Air Armament Center Dr. L. Bruce Simpson Director 308th Armament Systems Wing War-Winning Capabilities…On Time, On Cost Portfolio Results Industry Day DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited.

War-Winning Capabilities…On Time, On Cost 2 Strategy for Seamless Transition – Co-located key Personnel for Maximum Synergy – Utilized “Best Practices” from the 3 Organizations – Conducted Leadership Off-sites to Ensure Collaboration – Initiated Feedback Loop for Group Workflow Managers – Streamlined Administrative Processes Air-to-Ground Air-to-Air Combat Support

War-Winning Capabilities…On Time, On Cost 3 Acquisition Wing 308th ARSW Dr. Bruce Simpson, CL 308th ARSW Mr. John Batog, DV (Navy) 308th ARSW Col Michelle Miller Peck, DV Technical Director Mr. Christopher Clay Chief Financial Officer Ms. Della McPhail Chief of Contracting Mr. Gary Williams Chief of Logistics Ms. Margaret Villagran 675th ARSS JASSM Intrnat’l 690th ARSS Operation Spt 680th ARSS JDAM Intrnat’l 694th ARSS AMRAAM Intrna’l 671st ARSS Weaponeering 408th ARSG Armament Support Mr. May, CL 678th ARSS JDAM 688th ARSS Agile Combat Spt 679th ARSS Fuze 708th ARSG Direct Attack Ms. Rutledge, CL 676th ARSS JASSM 683rd ARSS SFW 677th ARSS JASSM-ER 684th ARSS WCMD 692nd ARSS MALD 308th ARSG Long Range Systems Col Griggs, CC 693rd ARSS Lethal SEAD 696th ARSS AIM-120D 695th ARSS AIM-120C Det 1 Short Range Msl 328th ARSG Air Dominance Col Rumph, CC 728th ARSG Test and Training Col Socha, CC 689th ARSS Range Inst Sys 672nd ARSS CRIIS 691st ARSS Aerial Targ Sys 808th ARSG Advanced Programs Mr. Rutledge, CL 685th ARSS Sys Interf & Integ 687th ARSS Adv Programs 686th ARSS Spc Prog/Proj 918th ARSG Miniature Munitions Col Justice, CC 681st ARSS SDB Inc 1 682nd ARSS SDB Inc 2

War-Winning Capabilities…On Time, On Cost ARSW Highlights 308 ARSG Long Range Attack 328 ARSG Air Dominance 408 ARSG Armament Support 708 ARSG Direct Attack 728 ARSG Test & Training 808 ARSG Advanced Programs 918 ARSG Miniature Munitions FLM –Transferred Technology from AFRL Mar 07 –Testing Successful –Residuals in Warfighter Hands Early ADS –Gov’t Acceptance Testing Ongoing at Kirtland –Ops Eval planned for April 08 –Transitioning to 808 ARSG May 08 P5 CTS –Pods Fielded at 10 of 25 Planned AF/Navy Bases –Sortie Success Rate: 97.7% –40,956 Sorties Flown LJDAM –CENTAF Urgent Operational Need –Completing Ops Utility Evaluation –On Track for April 08 fielding Weaponeering –Developed & Published New Collateral Damage Estimation Tables Used in OIF / OEF –Release of JWS 2.0, 1 st Qtr FY09 AMRAAM –AIM 120C7: Completed OT & Fielding Proceeding Well –AIM 120D: Developmental Testing Shots Underway MALD –Completed Developmental Testing –Milestone C in 3 rd Qtr FY08

War-Winning Capabilities…On Time, On Cost 5 GWOT Successes – 2007: Delivered 34,377 Fuzes – 3,120 Combat Drops –Operational Reliability 98% (95% requirement) Government / Industry Team Delivering Capability to the Warfighter Over 28,000 Total Combat Drops OEF/OIF (JDAM, DSU-33, JPF, SDB, SFW, WCMD) –2007: Delivered 124,546 Units – 3,455 Combat Drops –Proven Ability to End Combat Engagements! –2007: Delivered 131,504 Units Combat Drops –49 Total Combat Drops –~40,000 Captive Flight Hours on F-15E JDAM JPF DSU-33 SDB

War-Winning Capabilities…On Time, On Cost 6 GWOT Lessons Learned Solving Present Day Challenges While Developing Capabilities to Fight and Win the Next Conflict Changing Face of War Causes Changes in How We Fly/Fight –Increased Precision –Ability to Attack Moving Targets –LJDAM: On Track for Fielding Apr 08 –Minimize Collateral Damage –FLM: Tested and Delivered 50 Assets to Warfighter 3 Months Early –Dramatic Increase in Captive Carry Hours for Air-to-Ground Munitions – SDB approx. 40,000 hours GWOT Has Presented Us With Challenges –Our Tactics Must Evolve as Our Enemy Adapts –ADS: Non-lethal DE Weapon; Perimeter Protection-- Deters Advancing Adversary –Advancements in Technology Required to Counter Increasingly Mobile Enemies Located in Dense Populations

War-Winning Capabilities…On Time, On Cost 7 AAC Portfolio MARs Performance Overall Cost Schedule Performance Funding Jan 07 62% GREEN 28% YELLOW 10% RED Overall Cost Schedule Performance Funding PoPS Jan 08 75% GREEN 12.5% YELLOW 12.5% RED

War-Winning Capabilities…On Time, On Cost 8 –Disciplined Integrated Assessment Approach –Sound Systems Engineering –Realistic Planning –Robust Risk Reduction –Life Cycle Considerations Up Front –Design for the “ilities” –Relevant Capability On Schedule, On Cost –Customer/Requirement Focus Acquisition Challenges Acquisition Strategy High Confidence Source Selection Systems Engineering Assessment Manufacturing Readiness Assessment Technology Readiness Level / Technology Readiness Assessment Sufficiency Review Probability of Program Success Cost Sufficiency Review Integrated Assessment Process Leads to Higher Confidence Programs

War-Winning Capabilities…On Time, On Cost 9 Focus Areas Identify and Manage Risk Probability of Success Sufficiency Reviews Program Reviews

War-Winning Capabilities…On Time, On Cost 10 Standard processes integral part of doing business Activity before Risk ID is standard work with defined solutions Expanding the suite of tools to ID and Analyze risk PoPS PMRs Identify and Manage Risk WBS Risk Cube Sufficiency Reviews

War-Winning Capabilities…On Time, On Cost 11 Probability of Program Success Intent Agreed-to risk levels documented and recorded Don’t shoot messenger when program encounters problems Predictive metrics can identify watch areas to a PM before problem erupts Better prediction of future issues Ability to look at scoring trends over time Program Take Aways Beginning to institutionalize Windshield chart affects decisions on resources Trend of red to green as mitigation plans implemented Synergy generated by effective assessments Audits since June raising confidence Focused program priorities

War-Winning Capabilities…On Time, On Cost 12 Sufficiency Reviews Investment 22 reviews in 2007 Program reviewed by about 40 senior and experienced experts Approx 5000 man hours in reviews Issues Identified Cost risk in planning for averages Need specific exit criteria Test schedule and resources Sustainment planning Production phasing Leadership awareness of resource requirements Benefits Realistic planning early Instills discipline Encourages communication between functionals Forums for exchanging best practices Gives team a clear vector More efficient ASP—Establishes baseline “Plans are nothing; planning is everything” Dwight D. Eisenhower

War-Winning Capabilities…On Time, On Cost 13 Integrating Program and Cost Risk Integrate “risk cube” and PoPS into cost estimate Dependencies between WBS elements Specific risks determine funding for confidence Monte Carlo simulation Better risk ID and modeling $

War-Winning Capabilities…On Time, On Cost 14 PMR “Deep Dives” Conducted by Wing Director/SPDs—1 per Wk Each Program Reviewed Every 12 Weeks Program Manager’s Format Areas Reviewed: Schedule, Financials, Risks, PoPS Action Plans Raises leadership awareness—addresses PMs needs Foundation for Advising PEO

War-Winning Capabilities…On Time, On Cost 15 Industry’s Role Robust Systems Engineering Vendor and Supplier Management Reliable, Quality Products Cost and Schedule Realism

War-Winning Capabilities…On Time, On Cost 16 Summary Trends Moving in the Right Direction Implementing Processes for Continuous Improvement Our Goal With Higher Confidence Provide War-Winning Capabilities...On Time...On Cost

War-Winning Capabilities…On Time, On Cost 18 AAC Portfolio Performance