1. 3101 Wilson Boulevard | Suite 700 | Arlington | Virginia 22201 | Telephone: (703) 684-1125 w w w. s t a n l e y a s s o c i a t e s. c o m ASC-IMMOS Pricing Review Chuck Ragland August 3, 2009

2. 2 Agenda  Overview of Pricing Requirements  IGCE & PTW  Review of Current Year Program Pricing  Overview of Initial Pricing Parameters  ASC-IMMOS First Draft Pricing Results (Labor Only)  Discussion of Footnotes on Current Labor Pricing  Discussion of Possible Price Reduction Strategies  Discussion of Travel and ODC Pricing  ASC-IMMOS Total Pricing With Current ODCs/Travel  Next Steps

3. 3 Pricing Requirements Overview  Contract Type: Cost Plus Fixed Fee with Firm Fixed Price CLINs where applicable.  One Base Year, Four Option Years  Anticipated Base Year POP: 01 Nov 2009 to 31 Oct 2010  CLIN Structure (Per Contract Year) –15 CPFF CLINs –31 FFP CLINs –22 Cost Reimbursable CLINs  All CLINs Must Be Priced  Cost data submitted in accordance with Table 15-2 of FAR 15.408 –Cost Formats A through D –Each element of cost shall be documented completely to show the basis and rationale used to arrive at the amount proposed. –Proposal must be properly cross-referenced.

4. 4 IGCE & Established Price To Win Target  Current Perceived Independent Government Cost Estimate (IGCE) is established at ~$126,000,000.  Current Established Price to Win Target is estimated to be around or slightly less than $100,000,000.

5. 5 Review of AWRDS, WMMS & WMMS-DOL Current Pricing  Current AWRDS OY4 Price is $20,959,432, which includes labor, ODC’s, and travel.  Current WMMS/WMMS-DOL 1 Year Price is $7,359,063, which includes labor, ODC’s, and travel.  Combined current pricing is $28,318,495 per year.  Five Year Price (including escalation at 3.2%) is $150,949,043.

6. 6 ASC-IMMOS Initial Pricing Parameters

7. 7 ASC-IMMOS First Draft Pricing Results (Labor Only)

8. 8 Footnotes on Current Labor Pricing (1 of 2)  All resources limited to 1920 hours – OT hours not proposed in accordance with RFP  6 Stanley Resources TBD, but salary estimates included in current pricing – will need to update with representative resources  Subcontractor Labor Pricing Estimated Based on Current Year Quotes –TDI: 2 FTEs on CLIN x001AD –LMR: 1.06 FTEs on CLIN x001AG, 2 FTEs on CLIN x005AC  CLINs Not Currently Priced (Labor) –x001AE SCR Support –x004AA Contingency (Hours, No Resources Assigned) –x004AB Exercises (Hours, No Resources Assigned) –x005AE SCR –x005AF Training/Testing Support –x005AH Fayetteville, NC –x005AW Lumberton, NC –x005BE RFID Support –x006AA Contract Manpower Reporting

9. 9 Footnotes on Current Labor Pricing (2 of 2)  Danger Pay, Post Differential Pay –Previously these were included as part of labor costs (added to CONUS Salary) to form their OCONUS Compensation or Salary (Iraq, Afghanistan) –As of April 1, 2008, Danger Pay and Post Differential are to be treated as ODCs and are applied only against the Base Compensation (CONUS Salary)  Change Affects Pricing and Personnel in CLINs: –x002AD –x002AE –x002AF –x002AG –x002AH –x002AJ –x002AK

10. 10 Possible Price Reduction Strategies (Labor)  Change FTE Productive Hours From 1920 to 1880  Reduce Staffing Levels  Substitute in Lower Cost Resources, where practical  Reduce Fee Levels  Other?

11. 11 ASC-IMMOS Labor Pricing Based on 1880 Hours/FTE

12. 12 Travel and ODC Pricing  Imported Representative Travel Pricing Based On: –Current AWRDS OY4 Proposed Travel Mapped To New CLINs –Current WMMS/WMMS-DOL Proposed Travel Mapped To New CLINs  Imported Representative ODC Pricing Based On: –Current AWRDS OY4 Proposed ODCs Mapped To New CLINs –Current WMMS/WMMS-DOL Proposed ODCs Mapped To New CLINs

13. 13 ASC-IMMOS Total Pricing With Current ODCs/Travel

14. 14 Next Steps  Identify Areas For Cost Reduction  Finalize Staffing, Including Subcontractor Requirements  Send Out Subcontractor RFQ’s  Finalize/Update ODC Requirements, including Danger Pay and Post Differential Premiums  Finalize/Update Travel Requirements  Draft Pricing Narrative –WBS/PWS/CLIN Cross Reference?  Next Pricing Review: Friday August 7, 2009