1 COMBAT VEHICLES SUPPORT INITIATIVE (CVSI) Industry Day Briefing Defense Supply Center Columbus 16 Oct 2007

2 Agenda Performance Transformation Culture TimeSubjectOfficeBriefer Sign-In / Pick Up Booklet DSCC Opening Remarks / Introductions DSCC Commander CommentsDSCC CVSI OverviewDSCC Break CVSI WebsiteDSCC Break Small Business Perspective DSCC Questions / AnswersALL

3 Critical Success Factors  Delivery Performance  Cost Avoidance / Savings  Customer Service  Backorder Reduction  Partnership Formulation  Small Business Participation Performance Transformation Culture

4 Acquisition Strategy  Estimated Base Contract Value – $102 million (two year base)  Contract Term – Ten Years (four, two-year options)  Initial Target Population – Approximately 1200 NSNs  Target Award Date – March 2009 Performance Transformation Culture

5 Vendor responsibilities Acquisition Strategy  Supply Chain and Inventory Management  Parts Acquisition  Distribution  Material Forecasting  Obsolescence Management  Dedicated Program Customer Service Reps  Collaboration Performance Transformation Culture

6 Performance Metrics Acquisition Strategy  Material Availability  On-Time Delivery  Backorder Management  Consolidated Shipment Report  Vendor Scorecard Metrics Performance Transformation Culture

7 Government Responsibilities Acquisition Strategy  Performance Oversight and Management Performance Transformation Culture

8 Operations – enhanced mission support and value added services Results  Improved Order Ship Time  High Customer Satisfaction  Improved Forecasting and Material Management Practices  Surge & Sustainment Requirements  Consolidated Shipments Performance Transformation Culture

9 Financial – Cost Effective Results  Savings using Total Logistics Cost Comparisons  Inventory Reduction and Decreasing Inventory Investment  Enhanced Readiness  Significant Workload Reductions – throughout DLA supply chain Performance Transformation Culture

10 Collaborative Partnership  Increased Vendor Management of Supplies  Reduced Government Costs  Improved Supply Chain Performance  Improved End-To-End Supply Chain Visibility Performance Transformation Culture

11 MILESTONES Task NameTarget Completion Sources Sought Notice / Market Survey 02-Nov-07 Solicitation Opening 14-Jul-08 Solicitation Closing 29-Aug-08 Target Award 31-Mar-09 Performance Transformation Culture

12 CVSI Website  Information Related to CVSI Performance Transformation Culture

13 Combat Support Vehicle Initiative (CSVI) To ensure that Small Businesses continue to be an integral supply chain partner in Warfighter support as Defense Logistics Agency (DLA) transforms the logistics management process Performance Transformation Culture Small Business Strategy

14 Review of CVSI Scope Approximately 1200 NSNs Items have complete bid packages $51M – Annual Demand Value (ADV) Goal: Improve Supply Chain processes: 1) Increased supply availability 2) Increase parts reliability 3) Improve customer support at the user level 4) Ensure world-wide military readiness Performance Transformation Culture

15 Small Business as the Prime? Similar successful experience with fast-paced logistics support on a large scale Sophisticated order processing system Ability to meet 2 – 5 – 10 day delivery timeframes Financial capability to support investment in: Inventory Warehouse infrastructure (multiple locations?) Personnel Performance Transformation Culture Small Business Opportunities Under CVSI

16 As the Prime Prime Contractor will be responsible for: Supply chain and inventory management Parts acquisition Distribution Material forecasting Obsolescence management Provide dedicated customer service reps Emergency support services Performance Transformation Culture Small Business Opportunities

17 Performance Transformation Culture Possible Small Business Set-aside Options Total set-aside Reasonable expectation of offers from at least two responsible small businesses that are competitive in terms of price, quality and delivery Partial set-aside Severable into two or more lots and reasonable expectation of offers from at least one responsible small business at a fair market price

18 Opportunities Under CVSI What role can Small Businesses play? Prime Contractor On set-aside portion On non-set-aside portion Develop teaming arrangements to compete on either portion Subcontracting on either portion Performance Transformation Culture

19 Performance Transformation Culture Small Business Opportunities Any prime will be required to develop and live by a strong Subcontracting(-like) Plan Develop the relationship to participate as a sub Potential for a mentor – protégé relationship Grow your company's capabilities to potentially act as prime on other opportunities in the future As Subcontractors

20 SBA’s SUB-Net: May or may not be reserved for small business May include solicitations or other notices (notices of sources sought for teaming partners, subcontracts on future contracts, outreach events) Prime will be expected to post CVSI subcontracting opportunities to the DSCC Small Business Programs website: Performance Transformation Culture Look for Subcontracting Opportunities

21 Performance Transformation Culture Other Considerations Will require the use of specific sources for items under program set-asides 8(a) Javits/Wagner/O’Day (JWOD) Workshops for the blind and severely handicapped Use our SB Office to find manufacturers in the various programs: HUBZone - Service Disabled Vet Owned - 8(a) and SDB - JWOD – Woman Owned -

22 NAME address PROGRAM PHONE XXXX Director, DSCC Small Business Office Small Disadvantaged Business and 8(a) Programs Outreach and Woman Owned SDB/8(a) Program Support HUBZone Javits/Wagner/O’Day Workshops (Blind & Severely Handicapped) Service Disabled Veteran Owned Small Business Programs Office Performance Transformation Culture

23 Determine your capability to participate in CVSI as the prime, in partnership with others or as a subcontractor Respond to the Market Survey Develop a strategy for success Allocate resources Move out quickly! Performance Transformation Culture Next Steps…

24 Questions? Performance Transformation Culture Combat Support Vehicle Initiative (CSVI)