Wednesday, April 29, 2009

Recycling, Reusing and Going Green: BAE Systems Helps Government Save Millions

Recycling, Reusing and Going Green: BAE Systems Helps Government Save Millions

With $235,000 in seed money, one man’s plan for recycling and reusing outdated equipment at a munitions plant has turned into a $2.5 million return on investment for the Army.

Built during World War II, the Holston Army Ammunition plant in Kingsport, Tenn., manufactures explosives for the military. Within the plant are outdated pieces of equipment and machinery and hazardous materials that required safe disposal.

Eric Fugate, the plant manager and an employee of BAE Systems, which operates the plant for the Army, had an idea. Knowing the value of the stainless steel, copper and silver that comprise the various pieces of old unused equipment, Fugate developed a plan to use the value of the metals to carry out a self-funded demolition project. The project would ultimately improve business performance, dispose of redundant equipment and remove hazardous materials—all at no net cost to the government.

When Fugate presented his plan to the senior government civilian, Commander’s Representative Bob Ragan, Ragan immediately saw the potential and jumped at the opportunity to get the project briefed to his higher headquarters. “This idea was pure thinking outside-the-box, especially in light of the current funding stream that plants like Holston live with on a daily basis. Truly BAE is looking out for their customer,” said Ragan.

“I just kept the Army’s long-term needs in mind. Sometimes we can help show them a better way to accomplish their mission. Doing what our customers need, and saving money while doing it, is what we should all try to do. After all, I’m a taxpayer too,” Fugate said.

Fugate presented his plan to the Army, which provided $235,000 in initial seed money. This funding was required in part to remove the asbestos from a portion of the plant. The valuable metals contained in the equipment were then removed and sold to generate the money to pay for the demolition work.

Fugate’s out-of-the-box idea is coming to fruition. The disposal of the redundant equipment is on schedule and will be completed over the next 18 to 24 months and will generate more than $2.5 million from the sale of the valuable metals.