1. Installations 2030 Where We Are Headed and Why June 13, 2013

2. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 2 2 Our Questions  What is the installation of the future?  How will policy priorities (e.g., Asia rebalance, cyber security, budget realities) affect installations?  What will installations look like and how will that impact the members of the military services and defense communities?

3. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 3 3 Our Panel  Ms Beth Lachman, Senior Operations Research Analyst, The RAND Corporation  Mr Pete Potochney, Director, Basing, ODUSD(Installations & Environment)  Ms Anne Davis, Deputy Commander, Commander Navy Installations Command, Department of the Navy  Mr Timothy Bridges, DASAF (Installations), Department of the Air Force  Mr Mike Immler, Chief Strategy Officer, AAFES  Dr Craig College, Senior Vice President Strategy Development, CALIBRE Systems

4. Actions Needed to Address Key Trends that Will Shape Military Installations of Tomorrow Beth Lachman RAND Corporation June 13, 2013 See Lachman, Beth, et al, “Key Trends That Will Shape Army Installations of Tomorrow,” at: http://www.rand.org/pubs/monographs/MG1255.html

5. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 5 5 Key Trends Fall Into Six Main Categories  Treat strategically now to avoid high future costs  Treat strategically now to avoid future harm to military operations  Treat strategically now to improve capability to meet future regulations and installation requirements  Treat sooner because of the opportunity to get some benefits, including Save money over the long term Improve Soldier and Family quality of life (QOL) Improve installation operations Improve environmental quality  Trend requires additional research to better understand its impact on Army installations  Trend requires tracking, but not immediate action

6. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 6 6 To Avoid Future Harm to Military Operations and High Future Costs, Strategically Address Encroachment

7. 7 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 7 To Avoid High Future Costs, Proactively Implement Sustainable Building Practices and Energy Technologies

8. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 8 8 To Improve Soldier and Family QOL, Consider Societal and Online Community Trends

9. ODUSD(I&E) Peter Potochney Director, Basing 13 June 2013

10. OASAF (IE&L) Timothy Bridges Deputy Assistant Secretary of the Air Force (Installations) 13 June 2013

11. 11 Four Priorities AF Need for BRAC and European Infrastructure Consolidation Fewer bases, smaller bases P4…doing installations support activities differently Shared services supports long term vitality Encroachment….a bad 12 letter word for everyone… Energy Security

12. Commander, Navy Installations Command Anne Davis Deputy Commander, CNIC 13 June 2013

13. Military Resale Support Mike Immler, Chief Strategy Officer and SVP, AAFES 13 June 2013

14. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 14 14  Serving Soldiers, Airmen and Families in all 50 states and 30 countries  Helping Soldiers, Airmen and their Families thrive in these economic times Will the services we provide today be relevant in 5 years? 20 years? Military Community Partner

15. 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 15 15 Support Services 4,300 Exchange Associates Deployed to Combat Zones Dividend to Soldiers, Airmen and Families $224 Million School Lunches Served Every Year 4.2 Million Combat Uniforms Outfitted in Last 12 Months 2 Million Exchange Associates Connected to the Military Nearly 50% 24% Exchange Associates Who Are Military Spouses and Family Members Wounded Warriors Hired Since March 2010 325 Exchanges in Afghanistan and Iraq 44 Provider of Bakery Goods/Bottled Water Supporting U.S. Military Overseas ONLY Going above and beyond in the recruitment, retention, readiness and resiliency of America’s fighting force

16. 16 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 16 Preparation for Future  Demographics  80% of patrons live off the installation  40% live more than 20 miles  The next generation will be more attached to technology, more fragmented and more culturally diverse  Consumers will expect a seamless experience across shopping channels

17. 17 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 17 Preparation for Future  Commercial activities  Integrated master planning (retail, food, entertainment)  Build on lessons from Lifestyle Centers  Create destination for families  Pilot military “outlet” concept Likely to be self-sufficient by 2025

18. Installations 2030 Where We Are Headed and Why June 13, 2013

20. 20 2013 ADC DEFENSE COMMUNITIES NATIONAL SUMMIT | PAGE 20