I n t e g r i t y - S e r v i c e - E x c e l l e n c e

1. Headquarters U.S. Air Force I n t e g r i t y - S e r v i c e - E x c e l l e n c e 7th Congressional District Business Procurement Summit Lt Gen Mark Shackelford Military Deputy to the Assistant Secretary of the Air Force (Acquisition) 27 Mar 09

2. USAF Flight Path Clear Priorities: • Reinvigorate AF Nuclear Enterprise • Win Today’s Fight • Develop & Care for Airmen & Families • Modernizing Aging Air & Space Inventories • Recapture Acquisition Excellence • Sustain, Modernize, Look to the Future • Nuclear Weapons Center in place for cradle-to-grave management • Invest in nuclear deterrence • B-2: radar, avionics, protected comms • B-52: retain 76 aircraft, comm backbone, protected comms • B-61: digital interface, safety • MM III: propulsion, guidance, safety, security mods to sustain thru 2030 • Future: Bomber, MM III follow-on

3. USAF Flight Path Clear Priorities: • Reinvigorate AF Nuclear Enterprise • Win Today’s Fight • Develop & Care for Airmen & Families • Modernizing Aging Air & Space Inventories • Recapture Acquisition Excellence • Today’s weapon systems are results of past acquisition success • C-17, JDAM, SDB, Predator, Reaper, Global Hawk, Rover, MRAP • What have we done for you today? UONs: • GPS aided airdrops: JPADS • Moving target kill: L-Mav, L-JDAM • Persistent self targeting: B-1 Targeting Pod • Beyond LOS Comms: F-15E, F-16, A-10 • Comm connectivity: Interim Gateway • ISR Surge: UAS CAPs, Project Liberty

4. USAF Flight Path Clear Priorities: • Reinvigorate AF Nuclear Enterprise • Win Today’s Fight • Develop & Care for Airmen & Families • Modernizing Aging Air & Space Inventories • Recapture Acquisition Excellence • Revitalize the Acquisition Workforce • 69% of military contracting manpower in AOR – LD/HD assets • Retention: advanced degrees, bonuses • Training: Increased DAU course offerings/seats, AFIT • Accessions: Interns, student coops, journeymen, HQEs • Science, Technical, Engineering, Mathematicians - NRC assessment

5. USAF Flight Path Clear Priorities: • Reinvigorate AF Nuclear Enterprise • Win Today’s Fight • Develop & Care for Airmen & Families • Modernizing Aging Air & Space Inventories • Recapture Acquisition Excellence Decide: F-22, C-17, KC-X, CSAR-X Address aging issues: F-15 structures, F-16 bulkheads, A-10 wings Monitor fleet viability/service life Accelerate F-35 production Engines: JSTARS, C-5 Avionics: B-2, B-52, C-130, C-5, KC-10 Radar: B-2, F-15E, F-15C/D Airframe: KC-X, C-130J, C-27J ISR: Global Hawk sensors, MC-12W Weapons: SDB II, AIM-120D, AIM-9X Blk II, MOP, JASSM-ER

6. USAF Flight Path Clear Priorities: • Reinvigorate AF Nuclear Enterprise • Win Today’s Fight • Develop & Care for Airmen & Families • Modernizing Aging Air & Space Inventories • Recapture Acquisition Excellence • Acquisition Improvement Plan (AIP) • Revitalize the Air Force acquisition workforce • Improve requirements generation process • Instill budget and financial discipline • Improve Air Force major systems source selections • Establish clear lines of authority and accountability within acquisition organizations

7. Small Business is Imperative to the US Economy • Represent 99.7% of all employer firms • Employ 50% of all private sector employees • Employ 41% of high tech workers • Innovative small business employees produce 13-14 times more patents than those in large businesses • Has generated 60% to 80% of net new jobs annually over last decade 7

8. Small Businesses Bring Unique Capabilities to DoD • Defense Acquisition Challenge program • Provides small business opportunities to introduce innovative and cost-saving technologies into existing DoD acquisition programs, challenging the "status quo” • Small Business Innovative Research/Small business Technology Transfer (SBIR/STTR) • Early-stage R&D projects aimed at small technology companies; the projects must serve a DoD need and have commercial application • FY09: SBIR/STTR budget is 2.8% of USAF RDT&E budget • Technology Transfer • Partnership Intermediaries work with federal laboratories, small businesses, entrepreneurs and universities to facilitate transfer of technologies via Cooperative R&D Agreements

9. …Support the Full Spectrum of AF Operations • Services (ie: maintenance, repair, IT) • Dragline Silk Technology Solutions, Pottstown, PA • Civil Engineering • Hilltop Enterprises, West Chester, PA • Research, Development, Test, Evaluation, Applied Research • Nanomaterials Company, Malvern, PA • Technology Development • Night Vision Equipment, Allentown, PA • Avionics • Aircraft Instruments Company, Doylestown, PA Small Business in this Region is Vital 9

10. …and More Opportunities Exist in Your Region Small Business Awarded Nearly $193M in AF Contracts

11. FY08 Small Business Performance

12. AF “Beyond Goals Campaign” • Objectives: • Deliver small business options and solutions to our customers • Increase Air Force awareness of small business capabilities and contributions to the Air Force mission • Develop a small business vendor base that can provide the products/services needed to deliver comprehensive solutions • Tactical Actions: • Meeting with Small Businesses; developing a process for meaningful response to industry and SB concerns • Partner with industry associations to facilitate SB capabilities and awareness • Interface with large businesses to promote small business participation in meeting Air Force Mission 12

13. Contacts • Secretary of the Air Force, Office of Small Business • Ronald A. Poussard, Director • 703-696-1103 • DAC Program: https://cto.acqcenter.com/osd/portal.nsf • Air Force POC: Allan W. Hunt, SAF/AQRT, 703-588-6457 • SBIR/STTR: www.acq.osd.mil/osbp/sbir • Air Force POC: Dr. Pat Bradshaw, SAF/AQRT, 703-588-7867 • Technology Transfer: www.acq.osd.mil/ott/tti • Air Force POC: David Sikora, AFRL/XPPD, 937-656-9868 13

14. Where We Want to be… Our Vision: • War-winning capabilities …on time, on cost 14

15. QUESTIONS? 15