1. DLA's Aviation Supply & Demand Chain Manager Data Integrity Status Update May 2007 Senior Executive Partnership Round Table 10 DLA Aviation Supply Chain -- OEM Supplier Teams Defense Supply Center Richmond

2. DLA's Aviation Supply & Demand Chain Manager Data Integrity Joint Supplier & Government CAGE to Corporate Entity Validation Completed 18 Supplier Teams = 1,376 Corp Entity CAGES (237 CAGEs Also SSA Related) Thanks for your assistance, Suppliers!!!

3. DLA's Aviation Supply & Demand Chain Manager Data Integrity Validated CAGEs Used as Filter for Performance Reporting Performance Data Now Only on Corporate Entity CAGE-linked NSNs All Three Data Reporting Systems Now Using CAGE Filter Historical Performance Data Reset Also Performance Data Now Linked to Corp Entity

4. DLA's Aviation Supply & Demand Chain Manager Data Integrity Items Needing to Move OFF Team  Purifies Government Side of Team  Precludes Diversion of Team Efforts Items Needing to Move TO Team  Purifies Supplier Side of Team  Moves Closer to Single Team Focus on Sole Source Item Business Next Data Integrity Effort = Supplier Team Item Assignment Purity: High Freq Item Reassignments Complete (45+ Orders/Yr)

5. DLA's Aviation Supply & Demand Chain Manager Data Integrity To Be Remapped at Richmond 204  To Different OEM Team/Out of OEM Division (140)  Into OEM Division ( 64) To Establish OEM Team Purity @ Columbus 36 To Establish OEM Teams @ Philadelphia 201 Total HF Item Reassignments 441 HF Item Purity Specifics: Supplier Team High Freq Items Purified Avn SC Wide

6. DLA's Aviation Supply & Demand Chain Manager Data Integrity CAGE Reference is Primary  Also Consider Sole Source vs. Competitive Designation  LTC Arrangements Reviewed but Not Controlling in Final Team Assignment  LTCs “Fixed” at Next Option Period Unless:  On Hamilton Sundstrand VPV Contract  On PBL Arrangement Sole Source Item Assignment Decision Tree: Best Indicator of Both Sole Source & Team Association

7. DLA's Aviation Supply & Demand Chain Manager Decision Tree Logic Should Limit Mis-assigned Items Data Integrity Next Item Purity Group = 10 to 44 FY06 Orders  Item Count = Around 1,500  Less Detailed Review Needed But More Items  Expected Reassignments by July 2007 Follow-on Item Purity Efforts:  Items w/ 1 to 9 FY06 Orders (6K NSNs)  Reassignments By End of FY 07  Remaining Items (28K NSNs-only in OEM Div)  Worked First Half FY 08 (No/Low Demand Items) Subsequent Buy Actions to Keep NSN Assignments Pure Next Steps for Item Purity Reassignments:

8. DLA's Aviation Supply & Demand Chain Manager Data Integrity Detailed Review of Supplier Deliveries In BSM System A.To Ensure Suppliers Get Credit for Timely Deliveries B.To Ensure Delivery Records Allow Timely Payment Findings:  Inspection/Acceptance, FOB, Fast Pay Are Unique  Invoices Don’t Post If Exception Criteria Present  Three-way Match Required: Contract Due In, Customer Goods Receipt, Supplier Invoice  More Individual Transaction Root Cause Research Required to Finalize Review Needed Action & Supplier Requested at Last SEPRT

9. DLA's Aviation Supply & Demand Chain Manager Data Integrity CAGEs Validated  Need Supplier Help Keeping CAGEs Accurate Performance Data Now CAGE Pure Item Remapping In Progress System Issues w/ Performance Data Being Resolved Base of CAGE Pure Historical Performance Accumulating Target Setting to Begin Soon Summary: Avn SC Measures Company Pure & In Sync with JSSC