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PRIME EVENT: Tinker, community reach out to business during Tinker and the Primes

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  • By Howdy Stout
  • Tinker Public Affairs
TINKER AIR FORCE BASE, Okla. --  A top Department of Defense logistics official says the government needs to be more effective and efficient with its defense dollars, especially when it comes to maintaining equipment and weapons systems facing harsh use under war-time conditions.

Speaking at the fifth annual Tinker and the Primes business conference in Midwest City, Alan Estevez, the acting principal assistant deputy undersecretary of Defense for Logistics and Materiel Readiness, said his goal is to make sure the department's$190 billion budget is used effectively to support national defense.

"We need to do things smarter in order to sustain some of the things we're doing," he said.

Mr. Estevez said nearly 25 percent of maintenance money comes from supplemental war-time funding and a shortage in that supplemental funding would affect equipment maintenance unless the government embraces continuous improvement processes, such as Lean. Under the AFSO21 guise, the Air Force is already using Lean and other production improvement processes to improve depot-level maintenance.

"It is a great opportunity for us to get better," he said.

One of the issues facing defense logistics is supply chain management, Mr. Estevez explained. The department currently has $93 billion in material assets, yet logistics centers and maintainers in the field still run short of specific parts.

"That's true at the ALC ... and that's true out in the field," he said.

Mr. Estevez is a leading proponent of using Radio Frequency Identification to track and monitor spares inventory and delivery. The technology is widely used in the private sector by major retailers, such as Wal-Mart, to ensure stores are never out of stock of particular items. The system also prevents stores from being overstocked with items.

"We can be better," Mr. Estevez said. "We can learn things from the private sector."

Knowing what assets are owned and what are needed is essential in providing reliable and consistent logistic support, he said. Greater attention is needed in forward planning, anticipating what parts and services are required before they are actually needed.

Having greater logistics control is especially important for nuclear deterrent components, he added. An "uncomfortable event" where nuclear weapon components were shipped to Taiwan prompted a re-evaluation of how the US maintains control of certain nuclear-related items.

"It was a problematic event for us, the Air Force especially," he said.

As a result, how and where nuclear components are stored, catalogued and shipped is underway with old facilities being closed and new ones being constructed so the military maintains positive control over nuclear-related materials.

"Tinker happens to have a facility for that that we're putting in place," he said.

Lifecycle costs and maintenance requirements to new systems and weapons purchases also needs greater consideration, he said. In many cases, systems such as the KC-135 tanker are being maintained for up to 50 years of active service, much longer than originally anticipated. Maintenance costs can be 60 to 75 percent of the total cost of owning a system.

"The acquisition cost of a weapons system is not the biggest cost," he added.

Long-term maintenance costs need to be considered during any acquisition decision, he said, and worked into future defense budgets.

"If you don't do that, it's like the deficit," he added. "You're pushing the cost on to the next generation."

However, Mr. Estevez said, rapid procurements are sometimes necessary to ensure that new equipment - such as IED-resistant vehicles - is fielded quickly to meet new battlefield demands. Logistics will need to balance the need for capability with the ability to sustain new equipment.

The department will also continue to rely heavily on contractors to provide support and services to sustain the US military. Although the US has the ability to provide unrivaled logistics support for its military operations, it relies heavily on contractors to meet ongoing demands.

Contractors now outnumber US military personnel in Iraq and are on a par with US forces in Afghanistan. Not only are contractors essential at home and abroad, Mr. Estevez said, employing contractors is a crucial component in winning the war on terror.

"A lot of those folks, especially in Afghanistan, are local nationals," he explained. "We're building an economy in those nations, which is part of the counter-insurgency strategy."

Mr. Estevez was the keynote speaker for the Tinker and the Primes conference, an annual three-day event geared to helping local businesses establish contacts with Tinker officials and prime defense contractors at the base.