United States General Accounting Office

GAO Report to Congressional Requesters

March 1995 INDUSTRIAL BASE

Inventory and

Requirements for

Artillery Projectiles

GAO/NSIAD-95-89

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-260292 

March 20, 1995

The Honorable Ted Stevens

Chairman

The Honorable Daniel K. Inouye

Ranking Minority Member

Subcommittee on Defense

Committee on Appropriations

United States Senate

The Honorable C.W. Bill Young

Chairman

The Honorable John P. Murtha

Ranking Minority Member

Subcommittee on National Security

Committee on Appropriations

House of Representatives

In response to a requirement in the fiscal year 1995 conference committee

report on Department of Defense appropriations (H.R. 103-747), we

reviewed selected aspects of the Army’s industrial base for the production

of artillery projectile metal parts. This report provides information on

(1) the quantity, location, and condition of artillery projectiles in Army and

Marine Corps inventories and these inventories in comparison to stated

requirements; (2) the Army’s production base for artillery projectiles; and

(3) the Army’s plans for procuring new advanced artillery rounds.

Background As the Single Manager for Conventional Ammunition, the Army buys

conventional ammunition for the military services and maintains active

and inactive ammunition production lines for required conventional

ammunition items and components. The ammunition industrial base

provides the capability for producing 14 munitions commodity families

(such as artillery, bombs, and rockets) and hundreds of different end items

and components.

There are three categories of industrial base producers:

government-owned plants operated by the government,

government-owned plants operated by contractors, and contractor plants.

The plants are classified according to their production capability. For

example, plants that produce nonexplosive components, such as empty

projectiles, are called metal parts plants, while others that assemble the

Page 1 GAO/NSIAD-95-89 Artillery Projectiles
B-260292 

metal parts, other components, propellants, and explosives into complete

ammunition rounds are called load, assemble, and pack plants. Some have

dual capability; that is, metal parts production and load, assemble, and

pack. Since the break-up of the Soviet Union and the end of the Cold War,

the Army has been reducing the number of active munitions plants. The

downsizing currently in process results in an active munitions base for

1995 comprised of 9 government plants (3 operated by the government and

6 operated by contractors) and about 50 contractor plants.

The September 26, 1994, fiscal year 1995 conference committee report on

Department of Defense appropriations expressed concern about the

industrial base for production of artillery projectile metal parts and the

ability of this base to respond to requirements, both now and in the future.

Because of this concern, the conferees requested that we review the

inventory and requirements for artillery projectiles.

Results in Brief In November 1994, the Army had about 20.8 million artillery projectiles in

its inventory,1

 consisting of 27 different types of projectiles. This

inventory—stored at 18 U.S. locations, on 6 prepositioned ships, and in

3 other countries—was more than adequate to meet the Army’s stated

training and combat requirements2

 for most artillery projectiles. More than

98 percent of the inventory was categorized as usable. The Army inventory

for 3 artillery projectile types was a total of 172,059 below stated

requirements. On the other hand, the Army no longer had a need for

4 other projectile types because the Army had newer items in its inventory.

The Army had in inventory 653,229 of these older projectiles as of

November 1994. As of March 1995, the Marine Corps had a total inventory

of about 4 million artillery projectiles compared to a requirement of about

2.3 million projectiles. About 85 percent of its inventory was usable. Of the

Marine Corps’ 24 artillery projectile types, its inventory for 5 types was a

total of 407,823 projectiles below stated requirements. However, the

Marine Corps no longer had a requirement for 7 other artillery projectile

types; the Marine Corps had in inventory 99,909 of these outdated

projectiles as of March 1995.

Because of decreasing requirements and funding constraints, the Army has

been reducing its active production base for artillery projectiles and their

1

This inventory represents stocks stored at the wholesale level and does not include retail stocks

issued to operational commands and units.

2

The combat requirement is the quantity needed to fight and win two nearly simultaneous major

regional conflicts. The Army’s requirements are classified.

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B-260292 

associated metal parts. Army officials believe the reduced production base

for artillery projectiles is more than sufficient to meet the Army’s and

Marine Corps’ planned procurements of artillery projectiles.

The Army is developing four new advanced artillery projectiles to replace

existing older rounds—two types each of 105-mm and 155-mm

projectiles—and has recently completed development of another 105-mm

projectile, which it does not plan to procure for its own use. Three of the

four developmental rounds are to be loaded, assembled, and packed at

Army ammunition plants, and the fourth is to be procured commercially.

The Army has not decided where to produce the metal parts for the new

projectiles. When the new projectiles enter production, the metal parts

could be produced at Army ammunition plants or procured commercially.

Inventory and

Requirements for

Artillery Projectiles

Army The Army’s November 1994 inventory of about 20.8 million artillery

projectiles included 27 different types or configurations of 105-mm,

155-mm, and 8-inch artillery projectiles (see app. I). According to Army

records, these projectiles are stored at 32 different locations within and

outside the United States, including 6 prepositioned commercial ships

under contract with the Army (see app. II), and all but 371,620 projectiles,

or about 1.8 percent, were usable.

The Army’s artillery projectile inventory includes some older items and

items that exceed requirements due to planned force structure changes.

For example, even though the Army no longer has a requirement for

105-mm M60 projectiles, 105-mm M548 projectiles, 155-mm M449

projectiles, and 8-inch M404 projectiles—because it has newer items in its

inventory—the Army has about 830,000 of these older rounds in its

inventory. Although the Army currently has a requirement for three other

types of 8-inch projectiles in its inventory, it has no procurement plans for

them because the 8-inch howitzer is being phased out of the Army’s force

structure and it is being replaced by the Multiple Launch Rocket System.

In November 1994, the Army had about 1.6 million rounds of 8-inch

artillery projectiles in its inventory.

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B-260292 

The Army’s November 1994 inventory for three artillery projectile

types—the 105-mm M913, the 155-mm M741A1, and 155-mm M712—was

172,059 below the Army’s inventory objectives (the quantity by artillery

projectile type is classified). However, after the 75,598 M913 projectiles

due in from production are delivered, the total shortfall will be reduced to

96,461 projectiles. According to an Army official, the Army has no current

procurement plans for M741A1 and M712 projectiles because of funding

constraints and the Army’s inventory for other artillery rounds generally

exceeds requirements. In addition, although Army records show a shortfall

for M712 projectiles, the requirement is continuously revised downward to

the inventory level.

Marine Corps The Marine Corps’ March 1995 inventory of about 4 million artillery

projectiles consisted of 24 different types of 105-mm, 155-mm, and 8-inch

projectiles (see app. III). The usable inventory of 3.4 million projectiles

was greater than the Marine Corps’ requirement of about 2.3 million

projectiles. The inventory included seven projectile types for which the

Marine Corps no longer has a requirement. As shown in table 1, the

inventory for five other projectile types is below the Marine Corps’ stated

requirements.

Table 1: Marine Corps’ Inventories,

Requirements, and Shortfalls for Five

Types of Artillery Projectiles

Inventory

Item description Usable Unusable Requirement Shortfalla

155-mm M864 Baseburner

projectile

165,611 1 426,529 260,918

155-mm M549

high-explosive,

rocket-assisted projectile

128,484 66,938 272,736 144,252

155-mm M825 white

phosphorus smoke

projectile

96,685 20,126 98,769 2,084

155-mm M712

Copperhead projectile

1,873 894 2,230 357

155-mm M7 dummy

projectile

67 0 279 212

Total 392,720 87,959 800,543 407,823

aDifference between usable inventory and requirement.

Although the Marine Corps has shortfalls for these five projectile types,

the Army’s inventories for the two with the largest shortfalls—the 155-mm

Page 4 GAO/NSIAD-95-89 Artillery Projectiles
B-260292 

M864 Baseburner projectile and the 155-mm M549 projectile—exceed the

Army’s requirements. Therefore, the Army could satisfy the Marine Corps’

requirement from its inventory.

Army’s Production

Capacity for Artillery

Projectiles

The Army has load, assemble, and pack production lines for artillery

projectiles at nine locations: the Iowa, Kansas, Lone Star, Longhorn,

Louisiana, Milan, and Mississippi Army Ammunition Plants; the Crane

Army Ammunition Activity; and the Pine Bluff Arsenal. The Army has laid

away production lines at the Mississippi plant and is in the process of

laying away some parts of the production lines at the Kansas, Longhorn,

and Louisiana plants. The Army plans to keep the production lines at the

other locations active to meet projected artillery projectile requirements.

The five plants to remain active (Iowa, Lone Star, Milan, Crane, and Pine

Bluff) have a combined capacity to load, assemble, and pack 867,000

artillery projectiles a month during three 8-hour shifts each day for 5 days

a week. According to Army officials, this capacity is sufficient to meet

projected replenishment requirements for all artillery projectiles.

Only three artillery projectile types—two 155-mm and one 105-mm—are

currently in production, and the Army received fiscal year 1995 funds to

begin low-rate initial production of two other 155-mm artillery projectiles.3

The 155-mm M864 Baseburner projectile is being produced at the Milan

plant, and its production is scheduled to be completed in April 1996. The

other 155-mm projectile, the M825 smoke round, is being produced at the

Pine Bluff Arsenal. Production is scheduled to be completed in

August 1997. The only 105-mm artillery projectile currently being

produced is the M913 high-explosive, rocket-assisted (HERA) round, which

is being produced at the Iowa plant. Its production is scheduled to be

completed in the third quarter of fiscal year 1997. Twenty-five other types

of artillery rounds were last produced in fiscal year 1994 and prior years.

The artillery projectile metal parts production base includes Army and

contractor production lines. The Army’s Louisiana, Mississippi, and

Scranton plants4

 have a combined production capacity of 437,600 metal

parts a month (based on a schedule of three shifts a day for 5 days a

week), and three contractors have a production capacity of 26,100 metal

3

The Army received fiscal year 1995 procurement funds for XM898 Sense and Destroy Armor and M795

high explosive projectiles. These items are not yet in production.

4

The Louisiana and Mississippi plants have the capability to load, assemble, and pack artillery

projectiles and produce projectile metal parts, while the Scranton Army Ammunition Plant only

produces metal parts.

Page 5 GAO/NSIAD-95-89 Artillery Projectiles
B-260292 

parts a month (using the same schedule). The Army has laid away the

Mississippi plant, is laying away the Louisiana plant, and plans to operate

the Scranton plant under a facility use contract. According to Army

officials, the production lines at the Mississippi and Louisiana plants are

no longer needed to meet projected replenishment demands. According to

an Army official, future production of metal parts for existing artillery

projectiles may be done at Army ammunition plants or procured from

commercial sources, but no decision has been made.

Plans for Procuring

New Artillery

Projectiles and Their

Metal Parts

The Army has four 105-mm and 155-mm artillery rounds in various stages

of development at the U.S. Army Armament Research, Development and

Engineering Center in Dover, New Jersey. In addition, in October 1994, the

Army completed development of a fifth round. The new advanced artillery

rounds include (1) the 105-mm M927 HERA projectile; (2) the 105-mm

XM915 dual-purpose, anti-personnel, anti-materiel projectile; (3) the

105-mm XM916 dual-purpose, anti-personnel, anti-materiel projectile;

(4) the 155-mm XM898 Sense and Destroy Armor (SADARM) projectile; and

(5) the 155-mm XM982 extended range artillery (ERA) projectile.

M927 Projectile The 105-mm M927 HERA projectile was developed as a replacement for the

M548 rocket-assisted projectile. Although the Army approved the M927

projectile for troop use in October 1994, it has no current plans to procure

the round for its own use. However, Army officials indicated that the Army

may produce the projectile for foreign military sales to South Korea and

Canada.

XM915 and XM916

Projectiles

The 105-mm XM915 and XM916 improved conventional munitions rounds

are being developed to replace the older 105-mm M444 round. Both

projectiles are currently in engineering and manufacturing development

and are scheduled to be approved for low-rate initial production in the

fourth quarter of fiscal year 1996. The Army plans to procure components

for these rounds from commercial sources and to load, assemble, and

pack the projectiles at the Lone Star plant.

XM898 Projectile The 155-mm XM898 SADARM projectile is in engineering and manufacturing

development. It is being developed to provide unique counterbattery

capability and is scheduled to be approved for low-rate initial production

in April 1995. The Army plans to procure projectile components from

Page 6 GAO/NSIAD-95-89 Artillery Projectiles
B-260292 

commercial sources and to produce the projectile metal parts at the

Scranton plant. The completed round is to be loaded, assembled, and

packed commercially.

XM982 Projectile The 155-mm XM982 ERA projectile is currently a technology base program.

It is being developed to replace the M864 Baseburner projectile, is

scheduled to enter engineering and manufacturing development in fiscal

year 1997, and is not expected to be approved for troop use until fiscal

year 2000. Production is scheduled to begin in fiscal year 2001. According

to Army officials, metal parts are to be procured commercially and the

complete round is expected to be loaded, assembled, and packed at the

Lone Star plant.

Scope and

Methodology

During our review, we examined Army and Marine Corps documents on

artillery projectile inventories, requirements, and production schedules.

We also examined Army documents on production capacities for artillery

projectiles and plans for laying away production lines. We did not verify

the accuracy of the data the services provided, such as inventory levels,

but compared such information with data provided in prior years to

evaluate its reasonableness.

In conducting our review, we interviewed and obtained documents from

officials in the Department of the Army and Marine Corps headquarters,

Washington, D.C.; the U.S. Army Armament Research, Development and

Engineering Center, Dover, New Jersey; the U.S. Army Armament,

Munitions and Chemical Command, Rock Island, Illinois; and the Indiana

and Mississippi Army Ammunition Plants.

We did not obtain fully coordinated Department of Defense comments on

this report. However, we discussed the results of our work with Office of

the Secretary of Defense, Army, and Marine Corps officials. They generally

agreed with our findings and conclusions, and we have included their

comments in this report where appropriate. The Marine Corps provided

updated inventory and requirements information.

We conducted our review between August 1994 and March 1995 in

accordance with generally accepted government auditing standards.

Page 7 GAO/NSIAD-95-89 Artillery Projectiles
B-260292 

As agreed with your office, unless you publicly announce its contents

earlier, we plan no further distribution of this report until 15 days from its

issue date. At that time, we will send copies to the Chairmen and Ranking

Minority Members of the Senate Committees on Armed Services and

Governmental Affairs and House Committees on National Security and

Government Reform and Oversight; the Director, Office of Management

and Budget; the Secretaries of Defense and the Army; and the

Commandant of the Marine Corps. We will also make copies available to

others on request.

Please contact me at (202) 512-4841 if you or your staff have any questions

concerning this report. The major contributors to this report are Raymond

Dunham, Antanas N. Sabaliauskas, and David A. Bothe.

Thomas J. Schulz

Associate Director, Systems Development

 and Production Issues

Page 8 GAO/NSIAD-95-89 Artillery Projectiles
Page 9 GAO/NSIAD-95-89 Artillery Projectiles
Contents

Letter 1

Appendix I 

Worldwide

Inventories of Army

Artillery Projectiles

12

Appendix II 

Location of Army’s

Worldwide Inventory

of Artillery Projectiles

13

Appendix III 

Inventories and

Requirements of

Marine Corps Artillery

Projectiles, as of

March 1, 1995

14

Table Table 1: Marine Corps’ Inventories, Requirements, and Shortfalls

for Five Types of Artillery Projectiles

4

Abbreviations

HERA high-explosive, rocket-assisted

SADARM Sense and Destroy Armor

ERA extended range artillery

Page 10 GAO/NSIAD-95-89 Artillery Projectiles
Page 11 GAO/NSIAD-95-89 Artillery Projectiles
Appendix I 

Worldwide Inventories of Army Artillery

Projectiles

Inventory as of November 15, 1994

Item description Usable Unusable Total

105-mm projectiles:

M1 HE without fuze 8,946,616 34,274 8,980,890

M314 illuminating 287,669 3 287,672

M60 smoke, WP with point

detonating fuze 275,994 0 275,994

M548 HE rocket assisted 24,308 0 24,308

M760 HE extended range 99,242 794 100,036

M84A1 HC 112,070 0 112,070

155-mm projectiles:

M692 ADAM-L 32,971 0 32,971

M731 ADAM-S 120,271 0 120,271

M718 RAAMS-L 62,926 3,676 66,602

M485 illuminating 253,676 0 253,676

M116A smoke HC 19,349 0 19,349

M741 RAAMS-S 137,259 7,070 144,329

M712 Copperhead 16,095 0 16,095

M804 practice 97,530 0 97,530

M741A1 RAAMS 44,889 0 44,889

M718A1 RAAMS 21,096 0 21,096

M825 smoke WPa 284,619 2 284,621

M107 HE 2,936,484 1,138 2,937,622

M110 smoke WP 127,658 0 127,658

M449 HE ICM SE 490,642 0 490,642

M483A1 DPICM 3,958,149 324,662 4,282,811

M549 HE RAP 372,649 0 372,649

M864 Baseburnerb 147,003 0 147,003

8-inch projectile:

M650 HE RAP 113,622 0 113,622

M509A1 DPICM 544,715 0 544,715

M106 HE 861,222 1 861,223

M404 ICM 39,037 0 39,037

Total 20,427,761 371,620 20,799,381

aThe inventory does not include 15,821 projectiles in production but not yet delivered.

bThe inventory does not include 226,077 projectiles in production but not yet delivered.

Page 12 GAO/NSIAD-95-89 Artillery Projectiles
Appendix II 

Location of Army’s Worldwide Inventory of

Artillery Projectiles

Inventory as of November 15, 1994

Location Usable Unusable Total

United States:

McAlester Army Ammunition Plant, Okla. 1,853,700 39,880 1,893,580

Red River Army Ammunition Plant, Tex. 1,447,010 33,718 1,480,728

Hawthorne Army Ammunition Plant, Nev. 1,173,403 30,188 1,203,591

Crane Army Ammunition Activity, Ind. 712,015 43,946 755,961

Anniston Army Depot, Ala. 658,692 26,793 685,485

Lexington Blue Grass Army Depot, Ky. 594,753 31,880 626,633

Tooele Army Depot, Utah 643,376 16,086 659,462

Sierra Army Depot, Calif. 528,033 41,980 570,013

Seneca Army Depot, N.Y. 298,494 664 299,158

Letterkenny Army Depot, Pa. 245,748 20,296 266,044

Savanna Army Depot Activity, Ill. 256,659 7,941 264,600

Lone Star Army Ammunition Plant, Tex. 240,368 0 240,368

Pine Bluff Arsenal, Ark. 233,739 0 233,739

Iowa Army Ammunition Plant, Iowa 94,472 312 94,784

Milan Army Ammunition Plant, Tenn. 44,990 39,026 84,016

Longhorn Army Ammunition Plant, Tex. 9,272 0 9,272

Louisiana Army Ammunition Plant, La. 96 0 96

Kansas Army Ammunition Plant, Kans. 61 0 61

Prepositioned ships

Jeb Stuart 353,806 0 353,806

Green Harbour 348,946 0 348,946

Green Valley 150,423 2 150,425

Cape Horn 3,130 0 3,130

Cape Hudson 3,130 0 3,130

Cape Decision 3,122 0 3,122

Foreign countries:

Korea (6 locations) 8,731,636 4,776 8,736,412

Japan 1,752,600 34,132 1,786,732

Italy 46,089 0 46,089

Total 20,427,761 371,620 20,799,381

Page 13 GAO/NSIAD-95-89 Artillery Projectiles
Appendix III 

Inventories and Requirements of Marine

Corps Artillery Projectiles, as of March 1,

1995

Inventory

Item description Usable Unusable Total Requirements

105-mm projectiles:

M1 HE without fuze 448,283 230,103 678,386 229,155

M327 HEP-T 0 12 12 0

M314 illuminating 97,661 18,677 116,338 13,923

M84A1 HC smoke 40,081 4,341 44,422 4,160

M548 HE rocket

assisted 0 12 12 0

XM629 CS tactical 18 372 390 0

M60 WP smoke 124,467 30,224 154,691 23,408

155-mm projectiles:

M692 HE ADAM 30,664 1,225 31,889 29,768

M731 HE ADAM 62,306 3,804 66,110 35,450

M718 RAAM-L 30,359 14,264 44,623 21,456

M485 illuminating 218,094 8,555 226,649 45,493

M116A HC smoke 1,587 792 2,379 0

M741 RAAMS-S 56,352 2,208 58,560 12,010

M712 Copperhead 1,873 894 2,767 2,230

M823 training 37 3 40 0

M825 WP smoke 96,685 20,126 116,811 98,769

M107 HE 800,429 47,140 847,569 493,603

M110 WP smoke 81,701 4,015 85,716 46,966

M7 dummy 67 0 67 279

M449A1 ICM 10,498 1,590 12,088 0

M483A1 DPICM 960,945 130,406 1,091,351 527,007

M549 HE RAP 128,484 66,938 195,422 272,736

M864 Baseburner 165,611 1 165,612 426,529

8-inch projectile:

M106 HE 58,728 26,260 84,988 0

Total 3,414,930 611,962 4,026,892 2,282,942

(707092) Page 14 GAO/NSIAD-95-89 Artillery Projectiles
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