1 Together, we deliver. UNITED STATES TRANSPORTATION COMMAND

2 Together, we deliver. Our Mission – Unified Command Plan Responsibilities – Distribution Process Owner – Global Distribution Synchronizer Capabilities Readiness Initiatives Enterprise Readiness Center Congressional Authorizations Total Delivery Services (TDS) (formerly Worldwide Express and Domestic Express) Defense Freight Transportation Services (DFTS) Agenda

3 Together, we deliver. Key doc for DoD “Roles and Missions” President uses UCP to: – Define general and specific responsibilities & missions – Assign force structure Effective command and control of U.S. forces, regardless of branch of service – 9 Combatant Commands USTRANSCOM has 6 specified tasks, to include: – Distribution Process Owner (#4) – Global Distribution Operations (#5) Unified Command Plan (UCP) Geographic Combatant Commands (6x) Functional Combatant Commands (3x) –US Special Operations Command –US Strategic Command –US Transportation Command

4 Together, we deliver. The Process Owner has the responsibility to: Coordinate, sustain, and improve processes; Coordinate creation of new processes, where appropriate; and be accountable for their outcomes Advocate improvements for and across all DOD Components for effectiveness, efficiency, and alignment relevant to a particular process The Distribution Process Owner (DPO) will: Coordinate and oversee the DOD distribution system to provide interoperability, synchronization, and alignment of DOD-wide, end-to-end distribution. Develop and implement distribution process improvements that enhance the Defense Logistics and Global Supply Chain Management System What that means to USTRANSCOM: JDDE Enterprise Governance (Forums) Distribution Portfolio Management (DPfM) Acquisition Authority Expansion Distribution Process Owner (DPO) Synchronizing the Logistics System to Deliver the “Right Things” to the “Right Place” at the “Right Time”

5 Together, we deliver. BY: Campaign Plan for Global Distribution Providing a framework for CCMD/Service/ Agency distribution plans THE GLOBAL DISTRIBUTION SYNCHRONIZER (GDS) WILL: Assess the global distribution network Identify and prioritize issues, determine risk & recommend solutions Pursue solutions through existing Department forums Assess the strategic environment and effectiveness of the Campaign Plan-Global Distribution Provide annual distribution IPR to the Department with recommendations and ways to reduce risk IN ORDER TO: Preserve and enhance an efficient and strategically flexible global distribution network Global Distribution Synchronizer Synchronizing Distribution Planning, Optimizing the Global Distribution Network

6 Together, we deliver. Munitions DistributionPort Infrastructure Decontamination Standards Aerial and Sea Port Damage Repair Cyber UNCLASSIFIED Campaign Plan for Global Distribution Year One Highlights: UNCLASSIFIED

7 Together, we deliver. Strategic Capabilities ERCCurrent as of 02 MAY 13 Capabilities: Scheduled Airlift Services (Airport to Airport) Military or Commercial Charters (SAAM) Military Operated/Controlled Ocean Platforms Rail Movements (CONUS) 3 rd Party Logistics Contracts (CONUS) Motor Carrier Contracts (LTL/TL/Specialized) Small Package Express Contracts (O/CONUS) Heavy Airlift Contracts (Worldwide Service) Ocean Liner Contracts – Scheduled Routes Ocean Chartered Lift – When/where needed Multi-modal Service (Ocean/Air/Ground) Consolidation Services (partnered with DLA) Theater Express Specialty: Outsize cargo to austere locations Leveraging USG Owned and Commercially Available Lift to Execute the Mission

8 Together, we deliver. DTS Workload Potential DTS Workload  Improve efficiencies and reduce costs  Ensure DTS retains ability to provide agile and timely response for the full range of DoD missions  Achieve enterprise-level readiness of the DTS at lowest overall cost to the Government  Improve collaboration across the entire enterprise DTS Workload & Mission Readiness UNCLASSIFIED Preserving Strategic Readiness Capability & Capacity What does “Readiness” mean to USTRANSCOM?

9 Together, we deliver. Business Management Enhance DTS Capabilities, Identify Workload Opportunities and Develop Customer-Focused Solutions Intermodal Programs Ensure Viability of Commercial Air and Sea Lift Through Civil Reserve Air Fleet and Voluntary Intermodal Sealift Association Partnerships Schedules Policy Price Flexibility Global Reach Integrated Systems “TRANSPORTATION PROVIDER OF CHOICE” Enterprise Readiness Center

10 Together, we deliver. Readiness Initiatives Strategic Integrator Supporting DoD Readiness Strategic Integrator Supporting DoD Readiness Identifying Workload Opportunities Identifying Workload Opportunities Cost Efficiencies Cost Efficiencies Improving DTS Services Improving DTS Services Better collaboration with DSCA, Service Implementing Agencies, Inter-Agency Better collaboration with DSCA, Service Implementing Agencies, Inter-Agency Synchronization of Security Cooperation Priorities Synchronization of Security Cooperation Priorities - Campaign Plan-Global - Campaign Plan-Global Distribution Distribution - Strategic Engagement Plans - Strategic Engagement Plans UNCLASSIFIED Partnering with FMS Nations to Improve Readiness and Enhance Capabilities

11 Together, we deliver. Congressional Authorizations  Expanded authority to DoD to provide DoD shipping rates to: Federal Agencies (Department of State, Transportation) State and Local Entities Foreign Military Sales DoD Contractors (Coordinating/executing movement of DoD materiel)  Not a blanket process Agency requests DoD support/pricing through normal channels Must improve use of transportation capacity without impact on DoD operations Limits on annual transportation spend  Benefits Maintains readiness on DoD capabilities (Organic/Commercial lift platforms) Fully utilizes available space within the DoD network Provides over/outside lift to non-traditional customers

12 Together, we deliver. Total Delivery Services (TDS) Contract  Multiple-award program comprised of 5 Indefinite Delivery, Indefinite Quantity (IDIQ) contracts  Integrates small package requirements into single contract to consolidate shipments and achieve economies of scale  Provides Both International & Domestic Commercial Express Package Services International Segment – Mandatory for DoD Optional for Civilian Federal Agencies & Cost-reimbursable contractors Domestic Segment – Mandatory for DoD; Optional users (DoD Contractors)  Provides time-definite, door-to-door pick-up and delivery  Intransit Visibility (ITV), Government Third Party Payment System (TPPS) participation, and customs clearance processing

13 Together, we deliver. Defense Freight Transportation Service  Follow on to the Defense Transportation Coordination Initiative (DTCI) Incorporated lessons learned where applicable  Leverages Commercial 3 rd Party Logistics (3PL) entity to: Integrate a robust Transportation Manage System (TMS) with DoD systems Arrange, coordinate, monitor, and control North America freight shipments Manage carriers to meet performance requirements Provide In-Transit Visibility Capture/report shipment metrics from request to final disposition Identify and report process improvements to gain efficiencies/lower costs Mode neutral program based on customer’s demand signal  Prime Customers Defense Logistics Agency (DLA) Defense Contract Management Agency (DCMA) On-ramps for Services or other Federal Agencies  Contract Award Date: Sep 15

14 Together, we deliver. USTRANSCOM Key Take-Aways Maintaining Strong Engagement with Industry Surface / CRAF / VISA Executive Working Groups Industry partners have a seat at the table Preserving Readiness of a Global Distribution Network Leveraging Our Collective Buying Power to Provide Best-value Transportation Solutions to Our Customers Providing full-spectrum mobility solutions and related enabling capabilities for supported customers’ requirements in peace and war

15 Together, we deliver.

16 Together, we deliver. DISCUSSION

17 Together, we deliver. BACKUPS

18 Together, we deliver. Distribution Process Owner (DPO) USTRANSCOM provides full-spectrum global mobility solutions and related enabling capabilities for supported customers’ requirements in peace and war. SDDC AMC MSC JECCJTRU Geographic Combatant Commands USTRANSCOM Component Commands UNCLASSIFIED

19 Together, we deliver. Campaign Plan for Global Distribution (CP-GD 9033): Is an iterative, process oriented plan with a future state vice an end state Establishes a framework for CCMD/Service/Agency distribution plans Provides an integrated means to synchronize global distribution Identifies issues and assesses risks Prioritizes issues and coordinates through the Distribution Community of Interest UNCLASSIFIED

20 Together, we deliver. CP-GD Collaborative Visibility Advocacy CP-GD Collaborative Visibility Advocacy ERIMP Develop and maintain an en route infrastructure master plan, prioritized across the future years defense program which aligns GCC mobility requirements. ERIMP Develop and maintain an en route infrastructure master plan, prioritized across the future years defense program which aligns GCC mobility requirements. Evaluate En route Infrastructure (Identify Issues) Evaluate En route Infrastructure (Identify Issues) Issue Resolution A global distribution network that provides agile, scalable and resilient distribution from point of origin to point of employment to meet the needs dictated by the current and future operating environment. Theater Campaign Plans GERISC DOD Enduring Location Master List Strategic Guidance GEF JSCP UCP Strategic Guidance GEF JSCP UCP Strategic Guidance International and Acquisition and Cross Servicing Agreements Air Mobility Command En Route Strategy Joint Staff J4 Logistics Estimate Joint Staff J4 Logistics Estimate CP-GD and En-Route Infrastructure Master Plan (ERIMP) UNCLASSIFIED

21 Together, we deliver. Requirement-Driven / Analysis-Supported Considers Defense Planning Guidance (GEF, JSCP), GCC plans (OPLANs, Theater Posture Plans), historical mission data, and ops/intel forecasts Forward Looking (5 to 15 Years) Anticipates future mobility events and USTRANSCOM requirements in each region ERIMP Objective “Define USTRANSCOM’s long-term global posture and access strategy necessary to operate globally, anywhere and anytime” Focused on Intermediate OCONUS Nodes “…supports refueling, maintenance, crew change/crew rest, or transload of cargo or passengers for onward movement to final destination.” – 2014 ERIMP Considers All 3 Elements of Global Posture: Forces, Footprint & Agreements 1) Enabling Capabilities; 2) En Route Locations/Infrastructure; 3) Access/Transit/Protection Agreements The ERIMP justifies and advocates for strategic access priorities ERIMP: What It Is…and Isn’t UNCLASSIFIED

22 Together, we deliver. ERIMP Objective “Define USTRANSCOM’s long-term global posture and access strategy necessary to operate globally, anywhere and anytime” Requirement-Driven / Analysis-Supported Not all locations of GCC interest are needed or preferred by USTRANSCOM Forward Looking (5 to 15 Years) Not specific to Current Operations (e.g. NDN for OEF) Focused on Intermediate OCONUS Nodes Not CONUS locations, origins or final OCONUS destinations The ERIMP justifies and advocates for strategic access priorities Considers All 3 Elements of Global Posture: Forces, Footprint & Agreements ERIMP: What It Is…and Isn’t UNCLASSIFIED

23 Together, we deliver. FAR Based Contracts vs. Tenders  FAR based contract is the preferred instrument for acquiring supplies/services FAR BASED CONTRACTS TENDERS In compliance with LM&R policy (DoDI )Yes No Maximize performance based & best value solutionsYesNo Guaranteed minimum performance levels (metrics)YesNo Incentives to improve customer satisfactionYesNo Maximizes Government buying leverageYesNo Structured competitive processYesNo Employs best commercial practicesYesNo Carries out spirit and intent of Federal StatuesYesNo Compliance with Procurement Integrity Act ProvisionsYesNo Legal remedies more easily enforceableYesNo

24 Together, we deliver. DPO Strategic Opportunities (DSO) Chartered in March 2009 by the heads of organizations responsible for executing DoD distribution DSO represents the performance improvements attainable from aligning distribution processes across organizations Executive sponsorship critical for DSO success Identify high-level strategic opportunities that will dramatically advance the objective of making the DOD’s distribution process as “effective and efficient as possible” Suppliers Transporter Customer COCOMS

25 Together, we deliver. “Readiness” Defined Doctrinal Definition: “The ability of military forces to fight and meet the demands of assigned missions ” (Joint Publication 1-02) USTRANSCOM further refines to: “The Capability and Capacity of military the Defense Transportation System, both commercial and organic, to satisfy the transportation requirements of the most demanding contingency scenario ” Ends Means Ways Global Force Mobility Provider Single Manager for Transportation Single Manager for Patient Movement Distribution Process Owner Global Distribution Synchronizer Standing Joint Task Force Headquarters ENDS Ends Organic Component Commands Subordinate Commands Maritime Administration Commercial US Flag Foreign Flag Ways Means CRAF & VISA Universal Services Contract (Multi-modal) Global Freight Mgmt. Organic Airlift Fleet Surge Capacity Secure C4I Systems Working Capital Fund Global Enroute Access Organic Sealift Fleet