Life Cycle Product Support

1. Brief to LCL FIPT Life Cycle Product Support July 17, 2009

2. Now is the Right Time—For the Right Reasons—to Revisit Life Cycle Product Support New political environment Anticipated financial pressure Wartime largesse Quantum improvement in equipment, IT, and data engines Decade of experience with PBL—need to incorporate learning Warfighter deserves no less Good stewardship Maximize effectiveness and efficiency of Life Cycle dollar Military operations are more precise and reliable; logistics must do the same Timing Reason This is about enterprise life cycle product support leadership 1 1 1

3. PSAT Team Membership 2

4. Assess Progress, Determine Future Requirements, Develop Way Forward PSAT Bi-weekly Workshops (PSAT Working Group & Recommendation Build Teams) Working Group Meetings Senior Steering Group (SSG) Meetings Discovery and Assessment Implementation Ramp-up Product Build • Assess overall progress and emerging requirements • Facilitated Working Group discovery of As-Is environment • Analysis: Fact-based weapon system program analysis • Develop the guidance and implementation roadmap for LCPS • Facilitated Working Group and Recommendation Build Team (RBT) discussions of To-Be environment • Develop future LCPS—incl. policy, and implementation roadmap • Finalize roadmap actions • Finalize final written report • Facilitate buy-in through executive out-briefs Incorporate New Administration Feedback Future Policy and Implementation Roadmap Interim Assessment and Initial Insights 3

5. Life Cycle Product Support Vision & Guiding Principles • Implementation Guidelines • Ruthlessly separate needs from appetites • Understand portfolio of alternatives • Tie metrics directly to Warfighter outcomes • Implementation Guidelines • Govern sustainment as part of the life cycle • Design for sustainability, and integrate acquire-to-retire process • Manage predictable costs throughout the life cycle • Integrate human capital planning into life cycle focus Start & End with the Warfighter’s Objectives Demonstrate & Enforce Life Cycle Focus Aligned and synchronized operational, acquisition, and sustainment communities working together to deliver required and affordable Warfighter outcomes Enterprise Means Enterprise (& Joint Means Joint) Build Mutually- Beneficial Partnerships • Implementation Guidelines • Optimize public & private product support capabilities • Leverage core competencies • Partnerships are effective; equitable; transparent; bilateral and long-term • Implementation Guidelines • Exhaust opportunities for Joint economy and reduce unnecessary redundancy • Build the capability to make good enterprise decisions • Enforce consistency in product support processes & infrastructure Incentivize Accountability for Performance • Implementation Guidelines • Manage with facts, and drive accountability for performance and costs • Build and evolve BCAs that enhance decision making

6. Over 100 Recommendations From Guiding Principles & Implementation Guidelines Current Product Support Environment PSAT Discovery & Assessment Start & End with the Warfighter’s Objectives Demonstrate & Enforce Life Cycle Focus Enterprise Means Enterprise (& Joint Means Joint) Build Mutually-Beneficial Partnerships Incentivize Accountability for Performance Guiding Principles > 100 Recommendations for Next Generation Product Support 5

7. Working Group is Evaluating Product Support Strategy, Policy, Process, and Resources Is there a consistent, understandable and executableStrategyfor Life Cycle Product Support? Is Policy adequate to successfully drive desired behavior for total Life Cycle Product Support? Are Processes sufficient to enable accurate, consistent Life Cycle Product Support execution? Are Resources (people, skills, funding, info, etc.) adequate and appropriate to conduct effective Life Cycle Product Support? If not, we will be defining new direction 6 6

8. “Policies are in place but not always followed or governed” Conducted Over 20 Topical Examinations And Identified Needed Improvements “Strategy exists but not understood across departments” “Processes are not aligned across organizational boundaries” “We are underinvesting in necessary resources”

9. 8 Recommendation Areas Are Both Dependent Upon and Inform One Another Next Generation Business Model: Define the overall strategy that drives cost-effective performance and capability for the Warfighter across the weapon system life cycle and enables most advantageous use of an integrated defense industrial base PPP / Industrial Integration: Align and expand the collaboration between Government & Industry that produces best value partnering practices Supply Chain Operational Strategy: Connect platform product support strategies to enterprise supply chain approaches that produces best value across the DoD components Governance: Strengthen and develop organization and mgmt processes to deliver the right sustainment information to decision-makers BCA: Building a toolbox of analytical approaches, where BCA is one of many Human Capital: Integrate Product Support competencies across the Logistics and Acquisition workforce domain to institutionalize successful traits of an outcome-based culture Metrics: Use existing metrics to catalyze sustainment strategies and trigger continuous supportability analysis O&S Costs: Improve O&S cost visibility and influence Weapons System Data: Define, collect, report, and manage the data we need to drive effective Life Cycle Product Support 8

10. Initial Weapons System Assessment Insights

11. The PSAT Team’s Data Analysis Is Driven By Several Key Questions • What approaches maximize performance for the Warfighter? • Are there common sustainment strategies across components? • How can different optimization approaches be used together? • What is the relationship between O&S and Materiel Availability? • Do PPPs contribute to greater readiness or reliability? • Is there a relationship between longer periods of performance, industry investment, increased readiness, and increased jobs at the Depot? Analysis Required Several Data Types These questions have already yielded important insights

12. Data Collection Status Army Navy • Bradley • FMTV • HIMARS • HMMWV • M1A1/M1A2 Abrams • M113 FOV • MRAP • PATRIOT • Stryker • HEMTT • AH-64 Apache • UH-60 Blackhawk • CH-47 Chinook • JAVELIN • E/A-6B, 18G • F/A-18 A/B, C/D, E/F • CH-53, SH-60 • P-3 • AMRAAM • JASSM • BAMS • CG-47, DDG-51, LCS • CVN-21, 68 • T-AKE, LPD-17 • SSBN 726 • SSN 688i, 774 • COBRA JUDY • Aircraft Engines • APUs Air Force USMC • F-117 • F-15 • F-16 • F-22 • F-35 • HH-60 • C-130 • C-17 • C-5 • KC-135 • B-1 • B-2 • B-52 • E-3 AWACS • E-8 JSTARS • AMRAAM • JASSM • AAV • HIMARS • HMMWV • M1A1 Abrams • AV-8B Harrier • F/A-18 C/D • F-35 • CH-53E • CH-46 • V-22 • JAVELIN *

13. Next Steps And Discussion

14. Assess Progress, Determine Future Requirements, Develop Way Forward Working Group Meetings Senior Steering Group (SSG) Meetings Discovery and Assessment Implementation Ramp-up Product Build PSAT Bi-weekly Workshops (PSAT Working Group & Recommendation Build Teams) PSAT IOT Reviews • Assess overall progress and emerging requirements • Facilitated Working Group discussions of As-Is environment • 20 Topical Examinations (Policy, Process, Strategy, Resources) • Analysis: Fact-based weapon system program analysis • Develop the guidance and implementation roadmap for LCPS • Facilitated Working Group and Recommendation Build Team (RBT) discussions of To-Be environment • Draft the assessment report • Develop future LCPS—incl. policy, and implementation roadmap • Finalize roadmap actions • Finalize final written report • Form Implementation Ownership Teams • Facilitate buy-in through executive out-briefs and new administration perspective 13

15. Questions?