First Destination Transportation (AMMO)

The First Destination Transportation (AMMO) program is a dedicated line item within the Army's Procurement of Ammunition budget, specifically supporting the transportation of ammunition end items and components from manufacturing or procurement sources to the first point of Army possession. This program is governed by the Department of Defense Financial Management Regulation (DoDFMR) 7000.14-R, which defines first destination transportation as the movement of new, upgraded, or recapitalized materiel from the supplier either a commercial entity or a DoD industrial activity to the initial Army delivery location, whether within the Continental United States (CONUS) or overseas.

The primary objective of the First Destination Transportation (AMMO) line item is to ensure the timely and efficient delivery of ammunition to Army depots, arsenals, and other designated points of acceptance. This includes shipments originating from both domestic and international manufacturing plants, assembly points, or procurement contractors. The program supports the Army's readiness by facilitating the flow of ammunition into the supply system to meet operational, training, and war reserve requirements.

Funding for this line item is used exclusively for the staging and transportation costs associated with moving ammunition from the point of manufacture or procurement to the Army's first point of receipt. This includes transportation to CONUS depots for inventory, direct delivery to Army arsenals or customers, and shipments to ports of embarkation for overseas operations or contingency support. The program also covers transportation for ammunition procured under Free On-board (FOB) Origin terms, which require the Army to assume responsibility for shipping from the supplier's facility.

The justification for continued funding is rooted in the need to maintain uninterrupted ammunition distribution in support of Army procurement plans. The budget is forecasted annually based on projected hardware procurement quantities and associated shipping costs. Adequate funding is essential to avoid contract penalties, mitigate the risk of increased storage costs due to shipment delays, and prevent production shutdowns at contractor facilities caused by transportation bottlenecks.

The First Destination Transportation (AMMO) program also plays a critical role in supporting the Army's Call Forward Program, which ensures that ammunition is available for immediate deployment in response to training, operational, or contingency requirements. By maintaining a robust transportation capability, the Army can rapidly respond to emergent needs and sustain its operational tempo across multiple theaters.