Life Cycle Product Support Brief to LCL FIPT July 17, 2009

111 Now is the Right Time—For the Right Reasons—to Revisit Life Cycle Product Support New political environment Anticipated financial pressure Wartime largesse Quantum improvement in equipment, IT, and data engines Decade of experience with PBL—need to incorporate learning Warfighter deserves no less Good stewardship Maximize effectiveness and efficiency of Life Cycle dollar Military operations are more precise and reliable; logistics must do the same Timing Reason This is about enterprise life cycle product support leadership

2 PSAT Team Membership

Assess Progress, Determine Future Requirements, Develop Way Forward Oct 08NovDecJan 09FebMarAprMayJunJulAugSep Discovery and Assessment Product Build Implementation Ramp-up Develop the guidance and implementation roadmap for LCPS Facilitated Working Group and Recommendation Build Team (RBT) discussions of To-Be environment Develop future LCPS—incl. policy, and implementation roadmap Finalize roadmap actions Finalize final written report Facilitate buy-in through executive out-briefs 3 Future Policy and Implementation Roadmap Incorporate New Administration Feedback Working Group Meetings Senior Steering Group (SSG) Meetings Assess overall progress and emerging requirements Facilitated Working Group discovery of As-Is environment Analysis: Fact-based weapon system program analysis Interim Assessment and Initial Insights PSAT Bi-weekly Workshops (PSAT Working Group & Recommendation Build Teams)

Life Cycle Product Support Vision & Guiding Principles Implementation Guidelines Ruthlessly separate needs from appetites Understand portfolio of alternatives Tie metrics directly to Warfighter outcomes Implementation Guidelines Govern sustainment as part of the life cycle Design for sustainability, and integrate acquire-to-retire process Manage predictable costs throughout the life cycle Integrate human capital planning into life cycle focus Implementation Guidelines Exhaust opportunities for Joint economy and reduce unnecessary redundancy Build the capability to make good enterprise decisions Enforce consistency in product support processes & infrastructure Implementation Guidelines Optimize public & private product support capabilities Leverage core competencies Partnerships are effective; equitable; transparent; bilateral and long-term Implementation Guidelines Manage with facts, and drive accountability for performance and costs Build and evolve BCAs that enhance decision making Start & End with the Warfighter’s Objectives Demonstrate & Enforce Life Cycle Focus Enterprise Means Enterprise (& Joint Means Joint) Build Mutually- Beneficial Partnerships Incentivize Accountability for Performance 4 Aligned and synchronized operational, acquisition, and sustainment communities working together to deliver required and affordable Warfighter outcomes

> 100 Recommendations for Next Generation Product Support Start & End with the Warfighter’s Objectives Demonstrate & Enforce Life Cycle Focus Enterprise Means Enterprise (& Joint Means Joint) Build Mutually- Beneficial Partnerships Incentivize Accountability for Performance GuidingPrinciples PSAT Discovery & Assessment Current Product Support Environment 5 Over 100 Recommendations From Guiding Principles & Implementation Guidelines

66 Working Group is Evaluating Product Support Strategy, Policy, Process, and Resources Are Processes sufficient to enable accurate, consistent Life Cycle Product Support execution? Are Resources (people, skills, funding, info, etc.) adequate and appropriate to conduct effective Life Cycle Product Support? Is there a consistent, understandable and executable Strategy for Life Cycle Product Support? Is Policy adequate to successfully drive desired behavior for total Life Cycle Product Support? If not, we will be defining new direction

7 “Policies are in place but not always followed or governed” “Strategy exists but not understood across departments” “Processes are not aligned across organizational boundaries” “We are underinvesting in necessary resources” Conducted Over 20 Topical Examinations And Identified Needed Improvements

8 Recommendation Areas Are Both Dependent Upon and Inform One Another 8 Next Generation Business Model: Define the overall strategy that drives cost-effective performance and capability for the Warfighter across the weapon system life cycle and enables most advantageous use of an integrated defense industrial base Supply Chain Operational Strategy: Connect platform product support strategies to enterprise supply chain approaches that produces best value across the DoD components PPP / Industrial Integration: Align and expand the collaboration between Government & Industry that produces best value partnering practices Weapons System Data: Define, collect, report, and manage the data we need to drive effective Life Cycle Product Support Metrics: Use existing metrics to catalyze sustainment strategies and trigger continuous supportability analysis O&S Costs: Improve O&S cost visibility and influence BCA: Building a toolbox of analytical approaches, where BCA is one of many Human Capital: Integrate Product Support competencies across the Logistics and Acquisition workforce domain to institutionalize successful traits of an outcome- based culture Governance: Strengthen and develop organization and mgmt processes to deliver the right sustainment information to decision-makers

Initial Weapons System Assessment Insights 9

–What approaches maximize performance for the Warfighter? –Are there common sustainment strategies across components? –How can different optimization approaches be used together? –What is the relationship between O&S and Materiel Availability? The PSAT Team’s Data Analysis Is Driven By Several Key Questions 10 Analysis Required Several Data Types –Do PPPs contribute to greater readiness or reliability? –Is there a relationship between longer periods of performance, industry investment, increased readiness, and increased jobs at the Depot? These questions have already yielded important insights

Data Collection Status 11 ArmyNavy Air ForceUSMC Data Sought Service Data Provided LMI PPP Database O&S Database Readiness Database Data Collected Yes (VAMOSC) Researching AAVAAV HIMARS HMMWVHMMWV M1A1 AbramsM1A1 Abrams AV-8B HarrierAV-8B Harrier F/A-18 C/D F-35 CH-53E CH-46 V-22 JAVELINJAVELIN Data Sought Service Data Provided LMI PPP Database O&S Database Readiness Database Data Collected Yes (VAMOSC) Researching Data Sought Service Data Provided LMI PPP Database O&S Database Readiness Database Data Collected Yes Awaiting OSMIS Approval Awaiting LOGSA Approval F-117 F-15 F-16F-16 F-22 F-35 HH-60 C-130 C-17 C-5 KC-135 B-1 B-2 B-52 E-3 AWACS E-8 JSTARS AMRAAMAMRAAM JASSMJASSM Data Sought Service Data Provided LMI PPP Database O&S Database Readiness Database Data Collected Yes Yes (AFTOC) E/A-6B, 18G F/A-18 A/B, C/D, E/FF/A-18 A/B, C/D, E/F CH-53, SH-60CH-53, SH-60 P-3 AMRAAMAMRAAM JASSMJASSM BAMS CG-47, DDG-51, LCS CVN-21, 68 T-AKE, LPD-17 SSBN 726 SSN 688i, 774 COBRA JUDY Aircraft Engines APUs Bradley FMTV HIMARS HMMWV M1A1/M1A2 Abrams M113 FOV MRAP PATRIOTPATRIOT Stryker HEMTTHEMTT AH-64 Apache UH-60 Blackhawk CH-47 Chinook JAVELINJAVELIN *

Next Steps And Discussion 12

Assess Progress, Determine Future Requirements, Develop Way Forward Oct 08NovDecJan 09FebMarAprMayJunJulAugSep Discovery and Assessment Product Build Implementation Ramp-up Develop the guidance and implementation roadmap for LCPS Facilitated Working Group and Recommendation Build Team (RBT) discussions of To-Be environment Draft the assessment report Develop future LCPS—incl. policy, and implementation roadmap Finalize roadmap actions Finalize final written report Form Implementation Ownership Teams Facilitate buy-in through executive out-briefs and new administration perspective 13 Working Group Meetings Senior Steering Group (SSG) Meetings Assess overall progress and emerging requirements Facilitated Working Group discussions of As-Is environment 20 Topical Examinations (Policy, Process, Strategy, Resources) Analysis: Fact-based weapon system program analysis PSAT Bi-weekly Workshops (PSAT Working Group & Recommendation Build Teams) PSAT IOT Reviews

Questions? 14