USN/USMC CAD/PAD Program Update 2017 CAD/PAD International Logistics Meeting Jurgen Smith USN/USMC CAD/PAD DPM 23 May 2017

Stock Shortage Metrics Service Life Extension Metrics Agenda Program Overview PB17 Budget Breakout Top Issues Update Stock Shortage Metrics Service Life Extension Metrics JSF CAD/PAD Transition Update

CAD/PAD USN/USMC Program War Fighter Capability $5.044M cut -$4.664 for RMD under execution to be re-phased back in FY17 & FY18 -$0.380 inflation cut $5.4M cut -$4.1 MISC devices program growth -$1.3 Other cost growth and delays Program Description War Fighter Capability ACAT: Non-ACAT Contractor: Various, 150 USN,MC contractual actions annually Martin-Baker, Goodrich, PACSCI, Cobham, Nammo-Talley, Chemring, Stresau, Capco, Hanley, ATK, Aerojet, Charl, CAD Inc, Kidde Aerospace, TekOrd Contract Type (s): Normally FFP, sole source or competitive Risks: Industrial Base consolidations; Obsolescence of energetic materials/ingredients Opportunities: 2nd source efforts for various NACES CADs, F-18/V-22 Fire extinguisher gas generators, F-18 selector handle, PDRM Mod1 Mission: Power egress/safety systems and supply energy to release weapons from aircraft Description: Life-limited energetic devices utilized in aircraft egress and safety systems, personnel gear, and weapon or store release systems. 676 distinct devices utilized for USN,MC Platforms: All fixed wing and helo platforms utilize CAD/PAD; each platform has its own set of devices, with 138 different aircraft configurations Employment: 380,000 CAD/PADs are installed in USN,MC aircraft with 70,000 annual change-outs upon reaching the end of their useful life. 375,000 Stores Release CADs are expended each year releasing weapons and other stores from the aircraft. Over 15,000 requisitions processed annually, 450 CODRs reviewed, 25 EIs and 4 MISTs annually. 3

CAD/PAD PANMC & O&MN Budget Breakout Integrated Logistics Support Production Engineering Support Quality Assurance Product Improvement Acceptance Testing Reliability Life $.5M $3.9M $1.8M Support funding also used for PIP/ 2nd Source Contract Support

Top Issues F/A-18 and T-45 PDRM Mod 1 release to service delayed Industry thus far unable to build FAT units Bringing work to Indian Head to prove design is producible Once successfully produced, will procure only Mod 1 and change out based on attrition Will get us back to 7 year life vice current 2 years

Top Issues Continued F/A-18 WB55 initiator OA test failures starting in Oct 2012 Test data forced a reduction to 2 year installed life Product improvement program qualification test units May 2017 Expect to be ready to procure new WB55 in FY18 Change out will be based on attrition T-6 JL56 initiators OA test failure in Nov 2014 T-6 Program office made decision to fly in Solo mode Takes JL56 out of ejection sequence Product improvement program complete Deliveries underway Need to change out JL57 along with JL56 due to aging trends

Top Issues Continued TLX line shortages continues Used on F/A-18, V-22, T-6, F-16, B-1, B-2, AH-64 Manufacturer had LAT failures in FY14 Root cause determined to be low/high core loads due to improper laser core load sensing system calibration Special testing conducted to verify corrective actions Will have to accept some anomalies until equipment is replaced CH53 MT23 fire extinguisher cartridge shortage HERO replacement JM61 failed FAT twice Emergency procurement of MT23 Recertified fleet MT23s to fill gap until deliveries July 17

Top Issues Continued Late contract awards Leads to late contract deliveries Creates increased stock shortages Drives up need for USN/USMC and FMS Service Life Extensions Increases RIK requests Often difficult to support RIK requests from USN stock Often leads to congressional and FMB budget cuts FMS customers, please get your requirements in on time and monitor your stock levels so you can plan for any stock shortages and required SLEs

CAD/PAD Stock Shortages By FY

CAD/PAD Service Life Extensions By FY

JSF CAD/PAD TRANSITION JSFPO signed memo transitioning CAD/PAD from CLS to Gov’t support IPT working towards an FY20 transition completion date Global pool of CAD/PAD for all customers envisioned Funded by JSFPO using participant’s funds Additional information to be provided by CAD/PAD APML this afternoon

Questions?