Ready. Resourceful. Responsive! 19 Jun 02 REALTIME REUTILIZATION ASSET MANAGEMENT William Rhodes RRAM Program Manager Naval Supply Systems Command Phone 717 605-6607 (DSN 430) Ready. Resourceful. Responsive! 19 Jun 02

Agenda Background Description Composition Warehouse Management (WM) Virtual Management (VM) RRAM Today Summary

Background: Goldpiles Originally Residual Asset Management System (RAM) - 1995 Created to manage “Gold Piles” Reengineered using LAWSON Insight - 2000 Renamed Reengineered RAM (RRAM) efficiently manage warehouse Expanded to accommodate new business processes - 2002 Restricted Inventories Virtual Inventories A new name came with the expansion Realtime Reutilization Asset Management (RRAM) No Billing or Financial Transactions

Background: TAV Provide Total Asset Visibility (TAV) Comply with Government Performance Results Act (GPRA - Congress) Achieve DoD Logistics Strategic Plan 100% TAV by FY06 Accomplish TAV per NAVSUP Strategic Objective 5.5.06

Description: Technology Mid-Tier (Client-Server) Thin Client Relies on Internet Connectivity Web Page Access and Visibility Linear Barcode Capability Today 2D Barcode Capability by 30 SEP 02 Supports DOD PKI Security

Description: Visibility Offset ICP Procurements via IM Toolkit Offset ICP Backorders via Flashpoint “A” Purpose “A” Condition Requisition Processing via CPEN/VMSIR Offset DLA Procurements/Backorders via DZE Processing Visibility is not equal to Accessibility

Composition: RRAM

Composition: WM – Free Issue

Business Rules: Free Issue Centralized database at DECC, Chambersburg Sites operate as remote warehouses Assets currently include all Navy Cog and 9 Cog Material Only Ready for Issue (RFI) material available for CPEN/VMSIR No NAVICP capitalization of assets IPG II & III requisitions screened (Limited IPG I) Screening limited to Fleet and NAVSEA SCN and TOB Requisitions RRAM assets screened first, wholesale/retail second Requisitions processed as Free Issue using “BN” status No backorders established in RRAM

Business Rules: Free Issue $100 threshold for cross country referrals DD-1348-1 Standard issue/release/receipt document Realtime posting of receipts and issues Inventory accuracy responsibility resides with owner Substitutability and Interchangeablity applicable No Special Handling Material (HAZMAT, Shelf Life) No RODs, QDRs limited to Category I Only Limited carcass tracking of DLRs RRAM assets screened daily against IM Toolkit requirements Consumables excessed after 12 Months of no issue activity Depot Level Reparables excessed after 24 months of no issue activity

CPEN Referral Rules CONUS IPG II (Air eligible) IPG I IPG II & III *RRAM * ICP * RRAM * ICP *RRAM * ICP Navy Wholesale These are the business rules for CONUS and the difference is that for Navy wholesale, RAM is allowed to be accessed first for selected IPG I’s and IPG II air eligible. SOM material is not accessible for CPEN processing. POE - Point of Entry VMSIR - Virtual Master Stock Item Record IMM - Inventory Material Manager Page 9 * CRIF Site * POE FISC * RRAM * VMSIR * IMM * CRIF Site * POE FISC * RRAM * VMSIR * IMM * RRAM * POE FISC * VMSIR * IMM Consumer (9-Cog) 11

Metrics: Free Issue As of 31 May 2002 11 Sites with combined inventory of $795M Over 6,000 requisitions per month @ $7.4M FY02 Free Issues 52M NAVICP MTIS Credits $7.2M DLA MTIS Credits $5.5M Web Page Hits 120,459

RRAM: WM – Restricted Issue

Business Rules: Restricted Issue All Material Visible DZE Processing against ‘A’ Condition NSN material only Owner Maintains Control Determines what material is accessible Material not Capitalized into NWCF/RRAM doesn’t load ICP MDF Owner Determines if/where credit applied DLA pays acquisition price plus 5.5% for PO DLA pays standard price plus 5.5% for LR FT Processing Available Price Negotiable Asset Usage Per DoD 4140.1R (Super Reg), assets above RO are available to satisfy any priority requisition or Procurement Offset via MRP Assets Below RO only used to fill IPG 1 Same service or reciprocating service only

Status: Restricted Issue SOM Pilot Orange Park, FL (NAVAIR) 4/02 Inventory of $547M

Composition: Virtual Management

Composition: VM Why Virtual Inventory Owner Provides RRAM Provides Warehouse Management System in use Global Asset Visibility Required Inventory Owner Provides List of NIINs Desired Action Code Daily Updates RRAM Provides Processes DZE Queries against NIINs Submits FTE/DZF to DLA

RRAM: Virtual Status NAVSEA Site at Crane, IN Pilot Implemented 3/02 SPAWAR Site at San Diego, CA Pilot Targeted for 9/02

RRAM Warehouse Sites Puget Sound North Kingstown Portsmouth San Diego RMMS-E SURFLANT SCRAMP-EAST SUBRATS/SUBLANT PWP-P NEWCON AN/SQS 56 North Kingstown WRRMP PERA CV SEAWOLF Crane, IN Portsmouth Chesapeake San Diego VSOM This is a pictorial view of where we have implemented RAM. This also provides an identification of owners of material at various sites. We have recently added an additional three sites on the east coast- - Orange Park FL, Crane IN and Granite City CA. The majority of our sites are located geographically on the West Coast or in the Pacific. Page 11 CSCRAMP PWP-C Force Protection NEWCON LHD-5 ISSE-Chesapeake Helmets/Vests North Island El Centro NAVAIR ISSP Orange Park, Fl SRF Yokosuka SRF Sasebo SOM Ship Repair Ingleside, TX FISC Pearl Harbor

RRAM Today: Performance Ability to screen RRAM from 12 warehouses and 25 inventories Web Browser provides access 95 NAVAUD Estimated $400M in excess assets…today there is $1.3B Inventories $795M Free Issue $545M Restricted Issue Metrics 5,377 free issue requisitions were filled for May 02 $7.1M free issues made in May 02 182 CASREPS were filled in May 02 $7.8M sent to DRMO

Summary RRAM contributes to Navy TAV Proves COTS can operate in a legacy Navy environment Provides high cost avoidance to fleet, NAVICP and DLA Enhances visibility while safeguarding accessibility RRAM – Not just free issue anymore!