Factory to Foxhole

2. 2 Provide 100% of: Fuels Subsistence Medical Supplies and Equipment Clothing and Textiles Construction and Barrier Material Worldwide Presence: 22,176 Civilians 1,093 Military (AD/USMR) 28 Countries 48 States Provide 95% of all Services� repair parts Support 1,603+ weapon systems Manage 6.4M Items (8 Supply Chains) $42B in FY08 Sales & Services Fuel $18.6B Troop Support $13.4B Hardware $7.3B Services $2.7B

3. 3 Acquisition Research Development Test Evaluation Chart highlights segments of the �factory to foxhole� pipeline in which DLA has a role Although DLA doesn�t execute inter-theater movement of materiel, DLA procurement methods can limit movement requirements by leveraging commercial capability. A later slide will touch on that point. Chart highlights segments of the �factory to foxhole� pipeline in which DLA has a role Although DLA doesn�t execute inter-theater movement of materiel, DLA procurement methods can limit movement requirements by leveraging commercial capability. A later slide will touch on that point.

4. 4 MRAP Sustainment and Readiness 12,822 MRAPs fielded in the CENTCOM AOR DLA provides support for ~23K different parts (NIINs) DLA sustainment initiatives Positioning liaisons with manufacturers Cataloging and developing sources of supply Positioning expeditors in theater Forward positioning parts at DDKS (~5K NIINs on hand) MRAP readiness averages over 90% SECDEF Memo from 30 MAY 07 - "Speed is of the essence..." - to produce and deploy MRAPs. 2 Key Performance Requirements - 1) survivability 2) speed of production -- Original production plan 7,774 -- raised to current plan of 16,238 -- 12,822 fielded as of 27 Apr 09 -- 1500 Jeeps prototypes were built and tested. Only 32 MRAP prototypes were built and tested As of 27 Apr 09 Total DLA MRAP NIINs = 22,806 Examples of MRAP sustainment initiatives (focus on USMC) We have 5 OEM Liaisons positioned at stateside manufacturers We executed cataloging on the fly and pushed provisioning almost to completion. We have expedited many key parts for USMC and executed contract MODS to shipped P/N changes prior to catalog changes. EXAMPLE - Wiper Motors: Discovered an additional source of supply w/ 3 day delivery and cheaper price. Filled all UFO's for Deadlined vehicles within 3 weeks. USMC primarily using FPII vehicles. DSCC CG and Command Team met with FPII's CEO (Michael Moody) and Senior VP Logistics (Paul Kavoravic) 2-weeks ago to discuss FPII's plans to improve sustainment support. DLA has expeditors in theater updating and conferencing with DSCC weekly. We actively support a WSR at TQ the primary Marine logistics base in Iraq. USMC is getting 400 DASH vehicles. We have significantly leaned forward on DASH parts (and MAXXPRO PLUS - which has much in common with DASH). As of 27 Apr 09 MRAP NIINs w/SOH at DDKS = 4,969 MRAP operational readiness averages over 90%SECDEF Memo from 30 MAY 07 - "Speed is of the essence..." - to produce and deploy MRAPs. 2 Key Performance Requirements - 1) survivability 2) speed of production -- Original production plan 7,774 -- raised to current plan of 16,238 -- 12,822 fielded as of 27 Apr 09 -- 1500 Jeeps prototypes were built and tested. Only 32 MRAP prototypes were built and tested As of 27 Apr 09 Total DLA MRAP NIINs = 22,806 Examples of MRAP sustainment initiatives (focus on USMC) We have 5 OEM Liaisons positioned at stateside manufacturers We executed cataloging on the fly and pushed provisioning almost to completion. We have expedited many key parts for USMC and executed contract MODS to shipped P/N changes prior to catalog changes. EXAMPLE - Wiper Motors: Discovered an additional source of supply w/ 3 day delivery and cheaper price. Filled all UFO's for Deadlined vehicles within 3 weeks. USMC primarily using FPII vehicles. DSCC CG and Command Team met with FPII's CEO (Michael Moody) and Senior VP Logistics (Paul Kavoravic) 2-weeks ago to discuss FPII's plans to improve sustainment support. DLA has expeditors in theater updating and conferencing with DSCC weekly. We actively support a WSR at TQ the primary Marine logistics base in Iraq. USMC is getting 400 DASH vehicles. We have significantly leaned forward on DASH parts (and MAXXPRO PLUS - which has much in common with DASH). As of 27 Apr 09 MRAP NIINs w/SOH at DDKS = 4,969 MRAP operational readiness averages over 90%

5. 5 Responsible Drawdown in Iraq Supply Support Adjusting sustainment flow into Iraq Impact of retrograded materiel on future demand Distribution Support CONUS receipt / storage of Service reset material Stock at DLA Depot in Kuwait (DDKS) DLA�s greatest challenge is determining the impact of materiel found on bases and returned to the supply system or requiring disposal as forces drawdown and bases are closed. Supply Support DLA�s challenge is to ensure that we carefully adjust demand and supply planning factors so that we don�t add to excess materiel in Iraq while continuing to sustain the readiness of the shrinking force. As bases and Supply Support Activities are closed in Iraq excess materiel may be redistributed to other theaters or retrograded back to wholesale supply systems. DLA must adjust our demand and supply planning for the impact of excess material brought back into the supply system. We also need to be prepared to support changes in requirements to support Service Reset programs. DLA will stay a step ahead of changing requirements by remaining closely linked to our Service customers and the warfighters forward through our worldwide presence. Distribution Support DLA Distribution Centers at locations like Red River Texas and Albany, Georgia must be prepared to receive and process surges of materiel flowing to the Service repair depots they support. DDKS provides forward storage and distribution services for Service owned materiel as well as DLA wholesale stock. Given the finite resources available at DDKS, we must ensure that we balance the lines stocked and stock levels to meet changes resulting from the OIF Drawdown as well as the OEF plus-up. DLA�s greatest challenge is determining the impact of materiel found on bases and returned to the supply system or requiring disposal as forces drawdown and bases are closed. Supply Support DLA�s challenge is to ensure that we carefully adjust demand and supply planning factors so that we don�t add to excess materiel in Iraq while continuing to sustain the readiness of the shrinking force. As bases and Supply Support Activities are closed in Iraq excess materiel may be redistributed to other theaters or retrograded back to wholesale supply systems. DLA must adjust our demand and supply planning for the impact of excess material brought back into the supply system. We also need to be prepared to support changes in requirements to support Service Reset programs. DLA will stay a step ahead of changing requirements by remaining closely linked to our Service customers and the warfighters forward through our worldwide presence. Distribution Support DLA Distribution Centers at locations like Red River Texas and Albany, Georgia must be prepared to receive and process surges of materiel flowing to the Service repair depots they support. DDKS provides forward storage and distribution services for Service owned materiel as well as DLA wholesale stock. Given the finite resources available at DDKS, we must ensure that we balance the lines stocked and stock levels to meet changes resulting from the OIF Drawdown as well as the OEF plus-up.

6. 6 Disposal Support DRMO mission Base closure � scrap removal and DEMIL Hazardous waste recycling and disposal Sale of serviceable excess Streamlining the transfer process Disposal Support The Services and MNF-I instituted a materiel disposition process to ensure that materiel is consumed, redistributed, or transferred to the Government of Iraq. The last option is Disposal. DRMOs are the primary disposal outlet for government property. DLA operates 4 DRMOs in Iraq and 1 DRMO in Kuwait. They currently process an average of 24.5M lbs of materiel monthly, including property removed from FOBs. DLA contracted with a commercial vendor to operate these forward deployed DRMOs, which increases our capability to support the expected workload as the pace of the drawdown increases. DLA also supports the Demilitarization and removal of scrap from closing bases through the sales contracts with oversight by forward positioned DRMS personnel. As much as 100M lbs of scrap were removed from bases in FY08 and 52M lbs YTD in FY09 80% of all hazardous property generated in Iraq by U.S. Forces is disposed of through DRMS/JCCI-managed Iraqi commercial recycling contracts. MNC-I awarded a contract to URS for the treatment and disposal of the remaining 20% of hazardous property that can�t be recycled. DLA is coordinating with MNF-I and SDDC to develop an option to export that 20% for disposal in CONUS if required. DLA is coordinating with MNF-I to explore the viability of conducting public sales of serviceable excess commercial �white� equipment in Iraq. Public sales have the potential of greater monetary return to the U.S. government. Public sales would also build Iraqi civil capacity by seeding business opportunities. Streamlining the Transfer Process DLA is assisting MNF-I by providing tools and SME support to determine what items are restricted from transfer due to State or Commerce Department controls.Disposal Support The Services and MNF-I instituted a materiel disposition process to ensure that materiel is consumed, redistributed, or transferred to the Government of Iraq. The last option is Disposal. DRMOs are the primary disposal outlet for government property. DLA operates 4 DRMOs in Iraq and 1 DRMO in Kuwait. They currently process an average of 24.5M lbs of materiel monthly, including property removed from FOBs. DLA contracted with a commercial vendor to operate these forward deployed DRMOs, which increases our capability to support the expected workload as the pace of the drawdown increases. DLA also supports the Demilitarization and removal of scrap from closing bases through the sales contracts with oversight by forward positioned DRMS personnel. As much as 100M lbs of scrap were removed from bases in FY08 and 52M lbs YTD in FY09 80% of all hazardous property generated in Iraq by U.S. Forces is disposed of through DRMS/JCCI-managed Iraqi commercial recycling contracts. MNC-I awarded a contract to URS for the treatment and disposal of the remaining 20% of hazardous property that can�t be recycled. DLA is coordinating with MNF-I and SDDC to develop an option to export that 20% for disposal in CONUS if required. DLA is coordinating with MNF-I to explore the viability of conducting public sales of serviceable excess commercial �white� equipment in Iraq. Public sales have the potential of greater monetary return to the U.S. government. Public sales would also build Iraqi civil capacity by seeding business opportunities. Streamlining the Transfer Process DLA is assisting MNF-I by providing tools and SME support to determine what items are restricted from transfer due to State or Commerce Department controls.

7. 7 Purpose of this slide is to orient the audience to the Afghanistan operational environment and the implications for logistics Point out RC-N/RC-S Discuss logistics implications of NATO/JFC-B Purpose of this slide is to orient the audience to the Afghanistan operational environment and the implications for logistics Point out RC-N/RC-S Discuss logistics implications of NATO/JFC-B

8. 8 DLA Force Deployment Support Challenge for DLA: Requirements undefined; CENTCOM plan still being finalized; working AFG plus-up and OIF responsible drawdown simultaneously � base infrastructure must be ready before the forces arrive. Building Operating Bases: Modeled Class IV requirements using demand history from OIF; invested in stocks and began surface shipments in Nov 08 to have force protection material in place for engineers to build FOBs and other projects. Supreme PV provided on site capability to receipt/store/issue Class IV in addition to Subsistence support. Increasing production of Relocatable Buildings (RLBs) to meet housing needs; currently at 500/week and working toward 800/week to meet unanticipated demands. Coordinating procurement / shipment of associated items such as showers, latrines, generators. Establishing DRMO in RC-S: Planning with CENTCOM to establish disposal capability in the south. 20 acres of land has been identified and approved for a DRMO at KAB. In addition DRMS has provided requirements for military construction so funds could be set aside to build physical infrastructure required for a DRMO capability. Challenge for DLA: Requirements undefined; CENTCOM plan still being finalized; working AFG plus-up and OIF responsible drawdown simultaneously � base infrastructure must be ready before the forces arrive. Building Operating Bases: Modeled Class IV requirements using demand history from OIF; invested in stocks and began surface shipments in Nov 08 to have force protection material in place for engineers to build FOBs and other projects. Supreme PV provided on site capability to receipt/store/issue Class IV in addition to Subsistence support. Increasing production of Relocatable Buildings (RLBs) to meet housing needs; currently at 500/week and working toward 800/week to meet unanticipated demands. Coordinating procurement / shipment of associated items such as showers, latrines, generators. Establishing DRMO in RC-S: Planning with CENTCOM to establish disposal capability in the south. 20 acres of land has been identified and approved for a DRMO at KAB. In addition DRMS has provided requirements for military construction so funds could be set aside to build physical infrastructure required for a DRMO capability.

9. 9 DLA Sustainment Support Surging Subsistence Executing Repair Parts procurement for critical items Tailoring repair parts support for MARFOR unique assets Building �pure pallets� for customized support Executing �Theater First� supply logic for timely support Challenges extend across all supply classes and services provided by DLA: Planning to appropriately balance sustainment flows to match force flows Subsistence: Based on CENTCOM RFFs and troop deployment numbers, projected demand for operational rations; DLA began surface shipments to build stocks in AOR to meet force arrivals in Nov 08 Repair Parts: Using projected unit equipment deployments, DLA modeled various weapons systems maintenance and repair demands; obligated funds and worked with suppliers to ensure critical items are being manufactured and will be available as demands begin to build. Working with ARCENT / AMC / MARCENT to support maintenance footprint in AOR. USMC Support Effort is underway to review the MARFOR EDL - enables efficient theater stockage levels that is tailored specific for Marine support requirements DDC builds customized pure pallets for direct shipment to Army SSAs and Marine Corps SMUs. Army or Marine specific sustainment items are packed in pure pallets and shipped within 72 hours from CONUS and OCONUS Depots (DDSP, DDJC, DDRT and DDKS) Theater First sourcing logic enables supply system to ensure that requisitions are initially routed to DDKS for order fulfillment before routing to other sources outside the CENTCOM AOR.Challenges extend across all supply classes and services provided by DLA: Planning to appropriately balance sustainment flows to match force flows Subsistence: Based on CENTCOM RFFs and troop deployment numbers, projected demand for operational rations; DLA began surface shipments to build stocks in AOR to meet force arrivals in Nov 08 Repair Parts: Using projected unit equipment deployments, DLA modeled various weapons systems maintenance and repair demands; obligated funds and worked with suppliers to ensure critical items are being manufactured and will be available as demands begin to build. Working with ARCENT / AMC / MARCENT to support maintenance footprint in AOR. USMC Support Effort is underway to review the MARFOR EDL - enables efficient theater stockage levels that is tailored specific for Marine support requirements DDC builds customized pure pallets for direct shipment to Army SSAs and Marine Corps SMUs. Army or Marine specific sustainment items are packed in pure pallets and shipped within 72 hours from CONUS and OCONUS Depots (DDSP, DDJC, DDRT and DDKS) Theater First sourcing logic enables supply system to ensure that requisitions are initially routed to DDKS for order fulfillment before routing to other sources outside the CENTCOM AOR.

10. 10 Slide depicts DESC�s Contractor Fuel support based upon May 2009 orders RC(E) FUEL SUPPORT Fuel support is provided by DESC via 3 x Prime Vendors, utilizing FOB Destination Contracts: 2 x Prime Vendor contactors sourcing fuel from refineries in Pakistan 2 x Prime Vendor contractors sourcing fuel from CAS (1 PV also supports from PAK) 2 local Afghanistan companies are also used to provide fuel support (primarily for ground fuels - DF & MG). These contractors source product from a combination of Pakistan and CAS sources. DESC FUEL STORAGE To mitigate any potential interruptions to these Supply Chains, DESC has established 2 x COCO DFSPs in Kabul area with ~5.2M USG of storage of DESC owned fuel. Additionally, DESC has contracts for ~6M USG of Contractor Owned storage, reserved for DESC (also allow contractors flexibility in the management of their own supply chains). RC(S) FUEL SUPPORT Fuel support for forces in RC(S) is provided by NATO Contracts under the control of JFC-B JFC-B & DESC share the same Prime Vendors for fuel support in Afghanistan. As part of the Plus-Up of forces in RC(S), CENTCOM has asked DESC to establish an additional 10-13 M USG of storage. This is a new request and this effort is in the early stages of the procurement process. ACKRONYMS / TERMS JP8: US Mil Spec Jet Fuel (Primary Operational Fuel) TS1: CAS Jet Fuel (JP8 substitute) DF: Diesel Fuel MG: MOGAS = Unleaded Gasoline FSII: Fuel System Icing Inhibitor CAS: Central Asian States GPD: Gallons per Day RC(E): Regional Command - East RC(S): Regional Command � South DFSP: Defense Fuel Support Point COCO: Contractor Owned/Contractor Operated JFC-B: Joint Forces Command, Brunssum, NL Slide depicts DESC�s Contractor Fuel support based upon May 2009 orders RC(E) FUEL SUPPORT Fuel support is provided by DESC via 3 x Prime Vendors, utilizing FOB Destination Contracts: 2 x Prime Vendor contactors sourcing fuel from refineries in Pakistan 2 x Prime Vendor contractors sourcing fuel from CAS (1 PV also supports from PAK) 2 local Afghanistan companies are also used to provide fuel support (primarily for ground fuels - DF & MG). These contractors source product from a combination of Pakistan and CAS sources. DESC FUEL STORAGE To mitigate any potential interruptions to these Supply Chains, DESC has established 2 x COCO DFSPs in Kabul area with ~5.2M USG of storage of DESC owned fuel. Additionally, DESC has contracts for ~6M USG of Contractor Owned storage, reserved for DESC (also allow contractors flexibility in the management of their own supply chains). RC(S) FUEL SUPPORT Fuel support for forces in RC(S) is provided by NATO Contracts under the control of JFC-B JFC-B & DESC share the same Prime Vendors for fuel support in Afghanistan. As part of the Plus-Up of forces in RC(S), CENTCOM has asked DESC to establish an additional 10-13 M USG of storage. This is a new request and this effort is in the early stages of the procurement process. ACKRONYMS / TERMS JP8: US Mil Spec Jet Fuel (Primary Operational Fuel) TS1: CAS Jet Fuel (JP8 substitute) DF: Diesel Fuel MG: MOGAS = Unleaded Gasoline FSII: Fuel System Icing Inhibitor CAS: Central Asian States GPD: Gallons per Day RC(E): Regional Command - East RC(S): Regional Command � South DFSP: Defense Fuel Support Point COCO: Contractor Owned/Contractor Operated JFC-B: Joint Forces Command, Brunssum, NL

11. 11 Leveraging Commercial Flexibility DLA limited footprint in Afghanistan: �.DLA leveraging commercial flexibility with prime vendors and carriers, use of multiple LOCs vs. deploying Deployable Depot Benefits of Prime Vendors: Allows us to manage suppliers, vice managing inventories/stocks Reduces complexity�.single vendor buys commercial items from a variety of manufacturers Reduces inventory levels and holding costs Improves responsiveness of the supply system Rapid and predictable delivery solutions Class I Prime Vendor flexible solutions: Increased CL I stockage objectives at prime vendor warehouse Primarily using Pakistan GLOCs Mitigating challenging ground LOCs by increasing aerial hubs � improving / redefining Class I tactical distribution Class IV Prime Vendor flexible solutions: Prepositioning supplies forward in anticipation of increased requirements DDDE to Prime Vendor warehouses in Afghanistan via NDN Repositioning stocks within Afghanistan and Iraq Cross-leveling supplies to meet surge requirements (Marines) Local Procurement: Planning with OSD and CENTCOM to establish policy for local procurements Local procurement can provide easy access to some supplies and suppliers Establishing business opportunities in the region influences strategic relationships Take away Commercial procurement solutions can reduce transportation burden and risks associated with tenuous LOCs DLA limited footprint in Afghanistan: �.DLA leveraging commercial flexibility with prime vendors and carriers, use of multiple LOCs vs. deploying Deployable Depot Benefits of Prime Vendors: Allows us to manage suppliers, vice managing inventories/stocks Reduces complexity�.single vendor buys commercial items from a variety of manufacturers Reduces inventory levels and holding costs Improves responsiveness of the supply system Rapid and predictable delivery solutions Class I Prime Vendor flexible solutions: Increased CL I stockage objectives at prime vendor warehouse Primarily using Pakistan GLOCs Mitigating challenging ground LOCs by increasing aerial hubs � improving / redefining Class I tactical distribution Class IV Prime Vendor flexible solutions: Prepositioning supplies forward in anticipation of increased requirements DDDE to Prime Vendor warehouses in Afghanistan via NDN Repositioning stocks within Afghanistan and Iraq Cross-leveling supplies to meet surge requirements (Marines) Local Procurement: Planning with OSD and CENTCOM to establish policy for local procurements Local procurement can provide easy access to some supplies and suppliers Establishing business opportunities in the region influences strategic relationships Take away Commercial procurement solutions can reduce transportation burden and risks associated with tenuous LOCs

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13. 13 Back up

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