1. Army Watercraft Restructuring Plan (AWRP) Divestiture Update Information Briefing Introduction PresentedBy Jill Stupyra Presented By Jill Stupyra US ARMY TACOM 2 July - 2002 2 July - 2002

2. AGENDA FY02 Sales Program Overview and Schedule Issues / Concerns Conflicts in DA Approval Clarifications Requested Sales Projections Sales Proceeds

3. Current Sale 38-2754 - 4 Vessels - Bid Opening May 15 th FY02 Sale #1 Collected net proceeds of $121,971 Finalization and removal being prolonged due to tighter security measures imposed by the Commerce Department Buyer clearances expected NLT 31 Jul 02

4. LocationEnvironmentalUnit ReportsBiddersAward AssessmentsDueViewing Hythe8-16 Jun02*5 Jul 0212-23 Aug 023 Sep 02 Curtis Bay25-27 Jun 02*12 Jul 023-13 Sep 0217 Sep 02 FEVA/Story7-12 Jul 0219 Jul 0216-27 Sep 027 Oct 02 Morehead City15-16 Jul 0219 Jul 0216-27 Sep 028 Oct 02 FY02 Sale Schedule Final payment and vessel removal must be completed within 25 days from bidder award. However, any buyer not already cleared by the Commerce Department cannot remove the vessel until clearance is obtained. * Completed Upcoming Sale - 40 Vessels - 5 locations

5. Issues / Concerns Removal of Army Markings Demilitarization lists for use by Units Time Delay for Vessels at Hythe – Demil Code “Q” (All Demil Codes other Than “A” Requires Trade Security Control Clearance from Buyers) additional 30-60 days to complete Sale Conflicts on vessels approved for sales Release of Watercraft Sale Proceeds

6. Conflicts HULLCOMPREASON FOR REMOVAL Require DA-G8 Approval to Remove From Sales Program: BC-6188RCRequesting MTOE change BC-6260RCRequesting MTOE change BC-6262RCRequesting MTOE change BC-6283RCRequesting MTOE change BC-6316RCRequesting MTOE change LCM-8538RCILO MCS LCM-8584RCRequesting addition to TDA LCM-8586RCRequesting addition to TDA LCU-1672RCILO LCU-2000 shortage LCU-1673RCILO LCU-2000 shortage LCU-1674RCILO LCU-2000 shortage LT-2085RCILO ST-900 shortage BC-6465PREPORequesting addition to TDA BC-6467PREPO Requesting addition to TDA BC-6548PREPO Requesting addition to TDA BD-6074PREPO Requesting addition to TDA BD-6447PREPO Requesting addition to TDA

7. HULLCOMP CONFLICT Require DA-G4 Clarification: LCM-8559PREPODue OCCM 1QTR03; RC POM’d; hull transferred; now a UFR LCU-1673RCApproved for sale; RC requests to retain; scheduled for OCCM LT-2085RCApproved for sale; RC requests to retain; scheduled for OCCM LCM-8545RCScheduled for OCCM in 3QTR03; divestment in 04 Need clarification on the following Issues: If vessel is POM’d for and then transfers to another component, do the POM dollars transfer also? How close to the Divestment date must the component stop POMing maintenance dollars?

9. Watercraft Re-Procurement The Under Secretary of Defense (Comptroller) A. Approved policy change request 1. Authorized sale of non-excess personal property a. To another Department of Defense Component, another federal agency, or a private party and b. Apply the proceeds toward the procurement of a similar and authorized replacement item. B. Two issues must be resolved PRIOR to final approval and release of proceeds to date. (Watercraft = $ 4.3 Mil) 1. The Army must establish a (manual) internal control process to control the deposit and use of sale proceeds 2. The Army Audit Agency must approve the internal control process.