Friday, March 13, 2015

Reader comments -- ammo sourcing

Blacktail

The same thing happened to Col. Robert "Bob" Dilger.
In 1973, it was expected that the 30x173mm ammunition for the A-10's GAU-8 Avenger cannon would cost $83 a pop; pretty steep for a 30mm shell, even by today's standards. The DoD's accountants predicted that even in a best-case scenario, these rounds would never cost less than $20 apiece.
Dilger thought differently, and organized the LAVP (Lot Acceptance Verification Program) tests for this ammunition. In part, it was a competition between Honeywell Ordnance and Aerojet Ordnance, which encouraged them to compete to see who could offer the lest expensive 30mm ammunition without sacrificing quality. The reward was that the winner would sell 10% more ammunition to the USAF; the loser would still make a handsome profit.
This drive the pricetag down *well below* $20, and the most expensive of the three 30mm shell models ended up costing only $12.84.
As a result of LAVP , a development program predicted to cost $1 Billion ended up being $144 Million cheaper (almost 15% less). Even more impressive was that the same approach was applied to the packaging for the ammunition, which had been expected to cost a combined total of $254 Million to manufacture over the duration of production --- Dilger drove the cost down to just $62 Million.
And for that, Col. Dilger was out on his @$$, pased-over for promotion three times in a row.


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