1. Aviation Support Mr. William Andrews Deputy to the Executive Director Integrated Materiel Management Center US Army Aviation and Missile Life Cycle Management Command

2. 2   OPTEMPO for Army Aviation remains high.   Demands in Military and Commercial Aerospace Industry at record levels. Both Boeing and Airbus had record orders again in 2007.   Backlog of commercial aircraft orders continues to climb and is solidifying multi-year demand forecasts for aluminum, titanium, super alloys, and composite materials.   Competing demands and supply chain constraints expected to continue. Supply Chain Challenges

3. 3 Support To The Warfighter PreparationOperation Conduct Preset / Reset Adjust Fill Rates on ASLs Expedite Push Packages Accelerate Depot Repair Accelerate Spares Production Conduct Readiness Assistance Visits to All Deploying Units Preset/ Reset Spent: $5B Aviation Supply Support On-site Tech Assistance: LARs and CFSRs Fwd Deployed Repair / Sustainment Activities: TAMP, TASM, OH-58D MMS MWO Applications Depot Maintenance Recapitalization NET / Total Package Fielding Aviation OPTEMPO 4-5 Times Greater Than Peacetime 275,440 Total Hours: 01 Feb 03 – 15 Mar 08 Army Fleet in OEF AH-64 79,962 Hours OPTEMPO: 47.0 AH-64 79,962 Hours OPTEMPO: 47.0 CH-47 63,466 Hours OPTEMPO: 45.2 CH-47 63,466 Hours OPTEMPO: 45.2 UAS Shadow 9,576 hrs Raven 10,653 hrs Warrior A1,650 hrs 21,879 Hours UAS Shadow 9,576 hrs Raven 10,653 hrs Warrior A1,650 hrs 21,879 Hours UH-60 86,683 Hours OPTEMPO: 40.0 UH-60 86,683 Hours OPTEMPO: 40.0 Fixed Wing 15,625 Hours OPTEMPO: 50.7 Fixed Wing 15,625 Hours OPTEMPO: 50.7 OH-58 7,825 Hours OPTEMPO: 52.0 OH-58 7,825 Hours OPTEMPO: 52.0 UAS Shadow251,319 hrs Hunter30,510 hrs Warrior A48,566 hrs Raven93,725 hrs 424,120 Hours UAS Shadow251,319 hrs Hunter30,510 hrs Warrior A48,566 hrs Raven93,725 hrs 424,120 Hours 1,993,162 Total Hours: 01 Feb 03 – 15 Mar 08 UH-60 608,402 Hours OPTEMPO: 44.0 UH-60 608,402 Hours OPTEMPO: 44.0 Fixed Wing 107,394 Hours OPTEMPO: 55.7 Fixed Wing 107,394 Hours OPTEMPO: 55.7 AH-64 393,846 Hours OPTEMPO: 50.0 AH-64 393,846 Hours OPTEMPO: 50.0 CH-47 104,863 Hours OPTEMPO: 45.9 CH-47 104,863 Hours OPTEMPO: 45.9 OH-58 354,537 Hours OPTEMPO: 71.1 OH-58 354,537 Hours OPTEMPO: 71.1 Army Fleet in OIF SUPPORT TO THE WARFIGHTER

4. 4 Aviation Demands By System Apache Scale – 0 to 50,000 Black Hawk Scale – 0 to 100,000 Chinook Scale – 0 to 50,000 *FY08 Projected based on 1Q/FY08 actual demands and FY07 history Kiowa Warrior Scale – 0 to 20,000 Source – MILSTEP, 15 Jan 08

5. 5   Transforming our supply chain through Logistics Modernization Program (LMP) – –Enterprise Resource Planning – Integrated Solution – –Deploy March, 2009   Transfer of procurement management of depot level reparables to DLA – –Provisional detachment in place – –Developing policies/procedures for joint acquisitions and a minimum IT solution – –Final transfer within next 12 months   Stand-Up of Army Contracting Command   BRAC relocations to Huntsville   Supporting multiple transformation efforts requires a high resource commitment Environment of Change Maintain OUR Focus on Supporting Soldiers

6. 6 Beginning to End Supply Chain Forecasting Actual Field Operations COBRA CPFR Raw Material Provider Powerful Web application that is a foundation of an Open Sharing Collaborative Environment Key to faster sharing of forecast, demand, Delivery data Performs “What-If” studies Creates custom reports

7. 7 The mission of the Defense Production Act Title III Program is to "create assured, affordable, and commercially viable production capabilities and capacities for items essential for national defense." Defense Production Act Title III Projects VIM-VAR Furnace Project Expand capacity to produce iron-based, low alloy VIM- VAR specialty steels by increasing the number of Vacuum Induction Melting furnaces dedicated to these materials. Title III Acquisition Strategy Briefs: In-process Title III RFP release:20 March 2008 est. Contract Award:July 2008 est. On-line:4 th qtr 2009 Sources:Competitive Acquisition in process Lead Time Reduction Beryllium (Be) Production Project Re-establish and ensure a continuing supply of primary (high purity) beryllium metal to meet critical defense and commercial needs Source: Brush Wellman; Elmore, OH Phase 1: Plant Design, Complete Phase 2: Plant Construction, on-going Demo Run May 2010 On-line March 2011 Issues: 2010 Availability Avionics Housings Be Mirrors Domestic Availability Thermal Battery Production Project Establish a viable second domestic thermal batteries source for a $70M market Source: ENSER Corporation Pinellas Park, FL Six-year incrementally funded program Weapon Systems Supported: EKV, PAC-3, THAAD, MKV, NLOS JGAM, JSOW, AIM-9X Sidewinder, and multiple SM-3 and SM-6 batteries Increased Competition and Availability

8. 8 Path Ahead  Improved End to End Supply Chain Visibility –COBRA –LMP  Focused Communications –Industry Days –“Joint” Supplier Conferences and Roundtables –Share Best Practices  Lean and Six Sigma  Flexible Contracting and Inventory Strategies  Continued Use of Title III

9. 9 Summary  Our Soldiers Continue to Face a Ruthless Enemy  Intense Management Becomes More Critical Everyday –Competing Demands –Constrained Supply Chain  Improved Communications and “Joint” Forecasting Key to Improved Support Strategies  Our Troops Are Depending on YOU!