Mr. RAY. General Murray, Mr. Mills, I am going to be presiding until the Chairman gets back, so we will not lose any time here. Before we begin, General Murray, it would be helpful if you would take us through the charts that you have prepared on the Army's supply system and then we can get to the testimony.

STATEMENT OF MAJ. GEN. CHARLES M. MURRAY, DIRECTOR OF SUPPLY AND MAINTENANCE, OFFICE OF THE DEPUTY CHIEF OF STAFF FOR LOGISTICS, DEPARTMENT OF THE ARMY; ACCOMPANIED BY: A. DAVID MILLS, ASSISTANT DEPUTY CHIEF OF STAFF FOR SUPPLY, MAINTENANCE AND TRANSPORTATION, HEADQUARTERS, U.S. ARMY MATERIEL COMMAND

General MURRAY. Very well, sir. I would be happy to do that. The Chart 1 is a pictorial representation of the Army supply system illustrating both the wholesale and the retail side.

ARMY SUPPLY STRUCTURE

In the wholesale levels, you will see the Army Materiel Command, the Defense Logistics Agency, and the General Services Administration. Those items that we will be discussing today are handled by the Army Materiel Command.

The Defense Logistics Agency handles consumable items, and the General Services Administration handles expendables, paper, pencils, diskettes, so forth.

The Army Materiel Command procures items from civilian industry as well as produces items in its arsenals and its plants. It repairs items in its depot system. Those items are then issued upon request through to the retail system. The retail level consists of in

stallations overseas, our corps level facilities, down to supply support activities, and our direct and general support units, and from them down to our combat battalions.

In Mr. Davis' testimony, he would say that there was no visibility between those two segments of the system. It is, in fact, an integrated system. Perhaps not as integrated as any of us would care for, but there is some viable visibility, asset visibility, between those two levels.

One is in the area of the SIMS-X, Selected Item Management System-Expanded. Now, that system currently has in it about 4,500 high dollar value critical readiness items. Those items are reported on a transactional basis to the item managers in the national inventory control points.

Also, we have a continuing balance system, CBS-X, which reports on property book items with a value of $5,000 or higher. Again these are reported on a transactional basis to the item managers.

So, for those items, the SIMS-X and the CBS-X, the wholesale item manager does have visibility down to retail level.

If we refer to Chart Number 2, sir, that reflects the Army Materiel Command's Commodity Commands, with their locations and the commodities they handle. In the upper right, you see the Tank Automotive Command located in Detroit. It has responsibility for tank automotive items, tanks, trucks, etc.

AMC'S COMMODITY COMMANDS

NATIONAL INVENTORY CONTROL POINT-NATIONAL MAINTENANCE POINT

The Communications Electronics Command in Fort Monmouth, NJ, handles radios and those items. The Army Materiel Command Headquarters is located here in Alexandria, VA. In Alabama, the

Missile Command. In St. Louis, we have two commands. The Aviation Systems Command, handles helicopters and its subsystems. The Troop Support Command handles a variety of items, from boats and barges to clothing, etc. In Rock Island Arsenal, the Armament, Munitions and Chemical Command handles those commodities.

Each one of those commodity commands has two primary functions. One, the national inventory control point, manages items. They develop the requirements for items, distribute those items upon request, and manage the items internally. The national maintenance point develops the maintenance criteria and maintenance policy for the commodities handled and runs the depot maintenance program for those items.

Sir, on Chart 3, we show the Depot Systems Command and the depots of the Army Materiel Command. Fifteen depots and depot activities in ten different states, commanded and controlled by the Depot Systems Command located at New Cumberland Army Depot. DEPOT SYSTEM COMMAND (DESCOM) DEPOTS AND DEPOT ACTIVITIES

Many of these depots are purely supply. Others have both a supply and maintenance mission. As Mr. Davis pointed out, Anniston Army Depot in Alabama has the depot repair mission for tanks. Red River Army Depot in Texarkana, TX, has the depot maintenance mission for Army personnel carriers.

Corpus Christi in Corpus Christi, TX, does depot maintenance of helicopters. Sharpe Army Depot-excuse me. Sacramento Army Depot in Sacramento, CA, repairs communications electronics devices. Tobyhanna in Pennsylvania also handles communications

electronics devices. Letterkenny Army Depot repairs trucks and weapon systems.

So, we have both a supply and maintenance mission in those various depots.

Sir, if you would refer to Chart Number 4. It is a generalized description of the flow of the materiel throughout the Army. On the right-hand side of the chart, you see unit and PLL. PLL is prescribed load list. It is in the hands of soldiers at the company battery troop level. It consists of about 15 days of supply on low dollar value, easily replaceable items that are replaced by the soldiers in the unit.

Behind that, you see the Direct Support Unit with an ASL, Authorized Stockage List. This has about 60 days of supply overseas, about 45 days of supply in the Continental United States (CONUS). The difference being the order and ship time differentials between CONUS and overseas units. ASLS umbrella the PLLs. Each ASL supports any where from twenty to twenty-five PLLs. It stocks the same items as on the PLL, as well as safety, climatic and legal items which are necessary to maintain the safe operation of the equipment.

The requisition, the request for a part is passed from the PLL through the ASL, through the corps level, to the DAAS, the Defense Automatic Addressal System. DAAS, because of the codes on that request, knows to which national inventory control point to pass the request.

It releases the request for supplies to the national inventory control point, which cuts the materiel release order to the appropriate depot. The materiel flows back directly to the ASL level for issue to the PLL level. That system-that flow in itself demonstrates an integration of the Army supply system. The demand placed by that unit is a part of the demands which causes the wholesale system to buy and stock materiel.

So, there is an integration and connectivity between those two systems.

On Chart 5, sir, is the flow or the retrograde of Army materiel. We have heard some discussion on that this morning as the Automatic Return Items program. The materiel flows from unit level to its ASL level, corps level. At corps a determination is made whether property should be disposed of and, if so, sent to a Defense Reutilization and Marketing Office, or to a project stock or war reserve, if it is in serviceable condition, or perhaps returned to depot for repair and overhaul.

ARMY MATERIEL RETURNS PROGRAM

Sir, that is a very brief and generalized description of the Army's supply system. I would point out that there is connectivity between the wholesale and retail levels and some integration, perhaps not as much as we would care for.

Mr. RAY. You may proceed with your testimony.

General MURRAY. Thank you, sir.

I would like to introduce Mr. A. David Mills. Mr. Mills is the Assistant Deputy Chief of Staff for Supply, Maintenance and Trans