1. Keeping America’s Navy #1 in the World 2005 DoD Standardization Conference Maritime HM&E Standardization 8-10 March 2005 Mr. John Goodhart, NAVSEA 04L

2. Keeping America’s Navy #1 in the World 2 Background Proliferation of non-standard HM&E equipment introduced into supply system which has: –driven higher life cycle logistics support costs –negatively impacted Fleet readiness Navy Guidance –Improve Readiness and Operational Availability –Reduce TOC through refinement of existing business processes and practices –Improve productivity in support of SEA Enterprise by increasing pace of innovation throughout Navy –Lean/Six Sigma…rapid implementation of innovations to address costly process deficiencies Procurement/use of common HM&E equipment will provide efficiencies in business processes that include: –greater interoperability –increased readiness –lowered total ownership costs

3. Keeping America’s Navy #1 in the World 3 State of Maritime HM&E Standardization Fleet Wide 70.7 K 28.3 K 19.2 K 27.3 K Fleet Wide HM&E Equipment Population 145,485 Equipment

4. Keeping America’s Navy #1 in the World 4 Impact of Low Density HM&E Proliferation of non-Standard HM&E introductions –Drives higher life cycle logistics support costs –Negatively impacts readiness Costs Readiness Installation Range # CASREPS/100 Installations >10051-10021-5011-206-103-521 1 2 3 Non-Standardization 0.13 1.41 1.64 1.33 1.78 1.65 1.68 2.97

5. Keeping America’s Navy #1 in the World 5 New Construction Maintenance/ Repair Include mechanisms in acquisition and repair contracts DON HM&E Standardization Strategy Minimize locally Procured Non-standard Equipment during Availabilities and Repair Cycles Commodity Management Commodity based …develop Prioritization Scheme 2 1 3

6. Keeping America’s Navy #1 in the World 6 HM&E Standardization… the Way Ahead Incentives/clauses to Encourage Standardization Reinforce Use of Standard HM&E at the Waterfront Increased Readiness Reduced Life Cycle Costs Without impacting ship construction/repair costs Establish Necessary Commodity Vehicles