DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DLA Research & Development (R&D) Overview Research & Development Associates (R&DA) Annual Spring Meeting Ms. Kelly Morris Chief, Logistics Research & Development (R&D) April 12, 2016

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 Agenda Defense Logistics Agency (DLA) Overview DLA Strategic Guidance DLA Research & Development (R&D) –R&D Strategic Focus Areas –DLA R&D Interactions with Supply Chains –Manufacturing Technology Overview –Subsistence Network (SUBNET) Summary

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Who is DLA? DLA generated more than $38 billion in sales and revenue last year. The agency employs about 26,000 civilians and military, located in 48 states and 28 countries. DLA operates 24 distribution centers supporting more than 2,430 weapon systems; and, manages nine supply chains with nearly 5.3 million line items. In 2014, DLA received nearly $40 billion in excess and surplus property that was reutilized, transferred, disposed of or donated. Additionally, DLA administers the storage and disposal of strategic and critical materials to support national defense. Headquartered at Fort Belvoir, Virginia, DLA is a global enterprise – wherever the United States has a significant military presence, DLA is there to support.

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 Global Supply Chains at the DLA Primary Level Field Activities (PLFA) DLA Troop Support Class I: Subsistence –Food & Combat Rations Class II: Clothing & Textile –Dress & Combat Uniforms Class IV: Construction & Equipment –Facilities Maintenance Class VIII: Medical –Pharmaceutical & Medical Equipment Class IX: Industrial Hardware DLA Aviation Class IX: –Engine Components, Air Frames –Flight Safety Equipment DLA Land and Maritime Class IX: Maritime –Valves, Fluid Handling –Electrical/Electronics Class IX: Land –Wheeled, Tracked & Heavy Vehicle Parts –Small Arms Parts DLA Energy Class III: Energy –Bulk Petroleum, Natural Gas, Coal, Electricity –Aerospace Energy

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 DLA Strategic Guidance 3D Food Printing Food Innovations DLA leverages R&D to infuse innovation into disruptive solutions that achieve DLA’s 1 st Strategic Goal – “Warfighter First” Robotics

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 DLA R&D Test & Evaluation (RDT&E) Strategic Focus Areas FY16 $38.1M

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 7 R&D Integration into the DLA end-to-end supply chain Customer’s Customer Suppliers’ Supplier Supplier Plan Customer Make DeliverSourceMake DeliverMakeSource Deliver Source Deliver Defense Logistics Agency Source Return Castings Batteries Microcircuit Emulation Strategic Materials Subsistence Forgings DistributionDisposition Counterfeit Parts Energy Ind. Items & Equip Additive Manufacturing

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 8 Mission: Supporting the Warfighter Supports technical innovation in the DLA industrial base to improve the operational performance of key supply chains Budget: $22.605M (FY16) Investment Portfolio Areas: Advanced Microcircuit Emulation Battery Network Castings/Forgings Military Unique Sustainment Technology Combat Rations/Subsistence Network New: Defense Logistics Innovation Research (DLIR) Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR) DLA ManTech Program Overview ManTech Develops Modeling Software to Predict Dimensional Distortion in Steel Castings Reduced costs and lead times from reduced machining Higher quality/performance for parts with reduced dimensional variability/defects Casting yields increased by 5-10%

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 9 Combat Rations/Subsistence Network Present Manufacturing Technology (ManTech ) program established in DLA with the purpose of addressing industrial base issues in clothing, combat rations and obsolete microcircuits. Combat Rations Advanced Manufacturing Technology Demonstration (CRAMTD) is established with a single award to Rutgers University. Combat Rations Network (CORANET) was established in 1996 by partnership contracts to enable interaction between government, academia and industry. CORANET II CORANET III SUBNET program researches and promotes manufacturing improvements in the entire Subsistence Supply Chain, which includes, but is not limited to, combat rations, field feeding solutions, garrison feeding, and food safety and defense. Subsistence (SUBNET)

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 10 Strategic Focus Area: Improving Industrial Base Manufacturing Research and promote manufacturing improvements in the entire Subsistence Supply Chain to include combat rations, field feeding solutions, food equipment, and garrison feeding Budget: $1.32 M (FY16) Current SUBNET Projects: Combat Rations Shelf-Life Temperature Monitoring Microwave Assisted Thermal Sterilization Optimize Combat Rations Inspection Costs MRE Alternate Chemical Resistant Pouch Laminate Plans: Perform community partnership of government, industry and academia to leverage the latest technologies affecting the Subsistence Supply Chain Identify and award new Short Term Projects through a Broad Agency Announcement Research, leverage, implement and transition improved technologies in the subsistence supply chain DLA Subsistence Network (SUBNET) Formerly Combat Rations Network (CORANET) Temperature logger used at San Joaquin Defense Distribution Depot in Tracy, CA as part of the Combat Rations Shelf Life Temperature Monitoring Project to ensure proper storage and longevity of MREs

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 11 Subsistence Network (SUBNET) Community Partnerships: Military Services, US Army Natick Soldier Research Development and Engineering Center United States Department of Agriculture, US Army Veterinary Services, US Army Public Health Command, Combat Rations Community, Industry and Academia Desired Impact: Increase readiness and improve quality of subsistence products through collaboration with government, industry and academia Improve subsistence processes and product capabilities through innovation and modernization Implement solutions to effect changes that produce results such as shorter lead times, higher throughput, and improved product quality Maximize production capabilities and produce efficiencies in the subsistence supply chain

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 12 SUBNET Way Forward Vision & Strategy for the Subsistence Network Partner with other DLA R&D Programs Work with other DLA R&D program managers in the manufacturing technology and logistics technology areas to leverage additional research opportunities or develop feasibility analyses that may provide innovative solutions in the subsistence supply chain. Collaborate with Natick Labs on Applied Research and Technology Team with Natick’s Combat Feeding Directorate on applied research to study, analyze, and to solve practical problems and develop innovative technologies in the subsistence supply chain. Continual Research and Strategic Assessment Continuously research, annually assess the program, connect with forward-thinking organizations and attend conferences to stay abreast of new emerging technologies and trends that may impact the subsistence supply chain in the future. Re-Connect/Partner with the Subsistence Community Revive Joint Steering Group and Working Group Meetings that CORANET previously held biannually. These meetings provide a forum for government, industry and academic partners to develop new ideas and to determine supply chain gaps in a collaborative environment. Champion Short-Term Projects Champion short-term projects that test-low risk, high impact technology and process improvements that will improve processes, reduce cost, provide efficiencies, and develop demand surge capability, then transition improvements to industrial base suppliers, military services, and warfighters.

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 13 Final Thoughts Submit white papers or full proposals under the Emergent BAA o SUBNET BAA is being restructured Collaborate/Team with Natick on future R&D opportunities/efforts Industry and academia is important to DLA R&D o Develop and submit new ideas Success of SUBNET requires teaming with all in the subsistence community

Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Thank you!