Leading DLA's Aviation Supply & Demand Chain Defense Supply Center Richmond Base Realignment And Closure (BRAC) Depot Level Reparable (DLR) Update Ms. Yvette Burke Acquisition Executive 8 April 2008

Leading DLA's Aviation Supply & Demand Chain 2 Agenda Organizational Alignment Implementation Activities Leaning Forward

Leading DLA's Aviation Supply & Demand Chain 3 Aviation Supply Chain DLR Organization Structure D Commander QA Aviation Customer Operations FA Aviation Supplier Operations V Aviation Engineering BA Business Process Support Columbus/Philadelphia Detachments Aviation Supply Chain Chief of the Contracting Office DSCR-BP DLA Huntsville CCO DLA Philadelphia CCO DLA Warner Robbins CCO DLA Oklahoma City CCO DLA Ogden CCO DLA Commander Oklahoma City DLA Commander Warner Robins DLA Commander Ogden Supply Storage DO Deputy Commander for Field Operations Other Supply Storage and Distribution Sites Direct Report, Personnel, and Operational Support Matrixed, Administrative Support Matrixed, Oversight Support DA Acquisition Executive DD Deputy Commander Blue = Operational & Oversight Tan = Oversight Only J8R Financial Operations J6R Information Operations and Distribution Sites

Leading DLA's Aviation Supply & Demand Chain 4 DLR Key Events Aviation Supply Chain DLR Detachments Air ForceNavyArmy HillTinkerWarner RobinsNAVICP PhilAMCOM Identify Detachment CCOPamela DayMichael YortKen WinsletteTammy KoziorMarsha Thornton FTE numbers (44)68 (55) Site Plan PublicationNov 07Dec 07Apr 08Feb 08Apr 08 Provisional Det StandupN/A Apr 08Jan 08Dec 07 Detachment StandupJun 08 Nov 08 Dec 08 Detachment Standup (Tier III/IV)N/A Jan-Mar 10 DSCR BRAC Office Site Plan Lead Michele Thomas Gwen Pearson Major Phillip Adams Major Jerry McGhee Christina Larsen

Leading DLA's Aviation Supply & Demand Chain 5 Depot Level Repairables SERVICESSERVICES DLADLA DLR Procurement Management Consolidation Requirement Funding Program Management Logistics Engineering Repair Acquisition Strategy Governance Personnel New DLR Procurements Policies & Procedures Gained Joint Collaborations Retained Depot Level Repairables

Leading DLA's Aviation Supply & Demand Chain 6 Tiered Approach Tier I - 48%/16%**Tier II – 46%/62%Tier III – 5%/20%Tier IV - 1%/2% No Data Rights No First Article Part Number Buy (non-NSN) Single Item Procurement (NSN) Transactional Buys (NSN) New DLR Procurement (NSN) Corporate Contracts – Buy ONLY Single Item Procurement (not in Tier I) Multiple Item Procurements (NSN/non-NSN) New DLRs Special Tests Technical Requirements No Special Services OSD Maturity Model I & II PBLs DLR with incidental services - not repair Performance Incentives (Positive and Negative) Requires Business Case Analysis OSD Maturity Model III & IV PBLs Combined with Program Requirements Requires Business Case Analysis ** Items/Dollar Value Air Force - Day One Army/Navy – Phase I Army/Navy – Phase II Acquisition Strategies Drive the Tiers

Leading DLA's Aviation Supply & Demand Chain 7 DLA Today & Tomorrow Streamlined Acquisition Single Policy Single Process Single Automated System Tomorrow Army Marine Corps Navy Air Force DLA Multiple Clauses Multiple Policies Fragmented Collaboration Multiple Processes Multiple Systems Today

Leading DLA's Aviation Supply & Demand Chain 8 DLR Key Performance Indicators Administrative Lead Time (ALT) - The time it takes to establish a contract with a supplier for a requirement Procurement ALT (PALT) - The time required to award contract from time of receipt of a qualified Purchase Request Production Lead Time (PLT) - The total time between the award date to the receipt date of the first significant delivery Strategic Opportunities - Number and $$$ value of items on Joint Long Term Contracts Number Open Purchase Requests (PRs) stratified by days - Number PRs on hand or WIP 0-90, , , days, and greater than 365 days WIP Average Age - PRs > ALT of Record On-Time Delivery - Percentage of schedule lines delivered complete by the Supplier to the prescribed destination by the delivery date specified in the contract to include allowance for quantity variances

Leading DLA's Aviation Supply & Demand Chain 9 Strategic Material Sourcing

Leading DLA's Aviation Supply & Demand Chain 10 Army Leveraging Best Business Practices Process Improvements Navy Air Force Marine Corps DLA Prime Vendor Contracts Leverage Industrial Capability Leverage DoD Spend Cost Wise Readiness to Warfighter Relationship Spectrum Strategic Supplier Alliances Supply Chain Alliances Partnership Agreements Performance Base Logistics Corporate Contracts Privatization

Leading DLA's Aviation Supply & Demand Chain 11 Joint Initiatives Strategic Joint Initiatives will drive savings Sources of Joint Initiatives Strategic Sourcing Tool DLA SMSGs DLR CCO/Program Manager/Service Industry Suggestions DLR IPT formed based on identified opportunity Governance Structure in place to provide support Pilot opportunities being identified Collaboration Is Key

Leading DLA's Aviation Supply & Demand Chain 12 eProcurement Overview mySAP Supplier Relationship Management SAP Document Builder FAR/DFARS/Local Clause Management Contract Modifications Content Management Bid Invitation (Solicitation-RFP/RFQ/IFB) Operational Sourcing Government Reporting Supplier Qualification Complex Document Generation Evaluation and Award Content AND Catalog Management mySAP ERP Financials Materials Mgmt Funds Mgmt SAP Records Management Electronic Contract File Case Management Contract Admin Near Term Focus: Initial Utilization with DLA Inventory Control Points Long Term Focus: Expand to DLA Service Centers BRAC Depot Level Reparables -Follows SAP Standard Implementation Methodology -Provides Compatibility with Software Upgrades SAP is the eProcurement solution. Design/Build/Test FOC FY11 FY09 FY10

Leading DLA's Aviation Supply & Demand Chain 13 Summary Gaining New Mission Extending Base of Acquisition Professionals Leaning Forward in Implementation