1. References.
See references enclosed.
2. Purpose.
This directive rescinds Army Directive 2023-16 (Supply Chain Risk Management for Weapon Systems) due to non-compliance with Executive Order 14154 (Unleashing American Energy) and reissues policy and assigns responsibilities for conducting Supply Chain Risk Management (SCRM) for weapon systems to enhance the Army’s ability to detect and manage supply chain threats and associated risks, with no mention of climate change.
3. Applicability.
The provisions of this directive apply to the Regular Army, Army National Guard/Army National Guard of the United States, and U.S. Army Reserve.
4. Policy.
Army original equipment manufacturers and other industry partners are responsible for managing their supply chain during development through production, but the government has a shared responsibility to manage the risk.
a.
SCRM is the process for managing risk by identifying, assessing, and mitigating threats, vulnerabilities, and disruptions to the Department of War supply chain, from beginning to end, to ensure mission effectiveness.
Successful SCRM maintains the integrity of products, services, people, and technologies, and ensures the undisrupted flow of product, materiel, information, and finances throughout the life cycle of a weapon system.
SCRM encompasses all subsets of risk, such as cybersecurity, software assurance, obsolescence, counterfeit parts, foreign ownership of sub-tier vendors, single points of failure (single-source producers), material sources, transportation, and other categories of risk that affect the supply chain pursuant to reference 1a.
b.
SCRM will be conducted on systems throughout their life cycle.
SCRM encompasses a system’s mechanical, electrical, electromechanical, microelectronic, firmware, data, software, hardware, energetic compounds, and critical materials, as applicable.
c.
Organizations will plan, program, budget, and execute funding for SCRM by balancing risk management with mitigations to ensure affordability.
d.
System-specific supply chain vulnerabilities and risks will be protected at the appropriate security level determined by the organization’s security manager and security classification guide.
e.
Organizations conducting SCRM will leverage commercially available tools, standards, and best practices.
A summary of high risks will be captured in the Life-Cycle Sustainment Plan (sustainment risk section) or product support strategy.
f.
SCRM compliance will be incorporated into sustainment reviews.
g.
Policies for conducting cyber-SCRM on information, communication, and technology components, and for capturing the results in the Program Protection Plan, remain in effect pursuant to references 1g and 1h.
5. Responsibilities.
a. The Assistant Secretary of the Army (Acquisition, Logistics, and Technology) (ASA (ALT)) will—
(1)
Develop SCRM policy for Army science and technology efforts and systems managed under the Warfighter Acquisition System, regardless of the system’s Adaptive Acquisition Framework Pathway.
(2)
Develop, publish, and maintain an Army SCRM guidebook that defines risk levels and provides detailed descriptions of SCRM processes and responsibilities.
(3)
Ensure that portfolio acquisition executives carry out SCRM requirements, including:
(a)
Conducting SCRM activities within the framework of identify, assess, mitigate, and monitor systems for which they oversee development.
(b)
Developing funding requirements to support SCRM activities across systems for which they oversee development.
(c)
Conducting SCRM assessments on systems for which they oversee development and documenting the results, capturing companies, suppliers, vendors, and distributors that pose the highest risk to the supply chain and the reasons why (detailing risk levels, acceptance authorities, residual risk levels, mitigations applied, risk categories, monitoring methods, and planned response actions to address emerging risks).
(4)
Develop a long-term strategy to employ SCRM capabilities to identify, assess, and mitigate supply chain risks to current and future weapon system programs.
(5)
Develop and publish procedures to promulgate SCRM lessons learned and mitigation strategies across the acquisition and sustainment communities.
Forge relationships with industry, Department of War organizations, and other Federal agencies to adopt effective SCRM practices within the Army’s SCRM capability.
(6)
Develop and promulgate recommended contract statement of work language to support SCRM within the acquisition and sustainment communities.
Take into consideration the inclusion of deliverables necessary to conduct SCRM, such as a bill of materials, original equipment manufacturer/vendor assessments, and notifications to materiel developers on supply risks/disruptions.
(7)
Ensure SCRM is conducted within a life-cycle framework of identify, assess, mitigate, and continuously monitor all systems.
Take into consideration the need to document results.
b. The Commander, U.S. Army Transformation and Training Command (T2COM) will—
Establish procedures that maintain our competitive advantage by protecting science and technology overseen or executed by the U.S. Army Combat Capabilities Development Command (DEVCOM).
c. The Commander, U.S. Army Materiel Command (AMC) will—
(1)
Manage the supply chain in sustainment, including the integration of SCRM into the Army’s sustainment enterprise management process.
(2)
Ensure acquisition logisticians have the skills, knowledge, and abilities in supply chain risk management to provide the matrix support to program management organizations.
(3)
Synchronize with the Defense Logistics Agency to ensure proper alignment with Army SCRM efforts and risk mitigation.
(4)
Integrate the U.S. Army Contracting Command into the Army SCRM approach to ensure contracts contain statement of work language to support SCRM and establish oversight mechanisms that ensure compliance.
(5)
Through the U.S. Army life-cycle management commands, partner with materiel developers during SCRM to formulate an understanding of the system’s supply chain risk, mitigating actions, and monitoring requirements to effectively execute supply chain management at provisioning and throughout the system’s life cycle until disposal.
d. The Deputy Chief of Staff, G-2 will—
(1)
Collaborate and partner with stakeholders to develop a SCRM intelligence and security framework.
(2)
Assist the ASA (ALT) and the Commanding General, T2COM and Commanding General, AMC in protecting mission-critical technologies, products, materials, and services by identifying and informing risk owners of foreign intelligence entity activities and any other adversarial attempts to compromise the Army’s modernization and supply chain.
(3)
Align Army intelligence and security enterprise assets and full-spectrum intelligence and security analytical support to supplement SCRM.
(4)
Assist the ASA (ALT) in developing security statement of work language to support SCRM within the acquisition and sustainment communities.
(5)
Provide counterintelligence and intelligence analytical support to materiel developers conducting SCRM.
(6)
When requested by the ASA (ALT), represent the Army in the Army SCRM Threat Assessment Center, with the mission of conducting counterintelligence analysis of companies, suppliers, vendors, and distributors of components identified by materiel developers during SCRM.
6. Proponent.
The ASA (ALT) is the proponent for this policy and will incorporate the provisions of this directive into a new Army regulation for SCRM within 2 years of the date of this directive.
7. Duration.
This directive is rescinded on publication of the new regulation.

DISTRIBUTION:
- Principal Officials of Headquarters, Department of the Army
- Commander
- U.S. Army Western Hemisphere Command
- U.S. Army Forces Command
- U.S. Army Transformation and Training Command
- U.S. Army Materiel Command
- U.S. Army Pacific
- U.S. Army Europe and Africa
- U.S. Army Central
- U.S. Army North (CONT)
DISTRIBUTION: (CONT)
- U.S. Army South
- U.S. Army Special Operations Command
- U.S. Army Transportation Command
- U.S. Army Space and Missile Defense Command/Army Strategic Command
- U.S. Army Cyber Command
- U.S. Army Medical Command
- U.S. Army Intelligence and Security Command
- U.S. Army Corps of Engineers
- U.S. Army Audit Agency
- U.S. Army Military District of Washington
- U.S. Army Test and Evaluation Command
- U.S. Army Human Resources Command
- U.S. Army Corrections Command
- U.S. Army Reserve Command
- Superintendent, U.S. Military Academy
- Director, U.S. Army Criminal Investigation Division
- Director, U.S. Army Civilian Human Resources Agency
- Executive Director, Military Postal Service Agency
- Director, U.S. Army Joint Counter-Small Unmanned Aircraft Systems Office
- Superintendent, Arlington National Cemetery
- Director, U.S. Army Acquisition Support Center
CF:
- Commander, Eighth Army
