Establishment of an early warning system for diminishing sources of materials and critical components and parts supply (DoD Directive 4005.16, copy enclosed). Encouragement of wider recognition of the potential of appropriations authorization under Title III of the Defense Production Act of 1950, as amended, to remedy materials shortages and deficiencies in production capacity. Encouragement of modern technology advances through the DoD Manufacturing Technology Program to make U.S. industry more competitive with foreign production sources. 96-305 - 77 - 12 Refs.: (b) (DMSMS) (a) DoD Directive 4005.1, "DoD Industrial Prepared- (c) (a) I. II. III. PURPOSE This Directive establishes policies and assigns responsi- APPLICABILITY AND SCOPE A. The provisions of this Directive apply to the Office of B. Its provisions encompass items and materials used and DEFINITIONS As used in this Directive, the definitions in enclosure 1 apply. IV. V. VI. POLICY DoD Components shall assure that timely actions are initiated when A. B. The applicable end items have been replaced, modified, phased Sufficient item assets or manufacturing/supply capabilities OBJECTIVES A. B. C. Minimize the impact of diminishing sources and material shortages upon Defense Programs by the initiation of prompt and timely actions to assure the availability of critical materials and manufacturing capabilities to support current and planned Defense requirements. Improve operational readiness by undertaking prompt action to identify and implement the most effective solution consistent with overall mission requirements. Improve timeliness of response in diminishing source and mate- D. Improve communications, coordination, problem analysis and solution by establishing a single organizational focal point within each DoD Component responsible for dealing with material shortage and diminishing source problems. RESPONSIBILITIES A. The Assistant Secretary of Defense (Installations and Logistics) (ASD(I&L) shall be responsible for: 1. Overall policy and guidance in matters pertaining to the has discontinued, or is projected to discontine production B. Dec 3, 76 4005.16 2. Resolving proposed actions which do not have the concurrence of all affected DoD Components. 3. Developing policies and providing review for those resources identified in DoD Component budget submissions that relate to diminishing manufacturing sources and material shortages relative to both U.S. and International Logistics Support requirements. 4. Establishing and maintaining a single organizational focal point to deal with material shortage and diminishing source situations within DoD and between other agency headquarters. DOD Components on a normal working basis shall coordinate with operational activities within other Government agencies on the identification of critical items and possible solutions, and action criteria for items affected by the loss or potential loss of critical manufacturing source, or supplier of material. Implementation will be in accordance with the policies, plans, programs and guidance provided by the Assistant Secretary of Defense (Installations and Logistics), and this Directive. This responsibility includes: 1. Establishing and maintaining a single organizational focal point to monitor all material shortage and diminishing source situations. 2. Developing plans and simplified coordination mechanisms to deal with existing and potential diminishing manufacturing sources and material shortages, including interaction with Department of Commerce, Environmental Protection Agency, Occupational Safety and Health Administration, and other Government activities. 3. Taking rapid remedial action when faced with a material shortage or manufacturer phaseout. Action alternatives include: 8. b. Finding new sources. (In exceptional cases foreign sources can be considered, except where Industrial Preparedness Planning (IPP) is involved and foreign source would be the sole source.) Encouraging industry to continue production. 4. g. Modifying equipment and/or repair part. h. 1. J. k. Utilizing Secretarial determination and findings (D&F) to ensure that appropriate procurement actions are taken to preserve the industrial source necessary to meet industrial preparedness requirements. Also joint DOD Component D&Fs will be established where procurement must be allocated to preserve the base. Invoking Defense Production Act authorities (Special Priorities Initiating life of type buy. Where the items are secondary Ensuring that a cost/availability tradeoff determination is accomplished between support alternatives for existing end item and possible replacement by a new or substitute end item. Initiating actions to reduce reliance on sole source manufacturers and suppliers through the development of additional sources or coordination of substitute items with equipment users. 5. Maintaining close contact with industrial/scientific and engineering organizations and industry through a system of followups to discern future trends. 6. Using engineering, standardization and technical organizations to assure that the most current standard or preferred parts are used in systems design and development. 7. Reviewing the efforts of other Government departments in the area of material shortages and production phaseouts. Use output from their system where possible and ensure that a compatible data interchange method is established. Communicate DoD-related data directly to all concerned DoD Components, and through Office of Assistant Secretary of Defense (Installations and Logistics) to other Government agencies. 8. Developing compatible management techniques through coordination with other DoD Components and ensure that adequate information and controls for material shortage and diminishing source situations. 9. Ensuring that diminishing manufacturing sources and material shortages are recognized in the DSARC proceedings. |