18 May :30 AM – 12:30 Noon Security Cooperation Business Forum

2 18 May 2011 Welcoming Remarks & End-to-End TimelineVADM Landay Issues for Discussion –Key Business Indicators and TrendsMr. Beauchamp, DSCA Automated LOR (LOR-A) UpdateMr. Mak, SAF/IA –Lean Six Sigma Tri-Service Working Group Mr. Fisher, USASAC Update – Contract Delivery Schedule Performance UpdateMr. Keithly, DSCA –Priorities of the International Customer Dr. Stewart, FPG Closing Remarks VADM Landay –Special Recognition Agenda

3 Phases Initiatives Pre-LOR Case Development Case Execution Case Closure Manage Performance Across The Entire Timeline SCO Mission Analysis ATTR SSG ERGT LOA Processing Standard Security Cooperation Community Training SDAF Case Execution Streamlining Shipping Documentation CRAFT SCES Tri-Service Case Closure Project “Where we have been focused” “Where We Need To Focus” MTDS Quality DCMA Contract Mgt Tools for FMS BP/LL

4 INCOMING BUSINESS: LORs RECEIVED # LORS FY00 Baseline FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11 # of LOR’s Received * Source: DSAMS 1 Apr 2011 * 2Q FY2011 *

5 HOW LONG IT’S TAKING TO PRODUCE AN ACTIONABLE LOR – DEFINING REQUIREMENTS As of 31 March 2011 Average Time: LOR Receipt to LOR Complete CEILING Source: DSAMS 1 Apr 2011 Good

6 1. LOR Purchaser, SAO, IA From Date of LOR To Date LOR Considered Actionable 25 Days (20%)19 Days (18%)27 Days (22%)27 Days (21%) 2. LOAD IA From Date Case is Initiated To Date Case id Approved By IA 78 Days (64%)68 Days (66%)76 Days (63%)86 Days (66%) 3. WRITE DSCA / CWD, IA From Date CWD Gets Access Rights To the Date LOA is Sent to Purchase 19 Days (16%)16 Days (16%)18 Days (15%)17 Days (13%) TOTAL122 Days103 Days121 Days130 Days 4. POST OFFER Purchaser, DFAS, DSCA, IA From Date LOA is Sent to Purchaser To Date USG Implements the Case 44 Days41 Days52 Days43 Days PROCESS OWNERS AVERAGE # DAYS Good Q103Q10 1Q11 As Of 31 March 2011 HOW LONG IT’S TAKING TO DEVELOP AND OFFER AN LOA TO THE PURCHASER NOTE: Data Includes LOAs, MODs And Amendments Source: DSAMS 1 Apr Q11

7 AVERAGE # DAYS LOA PROCESSING TRENDS: FROM DATE OF LOR TO FULL IMPLEMENTATION NOTE: Data Includes LOAs, MODs And Amendments As Of 31 March 2011 LOR From Date of LOR To Date LOR Considered Actionable LOAD From Date Case is Initiated To Date Case is Approved By IA WRITE From Date CWD Gets Access Rights To the Date LOA is Sent to Purchaser POST OFFER From Date LOA is Sent to Purchaser To Date USG Implements the Case Good Source: DSAMS 1 Apr 2011

8 % Documents Sent On/Before AOD Group AGroup BGroup CGroup D Blanket OrderDefined OrderCustomer UniquePseudo Case % Documents Sent On/Before AOD Goal 1131 LORs Completed 846 LOAs sent on/before AOD 303 LORs Completed 205 LOAs sent on/before AOD LOA Processing: Meeting the Anticipated Offer Date (AOD) Source: DSAMS Apr LORs Completed 19 LOA sent on/before AOD 701 LORs Completed 561 LOAs sent on/before AOD

9 Meeting the Anticipated Offer Date (AOD) Trends Data Source: DSAMS 2Q11 Data: 04/05/2011

10 CEILING 500 Source: MILDEP Reporting April 2011 NUMBER OF OPEN SUPPLY DISCREPANCY REPORTS IN USG HANDS FOR OVER ONE YEAR (ARMY 57) (NAVY 153) (COMMUNITY 466) (AIR FORCE 256) FY11 Objective: < 500 SDRs over 1 Yr Old by end of FY11 As of 31 March 2011 Good CEILING Number of SDRs