1. NDIA Defense Forum Breakfast MG JEFFREY SORENSON Deputy for Acquisition & Systems Management Office of the Assistant Secretary of the Army (Acquisition, Logistics and Technology) 21 MARCH 2007

2. Agenda “Big A – little a” of Acquisition Army Budget Status Industrial Base Rapid Acquisition Process Summary 2

3. CAPABILITY NEED ACQUIRE DEVELOP CONTRACT TEST PRODUCE FIELD a acquisition OPERATE/ SUSTAIN UPGRADE/ MODERNIZE FMS RETIRE DEMIL A ACQUISITION D O T L M P F ? RESOURCES Doctrine, Organizations, Training, Leader Development, Materiel, Personnel, Facilities “Big A – Little a” One Process – One Team 3

4. DoD Budget Authority Since WW II $ (Billions) Constant FY07 Dollars DoD % of Gross Domestic Product (GDP) Korea14.2%Korea14.2% Vietnam9.5%Vietnam9.5% Reagan Buildup 6.2% 6.2% 3.0% in 2000--Lowest since prior to World War II. GWOT3.9%GWOT3.9% WW II 37.9% 37.9% 4

5. Current Fiscal Guidance $B Current Fiscal Guidance (Includes Growth) FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 +$68.9B FY07 President’s Budget Revised October Fiscal Guidance Initial April 2006 Fiscal Guidance +$52.1B 95.9 101.0 99.2 110.1 130.0 140.7 FY 04-06 Actuals FY 07 Appropriation 8 Feb 07 5

6. Army Base + GWOT Funding – FY03-09 ($B) Army FY03-08 Supp Funding = ~ $360B Army FY03-08 GWOT Growth = $58.8B * Note: FY 07/08 Supp requests pending ? 115.1159.5171.4134.2200.6213.4 * ActualsRequest Note: Figures do not include JIEDDO, ISFF, ASFF 6

7. Industrial Base – Family Tree Source: SDC, DACIS DM&A 1990 1988 1980198219841986199219941996199719981999 First Wave Second Wave 20002001200220032004 Fairchild Weston Systems Inc. Loral Honeywell-Electro-Optics Ford Aerospace BDM International Inc. Librascope IBM–Federal Systems Unisys Defense General Dynamics–Ft. Worth MEL Lockheed General Electric–Aerospace Martin Marietta LTV–Missile Business Gould Ocean System Division COMSAT Corp. Affiliated Computer Services Inc. (ACS) Loral BDM (Carlyle) Aerospace Electronic Systems Lockheed Martin Teledyne Ryan Aeronautical General Dynamics Space Business LTV–Aircraft Operations Grumman Corp. Ryan Aeronautical Kistler Aerospace Corp. Alvis Logistics–EDD Business Northrop Logicon Westinghouse El. Defense TASC (Primark) PRC (Black & Decker) General Instruments–Defense Varian–Solid State Devices Taratin Litton Industries Avandale Industries Newport News Shipbuilding TRW Commercial Aerostructures Northrop Grumman Northrop – West Virginia Federal Data Corp. Lockheed Martin Defense Sys, Armament Sys GM Defense Veridian Corp Primex Technologies Computing Devices International, Inc GTE Government Systems Corp. Units Motorola Integrated Info Sys Gulfstream Aerospace General Dynamics Lucent Advanced Technology Systems NASSCO Holdings, Inc. Galaxy Aerospace Bath Iron Works Chrysler Defense, Inc Santa Barbara General Dynamics Space Propulsions Space SystemsFort Worth Div. Electronics Division Missile Operations Rockwell Argo Systems Litton Precision Gear Hughes Electronics Satellite Boeing McDonnell Douglas Jeppesen Sanderson Boeing Hughes General Motors BET PLC's Rediffusion Simulation Magnavox REMCO SA STC PLC–Navigation Systems TRW-LSI Products Inc. Corporate Jets E-Systems Chrysler Techn. Airborne Texas Instr. El. Defense Raytheon General Dynamics Missile Division Eng & Const. Int’l Aircraft Integration Systems Segment Vertex Aerospace Hughes Electronics Raytheon Raytheon – Flight Simulation Raython Co-Plant, Quincy 7

8. Big DoD Contractors Dwarf Field Lockheed Martin Boeing Northrop Grumman General Dynamics Raytheon Halliburton Source: DoD Directorate for Information Operations and Reports Procurement Statistics 6 Companies receive 50% of payments to top 100 contractors For 2006 $0 $7 $14 $21 $28 $35 15913172125293337414549535761656973778185899397 2006 Direct DoD Contracts ($B) 8

9. Chain of Command (Theoretical) ASA(ALT) Mission: Effectively and efficiently develop, acquire, field, and sustain materiel by leveraging domestic, organic, commercial, and foreign technologies and capabilities to meet the Army’s current and future mission requirements. SVC Program Manager +30 People PEO AAE DAE 9

10. White House Congress Secretary Of Defense OMB Joint Staff GAODOTEDAEDoDIGPress OSD POL Appointees PressCongress AT&L Staff OGCSVC SecretaryAAEARSTAFFIDA’S DCMASecretariatAAAStaffersDCAA ATECAMCPEOLCMCXXXX UsersOTCStaffersMACOMS SVC Program Manager +30 People Chain of Command (Realistic) 10

11. Spiral Development Balancing Act 11

12. PBDs PDMs Auth. Act Approp. Act DoD Budget Data over 17 years serves as a heads up! Is this known occurrence factored into OSD and Joint Staff processes and planning? DoD Budget OMB President’s Budget to Congress ACAT 1 Programs - Cumulative Rebaselines by Month (Period over 1988-2005) ACAT 1 Programs - Cumulative Rebaselines by Month (Period over 1988-2005) 12

13. Current Process ONS AR2B DEVELOPMENT/ PROCUREMENT SAFETY RELEASE RELIABILITY FIELD OIF / OEF Accelerated Process DoD 5000 13

14. # of Approved Operation Needs Statements (ONS) 14

15. FCS Brigade Combat Team Manned Ground Vehicles (MGV) Non-Line of Sight Cannon (NLOS-C) Non-Line of Sight Mortar (NLOS-M) Medical Vehicle Treatment (MV-T) FCS Recovery and Maintenance Vehicle (FRMV) Unmanned Aerial Systems (UAS) Class I UAV Class IV UAV Unattended Ground Systems (UGS) Tactical and Urban Unattended Ground Sensors Unmanned Ground Vehicles (UGV) Small UGV (SUGV) Armed Robotic Vehicle – Assault (Light) (ARV-A-L) MULE-C MULE-T Mounted Combat System (MCS) Infantry Carrier Vehicle (ICV) T-UGS U-UGS Medical Vehicle Evacuation (MV-E) Non-Line of Sight Launch System (NLOS-LS) Multifunction Utility/ Logistics and Equipment Countermine and Transport Reconnaissance And Surveillance Vehicle (RSV) Command and Control Vehicle (C2V) Common Chassis 6 Feb 07 15

16. FCS (BCT) System-of-Systems Schedule 16

17. Future Related Advanced Developments – ARH (2009) – LUH (2008) – DCGS-A (V3) (2007) – Excalibur (2007) Heavy Infantry Stryker FCS Heavy Infantry Stryker – WIN-T (2014) – JTRS AMF (2011-12) – JTRS (GMR/HMS) – Apache Longbow Block III (2011) Lessons learned OIF and OEF RAVEN Tactical UAV Interceptor Body Armor (IBA) Counter IED (Warlock, Duke) Uparmored Vehicles (UAH, AoA) Buffalo mine-clearing vehicle 2004-2006 2006-2010 2010 and beyond FCS – System Development and Demonstration Spin-out 1 FY 2008-10 Spin-out 2 FY 2010-12 Spin-out 3 FY 2012-14 Networked Sensors/ Shooters - Limited Battle Command - JTRS (GMR/HMS) - Unattended ground sensors - Non-line of sight launch systems Systems/ Component -APS - Mast Mounted Sensor Options: - Small UGV - Class 1 UAV Network and Ground/ Air Vehicles - ABCS to FCS Battle Command - ARV-A-L - Small UGV - Class I UAV - Class IV UAV Core Program Delivery FY 2015 Joint Networked System of Systems Current To Future Force through Technology Spin Outs Fielding 6 current force BCTs/yr (70) Fielding 15 FCS BCTs Current 17

18. Current GWOT Support – PEOs/PMs Military Government Contractors 85 38 2870 Total 2493 18

19. Way Ahead “Big A – little a” Acquisition Health of Industrial Base Critical to Success Rapid Acquisition – Team Sport! 19

20. Bottom Line Program Manager’s Ultimate Decision Tool: When All Factors Are About Equal, What Is Best For The Soldier? 20