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2005 Fall2005 FallProduct Support ConferenceProduct Support Conference

Hilton Head, SCHilton Head, SC

November 7-9, 2005November 7-9, 2005

Session #2: PBL Success Stories and Challenges

Speaker Name: Steve Blessing, CPLTitle: Sentinel Life Cycle Contractor Support (LCCS)Organization: ThalesRaytheon Systems

AEROSPACE INDUSTRIES ASSOCIATION

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System DescriptionSystem Description

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Life Cycle Life Cycle Contractor Contractor

Support (LCCS)Support (LCCS)LCCS Coverage

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Sentinel/LCCSSentinel/LCCS HistoryHistory

Production Contracts

Services Contracts

•Production•PM

• FRB• Reliability• Maintainability• SE, SO, ME• CCB / SCCB• CM/DM• Retrofit• Forest Repair• Quality• UPN Analysis• FRACAS

• NET• Fielding• PM• FMS• CFE• Eng’g Task• On-Call Tech

LCCS

•24/7 Technical Assistance •Float Maintenance & Storage •Unscheduled Maintenance & Overhaul

2002 - 2007

1990-2005 2001-2004

• TYAD Repair• SFW Distribution• LOGSA Update

90% Readiness

P3I

2004 – 2008

•Supply Chain•Manufacturing Support

• IETM • Vendor Repair• SA/LMI• Provisioning• Training Devices• Contingency OP• Training & PMCS• eCommerce • Transportation • Inv Mgm• Warehousing• Safety• 24/7 TA• CFE

Marine Corp

2003

NCS RTSC

TRS

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DELTA COST % DELTA COST % -31.2% -31.2% -33.2% -33.2% -34.3% -34.3% -20.1% -20.1%DELTA COST % DELTA COST % -31.2% -31.2% -33.2% -33.2% -34.3% -34.3% -20.1% -20.1%

STOCK AVAILABILITY STOCK AVAILABILITY 44 44 4 4 22 11SUPPORT COST REDUCTIONSUPPORT COST REDUCTION 44 44 4 4 33 00FIRM FIXED PRICEFIRM FIXED PRICE 44 33 4 4 11 11COMPETITIONCOMPETITION 00 33 1 1 33 33SYSTEM IMPROVEMENTS/MTSSYSTEM IMPROVEMENTS/MTS 44 22 4 4 11 11SINGLE LOGISTICIANSINGLE LOGISTICIAN 44 22 4 4 11 00ENHANCED UNIT TECH SUPPORTENHANCED UNIT TECH SUPPORT 44 22 4 4 11 11PROACTIVE COST AVOIDANCEPROACTIVE COST AVOIDANCE 33 11 3 3 00 00FACTORY-USER CONNECTIONFACTORY-USER CONNECTION 44 11 4 4 1 1 11UNIFIED CONFIGURATION MGMTUNIFIED CONFIGURATION MGMT 44 44 4 4 0 0 00TOTAL INVENTORY VISIBILITYTOTAL INVENTORY VISIBILITY 44 44 4 4 00 00BEST PRACTICESBEST PRACTICES 22 33 33 11 11TOTAL 41 33TOTAL 41 33 43 14 43 14 99

STOCK AVAILABILITY STOCK AVAILABILITY 44 44 4 4 22 11SUPPORT COST REDUCTIONSUPPORT COST REDUCTION 44 44 4 4 33 00FIRM FIXED PRICEFIRM FIXED PRICE 44 33 4 4 11 11COMPETITIONCOMPETITION 00 33 1 1 33 33SYSTEM IMPROVEMENTS/MTSSYSTEM IMPROVEMENTS/MTS 44 22 4 4 11 11SINGLE LOGISTICIANSINGLE LOGISTICIAN 44 22 4 4 11 00ENHANCED UNIT TECH SUPPORTENHANCED UNIT TECH SUPPORT 44 22 4 4 11 11PROACTIVE COST AVOIDANCEPROACTIVE COST AVOIDANCE 33 11 3 3 00 00FACTORY-USER CONNECTIONFACTORY-USER CONNECTION 44 11 4 4 1 1 11UNIFIED CONFIGURATION MGMTUNIFIED CONFIGURATION MGMT 44 44 4 4 0 0 00TOTAL INVENTORY VISIBILITYTOTAL INVENTORY VISIBILITY 44 44 4 4 00 00BEST PRACTICESBEST PRACTICES 22 33 33 11 11TOTAL 41 33TOTAL 41 33 43 14 43 14 99

LEGEND4 - high probability of significant improvement3 - high probability of moderate improvement 2 - moderate probability of significant improvement 1 - moderate probability of moderate improvement 0 - little or no probability of any improvement

LEGEND4 - high probability of significant improvement3 - high probability of moderate improvement 2 - moderate probability of significant improvement 1 - moderate probability of moderate improvement 0 - little or no probability of any improvement

LCCSLCCS LCCSLCCS LCCSLCCS BASE BASE BASEBASESYSTEM WITHSYSTEM WITH SYSTEM WITH SYSTEM WITH CASE CASE CASECASEGOVERNMENT GOVERNMENT GOVERNMENTGOVERNMENT WITHWITH ORGANICORGANICDEPOT DEPOT DEPOT AS SUB-DEPOT AS SUB- PREMIUM SUPPORTPREMIUM SUPPORT

CONTRACTORCONTRACTOR SERVICESERVICE

LCCSLCCS LCCSLCCS LCCSLCCS BASE BASE BASEBASESYSTEM WITHSYSTEM WITH SYSTEM WITH SYSTEM WITH CASE CASE CASECASEGOVERNMENT GOVERNMENT GOVERNMENTGOVERNMENT WITHWITH ORGANICORGANICDEPOT DEPOT DEPOT AS SUB-DEPOT AS SUB- PREMIUM SUPPORTPREMIUM SUPPORT

CONTRACTORCONTRACTOR SERVICESERVICE

BCABCA

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Contract StructureContract Structure

Process - “Crawl – Walk – Run“ ApproachProcess - “Crawl – Walk – Run“ Approach– Crawl Crawl

US Army Provided Interim Contractor Support (Cost Contract) to TRS for US Army Provided Interim Contractor Support (Cost Contract) to TRS for 5 Years, Conducted 1 Year Study, Limited User Implementation with 1 5 Years, Conducted 1 Year Study, Limited User Implementation with 1 US Army Unit (1998 – 2002)US Army Unit (1998 – 2002)

– WalkWalk US Army Expanded Program to all Active and National Guard Battalions, US Army Expanded Program to all Active and National Guard Battalions,

Negotiated a Firm Fixed Award Fee 3 Year Contract with TRS - 2003-Negotiated a Firm Fixed Award Fee 3 Year Contract with TRS - 2003-20052005

– RunRun TRS Implemented the Program, Supported Simultaneous Wartime TRS Implemented the Program, Supported Simultaneous Wartime

Missions and Homeland Defense Missions and Currently Negotiating for Missions and Homeland Defense Missions and Currently Negotiating for a 2-year Extension from 2006 – 2007a 2-year Extension from 2006 – 2007

In Addition to the Fixed Price Award, Contract Contains Some Cost Plus In Addition to the Fixed Price Award, Contract Contains Some Cost Plus CLINSCLINS

– These CLINS are for Contingency Activities – Support Troops in Hostile These CLINS are for Contingency Activities – Support Troops in Hostile Areas, etc. Areas, etc.

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MetricsMetrics

Unit and Fleet Readiness (AUnit and Fleet Readiness (Aoo): ): – Maintain Unit and Fleet Equipment Readiness Rate Greater Maintain Unit and Fleet Equipment Readiness Rate Greater

Than 90%Than 90% Incentive Fee:Incentive Fee:

– 20% NMCS Unit 20% NMCS Unit 15% NMCM Unit15% NMCM Unit– 20% NMCS Fleet 20% NMCS Fleet 15% NMCM Fleet15% NMCM Fleet– 15% Priority 2 CONUS Delivery15% Priority 2 CONUS Delivery– 15% Priority 2 OCONUS Delivery15% Priority 2 OCONUS Delivery– Fee is weighted toward supply Fee is weighted toward supply

70% Supply70% Supply 30% Maintenance30% Maintenance

– Priority 2 CONUS Delivery (48 Hours)Priority 2 CONUS Delivery (48 Hours)– Priority 2 OCONUS Delivery (96 Hours)Priority 2 OCONUS Delivery (96 Hours)

Data Source: Data Source: – LOGSA Monthly Readiness DataLOGSA Monthly Readiness Data– RepairDataRepairData™™ TAV COTS SW Package TAV COTS SW Package

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Adjusted Readiness Reported Adjusted Readiness Reported

at Both the Unit and Fleet at Both the Unit and Fleet LevelLevel

FLEET SYSTEM READINESS

020406080

100

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

Average per Quarter(Reported Monthly)

Per

cen

t

FMC NMCS NMCM

FLEET SYSTEM READINESS

020406080

100

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

Average per Quarter(Reported Monthly)

Per

cen

t

FMC NMCS NMCM

Average Adjusted Readiness Scoring

94.8% - 2003

97.0% - 2004

95.3% - 2005

FMC = fully mission capable

NMCS = non-mission capable due to supply

NMCM = non-mission capable due to lack of maintenance

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Emerging ResultsEmerging Results

Successfully Supported Offline Requisitions When Corp Successfully Supported Offline Requisitions When Corp Theater ADP Service Center (CTASC) was DownTheater ADP Service Center (CTASC) was Down

–Units Order Parts for Repairs Through CTASCUnits Order Parts for Repairs Through CTASC Provided 10 Times Unit’s Prior Two Years of B-64 Provided 10 Times Unit’s Prior Two Years of B-64

(AMCOM Sentinel Unique) Managed Parts During 4 (AMCOM Sentinel Unique) Managed Parts During 4 Month Period to Satisfy Surge Requirements at the Month Period to Satisfy Surge Requirements at the Beginning of the WarBeginning of the War

Provided Tailored Contingency Packages to Augment Provided Tailored Contingency Packages to Augment Unit’s Diagnostic Spares PackageUnit’s Diagnostic Spares Package

24 Hour / 7 Days a Week on Call Technical Support 24 Hour / 7 Days a Week on Call Technical Support Hotline Highly SuccessfulHotline Highly Successful

Consistent Readiness Scoring of GREATER THAN 94% Consistent Readiness Scoring of GREATER THAN 94% reflects Program Success of Supporting Sentinel reflects Program Success of Supporting Sentinel Radars WorldwideRadars Worldwide

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Emerging Results - AOR Emerging Results - AOR Parts DeliveryParts Delivery

Over a 3-Month Period Over a 3-Month Period (May – July 05), 30 Priority (May – July 05), 30 Priority 2 Requisitions Processed 2 Requisitions Processed From the Field (OCONUS)From the Field (OCONUS)

– Requisitions Required an Requisitions Required an Average of 8 Calendar Days Average of 8 Calendar Days From Receipt of Order to From Receipt of Order to Delivery in CountryDelivery in Country

Units required an additional Units required an additional 2 Days on Average to 2 Days on Average to Retrieve the Parts Retrieve the Parts

Total 10 Calendar Days Total 10 Calendar Days from Receipt of order to from Receipt of order to Parts in HandParts in Hand

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Program RisksProgram Risks

Spares and RepairsSpares and Repairs– Demand and Use RequirementsDemand and Use Requirements

Local Models Local Models Compass ModelsCompass Models Demand HistoryDemand History

– Parts ObsolescenceParts Obsolescence Cost to ProduceCost to Produce Advances in TechnologyAdvances in Technology Environmental / Safety IssuesEnvironmental / Safety Issues

– Changes in the Vendor / Industrial BaseChanges in the Vendor / Industrial Base Mergers and AcquisitionsMergers and Acquisitions Change in Product FocusChange in Product Focus Company ClosuresCompany Closures

Lack of Total ControlLack of Total Control– Organic Military Performance Organic Military Performance