1. 1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT DLA Prime Vendors and MIPR Replacement

2. Deliver the right solution on time, every time 2 Special Operational Equipment Tailored Logistics Support Major Customers Suppliers PEO Soldier NAVSUP USA Rapid Equipping Force Naval Special Forces ADS Inc Source One Distributors Tactical & Survival Specialties WS Darley & Co Federal Resources Quantico Tactical Sights and Mounts Assault Ladders Tactical Lights Sights and Mounts Assault Ladders Tactical Lights Life Vests Life Rafts Sonar Devices Search Lights Eyewear Life Vests Life Rafts Sonar Devices Search Lights Eyewear Masks Diving Helmets Regulators Dry/Wet Suits Cylinders Umbilical Lines Masks Diving Helmets Regulators Dry/Wet Suits Cylinders Umbilical Lines FY14 Army MIPR Sales $243.87M

3. Deliver the right solution on time, every time 3 Tailored Logistics Support Maintenance Repair & Operations (MRO) Supplies Electrical Plumbing HVAC Paint Lumber Electrical Plumbing HVAC Paint Lumber Tools Hardware Building Supplies Incidental Services Tools Hardware Building Supplies Incidental Services Major Customers Suppliers AMC ARCENT NAVFAC Graybar Supply Core SAIC Theodor Wille Intertrade ADS Noble Supply FY14 Army MIPR Sales $175.6M

4. Deliver the right solution on time, every time 4 Heavy Equipment Long Term Contracts Major Customers Suppliers Warner Robins ALC Navy Gulfport Navy Port Hueneme TACOM Caterpillar Terex John Deere Oshkosh Link-Belt Construction Equipment Material Handling Equipment Fire Fighting & Rescue Vehicles Environmental Products Agriculture Cranes Trucks and Trailers Construction Equipment Material Handling Equipment Fire Fighting & Rescue Vehicles Environmental Products Agriculture Cranes Trucks and Trailers FY14 Army MIPR Sales $57.1M

5. Deliver the right solution on time, every time 5 Fire & Emergency Services Equipment TrainingEquipmentSystems Tailored Logistics Support Major Customers Suppliers Shaw AFB US NORTHCOM Wright Patterson AFB Navy Expeditionary Combat Command Fort Bliss ADS Inc WS Darley & Co L.N. Curtis & Sons Mallory Co Federal Resources Unifire Breathing Apparatus Hoses Nozzles Thermal imaging equipment Ladders Extinguishers Breathing Apparatus Hoses Nozzles Thermal imaging equipment Ladders Extinguishers Fire alarm systems Suppression, Surveillance, Emergency Station Vehicle Exhaust & Vent Systems Fire alarm systems Suppression, Surveillance, Emergency Station Vehicle Exhaust & Vent Systems First Responder Training Repair & Overhaul of items provided First Responder Training Repair & Overhaul of items provided FY14 Army MIPR Sales $90.7M

6. Deliver the right solution on time, every time 6 Metals Program Ferrous, non- ferrous and specialty metals Angle, Bar, Extrusions, Sheet, Strip, Screen, Plate Ferrous, non- ferrous and specialty metals Angle, Bar, Extrusions, Sheet, Strip, Screen, Plate Related incidental services: Cutting, shearing, testing, scrap removal and salvage Related incidental services: Cutting, shearing, testing, scrap removal and salvage Tailored Logistics Support Major Customers Suppliers USA Afghanistan Rock Island Norfolk Naval Shipyard Puget Sound Naval Shipyard USA Depot Letterkenny Metals USA TW Metals FY14 Army MIPR Sales $2.7M

7. 7 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 Basic TVR Order MIPR Process 1.Customer submits order request. 2.DLA reviews request for price/scope. 4.Customer requests funding from their Finance who prepares MIPR. 5.Customer submits MIPR with order to DLA. 6. DLA accepts MIPR. Customer Finance obligates MIPR. 7. DLA ERP assigns MIPR code to use on sales orders. 8. Vendor submits 855 EDI order w/MIPR code to DLA – creates sales order, purchase order. 9. Vendor ships material, invoices DLA. 10. DLA pays vendor. 11 DLA records a bill to the customer; 12. DFAS IPACS customer funds against MIPR number transferring funds to DLA to clear bill. Delays Error Risks

8. 8 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 DLA’s Audit Concerns and Goals Military Interdepartmental Purchase Requests (MIPRs) -Issue: Reliance on the manual MIPR process allows for errors and slows Customer Order close out and DLA cash collection -Goal: Eliminate customer use of MIPRs to the fullest extent Material Receipt Acknowledgements (MRAs) -Issue: Lack of consistent Material Receipt Acknowledgements -Goal: Achieve 99%? MRA rate Accountability -Issue: Customers billed generic non-NSN -Goal: Improve Asset Visibility and accountability

9. 9 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 9 Way Ahead DLMS Solution 511R - Allows additional information to be sent from Army systems to DLA Data requirements are commercially based EDI transactions and DLA needs information on orders to make the buy; Examples: Vendor name; commercial P/N; item description; any additional identifying information; colors; MFG POC's/websites; special product data; special delivery instructions (Bill of Materials), etc. DLA internal and system processes will require modification to support Army prior to implementation