On August 11, 1962, the 1st Logistical Command returned to the United States where it was reassigned to III Corps at Fort Hood, Texas.

On 21 December 1964, the Joint Chiefs of Staff endorsed the MACV plan and recommended that 230 men be initially dispatched to South Vietnam to form a logistical command as soon as possible.

Secretary of Defense Robert S. McNamara approved the plan in principle, but stated that additional justification was needed, particularly for the engineer construction group.

However, he felt that the subject was of sufficient importance to send a special representative to South Vietnam and on 31 January 1965, a group from the Office of the Secretary of Defense arrived in Saigon.

The establishment of an engineer construction group, not recommended initially, was approved in April as planning for a further buildup developed.

[3]: 9 On 25 February 1965 McNamara approved the introduction of a logistical planning group in South Vietnam consisting of 17 officers and 21 enlisted men.

Cam Ranh Bay was selected as the other base depot and port due to its excellent deep water harbor, the existing pier, its central location and U.S. capability to secure the area from VC attack.

[3]: 11 This plan by the 1st Logistical Command was implemented with only two changes: the United States Marine Corps were landed at Da Nang and, by Commander in Chief Pacific direction, the Navy was given the responsibility for both tactical and logistical operations in I Corps and this was administered by Naval Support Activity Danang.

Continued enemy pressure on the beleaguered government of South Vietnam and manpower ceilings combined to cause the logistics base to be inadequate in relation to the total force level.

As logistical units arrived in South Vietnam they were assigned to appropriate depots or Support Commands as the tactical situation demanded.

A thorough reconnaissance was made and the Long Binh area was selected for the establishment of a major logistical and administrative base.

General William Westmoreland (who was both MACV commander and Commanding General USARV) was briefed on the study and approved it in principle, except he elected to move Headquarters, USARV to Long Binh Post (Headquarters MACV, remained in the Saigon area).

The command maintains a headquarters in Fort Knox, Kentucky, while sustaining an enduring mission forward, based in Kuwait.