June 11, 2009

2. 2 DLA Global Support Update Leadership Changes Strategic Planning Way Ahead DLA Culture Survey Question and Answer Session Topics

3. 3 1. Exercise Season in the Pacific: Spring/Early summer is often referred to "Exercise Season in the Pacific. In addition to major Tier I Command Post Exercises (CPX) such as Key Resolve in Korea and Terminal Fury in Oahu. The DLA Enterprise supports Field Training Exercises(FTX)such as Cobra Gold in Thailand and Balikitan in the Philippines. All these Exercises involve most of the Enterprise; and support ranges from deploying augumentees from the ICP's and DDC to help provide 24 x 7 coverage or in the case of the FTX's providing Class I, IV, IX, DESC and DRMS support. 2. DLA Pacific Region fully embedded in PACOM's planning for realignment of forces from Okinawa to Guam: Over the next several years, much of the III MEF Hqs on Okinawa will be relocated to Guam and several long standing military installations on Okinawa will be returned to the Japanese government. This will generally result in a consolidation of forces on Okinawa into several new locations that are now in the planning stages. To ensure that the DLA Pacific Region Enterprise is properly postured, DES Pacific is working with the Field Activities in the Pacific to ensure their facility requirements are indentified and incorporated into the master plans. DES Pacific is working aggressively on multiple fronts to get our requirements documented because most of the new construction costs for these relocations are being funded by the Korean and Japanese governments and if we delay until later, we could be required to internally fund some significant costs in the future. 3. DESC-Pacific - in support of Guam's future growth, and Guam's growing importance to current plans, DESC Pacific recently stood up a field office on Guam. It is located on Anderson Air Force Base. Guam is playing an increasingly significance to PACOM's plans both in support of HA/DR contingencies as well as OPLAN planning. 4.DRMS-Pacific conducting a Lean Six Sigma Project on Okinawa DRMS Pacific is working a Lean Six Sigma project with a goal of identifying potential surplus warehouse space. The goal is to partner with DDYJ to support additional warehouse space requirements for the DDYJ(Det) which is located across the street from the DRMS facility. The intent is to conduct this same type analysis on Guam next. This type of "One DLA" approach could potentially result in big savings for DLA as well as more efficient operations. 1. Exercise Season in the Pacific: Spring/Early summer is often referred to "Exercise Season in the Pacific. In addition to major Tier I Command Post Exercises (CPX) such as Key Resolve in Korea and Terminal Fury in Oahu. The DLA Enterprise supports Field Training Exercises(FTX)such as Cobra Gold in Thailand and Balikitan in the Philippines. All these Exercises involve most of the Enterprise; and support ranges from deploying augumentees from the ICP's and DDC to help provide 24 x 7 coverage or in the case of the FTX's providing Class I, IV, IX, DESC and DRMS support. 2. DLA Pacific Region fully embedded in PACOM's planning for realignment of forces from Okinawa to Guam: Over the next several years, much of the III MEF Hqs on Okinawa will be relocated to Guam and several long standing military installations on Okinawa will be returned to the Japanese government. This will generally result in a consolidation of forces on Okinawa into several new locations that are now in the planning stages. To ensure that the DLA Pacific Region Enterprise is properly postured, DES Pacific is working with the Field Activities in the Pacific to ensure their facility requirements are indentified and incorporated into the master plans. DES Pacific is working aggressively on multiple fronts to get our requirements documented because most of the new construction costs for these relocations are being funded by the Korean and Japanese governments and if we delay until later, we could be required to internally fund some significant costs in the future. 3. DESC-Pacific - in support of Guam's future growth, and Guam's growing importance to current plans, DESC Pacific recently stood up a field office on Guam. It is located on Anderson Air Force Base. Guam is playing an increasingly significance to PACOM's plans both in support of HA/DR contingencies as well as OPLAN planning. 4.DRMS-Pacific conducting a Lean Six Sigma Project on Okinawa DRMS Pacific is working a Lean Six Sigma project with a goal of identifying potential surplus warehouse space. The goal is to partner with DDYJ to support additional warehouse space requirements for the DDYJ(Det) which is located across the street from the DRMS facility. The intent is to conduct this same type analysis on Guam next. This type of "One DLA" approach could potentially result in big savings for DLA as well as more efficient operations.

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5. 5 1. Exercises and Operations in the European AOR DLA-E/A and its supporting Field Activities (DLA-E) are providing support to 52 (46 in Oct, 6 added) exercises in FY 09 requiring DLA involvement and/or support: USAREUR: 12, USAFE: 16, MARFOREUR: 3, NAVEUR: 7, EUCOM: 3, AFRICOM: 3, and SOCEUR/AF: 2. DLA-E/A engages with EUCOM and Africa Command's service components through its planners - who are dual-hatted between the EUCOM components and the Africa Command components. Warfighter Support Representatives support in the same way. The Planners provide assistance in concept of support development and serve as liaisons during the conduct of the Exercises and operations as required.DLA-E/A and its supporting Field Activities also support three major Operations, four Classified operations, and factors into 11 CONPLANS and two FUNCPLANS in the EUCOM AOR: A. JTF-East (Bulgaria & Romania) Class I, II, III, IV, VIII, IX, Distribution and DRMS support, with an LNO to USAREUR and WSR to 21st TSC providing reach back capabilities for emerging issues JTF-Falcon (Kosovo): Class I, II , III, IV , VIII and IX with a DLA Area Representative (DLAAR) present with routine �contact team� support as required from the Field Activities. Georgia Sustainment and Stability Operation Program (GSSOP): Class I, III, IX 2. Support to 22nd MEUOn 23 May, the 22 MEU S-4 contacted the JLOC/LNO to MFE and asked if DLA could ship 2,496 cases (50 warehouse pallets) of MRE's with the RDD 0f 30 May 2009 to Nea Anchialos, Greece. Despite delays in receiving funding documents, DDDE dispatched the MREs early Monday morning. The MREs were successfully delivered at 0900, 29 May 09. The 22nd MEU is the first MEU to operate in the Mediterranean since OIF began. 3. Capabilities ISO Africa CommandDLA-E/A and its supporting Field Activities (DLA-E) have provided support to missions on the African continent for many years. Prior to the establishment of Africa Command as a Unified Command in October, 2008, DLA-E had: Established tenders for aerial and surface delivery via DDSI and DDDE; 25 Into-Plane contracts in various countries, four African Fuel Initiative sites, 12 Fuel bunker locations, one DFSP (Defense Fuel Supply Point) in Djibouti; five FF&V/Water vendors, one subsistence Prime Vendor; DAPS provides coverage of all of Europe, CENTCOM and Africa Command, and; Foreign Military Sales and HazMat/HazWaste removal contracts. In April 2008, DLA-E/A established a Plans and Operations officer in Africa Command during its IOC. DLA-E/A has positioned a WSR to support both COCOMs in the Stuttgart area, plus the co-located service (MARFOR) and SOC components. DSCP has a planner positioned for the same customers in Stuttgart. In addition, the DLA-E/A Commander serves as a LNO to both EUCOM and Africa Command. In October, 2008, Africa Command was became FOC, DLA-E/A established, and maintains, a permanent Warfighter Support Representative aboard Camp Lemonier, Djibouti. DLA-E/A continues to maintain the existing capabilities on the continent of Africa by conducting routine audits, contract reviews and on-site quality assurance inspections and has begun to conduct additional market research in response to increasing demands for support from Africa Command, NAVEUR/AF, MARFORAF and SOCAF. In addition, DESC-EA has begun work on 14 additional bunker locations throughout Africa and DSCP-E is preparing to conduct eight market surveys to open more FF&V/water contracts. DRMS has been participated in $4.7 million dollars of Foreign Military Sales to Morocco year-to-date. Current logistics planning in support of Africa Command's Adaptive Logistics Network focuses on improving support at Camp Lemonier (LEAN 6 Sigma Event, 17 - 21 Oct 08) and reducing the impact of CJTF150/151 ship visits in Djibouti upon Class I, IIIB and VIII.DLA-E/A has been directly engaged with our Supported COCOMs and Components to support by providing assistance in the concept of support development for three operations: CJTF-HOA, African Partnership Station, OEF-TS, six Exercises that have been held, or will be held, in African nations and planning for Foreign Humanitarian Assistance/Disaster Response scenarios (JUDICIOUS RESPONSE 09, DSCP ROC Drill); and support to classified planning scenarios in partnership with DLA SOCOM LNO. In addition to our WSR at HOA, DLA-E/A is working with DDC and NAVEUR in the possible establishment of a DLA distribution center at Camp Lemonier, a Memorandum of Agreement has been written is currently before NAVEUR/AF Legal for review covering the operation of a DRMO site and HAzMat/HazWaste removal procedures. Once signed, DRMS will send personnel to HOA to establish procedures and conduct training with Camp Lemonier personnel. DSCP-E is working with NAVEUR to establish more tenders on the continent to provide more affordable and responsive FF&V/water to ships pulling into ports. DDDE receives, maintains, kits and ships approximately 500 line items, to include MREs and medical materiel, ISO OEF-TS to Mauritania, Chad and Mali. 4. Support to CENTCOM DLA-E/A provides significant support to both OIF and OEF: A. OIF: Class I, II, III, IV, VIII, IX, Distribution and DRMS support, with DRMS & J6 personnel forward deployed. B. OEF: Class I, II, III, IV, VIII, IX, Distribution (NDN, PoPs)DSCP-E provides 100% of Class I support to OIF, with 75% of its annual business volume, or approximately $3.375 billion dollars, derived from support to OIF. DESC-EA provides approximately 25% of the total Class III requirement for OIF.  DDDE sends 100 containers of Class IV per week via the NDN and has been conducting Proofs of Principle in Poti, Riga and Navoi to relieve pressure along the Northern and Southern ground LOCs into Afghanistan. In addition, DDDE has been responsible for the movement of the Relocatable Buildings & Generators to Kandahar. DDDE continues to transport containers to OIF via Habur Gate.1. Exercises and Operations in the European AOR DLA-E/A and its supporting Field Activities (DLA-E) are providing support to 52 (46 in Oct, 6 added) exercises in FY 09 requiring DLA involvement and/or support: USAREUR: 12, USAFE: 16, MARFOREUR: 3, NAVEUR: 7, EUCOM: 3, AFRICOM: 3, and SOCEUR/AF: 2. DLA-E/A engages with EUCOM and Africa Command's service components through its planners - who are dual-hatted between the EUCOM components and the Africa Command components. Warfighter Support Representatives support in the same way. The Planners provide assistance in concept of support development and serve as liaisons during the conduct of the Exercises and operations as required.

6. 6 . Responsible Drawdown in Iraq Supply & Distribution support Adjusting sustainment flow Reviewing DDKS requirements Coordinating support for Reset Streamlining the transfer process Disposal management Base closure � scrap removal and DEMIL Hazardous waste recycling and disposal Sale of serviceable excess US Forces Increase in Afghanistan Building operating bases Prepositioning supplies Increasing RLB production Posturing for the duration Establishing DRMO in RC-S Surging subsistence and fuel Repair parts support Procurement for critical weapon systems Tailoring support for MAFOR unique assets Building �pure pallets� for customized support �Theater First� supply logic for timely support . Responsible Drawdown in Iraq Supply & Distribution support Adjusting sustainment flow Reviewing DDKS requirements Coordinating support for Reset Streamlining the transfer process Disposal management Base closure � scrap removal and DEMIL Hazardous waste recycling and disposal Sale of serviceable excess US Forces Increase in Afghanistan Building operating bases Prepositioning supplies Increasing RLB production Posturing for the duration Establishing DRMO in RC-S Surging subsistence and fuel Repair parts support Procurement for critical weapon systems Tailoring support for MAFOR unique assets Building �pure pallets� for customized support �Theater First� supply logic for timely support

7. 7 Hails Brig Gen Chambers (SEL) (Chief of Staff)- Coming from Associate Director of Resources for the Air Force, A4/7P Engine Room, Headquarters, United States Air Force at the Pentagon. Started 8 Jun 09 RDML (SEL) Griffith (DSCR)- Coming from Naval Air Forces PACOM. Assumes command 19 Jun 09 MG BG Richardson (DSCC)� Coming from PACOM Logistics, Engineering and Security Assistance, J-4. Assumes command 6 Aug 09 MG McHale (J-3/4)- Coming from Director, Security Agreement Secretariat, MNF-I. Starts July 09 Farewells Mr. Budden (J-3/4)- Left HQ DLA to be the DDC Deputy Commander Mr. Neal (J-1)� Going to Department of Homeland Security as the Chief Human Capital Officer. Departing in Jun. Hails Brig Gen Chambers (SEL) (Chief of Staff)- Coming from Associate Director of Resources for the Air Force, A4/7P Engine Room, Headquarters, United States Air Force at the Pentagon. Started 8 Jun 09 RDML (SEL) Griffith (DSCR)- Coming from Naval Air Forces PACOM. Assumes command 19 Jun 09 MG BG Richardson (DSCC)� Coming from PACOM Logistics, Engineering and Security Assistance, J-4. Assumes command 6 Aug 09 MG McHale (J-3/4)- Coming from Director, Security Agreement Secretariat, MNF-I. Starts July 09 Farewells Mr. Budden (J-3/4)- Left HQ DLA to be the DDC Deputy Commander Mr. Neal (J-1)� Going to Department of Homeland Security as the Chief Human Capital Officer. Departing in Jun.

8. 8 Director�s Guidance, Strategic Plan and the Road Ahead We developed the DLA Director�s Guidance for 2009 after considering input from a variety of internal and external stakeholders. This guidance was based on one vital premise � �Doing what is right for the Armed Forces and DoD.� We emphasized four specific strategic focus areas and 22 supporting initiatives. I�m pleased with the progress that has been made on these initiatives, which have covered everything from ensuring optimal support in Afghanistan to deploying the most recent culture survey to DLA employees. As we look forward to our priorities in 2010, I wanted to let you know we are going to make an adjustment in the way we approach this guidance. At last month�s Strategy Council, I approved the basic components and strategies of the new DLA Strategic Plan, covering years FY2010 to FY2017. The plan was developed with input from all J codes, D staff and field commands and has the full support and approval of Senior Leaders across DLA. We recognize that this plan will continue to be influenced by other transformational documents as we move ahead, most notably the new Quadrennial Defense Review. The QDR will be largely completed this summer for final publication early next year. DLA is involved in several of the Issue and Workgroups in support of the QDR already. We will continue to update our Strategic Plan and approach based on emerging requirements identified in the QDR. With that in mind, I have asked J-5 and your Strategy Review Group members to go ahead and develop objectives that will support the strategies in this new Strategic Plan. These new objectives, as well as any initiatives that need to follow on from the current Calendar Year 09 Guidance, will form the basis for renewed focus in the year ahead. The objectives, with their support to DLA strategy, become our new initiatives. As part of this essential integration of guidance with DLA strategy, I will move from a Calendar Year focus to a fiscal year focus. This means we will have Fiscal Year 10 objectives identified and in place by September of this year. Moving to a fiscal year construct is a positive step. It aligns well with field command�s own commander�s guidance, which is typically issued by fiscal year. I look forward to discussing the Fiscal Year 10 Guidance and the new Strategic Plan with you at an upcoming town Hall. I know you will give these new initiatives and the new plan the full support you have already shown to me in my time here as your Director. Director�s Guidance, Strategic Plan and the Road Ahead We developed the DLA Director�s Guidance for 2009 after considering input from a variety of internal and external stakeholders. This guidance was based on one vital premise � �Doing what is right for the Armed Forces and DoD.� We emphasized four specific strategic focus areas and 22 supporting initiatives. I�m pleased with the progress that has been made on these initiatives, which have covered everything from ensuring optimal support in Afghanistan to deploying the most recent culture survey to DLA employees. As we look forward to our priorities in 2010, I wanted to let you know we are going to make an adjustment in the way we approach this guidance. At last month�s Strategy Council, I approved the basic components and strategies of the new DLA Strategic Plan, covering years FY2010 to FY2017. The plan was developed with input from all J codes, D staff and field commands and has the full support and approval of Senior Leaders across DLA. We recognize that this plan will continue to be influenced by other transformational documents as we move ahead, most notably the new Quadrennial Defense Review. The QDR will be largely completed this summer for final publication early next year. DLA is involved in several of the Issue and Workgroups in support of the QDR already. We will continue to update our Strategic Plan and approach based on emerging requirements identified in the QDR. With that in mind, I have asked J-5 and your Strategy Review Group members to go ahead and develop objectives that will support the strategies in this new Strategic Plan. These new objectives, as well as any initiatives that need to follow on from the current Calendar Year 09 Guidance, will form the basis for renewed focus in the year ahead. The objectives, with their support to DLA strategy, become our new initiatives. As part of this essential integration of guidance with DLA strategy, I will move from a Calendar Year focus to a fiscal year focus. This means we will have Fiscal Year 10 objectives identified and in place by September of this year. Moving to a fiscal year construct is a positive step. It aligns well with field command�s own commander�s guidance, which is typically issued by fiscal year. I look forward to discussing the Fiscal Year 10 Guidance and the new Strategic Plan with you at an upcoming town Hall. I know you will give these new initiatives and the new plan the full support you have already shown to me in my time here as your Director.

9. 9 Thank you: The 2009 DLA Culture Survey was a great success. Thank you for taking the time to share honest feedback about what is and isn't working at DLA. It is important to receive employees' feedback. Response rate: This was the first time that all employees had the chance to complete the survey since 2006. The survey was administered to all employees across DLA, both military and civilian, via the web or paper survey. As in previous years, we had an overwhelming response to the survey. Over 24,000 surveys were sent out, and over 17,700 surveys were completed, for a response rate of over 73 percent Agency-wide, which is absolutely phenomenal! In addition, this response rate is consistent with previous response rates to the DLA Culture Survey. This shows that DLA employees want their voices heard. Next steps: Results will be presented to DLA Senior Leaders and briefed at the upcoming 25 June Executive Board and will be then shared with the entire DLA workforce. We are looking forward to seeing the results. Culture Champions and leaders across the agency will begin working on action plans, and the actions we are taking to improve our organizational culture, and therefore, our mission success, will be briefed at future Executive Boards.Thank you: The 2009 DLA Culture Survey was a great success. Thank you for taking the time to share honest feedback about what is and isn't working at DLA. It is important to receive employees' feedback. Response rate: This was the first time that all employees had the chance to complete the survey since 2006. The survey was administered to all employees across DLA, both military and civilian, via the web or paper survey. As in previous years, we had an overwhelming response to the survey. Over 24,000 surveys were sent out, and over 17,700 surveys were completed, for a response rate of over 73 percent Agency-wide, which is absolutely phenomenal! In addition, this response rate is consistent with previous response rates to the DLA Culture Survey. This shows that DLA employees want their voices heard. Next steps: Results will be presented to DLA Senior Leaders and briefed at the upcoming 25 June Executive Board and will be then shared with the entire DLA workforce. We are looking forward to seeing the results. Culture Champions and leaders across the agency will begin working on action plans, and the actions we are taking to improve our organizational culture, and therefore, our mission success, will be briefed at future Executive Boards.

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11. 11 Q. DLA Acquisition Position Update Sent to J-7 "Q: I continue to read over and over how the federal acquisition corps has been decimated over the years and how DoD plans to strengthen this area. I know that it is growing increasingly difficult to obtain highly qualified applicants through the OPM register and the only qualified feeder program is the Intern Program, limited in numbers. Contractors who support procurement actions are being pushed out of DoD/DLA and what I am reading is these positions are to change to Government FTEs. However, I am hearing that while DLA will lose contractor acquisition support positions, we will get little if any Government positions out of this. Why has DLA taken the position to reduce the workforce so strongly in such a much needed area? Answer: This question touches on two issues. First, in 2006 DLA experienced a surge of purchase requests due to the Global War on Terror as well as the implementation of the Business Systems Modernization (now Enterprise Business System). As a temporary measure, DLA issued contracts to assist with the Contracting function. The sites have taken different approaches in completing their plans. Some have increased the number of interns they will hire, while others have added positions in the 1105 series. In recent updates by the Heads of Contracting Activities, the sites reported that these conversion efforts will not have an impact on performance. These drawdown and conversion efforts have been closely coordinated with the sites. With the SECDEF�s recent statements about reducing our dependence on this type of acquisition support, it is critical that we hold to the established drawdown plan which requires the elimination of contractor support by end of this fiscal year. You mention the difficulty in obtaining qualified applicants for the acquisition corps. Although the Department as a whole is experiencing shortages in Acquisition workforce personnel, DLA has positioned itself well through our Corporate Intern program to hire and train acquisition personnel. We do need to work on attracting quality applicants at the journeyman level and this is a focus area for our new SPE, Ms. Heimbaugh. We must have a right-sized, properly trained, professional acquisition workforce. To do this, we are working with the field to determine necessary manning requirements for out years and taking advantage of new funding: the Defense Acquisition Workforce Development Fund or Section 852 money. We are using this additional funding for developing DLA tailored training, working with HR on retention and hiring initiatives, and looking to increase developmental assignments for our acquisition professionals to both attract and retain highly qualified candidates. " Q. What are DLA�s teleworking policies Sent to PAO and J-1 ANSWER - Telework is defined as a work arrangement in which employees work away from their traditional offices at alternative sites. It is a program in which DLA employees who occupy positions that are determined to be eligible for teleworking will have the opportunity to perform official duties at home or in an approved Telecenter. It is DLA policy to offer two types of telework arrangements to meet organizational and employee needs; periodic or intermittent and regular and recurring. J-1 has begun the tasking of identifying ways to enhance the DLA Telework Program; increasing supervisory and employee awareness of the benefits of telework; identifying ways to increase eligibility and actual telework participation; establishing a telwork goal; and continuing to publicize the telework program throughout the enterprise. The DLA Telework Program continues to show a steady increase in positions identified for telework; employees on approved telework agreements; and employees teleworking. As of December 2008: Eligible employees = 10368 Approved employees = 5030 Employees who Teleworked = 3174 As of March 2009: Eligible employees = 10450 (1% increase from Dec 08) Approved employees = 5287 (1% increase from Dec 08) Employees who Teleworked = 3353 (1% increase from Dec 08) While the increase is positive, OPM would like to see more participation at a higher rate across the Federal government. Therefore, over the next few months, OPM will be forming an advisory group, which may include DLA, to take several actions related to ultimately increasing telework participation more rapidly across the Federal government. Using standards developed by this group, OPM will then evaluate all agency telework policies and provide feedback and consultation on bringing them all up to these standards. Q. As an agency, are we looking at or do we know how changes in the Defense budget will effect DLA, specifically the troop support mission? PAO and J-8 Answer: In the FY 10 budget submission to Congress, the administration targeted specific program reductions as much as possible, versus levying an overall reduction to all DoD Organizations. The largest cuts were taken in the Services' Procurement, Research and Development and Operation and Maintenance (O&M) accounts. DLA is predominately financed by proceeds received from selling goods and services to its DoD customers; whom primarily use their O&M funds for purchasing. Cuts to our customer's O&M accounts may have an adverse impact to the amount of orders we receive. Many of the troop support items are purchased with Service Military Pay appropriations, which did not receive the largest reductions. However, some troop support supply chains, such as C&E, are funded predominately with O&M funds and are more vulnerable to the reductions taken to the Services' O&M accounts. As part of the Sales and Operations Planning process, Agency executives did consider the above factors and workload estimates were adjusted accordingly. Q. DLA Acquisition Position Update Sent to J-7 "Q: I continue to read over and over how the federal acquisition corps has been decimated over the years and how DoD plans to strengthen this area. I know that it is growing increasingly difficult to obtain highly qualified applicants through the OPM register and the only qualified feeder program is the Intern Program, limited in numbers. Contractors who support procurement actions are being pushed out of DoD/DLA and what I am reading is these positions are to change to Government FTEs. However, I am hearing that while DLA will lose contractor acquisition support positions, we will get little if any Government positions out of this. Why has DLA taken the position to reduce the workforce so strongly in such a much needed area? Answer: This question touches on two issues. First, in 2006 DLA experienced a surge of purchase requests due to the Global War on Terror as well as the implementation of the Business Systems Modernization (now Enterprise Business System). As a temporary measure, DLA issued contracts to assist with the Contracting function. The sites have taken different approaches in completing their plans. Some have increased the number of interns they will hire, while others have added positions in the 1105 series. In recent updates by the Heads of Contracting Activities, the sites reported that these conversion efforts will not have an impact on performance. These drawdown and conversion efforts have been closely coordinated with the sites. With the SECDEF�s recent statements about reducing our dependence on this type of acquisition support, it is critical that we hold to the established drawdown plan which requires the elimination of contractor support by end of this fiscal year. You mention the difficulty in obtaining qualified applicants for the acquisition corps. Although the Department as a whole is experiencing shortages in Acquisition workforce personnel, DLA has positioned itself well through our Corporate Intern program to hire and train acquisition personnel. We do need to work on attracting quality applicants at the journeyman level and this is a focus area for our new SPE, Ms. Heimbaugh. We must have a right-sized, properly trained, professional acquisition workforce. To do this, we are working with the field to determine necessary manning requirements for out years and taking advantage of new funding: the Defense Acquisition Workforce Development Fund or Section 852 money. We are using this additional funding for developing DLA tailored training, working with HR on retention and hiring initiatives, and looking to increase developmental assignments for our acquisition professionals to both attract and retain highly qualified candidates. " Q. What are DLA�s teleworking policies Sent to PAO and J-1 ANSWER - Telework is defined as a work arrangement in which employees work away from their traditional offices at alternative sites. It is a program in which DLA employees who occupy positions that are determined to be eligible for teleworking will have the opportunity to perform official duties at home or in an approved Telecenter. It is DLA policy to offer two types of telework arrangements to meet organizational and employee needs; periodic or intermittent and regular and recurring. J-1 has begun the tasking of identifying ways to enhance the DLA Telework Program; increasing supervisory and employee awareness of the benefits of telework; identifying ways to increase eligibility and actual telework participation; establishing a telwork goal; and continuing to publicize the telework program throughout the enterprise. The DLA Telework Program continues to show a steady increase in positions identified for telework; employees on approved telework agreements; and employees teleworking. As of December 2008: Eligible employees = 10368 Approved employees = 5030 Employees who Teleworked = 3174 As of March 2009: Eligible employees = 10450 (1% increase from Dec 08) Approved employees = 5287 (1% increase from Dec 08) Employees who Teleworked = 3353 (1% increase from Dec 08) While the increase is positive, OPM would like to see more participation at a higher rate across the Federal government. Therefore, over the next few months, OPM will be forming an advisory group, which may include DLA, to take several actions related to ultimately increasing telework participation more rapidly across the Federal government. Using standards developed by this group, OPM will then evaluate all agency telework policies and provide feedback and consultation on bringing them all up to these standards. Q. As an agency, are we looking at or do we know how changes in the Defense budget will effect DLA, specifically the troop support mission? PAO and J-8 Answer: In the FY 10 budget submission to Congress, the administration targeted specific program reductions as much as possible, versus levying an overall reduction to all DoD Organizations. The largest cuts were taken in the Services' Procurement, Research and Development and Operation and Maintenance (O&M) accounts. DLA is predominately financed by proceeds received from selling goods and services to its DoD customers; whom primarily use their O&M funds for purchasing. Cuts to our customer's O&M accounts may have an adverse impact to the amount of orders we receive. Many of the troop support items are purchased with Service Military Pay appropriations, which did not receive the largest reductions. However, some troop support supply chains, such as C&E, are funded predominately with O&M funds and are more vulnerable to the reductions taken to the Services' O&M accounts. As part of the Sales and Operations Planning process, Agency executives did consider the above factors and workload estimates were adjusted accordingly.

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