1. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Defense Logistic Management Standards Brief to JSAWCG DLMS Implementation Status Mr. Larry Tanner

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Weapon Systems Commodities Others Life Cycle Supply Chains 24 x 7 Enterprise Services Providers Challenge: To Connect Life Cycle Supply Chains & Enterprise Services Providers DoD-wide Acquisition DCMA Finance DFAS Distribution DLA -DDC Transport USTRANSCOM International Logistics DSCA Interoperability of What? Disposal DLA Disposition Services DLMS delivers the business rules, transactions & data standards DAAS delivers the routing, translation, archiving DLA-DLIS delivers master data reference repository services

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DLMS Compliance Levels Level 1 BASIC COMPLIANCE Level 2 ENHANCED COMPLIANCE Functional Capacities Increase as Compliance Levels Increase Level 3 FULL COMPLIANCE Applicable to systems executing business processes covered by the DLM 4000.25 series of manuals Interfaces with other systems via DLMS This is the foundation. At a minimum, the system is capable of communicating the MILS equivalent data via DLMS transactions, but may not have implemented DLMS enhanced capabilities. In addition to meeting Level 1 requirements the system has implemented the preponderance of applicable DLMS enhancements contained in approved DLMS Changes (ADCs) In addition to meeting Level 1 requirements the system has implemented ALL of applicable DLMS enhancements contained in approved DLMS Changes (ADCs) Currently Monthly Metrics are captured For Level 1 Only

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DLMS Implementation Metric Percentage of all MILS and DLMS transactions processed IN and OUT of DLA Transaction Services 16.4 million DLMS processed in April, 2006 and approximately 64 million DLMS processed in August, 2015.

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DLMS Implementation Transaction Counts Total MILS and DLMS transactions (in millions) processed for the month ending the quarter.

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DLMS Implementation Transaction Counts Transaction Flowing in and out of DLA Transaction Services in July 2015

7. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Scorecard Goal = Percent of Total Transactions Transmitted in DLMS Format StatusLowerUpper Green 92100 Yellow 85< 92 Red 0< 85 ComponentJuly 2014Jan 2015July 2015 Army20%69%78% Navy55%56%57% Air Force34%31% Marine Corps80%81%85% DLA94%95% Other29%38%35% Total59%75%77% Top Level Scorecard DLMS Implementation Scorecard

8. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DEFENSE LOGISTICS MANAGEMENT STANDARDS (DLMS) IMPLEMENTATION Longstanding OSD mandate to “KILL MILS” 1988, 1990, 2000, 2008, 2015. Acquisition and Logistics Functional Strategy Document (2013) set a date of 2019 for all logistics systems (Wholesale and Retail) to be DLMS-Compliant Current Status: DLA: 95% ARMY 78% NAVY 57% USAF 31% USMC 85% OSD Initiatives NOT possible w/o DLMS Processing: Item Unique Identification (IUID) Standard Line of Accounting (SLOA) Standard Financial Information System (SFIS) Government Furnished Material (GFM) Policy SCES GSA FAA USCG SCES GSA FAA USCG Figures above are based on July 2015 logistics transaction traffic volumes. Data is as July 2015.

9. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE DEFENSE LOGISTICS MANAGEMENT STANDARDS (DLMS) IMPLEMENTATION 2019 Projection Longstanding OSD mandate to “KILL MILS” 1988, 1990, 2000, 2008, 2015. Acquisition and Logistics Functional Strategy Document (2013) set a date of 2019 for all logistics systems (Wholesale and Retail) to be DLMS-Compliant Projected DLMS Implementation Status In 2019 DLA: 100% ARMY 100% NAVY 55%* USAF 50%** USMC 100% OSD Initiatives NOT possible w/o DLMS Processing: Item Unique Identification (IUID) Standard Line of Accounting (SLOA) Standard Financial Information System (SFIS) Government Furnished Material (GFM) Policy *With the cancelation of the Navy SSB initiative, Navy currently has no DLMS migration plan for retail afloat customers supported by its MILS constrained R-Supply. ** With the cancelation of the Air Force ECSS Program, the Air Force has no DLMS migration plan for its wholesale materiel management mission. *With the cancelation of the Navy SSB initiative, Navy currently has no DLMS migration plan for retail afloat customers supported by its MILS constrained R-Supply. ** With the cancelation of the Air Force ECSS Program, the Air Force has no DLMS migration plan for its wholesale materiel management mission.