1. Navy Working Capital Fund and PBL Director, Supply Chain Solutions Division Presented at: PSM Workshop Ft. Belvoir 14 January 2015

2.  Enables multiple year, long-term agreements… guarantees contractor business base  Incentivizes contractor investment  Enables flexible resource allocation  Makes PBL transparent to Fleet customers… support strategy integrated into Supply System Navy Working Capital Fund PBL at NAVSUP WSS is NOT CLS

3. Repair/overhaul/ replace decision Requirements determination/forecasting Consumable piece parts Warehousing Transportation - FOB OCONUS contracts only Configuration management* Technology/reliability insertion Engineering/tech services Obsolescence management PBL Supplier Roles Strategies Aligned to Fleet Requirements Lower Response Time Lighten Logistics Footprint Increase Availability Cultivate Long-Term Partnerships With Industry Cultivate Long-Term Partnerships With Industry Leverage Commercial Supply Chain Solutions Leverage Commercial Supply Chain Solutions NWCF and PBL in practice… funding used in a non-traditional approach to enable delivery of supply support outcomes: * Navy retains configuration control 3 Purpose Navy Working Capital Fund

4. 4 Design Interface Product Support Management Manpower & Personnel Supply Support Sustaining Engineering Training & Training Support Packaging, Handling, Storage &Transportation (PHS&T) Facilities & Infrastructure Computer Resources Technical Data M aintenance Planning & Management Support Equipment Product Support is enabled by 12 Integrated Product Support (IPS) Elements designed to deliver system readiness & availability while optimizing system life cycle cost 4 Navy Working Capital Fund Integrated Product Support (IPS) Elements

5. $M $85 $245 $331 $481 $525 $712 $801 $919 $35 $1040 Business Scope NSNs 19,478 Mech = 13,736 Phil = 5,742 25.3% of total demand (FY15) Mech = 11.2% Phil = 36% $1067 $1228$1227 $1317 $1380 Program Status PBL Profile Thru October 2014 $1322 $1190 $1359 NAVSUP WSS Has Won 15 of 34 DoD PBL Awards Since FY05 In FY14, PBLs accounted for 26.5% of NAVSUP WSS obligations