• Harbour Patrol Boats (donation qty 4)• Deutsche Schlauchbote (DSB’s) • Ferry “Malgoga”• Delta Boats (Qty 6)
• Vredenburg Boats (Qty 4)
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SA NAVY (cont)
– Small Boats (cont)• Harbour Patrol Boats (2 donated, 2 to be donated)
– Start Date: 15/01/02– End Date: 12/03/04– Value: R720 000
• Deutsche Schlauchbote (DSB’s)– Start Date: 03/06/02– End Date: 28/11/03– Value: Awaited
• Ferry “Malgoga”– Start Date: 03/06/02– End Date: 29/08/03
– Value: R300
Department of Defence Chief Logistics
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SA NAVY (cont)
– Small Boats (cont)• Delta Boats (qty 6)
– Start Date: 05/08/02– End Date: 29/08/03– Value: R538 188
• Vredenburg Boats (qty 4)– Start Date: 16/06/02– End Date: 18/09/03– Value: R299 596
Department of Defence Chief Logistics
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SA NAVY– Obsolete Depot Stock (ongoing)
• Bill of Material (BOM) Project by linking items of supply (IOS) to next higher assembly. IOS, which cannot be linked to an end use by means of the BOM, would therefore be candidates for disposal.
• As process is being progressed in a fragmented, but continuous manner.
• Total value to date and forwarded to the DOD Log Support Formation for disposal action is RM 3,868.
Department of Defence Chief Logistics
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SA MILITARY HEALTH SERVICES
• Current situation:
8 disposal plans consolidated into 7 groups (sub-plans) to value of RM 29,229
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SA MILITARY HEALTH SERVICES• Disposal Plans:
– Nutria Material R985 795
– Nutria Uniforms RM 6,2
– Vehicles SAMHS R729 151
– Signal Equipment Unknown
– Rinkhals Ambulances RM 19,8
– Metro Ambulances RM 1,33
– B and D SAMHS Vehicles Unknown
– Old SAMHS rank insignia R178 000
– Total value: RM 29,22