First Destination Transportation (AMMO)

First Destination Transportation (AMMO) is a program under the Army's procurement of ammunition, concentrating on the logistics of transporting ammunition from manufacturing sources to initial delivery points. The primary goal is to ensure that newly produced, upgraded, or recapitalized ammunition items are efficiently delivered from manufacturers to locations where the Army or Defense Agencies take possession. This transportation can occur within the Continental United States (CONUS) or overseas, depending on the procurement source and the first point of delivery.

The objectives include supporting the distribution of Army ammunition end items and components in accordance with Department of Defense Financial Management Regulation guidelines. This involves coordinating shipments from various manufacturing plants, contractors, and assembly points to destinations such as CONUS depots, arsenals, and ports of embarkation. These efforts are crucial for maintaining readiness by ensuring timely delivery to support training, war reserves, and overseas contingency operations.

In fiscal year 2025, funding for this program is essential for meeting Free On-board (FOB) Origin delivery terms across ammunition contracts. It helps mitigate potential penalties and impacts such as contract cost growth due to storage penalties exceeding shipment costs and production shutdowns at contractor facilities caused by shipment bottlenecks. By forecasting funding requirements based on overall hardware procurement projections and associated shipping costs, the program aims to maintain a seamless supply chain for Army ammunition procurements.

First Destination Transportation (AMMO) plays a vital role in ensuring that ammunition logistics align with broader Army procurement strategies. By focusing on efficient transportation solutions, the program supports operational readiness and helps avoid disruptions in the supply chain that could affect military preparedness and effectiveness.