THE UNITED STATES OF AMERICA 1775
Headquarters
Department of the Army
Washington, DC
16 May 2025

*Army Regulation 700–90

Effective 16 June 2025

Logistics

Army Industrial Base Process

By Order of the Secretary of the Army:

RANDY A. GEORGE

General, United States Army

Chief of Staff

MARK F. AVERILL

Administrative Assistant to the

Secretary of the Army

History. This publication is a major revision. The portions affected by this major revision are listed in the summary of change.

Authorities. The authorities for this regulation are Sections 2208, 2464, 2466, 2469, 2474, 2563, 4801, 4811, 4813, 4820, 4881, Title 10, United States Code; Chapter 764, Title 10, United States Code; DoDD 4200.15; DoDD 4275.5; DoDD 4400.01; and DoDI 5000.60.

Applicability. This regulation applies to the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated.

Proponent and exception authority. The proponent of this regulation is the Assistant Secretary of the Army (Acquisition, Logistics and Technology). The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling law and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or its direct reporting unit or field operating agency, in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity's senior legal officer. All waiver requests will be endorsed by the commander or senior leader of the requesting activity and forwarded through their higher headquarters to the policy proponent. Refer to AR 25–30 for specific requirements.

Army internal control process. This regulation contains internal control provisions in accordance with AR 11–2 and identifies key internal controls that must be evaluated (appendix D).

Suggested improvements. Users are invited to send comments and suggested improvements on DA FormDA FormDepartment of the Army form 2028 (Recommended Changes to Publications and Blank Forms), directly to Assistant Secretary of the Army (Acquisition, Logistics and Technology) (SAAL–IB) via email to usarmy.pentagon.hqda-asa-alt.mesg.asa-alt-publication-updates@army.mil.

Distribution. This publication is available in electronic media only and is intended for the Regular Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

*This publication supersedes AR 700-90, dated 30 January 2020.

AR 700–90 • 16 May 2025

UNCLASSIFIED

As part of the acquisition strategy, the PM will develop and document a business strategy.

Government-Operated Industrial Installations

Acquisition planning The process by which the efforts of all personnel responsible for an acquisition are coordinated and inte- grated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasona- ble cost. It is performed throughout the life cycle and includes developing an overall acquisition strategy for managing the acquisition and a written Acquisition Plan.

Allocations Prioritized releases of limited supply materials to approved programs (see DoD 4400.1–M).

Army reserve plants Army-owned installations that are certified as part of the Army’s essential nucleus production capacity. These facilities may be GOGO or GOCO. They are retained, used, or maintained in idle status for produc- tion of military weapons systems, munitions, components, and supplies.

Capability The skills and knowledge, processes, facilities, and equipment needed to design, develop, manufacture, repair, and support DoD products and their necessary subsystems and components. Defense industrial capabilities include private and public industrial activities and their ability to furnish property or service to meet current and future national security requirements.

Capacity Measure of an actual output that private sector factory, industrial installation or depot can deliver given the capital facilities and skills that exist.

Construction The erection, installation, or assembly of buildings or structures; the addition, expansion, extension, alter- ation, conversion, or replacement of existing buildings or structures. It includes equipment and utilities in- stalled and made a part of the real property (excludes installation and relocation of severable property and minor modifications necessitated by the installation or relocation of such severable property) and re- lated site preparation, excavation, and other land improvements (see DoDD 4275.5).

Critical component A component which is or contains information and communications technology, including hardware, soft- ware, and firmware, whether custom, commercial, or otherwise developed, and which delivers or protects mission critical functionality of a system or which, because of the system's design, may introduce vulnera- bility to the mission critical functions of an applicable system.

Critical items list A list of items published biennially, required for sustainability of the near-term U.S. Army Forces involved in a contingency operation. The DA CIL is prepared by the DCSDCSDeputy Chief of Staff, G–3/5/7, G–3/5/7.

Critical technology Technology or technologies essential to the design, development, production, operation, application, or maintenance of an article or service that makes or could make a significant contribution to the military po- tential of any country, including the United States. This includes, but is not limited to, design and manu- facturing know-how, technical data, software, keystone equipment, and inspection and test equipment.

Determination and findings A special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions. The “determination” is a conclusion or decision supported by the “findings.” The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.

Diminishing manufacturing sources and materiel shortages The loss or impending loss of manufacturers of items or suppliers of items or raw materials may cause materiel shortages that endanger a weapon system’s or equipment’s development, production, or post- production support capability.

DO rating Level of priority assigned to orders supporting approved programs critical to national defense. DO rated orders have equal priority with each other and take preference over unrated orders.

Dual-use Technology and articles that can be used for either commercial or civilian purposes or for military, de- fense, or defense-related purposes.

DX rating Authorized by the SECDEF in support of approved programs of the highest national urgency that have a demonstrated need of production prioritization within the industrial base. DX-rated orders have equal pri- ority with each other and take preference over DO rated orders and unrated orders.

Economical basis For the purpose of this regulation, a determination based on cost provided program objectives are met to include schedule, performance, and risk.

End item A final combination of systems, subsystems, components, parts, and other materiel that are ready for their intended use.

Enhanced use lease Authorized by 10 USCUSCUnited States Code 2667, enhanced use lease are opportunities for the Army to partner with private industry by leasing and operating nonexcess real property/manufacturing facilities.

Excess to ownership For the purpose of this regulation, government-owned plants or equipment that are not necessary for the Government to own as long as the production capability is maintained in a suitable state for future pro- duction or replenishment requirements by the purchaser. Under these circumstances, the ownership in- terest is considered excess and the property can be sold by GSAGSAGeneral Services Administration under the authority of 40 USCUSCUnited States Code 545(b)(2) and (7).

Facilities project For the purpose of this regulation, a GOCO project to acquire, provide, modernize, replace, construct, preserve, or protect facilities.

Facility Includes the permanent, semi-permanent, or temporary real property assets required to operate and sup- port the materiel system, including conducting studies to define types of facilities or facility improvements, locations, space needs, utilities, environmental requirements, real estate requirements, and equipment (see DoDD 4275.5).

Government property All property owned or leased by the Government. This property includes both Government-furnished and contractor-acquired property. Government property includes material, equipment, special tooling, special test equipment, and real property. Government property does not include intellectual property and soft- ware.

Government-furnished property Property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. GFP includes, but is not limited to, spares and property fur- nished for repair, maintenance, overhaul, or modification. GFP also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Govern- ment for continued use under the contract.

Industrial base That part of the total private- and government-owned industrial production and depot-level equipment and maintenance capacity in the United States and its territories and possessions and Canada. It is or will be made available in an emergency for the manufacture of items required by the U.S. military services and selected allies.

Industrial capabilities That part of the total private- and government-owned industrial production and depot-level equipment and maintenance capacity in the United States and its territories and possessions and Canada. It is or will be made available in an emergency for the manufacture of items required by the U.S. military services and selected allies.

Industrial capabilities assessment report For the purpose of this regulation, a report that summarizes the results of an ICA. It recommends an ac- tion or investment and addresses cost, schedule, effects on performance, and pertinent qualitative con- siderations. It defines how and when the action would be incorporated into the budget and, if possible, identifies budget offsets.

Industrial preparedness measures For the purpose of this regulation, actions designed to shorten lead-time or to increase industrial base ca- pacity for critical items and components.

Industrial preparedness planning list For the purpose of this regulation, a listing of items and components designated by PEOs and commodity managers as necessary to monitor for sufficient capacity in order to ensure that operational, combat, and contingency requirements are satisfied.

Justification and approval A document required by the FARFARFederal Acquisition Regulation that justifies and obtains approval for contract solicitations that use other than full and open competition.

Layaway of industrial facilities For the purpose of this regulation, a budget line in the PBSP that finances the cleaning, preserving, and processing into storage of inactive industrial facilities that are no longer required to support current pro- duction but are required to support approved forces in an emergency. Facilities must be a part of an ap- proved and/or currently certified plant equipment package or Army reserve plant and be in an immediate use posture or in a plan that exists to achieve immediate use posture.

Life-cycle cost For a defense acquisition program, life-cycle cost consists of research and development costs, invest- ment costs, operating and support costs, and disposal costs over the entire life cycle. These costs include not only the direct costs of the acquisition program, but also include indirect costs that logically would be attributed to the program. In this way, all costs that are logically attributed to the program are included, regardless of funding source or management control.

Manufacturing technology Refers to any action that has as its objective the timely establishment or improvement of the manufactur- ing processes, techniques, or equipment required to support current and projected programs, and the as- surance of the availability to produce, reduce lead-time, ensure economic availability of end items, reduce costs, increase efficiency, improve reliability, or to enhance safety and anti-pollution measures.

Market research A process for gathering data on product characteristics, suppliers’ capabilities, and the business practices that surround them. Includes the analysis of that data to inform acquisition decisions. There are two types of market research, strategic market research and tactical market research.

Mobilization The act of preparing for war or other emergencies through assembling and organizing national resources; the process by which the U.S. Armed Forces or part of them are brought to a state of readiness for war or other national emergency. This includes assembling and organizing personnel, supplies, and material for active military service (see DoDD 4275.5).

National emergency 50 USCUSCUnited States Code Chapter 34 allows the president to declare a national emergency and exercise emergency pow- ers and authorities.

National technology and industrial base Persons and organizations that are engaged in research, development, production, or maintenance activi- ties conducted within the U.S.,Canada, Australia, United Kingdom, and New Zealand (see National De- fense Authorization Act for FYs 2017 and 2023).

New start An item or effort appearing in the President’s Budget for the first time. A new start program for research, development, test and evaluation is a new program element or project, or a major component thereof, as determined by specific supporting information provided in the research, development, test and evaluation budget item/project justification exhibits not previously justified by the Department and funded by the Con- gress through the normal budget process. A new start program for procurement is a new procurement line item, or major component thereof, as determined by specific supporting information provided in the procurement budget line item exhibits not previously justified. Often confused with “program initiation,” an acquisition term that describes the milestone decision that initiates an acquisition program.

Nondevelopmental item a . Any previously developed item of supply used exclusively for Government purposes by a Federal agency, a state or local government, or a foreign government with which the United States has a mutual defense cooperation agreement. b . Any item described above that requires only minor modifications or modifications of the type customar- ily available in the commercial marketplace in order to meet the requirements of the procuring department or agency. c . Any item of supply being produced that does not meet the requirements of subparagraphs a and b solely because the item is not yet in use.

Performance-based logistics Synonymous with performance based product support, where outcomes are acquired through perfor- mance based arrangements that deliver Warfighter requirements and incentivize product support provid- ers to reduce costs through innovation. These arrangements are contracts with industry or inter-govern- mental agreements. Sources of support may be organic, commercial, or a combination, with primary fo- cus optimizing customer support, weapon system availability, and reduced ownership costs.

Plant equipment Personal property of a capital nature (consisting of equipment, machine tools, test equipment, furniture, vehicles, accessory and auxiliary items, but excluding special tooling and special test equipment) used or capable of use in the manufacture of supplies, in the performance of services, or for any administrative or general plant purposes (see DoDD 4275.5).

Plant equipment package Complement of active and idle machine tools and other industrial manufacturing equipment held by and under the control of DoD and approved by the SECDEF for retention to produce particular defense mate- riel or defense supporting items at a specific level of output in the event of an emergency.

Procurement appropriations A term denotes the Army appropriations for acquisition of aircraft, missiles, weapons, and tracked combat vehicles, ammunition, and other items.

Production base The total privately-owned and government-owned industrial production capacity available to manufacture items required by the military Services. The production base together with the maintenance base com- prises the industrial base.

Production base plan For the purpose of this regulation, a plan maintained by a PEOPEOProgram executive office(r) that describes the readiness of critical items and components identified on the IPPL to fulfill a wide range of national defense strategy require- ments. It provides the production capability shortfall analysis and industrial investment strategies to main- tain and improve the DIB.

Production base support program For the purpose of this regulation, the portion of PA that pays directly to correct production base deficien- cies.

Program executive officer A military or civilian official assigned program responsibilities for acquisition categories I and IA and sensi- tive classified programs, or for any other program determined by the Component Acquisition Executive to require dedicated executive management.

Program objective memorandum The final product of the programming process within DoD, a component’s POMPOMProgram objective memorandum displays the resource allo- cation decisions of the military department in response to, and in accordance with the Defense Planning Guidance. The POMPOMProgram objective memorandum shows programmed needs 5 years hence (for example, in FY 2016, POMPOMProgram objective memorandum 2018– 2022 will be submitted).

Project manager Designated individual with responsibility for and authority to accomplish program objectives for develop- ment, production, and sustainment to meet the user’s operational needs. The PM will be accountable for credible cost, schedule, and performance reporting to the MDA.

Property All property, both real and personal, including facilities, material, special tooling, special test equipment, and agency-peculiar property.

Provision of industrial facilities For the purpose of this regulation, a budget line in the PBSP that pays directly for capital investments. The objective is to correct a production capacity or production support facility deficiency.

Readiness A measure of the ability of a system to undertake and sustain a specified set of missions at planned peacetime and wartime utilization rates. Examples of system readiness measures are combat sortie rate, fully mission-capable rate, and operational availability. Measures take account of the effects of system design (reliability and maintainability), the characteristics of the support system, and the quantity and lo- cation of support resources.

Real property Lands, buildings, structures, utilities systems, improvements, and appurtenances, thereto that includes equipment attached to and made part of buildings and structures, but not movable equipment.

Replenishment Actions to resupply an inventory when the inventory position reaches the reorder point.

Single manager for conventional ammunition The responsibility the SECDEF assigns the SECARMYSECARMYSecretary of the Army for the procuring, producing, supplying, and main- taining, or renovating conventional ammunition within the DoD. The objectives and responsibilities of the SMCA are in DoDI 5160.68.

Special installations Army installations whose base support functions are primarily funded from sources other than OMAOMAOperations and maintenance, Army or Operations and Maintenance-Army Reserve.

Special test equipment Either single or multipurpose integrated test units engineered, designed, fabricated, or modified to accom- plish special purpose testing in performing a contract. It consists of items or assemblies of equipment in- cluding standard or general-purpose items or components that are interconnected and interdependent so as to become a new functional entity for special testing purposes. Special test equipment does not in- clude material, special tooling, real property (except foundations and similar improvements necessary for installing special test equipment), and equipment items used for general testing purposes, or property that with relatively minor expense can be made suitable for general-purpose use (see DoDD 4275.5).

Special tooling All jigs, dies, fixtures, molds, patterns, taps, gauges, all components of these items, and replacement of these items, which are of such a specialized nature that without substantial modification or alteration their use is limited to the development or production of particular supplies or parts thereof or to the perfor- mance of particular services. It does not include material, special test equipment, real property or plant equipment (except foundations and similar improvements necessary for installing special tooling), ma- chine tools, or similar capital items (see DoDD 4275.5).

Surge An increase in the production or repair of defense goods for a limited duration of time (See DoDD 4275.5).

Surplus property Excess personal property not required by any federal agency as determined by the Administrator of the GSAGSAGeneral Services Administration.

Sustainability The ability to maintain the necessary level and duration of operational activity to achieve military objec- tives. Sustainability is a function of providing for, and maintaining, those levels of ready forces, materiel, and consumables necessary to support military effort.

Weapon system A combination of one or more weapons with all related equipment, materials, services, personnel, and means of delivery and deployment (if applicable) required for self-sufficiency.

50/50 reporting For the purpose of this regulation, a report the Army sends to Congress each FY to show that it complies with requirements in 10 USCUSCUnited States Code 2466. (Not more than 50 percent of funds available for Army depot-level maintenance and repair workload may be used to contract for services by non-Federal Government per- sonnel.)