Performance Based Logistics: Transformation Through Partnership

1. Performance Based Logistics: Transformation Through Partnership

2. NAVAIR MISSION STATEMENT We provide cost-wise readiness and dominant maritime combat power to make a great Navy / Marine Corps team better.

3. IMPORTANCE OF NAVAIR DEPOTS • NAVAIR Depots are Key to Readiness • Ready, Controlled Source of Depot Maintenance • Minimize Equipment Out-of-Service Time • Ensure Steady Flow of Engines and Components • In-service and Emergency Repair On-Site • Quick Response Manufacturing Capabilities • Depot’s Have Capability to Repair Over 18,075 Different Components We are there for the fleetwhen the fleet needs us.

4. Depot Enterprise Products & Services North Island FIXED / ROTARY WING WEST COAST Cherry Point ROTARY WING / VSTOL • AIRCRAFT REWORK • F/A-18 • E-2, C-2 • S-3 • H-60 • H-53 • H-1 Jacksonville • ENGINE REWORK • LM2500 • AIRCRAFTREWORK • AV-8B • H-46 • H-53 • H-1 • ENGINEREWORK • T58 • T76 • T400 FIXED / ROTARY WING EAST COAST • F402 • T64 • J79 • AIRCRAFT REWORK • P-3 • EA-6B • F-14 • H-60 • ENGINEREWORK • J52 • F404 • TF34 • F414 • COMPONENT REPAIR • DYNAMIC COMPONENTS • ROTOR BLADES • PROPS • BLADES / VANES • APU / GTC • PNEUMATICS • NON-AVIONICS SPT EQUIP • COMPONENT REPAIR • CATE • INSTRUMENTS • COMM / IFF • NAV / ELEC • RADAR • CSD / ROTATING ELEC • TECHNOLOGY • COMPOSITE REPAIR • BEARINGS • CALIBRATION • HYDRAULICS • COMMON ATE • COMPONENT REPAIR • ELECTRO-OPTICS • ASW SYSTEMS • RACKS / LAUNCHERS • AIR REFUELING STORES • ELECTRONIC WARFARE • TECHNOLOGY • VERTICAL FLIGHT • FCIM • UAV / RPV • COMPOSITE REPAIR • TECHNOLOGY • EO / EW • ENVIRONMENTAL

5. NAVAIR Public-Private Partnerships • Agreement between Public and Private Sector • Depot Provides Articles and/or Services to Industry • Industry Leases Depot Equipment and/or Facilities

6. Performance Based Logistics Partnership(PBL’s) • Single Supplier: • Meets Material Needs • Manages Inventory, Storage and Transportation • Increases Product Availability and Reliability • Manages Obsolescence • Enable Cost-Wise Readiness • General Business Approach: • The PBL MUST Provide the Fleet With Increased Reliability and/or Availability at the Same or a Reduced Cost.

7. PBL Advantages • Cost-Wise Readiness Helps the Fleet • Improve Component Availability • Improve Reliability • Reduce Fleet Costs

8. PBL Benefits to Depot • Improved Material Availability • Capitalize on Depot Artisan Strengths • Clear Expectations for Partners • Distributes Financial Risks

9. PBLs and NAVAIR Jax • Currently Five PBL agreements • More on the Horizon, in Negotiation • GE, Raytheon, Boeing, Rockwell Collins, Lockheed Martin • Covered under Contract: • Depot Skills • Products • Facilities and Equipment • Indirect Support Functions

10. PBL CONTRACTSat NAVAIR JACKSONVILLE • Boeing • F/A-18 Integrated Readiness Support Team • General Electric Aircraft Engines (GEAE) • F-404 Engine Components • Raytheon Company • AN/AAS-44 Forward Looking Infra-Red (FLIR)

11. Boeing and U.S. Navy • F/A –18E/F Integrated Readiness Support Teaming • First of Kind • Includes All Three Depots • Affects Entire Aircraft Platform • Est. Total Contract Value: $770 million

12. Boeing-FIRST • Partnership Provides Depot Level Repair of F/A-18 E/F Unique Components • Total Anticipated Revenue for NAVAIR Depot Jacksonville is $1.5M • NAVAIR Jacksonville: • Currently Repairs F/A-18 E/F Gun Drive • Will Repair SUU-79/80 Wing Pylons and the Aircraft Radome

13. FIRST Fleet Benefits • Unites Innovation and Responsiveness of Industry with the Expertise and Capacity of NAVAIR Depot Jacksonville • Teamwork Generates Significant Operating and Support Cost Avoidance

14. General Electric Aircraft Engines (GEAE) F404 Engine Component PBL • Partnership Provides for Repair of F404 Engine Components Used to Power the FA-18 Hornet • Five Year PBL Contract • Total Contract Award Valued at Approximately $510M • Anticipated Revenue for NAVAIR Jax: $165M Over Five Years

15. GEAE – F404 Engine Components • Fleet Benefits • Increased Reliability Achieved by GEAE Performance Incentives • Increased Readiness Through Parts Availability • Allows Industry to Bring Flexibility and Innovation Into the Management of the Supply Chain • Reduction in Total Ownership Cost

16. GEAE – F404 Engine Components • Defining Features • GEAE Provides Material, Program Management, Warehousing and Information Technology • Largest Dollar Revenue Generating PBL for NAVAIR Jacksonville

17. Raytheon AN/AAS-44 PBL • Provides Depot Level Repair of AN/AAS-44 Forward Looking Infra-red (FLIR) System Used on the SH-60B & the HH-60H Helicopter • Ten Year PBL, 5-year Base With a 3- and 2-year Option • Total Contract Valued at Approximately $123m • Anticipated NAVAIR Jacksonville Revenue: $11.3M Over 10 Years

18. Raytheon AN/AAS-44 PBL • Fleet Benefits • Increased Reliability • Increased Operational Availability • Reduction in Total Ownership Cost

19. Raytheon AN/AAS-44 PBL • First PBL for NAVAIR Jacksonville to Establish New Workload Capability • Investment by Raytheon in: • Depot Support Equipment • Artisan Training • Integrated Processes to Achieve Lower Cost Solutions Through Lean & R6 Sigma

20. Keys to Smooth Implementation • Preplan, Preplan, Preplan • Ensure Partners Can Integrate • Create Employee Buy-In • Partners Must Have Common Goal • WARFIGHTER SUCCESS!

21. Contact Information: Director Industrial Business Operations Office (904) 542-4170, ext. 104