1. John Q. McNulty Chief, Subsistence, HQDA UNCLASSIFIED U.S. Army Logistics in Military Operations R&DA, Spring Meeting April 27, 2009

2. UNCLASSIFIED 2 Strategic Environment: 1950-1989 Korea (1951): 64 Divisions Vietnam (1967): 40 Divisions Cold War End (1989): 28 Divisions 10 Deployments in 40 years Domestic Support/ Disaster Relief Humanitarian Ops Peace Enforcement Major Theater War General War Nuclear War Strike/Raid Peacekeeping Watts 1965 Detroit 1967 Chicago 1967 Lebanon 1983 Sinai MFO 1982-? Dominican Republic 1966 Grenada 1983 Panama Just Cause 1989-90 Vietnam 1965-75 Korea 1950 … but this was before the Wall came down

3. UNCLASSIFIED Beyond the Horizons 2008 Pacific Angel 2008 3 Strategic Environment: 1989-2009 Sharp Guard 1993-96 Deny Flight 1993-95 Provide Hope 1992-94 Hurricane Andrew 1992 Saudi Arabia Desert Shield 1990-91 Croatia Provide Promise 1992 Western U.S. Fires 1994 Midwest Floods 1993 Rwanda Support Hope 1994 Bangladesh Sea Angel May 1991 Somalia Restore Hope 1992-94 Cuba Migrant Operations 1994 Macedonia 1993-99 Provide Comfort 1991-96 Strong Support 1998-1999 LA Riots 1992 Hurricanes OP New Horizons 1999 Provide Refuge 1999 Noble Eagle 2001-? Tsunami Aid 2005 Haiti Uphold Democracy 1994-2000 Dakota Floods 1997 Hurricanes 2004 Domestic Support/ Disaster Relief Humanitarian Ops Peace Enforcement Major Theater War General War Nuclear War Strike/Raid Peacekeeping JTF Liberia 1992 46 Deployments in 20 years… Cold War End (1989): 28 Divisions Today (2009): 18 Divisions Bosnia1995-? Kuwait Desert Storm 1991 Kuwait Vigilant Warrior 1994-2003 Sinai MFO 1982-? Taiwan Maneuver 1996 Desert Fox 1998 Desert Thunder I and II 1998 Kuwait Vigilant Sentinel 1995 IraqiFreedom2003-? HOA2002-? Enduring Freedom 2001-? Kuwait Southern Watch 1991-2003 Panama Just Cause 1989-90 Allied Force 1999 East Timor 1999-2002 Assured Response 1996 Wild Fires 2007 Hurricane Iniki 1992 More missions … fewer Soldiers

4. UNCLASSIFIED Army Global Commitments OIF - IRAQ 98,200 SOLDIERS OEF- PHILIPPINES 300 SOLDIERS SOUTH KOREA 16,800 SOLDIERS (Part of AC Station Overseas) OTHER OPERATIONS & EXERCISES 2,130 SOLDIERS HOMELAND SECURITY 6,400 SOLDIERS (RC Mobilized Stateside) HONDURAS JTF-BRAVO 600 SOLDIERS MFO 700 SOLDIERS OEF- AFGHANISTAN 25,800 SOLDIERS JTF-GTMO 650 SOLDIERS KFOR 1,400 SOLDIERS OEF/OIF - KUWAIT 8,100 SOLDIERS BOSNIA 20 SOLDIERS ALASKA 13,000 S OLDIERS USAREUR 46,200 SOLDIERS JTF- HOA 900 SOLDIERS ARMY PERSONNEL STRENGTH Component Active (AC)547,700 Reserve (RC) USAR200,300 ARNG362,000 1,111,000 4 QATAR 1,000 SOLDIERS Data as of 10 Mar 09 248,000 (or 22%) Soldiers Deployed/ ”Forward Stationed” in Nearly 80 Countries Overseas

5. UNCLASSIFIED Army Transformation: Chief of Staff of the Army’s Guidance 5  Create modular “brigade-based” Army that is more responsive to regional combatant commanders’ needs, better employs joint capabilities, facilitates force packaging and rapid deployment, and fights as self-contained units in non- linear, non-contiguous battle spaces  Develop an Army logistics structure that is responsive to the needs of a Joint and Expeditionary campaign quality Army  Eliminate redundancy and streamline support by reducing unnecessary layers  Design a logistics capability that leverages emerging technologies, links support to supported organizations and the Army to Joint organizations -- from the Continental United States (CONUS) to Areas of Responsibility (AOR) and within AORs  No Reserve Component within first 30 days  “As capable” as current force Achieve Joint Interdependence in Logistics Largest Army Transformation since World War II

6. UNCLASSIFIED Army Modularity From: An Army based around large, powerful, fixed organizations To: An Army designed around smaller, more self-contained organizations 6 Division XX Field Artillery Field Artillery Military Police Military Police Intelligence Engineers Armor Brigade Armor Brigade Mechanized Brigade Mechanized Brigade Aviation Division Troops Division Troops Chemical Logistics Support Logistics Support Armor Brigade Armor Brigade Signal Division Cavalry (Recon) Division Cavalry (Recon) BCT X Signal Military Police Chemical Fires Combined Arms Combined Arms Armed Recon Armed Recon Combined Arms Combined Arms Engineers Logistics Intelligence X SUST Aviation X Fires X X RSTA Maneuver Enhance Maneuver Enhance X Battlefield Surveillance Battlefield Surveillance X 18 Divisions76 Brigade Combat Teams and …... Modular Multi-Functional Support Brigades

7. UNCLASSIFIED  Throughout US history, we have utilized contractors to support our military forces  Over the past 25 years, military logistics as remained at ~20% of the total Army  Over the past 6 years, logistics contractors supporting Operation Iraqi Freedom has gradually increased over time due to the conflict’s complexity and extended duration, as well as increased quality-of-life standards Contractors: Historical Perspective Data Source: Center for Military History American Revolution 1:6 Civil War 1:5 World War I 1:20 World War II 1:7 Korea 1:2.5 Vietnam 1:6 Gulf War 1:60 Balkans 1:1 Simple Services → Complex Services & Opns Transportation Food Service Sanitation Medical Security Construction Maintenance Shower Service Laundry Complexity of Conflict Complexity of Services Afghanistan 1:1 Iraq 1:1 Logistics Contracting Personnel in Iraq Data Source: LOGCAP LOD Ops Briefings 2002-2008 Contractor:Soldier Ratios Contractors increased by 44% in 24 months 7

8. UNCLASSIFIED Strat Move (ACOM, CoE, etc.) BDE/DIV Level Move BN Level Move Installation GTA Activity 150,000+ Soldiers and family members return from overseas 1 230,000+ Soldiers and family members impacted by GDPR, BRAC, & GTA 150,000+ Soldiers and family members return from overseas 1 230,000+ Soldiers and family members impacted by GDPR, BRAC, & GTA The largest Transformation since WWII Facts -$66B Construction -743 Projects -304 installations affected -13 BRAC closures -53 Realignments -125 new AFRCs -69,000 Barracks spaces -4,100 Family units -66 CDCs Annually 145,000 Soldiers deploy to and redeploy from Iraq & Afghanistan in unit packages A Few Tough Years The Army in Motion: FY07-FY13 8

9. UNCLASSIFIED Logistics Operations Supporting Southwest Asia 9 Forward Positioning of Wholesale Stocks Petroleum, Oil and Lubricants Support Subsistence Prime Vendors

10. UNCLASSIFIED Value of Leveraging In-Theater Inventory  Spend a little more on inventory to save a lot on transportation or dramatically improve response time  Stocking In-Theater Inventory  Lowers total costs when an item Has a low price/lb -- cheap to buy relative to what it costs to fly Lower the price/lb and lower the demand variability, greater the Forward Distribution Depot (FDD) fill rate should be  Improves response time versus sealift direct to Small inventory buffer takes sealift off critical path Long, variable Requisition Wait Time (RWT) increases other supply chain costs 10

11. UNCLASSIFIED Illustration of In-Theater Inventory vs. Transportation Tradeoff: Battery vs. Engine Vehicle Battery Apache/Blackhawk Engine Number shipped/year 60,309314 Weight (each/total) 89 lb (2700 tons)722 lb (113 tons) Unit price $113$694,615 Unit price/lb. $1.27/lb$962/lb Airlift cost $328$3,550 Airlift cost/lb. $3.68/lb$4.92/lb 11 Battery is relatively cheap to buy compared to its airlift cost, but the engine is not

12. UNCLASSIFIED For Some Items Theater Inventory Produces Savings … Battery Effect on Total Annual Costs of Stocking Item in Theater Inventory Vehicle Transmission Aircraft Engine $ Million Airlift Cost Inventory and Materiel Handling Cost 12 Inventory cost much lower than airlift cost (produces net savings) Inventory cost much higher than airlift cost (adds to total cost) Inventory cost slightly lower than airlift cost (lower return on investment)

13. UNCLASSIFIED Clear Cases for Theater Inventory Inventory vs. Transportation Tradeoffs Produce Total Cost-Based List For Theater Inventory  Track, tires, and wheels  Batteries  Packaged Petroleum, Oil, and Lubricant products  Construction and barrier materiel  Tents  Paper products, other cheap bulky items  Cleaning supplies  Diesel engines and transmissions  Engineered automotive components  Aircraft/turbine engines and transmissions, rotor blades  Electronics and small, expensive items  Small, low-demand items High-volume, cheap, heavy Positive But Smaller Relative Benefit High-volume, moderately priced, heavy Not for Theater Inventory Low-volume, expensive, or light 13

14. UNCLASSIFIED Logistics Operations Supporting Southwest Asia 14 Forward Positioning of Wholesale Stocks Petroleum, Oil and Lubricants Support Subsistence Prime Vendors Munitions Support

15. UNCLASSIFIED Tigris R. Euphrates R. IRAN 6 Baghdad KUWAIT JORDAN H4 Tallil 2 5 12 1 1 An Najaf Kirkuk Al Anbar An Najaf 9 SYRIA SAUDI ARABIA AL ASAD MOSUL BUEHRING ALI AL SALEM CEDAR II 680K JP8 (Jet Fuel) 230K Diesel Fuel 45K Motor Gas 680K JP8 (Jet Fuel) 230K Diesel Fuel 45K Motor Gas 295K JP8 (Jet Fuel) 15K Diesel Fuel 5K Motor Gas 295K JP8 (Jet Fuel) 15K Diesel Fuel 5K Motor Gas 121K JP8 (Jet Fuel) 71K Diesel Fuel 10K Motor Gas 0.3K Aviation Gas 121K JP8 (Jet Fuel) 71K Diesel Fuel 10K Motor Gas 0.3K Aviation Gas AL TAQADDUM 3 Ground Lines of Communication 3 External Suppliers 1 Internal Supplier All Military Escorts From Border 3 Ground Lines of Communication 3 External Suppliers 1 Internal Supplier All Military Escorts From Border SPEICHER MINA ABDULLAH TRUCK FILL STAND Current Ground Lines of Communication Challenges: Stress on the Open Market Fuel Availability is Not Bottomless Contractor Performance Standards and Accountability of Fuel Storage Capacity Must Meet Mission Requirements Challenges: Stress on the Open Market Fuel Availability is Not Bottomless Contractor Performance Standards and Accountability of Fuel Storage Capacity Must Meet Mission Requirements JB BALAD VICTORY BASE COMPLEX SKYLINK 80K JP8 (Jet Fuel) 80K JP8 (Jet Fuel) 11 days 4 days Fallujah 15 1,480 fuel trucks on the road on any given day Iraq Contractor Fuel Support (Gallons Per Day) Iraq Contractor Fuel Support (Gallons Per Day) Q-WEST TURKEY 3 days Habur Gate Trabil

16. UNCLASSIFIED Truck Fill Stand - Kuwait Cedar II - Iraq Adana Contractor Owned Contractor Operated - Turkey Al Taqaddum Recovery Operations - Iraq Iraq Fuel Infrastructure and Distribution 16

17. UNCLASSIFIED KABUL ISLAMABAD FARAH ZABOL ORUZGAN BADGHIS FARYAB PAKTIKA GHAZNI SAR - E POL SAMANGAN JOWZJAN BALKH KONDUZ TAKHAR BAGHLAN VARDAK LOWGAR PAKTIA KEPISA KABUL NANGARHAR LAHORE UZBEKISTAN TJK -E CHN NIMRUZ HELMAND QANDAHAR KANDAHAR IRAN LAGHMAN PAKISTAN HERAT BAGRAM BADAKHSHAN KONAR NURISTAN BADAKHSHAN BADGHIS Hairaton TURGHUNDI 2 Ground Lines of Communication 3 Prime Vendors + 2 Vendors Strategic Storage at Kabul Rely on Additional Contractor Storage No Military Escorts within Afghanistan 2 Ground Lines of Communication 3 Prime Vendors + 2 Vendors Strategic Storage at Kabul Rely on Additional Contractor Storage No Military Escorts within Afghanistan 400K TS1 (Jet Avn Fuel) 67K JP8 (Jet Fuel) 400K TS1 (Jet Avn Fuel) 67K JP8 (Jet Fuel) Current Ground Lines of Communication U.S. Army Storage Contractor Storage Current Ground Lines of Communication U.S. Army Storage Contractor Storage 230K JP8 12K Diesel Fuel 1.3K Motor Gas 230K JP8 12K Diesel Fuel 1.3K Motor Gas ATTOCK 16-19 days Challenges: Stress on Open Market Rebuilding Inventories Poor Roads and Infrastructure Weather and Holiday Impacts Insurgent Activity Political-Mil and Economic Problems Impacting on Exports and Imports Challenges: Stress on Open Market Rebuilding Inventories Poor Roads and Infrastructure Weather and Holiday Impacts Insurgent Activity Political-Mil and Economic Problems Impacting on Exports and Imports 67K TS1 42K JP8 26K Diesel Fuel 2K Motor Gas 67K TS1 42K JP8 26K Diesel Fuel 2K Motor Gas 17 SPINBULDAK 640 fuel trucks on the road on any given day 14 -45 days (Depends on Weather) Afghanistan Contractor Fuel Support (Gallons Per Day) Afghanistan Contractor Fuel Support (Gallons Per Day) 5 days PESHAWAR JALALABAD Federally Administered Tribal Area Controlled Area 8 days TORKHAMBORDER (KHYBER PASS)

18. UNCLASSIFIED Bagram Fuel Farm Red Star Fuel Facility Tryco Storage Facility - Kabul Host Nation Contractors 18 Afghanistan Fuel Infrastructure and Distribution

19. UNCLASSIFIED Logistics Operations Supporting Southwest Asia 19 Forward Positioning of Wholesale Stocks Petroleum, Oil and Lubricants Support Subsistence Prime Vendors Munitions Support

20. UNCLASSIFIED DIAMONDBACK  DSCP 20 Dezful Tigris R. Euphrates R. IRAN H3 22 6 Baghdad 1 KUWAIT JORDAN H4 Tallil 2 5 12 1 10 1 Mosul An Najaf Kirkuk Al Kut Al Amarah Ar Ramadi Ar’ar As Samawah An Nasiriyah Baqubah Ar Rutbah Dayr az Zawr Karbala Al Qaim Al Hillah Samarra Fallujah Al Kufa Dahuk Ad Diwaniyah Karbala Al Basrah Dhi Qar Maysan Wasit Babil Al Qadisiyah Al Anbar Diyala Salah ad Din Ninawa At Tamim As Sulaymaniyah An Najaf SYRIA FLB SYCAMORE FLB CEDAR BIAP FLB SPEICHER LSA ANACONDA Taji SCANIA CEDAR NAVISTAR FF&V/LMR/PV - Kuwait C5.1 CSM Cooke C5.2 Wrangler Inn TQ DIAMONDBACK AL ASAD Tigris R. Euphrates R. IRAN H3 22 6 Baghdad 1 KUWAIT JORDAN H4 Tallil 2 5 12 1 10 1 Mosul An Najaf Kirkuk Al Kut Al Amarah Ar Ramadi Ar’ar As Samawah An Nasiriyah Baqubah Ar Rutbah Dayr az Zawr Karbala Al Qaim Al Hillah Samarra Fallujah Al Kufa Dahuk Ad Diwaniyah Karbala Al Basrah Dhi Qar Maysan Wasit Babil Al Qadisiyah Al Anbar Diyala Salah ad Din Ninawa At Tamim As Sulaymaniyah An Najaf SYRIA SAUDI ARABIA FLB SYCAMORE FLB CEDAR BIAP FLB SPEICHER LSA ANACONDA TAJI SCANIA CEDAR AL TAQADDUM AL ASAD Prime Vendor Iraq Public Warehousing Corporation (aka Agility) 3 Supporting Warehouse Platforms Prime Vendor Iraq Public Warehousing Corporation (aka Agility) 3 Supporting Warehouse Platforms PWC supports 138 customers within Iraq and Kuwait 48 Forward Operating Bases (Mobile Kitchen Trailer sites) 75 Dining Facilities PWC supports 138 customers within Iraq and Kuwait 48 Forward Operating Bases (Mobile Kitchen Trailer sites) 75 Dining Facilities TAA VIRGINIA TURKEY 20 985 Ground Deliveries Per Day

21. UNCLASSIFIED 21 FF&V FARAH LASHKAR GAH (2X) GERESHK GHECKO HERAT DR 73 TARIN KOWT LAGMAN SHINKAY / SWEENY GHAZNI ORGUN - E SHARONA MEYDAN SHAR NANGALAM / BLESSING MAZAR E SHARIF KUNDUZ CHAGHCHARAN SPIN BULDAK J-BAD (3X) A-BAD (2X) SHKIN LAWARA METHARLAM BAGRAM (7X) KABUL (7X) KANDAHAR (4X) NARAY (2X) WAZA KAWA TORKAM CAMP SPANN BERMEL CHAMKANI KAF CSC DA 73 RIPLEY QALAT RCAG PUL-E-ALAM SALERNOFF&V KHOWST CHAPMAN FF&V GARDEZ (2X) DURELAMAN RC WEST RC NORTH RC SOUTH RC EAST WARRIOR FF&V ASMIR KARIN KOWTFF&V KALA GUSHPANJSHIR FF&V TILLMANFF&V Via Air (Prime Vendor/ Fresh Fruits & Vegetables) Via Air (Only Fresh Fruits & Vegetables) Via Ground FF&V Prime Vendor Afghanistan Supreme Supported Locations (Dining Facilities and Forward Operating Bases) Prime Vendor Afghanistan Supreme Supported Locations (Dining Facilities and Forward Operating Bases) Challenge of Providing Subsistence in Afghanistan 33 Air and 165 Ground Deliveries Per Day

22. UNCLASSIFIED Food Service Decision Support System Top Items Received by Amount Region: CENTCOM AOR Reporting Period: Fiscal Year 10/1/2007 through 9/30/2008 22 Category of Diners Served in Iraq and Afghanistan DoD Civilians (1.9%) Coalition Forces (3.5%) Other Civilians (0.7%) The Army’s food service mission supports much more than just U.S. Forces

23. UNCLASSIFIED Food Service Decision Support System Top Items Received by Amount Region: CENTCOM AOR Reporting Period: Fiscal Year 10/1/2007 through 9/30/2008 RankDescriptionUnit of Issue QuantityAverage Price Total Cost 1CHICKEN WINGS, PRECOOKEDLB7,269,287$3.41$24,807,647 2BEEF LOIN, T-BONE STEAKLB3,039,330$8.05$24,479,589 3BEEF, RIB, RIBEYE ROLLLB2,491,209$8.27$20,601,248 4CHICKEN BREAST FILLETLB4,316,412$3.74$16,140,780 5LETTUCE, UNWRAPLB4,216,549$3.50$14,752,113 6MELON, CANTALOUPELB4,846,550$2.96$14,333,121 7MELON, HONEYDEWLB4,536,300$3.05$13,816,726 8BACON, PRECOOKED, EXTRA THICK LB1,774,549$7.13$12,658,065 9ELECTROLYTIC, BEVERAGE, RIPETIDE RUSH GATOR CASE426,902$28.03$11,966,561 10GATORADE ORANGECASE420,757$28.03$11,793,690 23 Top 10 Items in Iraq and Afghanistan Improved Quality of Life Standards

24. UNCLASSIFIED Army Logistics: Where We Are Headed  Innovative energy sources to improve system efficiency and reduce battlefield fuel consumption  Embedded diagnostic tools to rapidly predict and detect system failures  Information systems integration to improve the enterprise management of assets  Improvements to bandwidth, computing power, sensors, and data integration to accelerate decision cycles and synchronization, from strategic to tactical levels  Unmanned robotic vehicle technology for improved materiel handling and distribution of assets to maximize soldier protection for sustainment operations  Light weight materials and common system components to allow for quicker and easier maintenance and corresponding footprint reduction 24

25. John Q. McNulty Chief, Subsistence, HQDA UNCLASSIFIED