First Destination Transportation (AMMO)

First Destination Transportation (FDT) for Army Ammunition aims to facilitate the transportation of new, upgraded, or recapitalized production items from external suppliers or DoD industrial activities to the first point of delivery where the Military Service or Defense Agency takes possession. This transportation is essential for delivering Army ammunition end items and components from manufacturing plants/contractors to various destinations, including CONUS depots, customers, arsenals, and ports of embarkation in support of the Call Forward Program. The funding request of $18.068 million for FY 2024 is crucial to support the distribution of Army ammunition end items and components in line with DoD Financial Management Regulation 7000.14-R Volume 2A, Chapter 1, Para 010205 (Interim Transportation). The goal is to promote readiness and ensure timely delivery to avoid penalties and production shutdowns at contractor facilities due to shipment bottlenecks.

The program's objectives include ensuring that the transportation requirements for Army ammunition procurement are met in a timely and efficient manner. This involves supporting the distribution of ammunition end items and components from manufacturing plants/contractors to various destinations such as CONUS depots, customers, arsenals, and ports of embarkation. The funding request for FY 2024 is based on forecasted hardware procurement projections across the Army, along with associated shipping costs. The program aims to avoid penalties associated with failing to meet FOB Origin delivery terms across ammunition contracts, contract cost growth due to increased storage penalties exceeding shipment costs, and production shutdowns at contractor facilities due to shipment bottlenecks. Overall, the program seeks to ensure that the transportation needs for Army ammunition procurement are adequately funded to maintain readiness and avoid disruptions in supply chain logistics.