Washington Update with Kevin Hickey 2017 Winter IDCC Meeting Washington Update with Kevin Hickey

ADS Introduction Our Core Values ADS Inc. is a global company that specializes in product procurement and value-added supply chain solutions, including custom sourcing & procurement, program management, integration services, assembly and quality control Revenue ~1.5 billion Markets We Serve: Department of Defense Federal Government Agencies First Responders Humanitarian Organizations Partner Nations State and Local Law Enforcement Agencies Major Prime Contractors Our Core Values

My Bio Education Professional Experience B.A. in Economics and International Relations from University of Delaware Professional Experience 15+ years of experience working with Congress 2010 - Present Joined ADS as Vice President of Product Management in 2010 Started ADS government relations department in 2013 1988 - 2010 Worked with the Fabrics division of WL Gore & Associates Performed various roles in sales, marketing, business development, and leadership, both in North America and internationally

State of Affairs Political Leadership Appointees Total Positions ~4000 Total Positions Requiring Senate Confirmations ~1200 Total Number of Appointments by the President 33 Confirmed So Far 5

State of Affairs 13 Days In January 30, 2017 Reducing Regulation and Controlling Regulatory Costs. "one in, two out" January 28, 2017 Ethics commitments by executive branch appointees Organization of the National Security Council and the Homeland Security Council Plan to Defeat the Islamic State of Iraq and Syria January 27, 2017 Protecting the nation from foreign terrorist entry into the united states (Entry ban from 7 countries) Rebuilding the U.S. Armed Forces​ January 25, 2017 Border Security and Immigration Enforcement Improvements Enhancing Public Safety in the Interior of the United States January 24, 2017 Construction of the Keystone XL Pipeline Construction of the Dakota Access Pipeline Construction of American Pipelines Expediting Environmental Reviews and Approvals For High Priority Infrastructure Projects Streamlining Permitting and Reducing Regulatory Burdens for Domestic Manufacturing January 23, 2017 Withdrawal of the United States From the Trans-Pacific Partnership Negotiations and Agreement Mexico City Policy Hiring Freeze January 20, 2017 Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal Regulatory Freeze Pending Review

DOD and DOE Appropriations January 27, 2017 Rebuilding the U.S. Armed Forces​ Appointment of Mick Mulvaney as the Director of Office of Management and Budget (OMB) What can we infer from these actions at this point Reinvigoration of the military Expansion of the nuclear arsenal Roll-back of the Budget Control Act of 2011 Reduction in OCO appropriations A 2017 Defense appropriation bill is likely though certain domestic spending might be on Continuing Resolution $40 billion in Defense supplemental funding Some form of earmarking is likely to return to this session Increased cybersecurity spending

Procurement Regulations Trump: Boeing to price out an alternative to Lockheed Martin's F-35 fighter jets January 30, 2017 Reducing Regulation and Controlling Regulatory Costs. "one in, two out" What can we infer from these actions at this point President dislikes complicated language and contractual obligation. So, in other words “Procurement Regulations” He wants to take a direct role in federal contracting FAR revision? Unfavorable terms for commercial vendors to reduce costs? Mass exodus of companies from government procurement and re-focus on commercial business? Increase in commodity prices for the federal government?

Environmental Regulations January 30, 2017 Reducing Regulation and Controlling Regulatory Costs. "one in, two out" January 24, 2017 Construction of the Keystone XL Pipeline Construction of the Dakota Access Pipeline Construction of American Pipelines Expediting Environmental Reviews and Approvals For High Priority Infrastructure Projects Streamlining Permitting and Reducing Regulatory Burdens for Domestic Manufacturing Trump: Environmental regulations are 'out of control‘ Scott Pruitt nominated by the President to lead the EPA What can we infer from these actions at this point Reduced EPA role and budget Fewer regulations directed towards maintaining environmental standards Boost to fossil fuel industry and a negative impact on the renewable energy industry China like policies for manufacturing at home? Judicial action by pro-environment forces

Thank you

Reference http://www.politico.com/story/2017/01/trump-environmental-regulations-234096 http://www.politico.com/agenda/story/2016/12/trump-federal-contracts-weapon-000262 https://www.law360.com/articles/881546/government-contracts-under-the-trump-administration