1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT PBL and Enterprise PBL 14 January 2015

2 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 Actively pursuing PBL contracts to generate cost savings and improve Warfighter support Working closely with Service requirements POCs Continue to pursue Enterprise PBL opportunities Enterprise PBL effort with Honeywell underway PBL contract awarded to Boeing, phased approach Phase 1 material availability Phase 2 expanding to depot support More Phases to follow (total value estimated $8B-$12.6B) DLA receiving more requests regarding partnering under PBL arrangements from program offices and contractors/vendors DLA PBL Approach & Ongoing Actions

3 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Industry has consistently stated that DoD can save 10 to 20% by migrating to a joint PBL structure, while providing better availability and reliability Army Air Force Navy PBL Rationalize the Business Structure Leverage economies of scale & scope Garner efficiencies associated with one standard business process & one supply chain Move from PBL 1.0 (separate efforts) to PBL 2.0 (enterprise PBL structures that span DoD) Leverage One Supply Chain, One Set of Rules, One Business Model, and One Overarching Public Private Partnership Adopt an Enterprise Approach

4 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 Honeywell EPBL Requirement Portfolio Aviation Ground Power Unit H-60 APU B-1 APU & A/C Mounted Accessory Drives C-5 APU E-3 AWACS APU F/A-18 EnCS & Wheel and Brakes V-22 Env Control Sys, IR Suppressor, Valves & Avionics Existing PBL USAF SPLS I C-130, Ground Cart APUs Existing PBL Navy TLS F/A-18 APU & MFC P-3 APU & EDC C-2 APU A-10 APU F-15 Jet Fuel Starter & Acc Drives (SPLS II) Value Proposition Platforms / Components CH-47 T-55 Engine P-8A Poseidon – all HON Components Additional Opportunities (not included in savings calculations) KC-767 – all HON Components M1 Abrams Tank – AGT1500 Gas Turbine Engine And associated FMS Customer orders F-16 Turbine Power Unit AH-64 Apache Clutch Assembly E2/C2 ECS Estimated value $3B-$4.5B over 10 years Savings estimated at 10%-20%

5 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 Back up

6 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP Source: The Telephone Book by Henry M. Boettinger  1977, Riverwood Publishers Telecommunications Circa 1912 While the introduction of the telephone improved communications, multiple phone companies utilized separate lines and systems. AT&T was able to rationalize the business model, reducing cost and improving performance.