1. Enviro-Logistics, Inc. Contracting for Hardware and Software During the Life Cycle Management Process Katherine Pratt President - Enviro-Logistics Inc. envirolog@earthlink.net

2. Enviro-Logistics, Inc. Product Lifecycle Model Stage 1 Introduction Stage 2 Growth Stage 3 Maturity Stage 4 Saturation Stage 5 Decline Stage 6 Phase Out SalesSlow increaseIncreasing Rapidly StableLeveling OutDecreasingLifetime Buys Offered PriceHighestDecliningStable RisingHigh UsageLowIncreasingStable Decreasing Part Modification FrequentMajorPeriodic Changes FewFew or noneNone CompetitorsFewHighStable number Decline begins Declining Manufacturer Profit LowIncreasingStable Reasonable for survivors Reasonable for survivors (aftermarket)

3. Enviro-Logistics, Inc. Classification of Solution Options TYPICAL CLASSIFICATION SOLUTION OPTIONSHORT-TERM SOLUTION LONG-TERM SOLUTION Buy from stock √ Reclamation √ Repair or Overhaul √ Manufacture to TDP √ F3I Substitute √ Reverse Engineering √ Redesign √

4. Enviro-Logistics, Inc. Interesting Links http://www.rohs.gov.uk/Default.aspx http://www.dmsms.org/ http://www.gidep.org/

5. Enviro-Logistics, Inc. Types of Contracts ContractsContractor RiskGovernment RiskNotes Firm-Fixed-Price √ Max contractor incentive to control cost and perfrom Cost-Plus-Fixed-Fee √ Minimum Contractor incentive to control costs Fixed-Price-Incentive √ Formula based on % total cost + profit

6. Enviro-Logistics, Inc. A Binding Contract