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Activity Group Capital Investment Summary DEFENSE LOGISTICS

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Activity Group Capital Investment Summary DEFENSE LOGISTICS DEFENSE LOGISTICS AGENCY Defense-Wide Working Capital Fund Distribution Depots Activity Group Fiscal Year (FY) 2003 Budget Estimates Activity Group Capital Investment Summary (Dollars in Millions) Line FY 2001 FY 2002 FY 2003 Number Item Description Quantity Total Cost Quantity Total Cost Quantity Total Cost EQUIPMENT (Non ADP/T) $0.1 to $0.499 17 4.1 8 1.4 8 1.2 REP 000 Replacement 6 1.4 7 1.2 6 0.8 PRD 000 Productivity 11 2.7 1 0.1 2 0.4 NEW 000 New Mission EQUIPMENT (Non ADP/T) $0.5 to $0.999 1 0.4 3 2.5 3 2.6 REP 100 Replacement 1 0.4 2 1.8 PRD 100 Productivity 3 2.5 1 0.9 NEW 100 New Mission EQUIPMENT (Non ADP/T) $1.0 and Over 4 11.4 4 12.5 5 10.7 REP 200 Replacement 2 3.9 2 7.2 2 3.5 PRD 200 Productivity 2 7.5 2 5.3 3 7.2 NEW 200 New Mission TOTAL EQUIPMENT (Non ADP/T) 22 15.9 15 16.3 16 14.5 ADP 000 ADP/T EQUIPMENT $0.1 To $0.499 26 11.3 21 4.6 22 15.1 ADP 100 ADP/T EQUIPMENT $0.5 To $0.999 ADP 200 ADP/T EQUIPMENT $1.0 and Over 1 2.2 2 2.7 TOTAL EQUIPMENT (ADP/T) 26 11.3 22 6.8 24 17.8 SWD 000 SOFTWARE DEVELOPMENT $0.1 To $0.499 SWD 100 SOFTWARE DEVELOPMENT $0.5 To $0.999 SWD 200 SOFTWARE DEVELOPMENT $1.0 and Over 3.5 1.7 11.5 TOTAL SOFTWARE DEVELOPMENT 3.5 1.7 11.5 RPM 000 MINOR CONSTRUCTION 10.0 7.3 7.5 TOTAL AGENCY CAPITAL INVESTMENTS 48 40.7 37 32.1 40 51.4 A. Budget Submission Fiscal Year (FY) 2003 Activity Group Capital Investment Justification Budget Estimates (Dollars in Thousands) B. Component/Activity Group/Date Defense Logistics Agency C. Line Number & Item Description D. Activity Identification Distribution Depot Activity Group February 2002 REP 000 Replacement Equipment $0.1 to $0.499 FY 2001 FY 2002 FY 2003 Element of Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Total REP 000 6 237 1,422 7 176.7 1,237 6 130 780 Narrative Justification: These investments for forklifts, trucks and miscellaneous warehouse equipment are required to replace existing items with similar characteristics that have reached or significantly exceeded the useful life established for these categories. Based on guidance contained in various Department of Defense (DoD) governing policies, the Defense Logistics Agency (DLA) has established replacement and life expectancy standards for all categories of investment equipment. The standards are based on life expectancy with consideration given to condition, usage hours, and/or repair costs. DLA establishes age, utilization, and repair standards based on industry information and experience in the absence of DoD acquisition and replacement criteria relative to unusual categories of equipment. FY 2003 projects include: Three transporter trucks ($130,000) at New Cumberland, two transporter trucks ($130,000) at Tracy and one transporter truck ($130,000) at Albany. The Savings to Investment Ratio (SIR) for these projects ranges from 2.52 to 4.16 and the payback period ranges from 1.91 to 3.60 years. A. Budget Submission Fiscal Year (FY) 2003 Activity Group Capital Investment Justification Budget Estimates (Dollars in Thousands) B. Component/Activity Group/Date Defense Logistics Agency C. Line Number & Item Description D. Activity Identification Distribution Depot Activity Group February 2002 PRD 000 Productivity Equipment $0.1 to $0.499 FY 2001 FY 2002 FY 2003 Element of Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Total PRD 000 11 243.1 2,674 1 125 125 2 196.5 393 Narrative Justification: FY 2003 projects include: Auto towline unload station ($175,000) at Red River and audio visual equipment ($218,000) for conference/training center at New Cumberland. The Savings to Investment Ratio (SIR) for these projects ranges from 2.65 to 4.62 and the payback period ranges from 1.92 to 3.42 years. A. Budget Submission Fiscal Year (FY) 2003 Activity Group Capital Investment Justification Budget Estimates (Dollars in Thousands) B. Component/Activity Group/Date Defense Logistics Agency C. Line Number & Item Description D. Activity Identification Distribution Depot Activity Group February 2002 REP 100 Replacement Equipment $0.5 to $0.999 FY 2001 FY 2002 FY 2003 Element of Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost REP 100-01 1 960 960 Tractor/Crawler (DDAG) Narrative Justification: The proposed tractor/crawler crane will replace the over-aged unit at Distribution Depot Albany. This unit has been in service at Albany since 1980 and has been extensively used by the Defense Logistics Agency (DLA) to support the receipt and issue of Abrams M1 tanks that have been repaired or rebuilt at the Marine station. This crane will be used to load and unload M1 tanks onto and from railroad cars and move immobile tanks. The Depot Transportation Division at Albany will also use this unit for the receiving, moving, and shipping of heavy materials. If the unit is not replaced in FY 2003, there is a high probability that the existing unit will reach an irreparable status. This will result in the degradation of the mission to provide Marine Corp support in the handling of heavy items. The Savings to Investment Ratio (SIR) is 7.9 and the discounted payback is 1.6 years. A. Budget Submission Fiscal Year (FY) 2003 Activity Group Capital Investment Justification Budget Estimates (Dollars in Thousands) B. Component/Activity Group/Date Defense Logistics Agency C. Line Number & Item Description D. Activity Identification Distribution Depot Activity Group February 2002 REP 100 Replacement Equipment $0.5 to $0.999 FY 2001 FY 2002 FY 2003 Element of Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost REP 100-02 Shipping System Upgrade 1 810 810 (DDOO) Narrative Justification: This project provides for material handling equipment/systems to replace the existing shipping conveyor system in building 506 at Defense Distribution Depot Oklahoma City (DDOO). This new system includes a package sortation and conveyor system and programmable logic controllers (PLCs). The new system will improve efficiency in package flow patterns, automate controls throughout the entire system and enhance workstation capabilities with the use of ergonomics. Installation of the new material handling equipment/systems will reduce overall material handling costs, increase package throughput rates, enhance energy efficiencies, enhance employee productivity, lower maintenance costs, and provide an overall improved delivery rate to customers. The existing system was installed in 1975 and has been modified many times. Many of these retrofits have left DDOO with a package shipping system that is mis-matched, as well as labor and maintenance intensive. To continue using the existing equipment/system without replacement/refurbishment will require manual methods where the system is unusable/obsolete. The discounted payback period is 4.14 years and the Savings to Investment Ratio (SIR) is 2.21. A. Budget Submission Fiscal Year (FY) 2003 Activity Group Capital Investment Justification Budget Estimates (Dollars in Thousands) B. Component/Activity Group/Date Defense Logistics Agency C. Line Number & Item Description D. Activity Identification Distribution Depot Activity Group February 2002 PRD 100 Productivity Equipment $0.5 to $0.999 FY 2001 FY 2002 FY 2003 Element of Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost PRD 100-03 Receiving Conveyor System 1 850 850 Addition (DDJC) Narrative Justification: The receiving conveyor system addition will provide a mechanized sort capability with a link between the small parcel carrier and the existing small parcel receiving conveyor system in building 16B-1. The addition is required to eliminate manual sortation of small parcels. New controls and changes to the existing programming are also required to ensure that the conveyors function properly. The system will provide 8 sort lanes with diverters and workstation equipment to process the material that is currently sorted manually. The Savings to Investment Ratio (SIR) is 1.89 and discounted payback is 4.89. A. Budget Submission Fiscal Year (FY) 2003 Activity Group Capital Investment Justification Budget Estimates (Dollars in Thousands) B. Component/Activity Group/Date Defense Logistics Agency C. Line Number & Item Description D. Activity Identification Distribution Depot Activity Group February 2002 REP 200 Replacement Equipment $1.0 and Over FY 2001 FY 2002 FY 2003 Element of Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost REP 200-01 Storage System Refurbishment, 1 1,720 1,720 Bldg 13 (DDJC) Narrative Justification: This project provides the material handling equipment/systems to refurbish/replace the existing narrow aisle, wire guided rack storage system, wire guided stock selectors, wire guided turret trucks, the associated wire guidance system, cable-reel specialized handling equipment, and associated workstation equipment in building 13. The existing storage system and associated equipment was installed in 1987 and needs replacement/refurbishment to continue meeting operational requirements. Installation of this new equipment will lower overall material handling and maintenance costs, reduce facility space requirements and decrease warehouse receiving, storage and shipping times. To continue using the existing equipment/systems without replacement/refurbishment will require manual methods where the system is unusable/obsolete.
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