1. Source: OASD (FMP) (MPP) O&EPM, DOL Meet Military Recruitment Requirements Number of Recruits Number of Recruits vs Unemployment Rate by Fiscal Year Unemployment Rate 165,000 175,000 185,000 195,000 205,000 FY 94FY 95FY 96FY 97FY 98FY 99FY 00FY 01 0% 2% 4% 6% Requirements Actual Unemployment Rate Declining unemployment rates may be complicating the efforts of military services to meet recruitment goals. Declining unemployment rates may be complicating the efforts of military services to meet recruitment goals. DRO 2000 CD: Chapter 2.01

2. Source: Department of Treasury Public Affairs Release dtd 1/2/00, 3/2/98 / OASD (FMP)(MPP)O&EPM Notes: 1) The Employment Cost Index is a measurement of increases to average wages from year to year 0% 1% 2% 3% 4% 5% 6% FY 85FY 87FY 89FY 91FY 93FY 95FY 97FY 99 FY 96 FY 86 FY 88 FY 90 FY 92FY 94FY 98FY00 From FY 99 forward, military pay raises will be equal to the Economic Cost Index plus 0.5%. From FY 99 forward, military pay raises will be equal to the Economic Cost Index plus 0.5%. Reflects 4.8% One-Time Comparability Congressional Pay Raise Projected Increase Actual Economic Cost Index Annual Percentage Pay Increase / ECI Improve Military Standard of Living Annual Military Pay Increases Compared to Economic Cost Index DRO 2000 CD: Chapter 2.01

3. Notes: 1) Out-of-pocket expenses estimated via annual survey conducted by Military Services. Eliminate Out-of-Pocket Housing Costs by 2005 Percentage Out-of-Pocket Housing Cost FY ‘05 Goal = No Out-of-Pocket Housing Expenses Source: OASD (FMP) (MPP) O&EPM DRO 2000 CD: Chapter 2.01 Average Percentage Out-of-Pocket Housing Expenses Paid by Service Member To eliminate out-of-pocket housing costs, DoD will provide service members with more than $3 billion in housing allowances over the next 5 years. To eliminate out-of-pocket housing costs, DoD will provide service members with more than $3 billion in housing allowances over the next 5 years.

4. Reduce Overall DoD TDY Travel Management Expenses. Estimated Annual Direct Cost Savings Resulting from Defense Travel System (DTS) DRO 2000 CD: Chapter 2.02 Source: Final Economic Analysis, Defense Travel System, December 31, 1998 Implementation of new, electronic Defense Travel System is expected to result in total estimated direct cost savings of $481M over 8-years. Implementation of new, electronic Defense Travel System is expected to result in total estimated direct cost savings of $481M over 8-years. Annual Savings in Millions of Dollars Notes: 1) Travel management expenses include traveler, approval authority and processing cost burdens.

5. Notes: 1) Traveler Cost = Dollar value of time spent filling out and approving travel vouchers at the mission level. 2) Administration Cost = Dollar value of time spent processing travel vouchers. Reduce TDY Traveler and Administration Cost per Voucher via DTS. DRO 2000 CD: Chapter 2.02 Source: Final Economic Analysis, Defense Travel System, December 31, 1998 Unit Cost per Travel Voucher by Cost Type $98M annual travel administrative saving resulting from DTS (post-implementation). $98M annual travel administrative saving resulting from DTS (post-implementation). 49% 71% FY 96 FY 06 $28 $22

6. Streamlining the Service Member TDY Travel Process. 11.3 Days 4.1 Hours 1.2 Hours 5.8 Days 40 Steps 21 Steps FY 96 Actual FY 06 Projected Time Savings Associated with DTS Travel Process Streamlining DRO 2000 CD: Chapter 2.02Source: RTTO Pilot Study Service personnel time spent in travel activities reduced a projected 59% with DTS. Service personnel time spent in travel activities reduced a projected 59% with DTS. Notes: 1) Projected value estimates are based upon travel reengineering pilot study.

7. Percentage of Moves with Claims Filed Claim Rate Claim Resolution Time 25% or Greater DRO 2000 CD: Chapter 2.03Source: FSMP PMO Notes: 1) FSMP pilot program runs from OCT ‘00 to JUN ‘01 and DoD-wide implementation is scheduled for JAN ‘02. 8% or Less Claim Resolution Time (days) Over 180 Days Less than 45 Days Reduce Storage in Transit (SIT) Goal = Less than 60% with SIT Reduce Storage in Transit (SIT) Goal = Less than 60% with SIT Quicker Payment to Carriers Goal = Payment within 30 days Quicker Payment to Carriers Goal = Payment within 30 days Eliminate Out-of-Pocket Costs Goal = 0% Out-of-Pocket Eliminate Out-of-Pocket Costs Goal = 0% Out-of-Pocket Create ‘Best Value’ Move Service via Full Service Moving Project (FSMP). Actual Goal Actual Goal FY 98 FY 02

8. Improve Service Members’ Quality of Life by Decreasing Direct Out-of-Pocket Expenses for Moving DRO 2000 CD: Chapter 2.04Source: DITRS Average Out-of-Pocket Moving Expenses FY ‘03 Goal = No Out-of-Pocket Moving Expenses

9. Decrease Travel Voucher Processing Time via Electronic Voucher Payment System DRO 2000 CD: Chapter 2.04Source: DITRS Estimated DoD Labor Hours Associated with Travel Voucher Processing Labor Hours The Electronic Voucher Payment System will automate voucher processing and eliminate manual, paper-based processes. The Electronic Voucher Payment System will automate voucher processing and eliminate manual, paper-based processes. Note: 1) Labor Hours - military member’s time to prepare the vouchers and the Personnel and Finance technician’s time to review, compute and pay the vouchers.