2/13/2010 1:26 PMJune 17, 2008

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Lifecycle Management

Solutions

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SRA PROPRIERTARY

Who is SRA?

• A leading provider of technology and strategic consulting services and solutions

• Serve public and private‐sector clients in the national security, civil government, and global health markets

• Operations throughout the U.S. and Europe

• FY09 revenue of $1.65B – 88% as a prime contractor

91% win rate on recompetes

• Publicly traded company (NYSE: SRX)

• Founded in 1978; a deeply embedded culture focused on creating real value for customers

• Employer of choice for 6,900+ employees

Our Vision:

SRA aspires to be the world’s best company in

everything we do, guided by our

unwavering commitment to honesty and service.

Our success is measured by the value we bring to

our clients and stakeholders, the

careers we offer our employees and the

contributions we make to our local and global

communities.

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SRA PROPRIERTARY

SRA Market Demands

Counterterrorism remains top Justice Department concern

Intel Counterterrorism

Cyber attacks continue to grow

Cyber

DoD spending on PBL is expected to continue growing at a rate of 10.3% CAGR to reach $7.4B by 2013

PBL Performance BasedLogistics Management

Government to address the rising cost of health care through significant investment in health IT

Health IT

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SRA PROPRIERTARY

Force Generation Drives All

FORCE Generation Drives Demand-Side…. = Customer “Takt” Rate

….Requiring An Effective Supply-Side Response…. = PBL “Dynamics”

Details of the multi-echelon supply and value chain

Informed lead times required by each supplier

Critical paths and specific bottlenecks

Actual days required to support a supply chain, versus unsupported estimates

ARFORGEN

Takt Time

LANDFORGEN 1

SEAFORGEN1

AIRFO

RGEN1

“For ARFORGEN weManufacture Brigade Combat Teams”….therefore what is:

Make to Stock?Make to Order?Engineer to Order?

PBL Layer I

PBL Layer II

PBL Layer III

COMPLIANCE

CULTURE

PROCESS

1 Notional

Planning drumbeat: How often completed units NEED to come out the end of the pipe –as established by customer demand

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SRA PROPRIERTARY

FORTUNE Magazine as One of the '100 Best Companies to Work For‘

(1999-2009)

Washington Technology Top 100

Three Alliance for Workplace Awards:

Excellent Place to Work | Health and Wellness Trailblazer | Ecoleadership

Best Place to Work in Northeastern Pennsylvania, Large Company (Scranton)

Bisnow Green Leadership Award

Association of Marketing and Communications Professionals’ Annual Awards

www.sra.com | SRA Headlines | SRA Annual Report

Black Collegian Top 100 Employer

Silver Sponsorship Appreciation Award for participating in the American Freedom Foundation Festival to raise awareness for U.S. veterans

Quality-Assurance award for Era’s performance over a five-year period from the ENVIRO organization

SRA selected as winner of Supply Chain Council’s 2009 Operational Excellence Award

SRA Recent Company Awards and Recognition

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SRA PROPRIERTARY

• Command & Operations Center Engineering• Infrastructure Engineering and O&M Support• Command and Control Systems Engineering• Complex Systems Integration• Directory Services• Enterprise Architecture• Worldwide Technical Support• Network Managed Services• Netcentric Enterprise Services• Afloat Operations• Automated Identification Technology• Enterprise COTS Integration• Identity Management & Cross‐Credentialing• Lifecycle Management Support• Integrated Logistics Support• Industrial Base Support• Transportation & Logistics Systems• Modeling, Simulation and Analysis• Multimedia Training & Curriculum Development• Performance Based Logistics • Cyber Security for the Supply Chain• Supply Chain Management• SETA Support• Web Development & Enterprise Portals

SRA Lifecycle Management Solutions Offerings 

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SRA PROPRIERTARY

What LMS Does

Primary Products and ServicesLogistics Optimization, Lifecycle Management, Supply Chain / Sustainment ExcellencePerformance Based Logistics (PBL)Sensei Lean Masters, Six Sigma Master Black Belts, Certified Instructors with the International Supply Chain CouncilProject / Program Management Professionals (PMP)OEM Logistics Services

BackgroundC-Level, VPs, Staff- and Line-level Managers, LogisticiansOps Managers, Engineers, Planners, Buyers, Sales and Mktg…

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SRA PROPRIERTARY

LMS Supply Chain Optimization

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING® Registered Copyright of the Supply Chain Council, Inc.

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SRA PROPRIERTARY

LMS Value Proposition

ActualCustomerService

CustomerService

DecisionsCustomerResponse

GAP 1

GAP 5

GAP 2

GAP 4

GAP 3

Customer Expectations

Past ExperienceIndustry Standards and Norms

Standards of CompetitorsSituational Requirements

CustomerPerception of

Service

InternalPerceptionof Service

BusinessExpectations

GAP 1 closes through understandingcustomer value structure.

GAP 2 closes through greater commitment to customer value.

GAP 3 closes through better system alignment to reduce variability.

GAP 4 closes through reliable delivery of service.

GAP 5 is closed by reducing GAPs 1-4.

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING

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SRA PROPRIERTARY

LMS Performance Alignment Model

AsAs--Is ShouldIs Should--BeBe

What level of

Supply Chain

Performance

Will Impact

Customer,Supplier,Employee,

Behavior?

Make / Maintain

Plan

Time

Value

Cost

Material

Information

Reliability

ResponsivenessVelocity

Flexibility

Deliver

Return

Source

Operational Excellence

Customer Intimacy

Process Lifecycle Management

DesignSell

Relate

Assist

Enable

Research

Integrate

Amend

Contract

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING

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SRA PROPRIERTARY

Why LMS Exists –To Help It’s Customers Become Faster, Better, Cheaper

PerformanceLevel

FunctionalSupply Chains

IntegratedSupply Chains

Loosely CoupledSupply Chains

Velocity

“Flexibility and Adaptability”

“Integration at the interface”

“Independent optimization”

•Responsive•Agile•Lean

Agility

Effectiveness and Efficiency

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING

Performance Based Lifecycle Management

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SRA PROPRIERTARY

LMS Supply Chain Optimization

When you enable the Enterprise to examine its supply chain processes, analysis acting like Sonar, helps profile performance.

It is only then that the real problems begin to surface

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING

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SRA PROPRIERTARY

1Turn InSR2.1

2SSA Transfer

DR2.4

3CCP Receipt

D2.3

5POE Receipt

DR2.3

7POD Receipt

DR2.3

Order Cycle Time: 117 Days (Air)

4CCP Transfer

D2.4

6POE Transfer

DR2.4

8 POD Transfer

DR2.4

9Stow Receipt

DR2.3

15 days 37.8 days 14.3 days est 10 days 4 days 9 days 1 days 23.4 days est10

Depot TransferDR2.4

.5 day2 days est.

Notional (EPAT Portal)

Source: Phase 3 Cycle Time Analysis90% of Turn Ins were done under 20 days

Source: CCP Quality InspectionTDC had 286 containers backloggedCCP receives 20-40 containers per day (24x7)CCP processes 20 containers during day

and 30 containers per nightTherefore running about 14.3 days backlog

[286 / (50-30)] = 14.3 daysNo triwalls damaged during unloading40% boxes are sent to black hole (no doc) 30% sent straight to QSU serviceable warehouse30% unserviceables are receipted with proper doc5 loaded flatbed trucks sat from 1330 to 1430 waiting for MHEGovernment owned containers are lower priority for unloading (notional)

ERP = 64 days

Source: Phase 3 Cycle Time Analysis3.75 hours to process asset1-4 days for pickup depending on loads3 Transportation Consolidation Points

have no RIC designationLoading Containers (20 and 40 footers)Big SSAs like WVE are loading containers

Source: EPAT (electronic portal)700-800 items per TCN4-8 triwalls per palletGTN shows can take up to 10 days to loadHeader create vs ship / receipt discrepancies

Source: EPAT Data: 5/22/2008 – 6/6/2008

Txns | Min | Max | Median | StdevTotal: 1153 2 9 4 2.9Bagram: 53 2 9 9 0.9Balad: 339 2 2 4 0.8Kuwait: 759 2 8 8 2.9

Source: EPATData: 5/22/2008 – 6/6/2008

Txns | Min | Max | Median | Stdev

Total: 353 1 9 11 3.7Bagram: 52 5 5 5 0.0Balad: 238 9 11 11 0.9Kuwait: 63 1 1 1 0.0

No Source to validate time from CCP to POEEstimates 1-3 days

Source: EPATData: 5/22/2008 – 6/6/2008

Txns | Min | Max | Median | StdevTotal: 290 1 1 1 0.0Bagram: 52 1 1 1 0.0Balad: 238 1 1 1 0.0Kuwait: N/A 2 8 8 2.9

77.1 days or 66% 39.9 days or 34%

No SourceNo data to determine dwell timeMay 12th Visit Depot Mr. Snow:• STO shipping discrepancies• No validation prior to receipt trxn.• ERP records DDTP shipment

regardless of error.• No metrics to measure delivery

reliability against Depot req.

STO discrepancies

12.8% 32.3% 12.2% 8.5% 1.7% 3.4% 7.7% .09% 20.0% .04%

LMS Time Trap Analysis

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING

SRA

Winner of the SCC 2009 Award

ForOperational Excellence

SRA

Winner of the SCC 2009 Award

ForOperational Excellence

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SRA PROPRIERTARY

LMS Example of Aligning Metrics to Targets to Close Gaps

Parity Advantage Superior10% 15% 20%

Aircraft Availability 91.0% 91.9% 92.3% 92.8% 1.8% 139,128 TNMCS Hours

Time Definite Delivery

MICAP Hours: MSD Items(FY04 Q1-Q3) 709,309 638,378 602,913 567,447 141,862 MICAP

Hours141,862 MICAP

Hours

MICAP Hours: GSD Items(FY04 Q1-Q3) 1,197,709 1,077,938 1,018,053 958,167 239,542 MICAP

Hours239,542 MICAP

Hours

Customer Wait Time: MSD Items 4.19 3.87 3.71 3.55 0.32 Days 0.32 Days

Customer Wait Time: GSD Items TBD

Flexibility Reduce End-to-End Cycle Time Source Cycle Time (AQLT=ALT+PLT)) 307 276 261 246 31 Days 31 Days

Cost / Flying Hour: TOTAL(AFTOC FY04 Actuals) $13,258 $11,933 $11,270 $10,607 $1,989 $492,816,287

a. Cost / Flying Hour: Mission Personnel $4,765 $4,288 $4,050 $3,812 $715 $177,075,483

b. Cost / Flying Hour: Unit-Level Consumption, excluding AVFUEL $1,426 $1,283 $1,212 $1,141 $214 $52,963,799

c. Cost / Flying Hour: AVFUEL $1,652 $1,487 $1,405 $1,322 $248 $61,391,470

d. Cost / Flying Hour: Depot-Level Maint (not DLR) $2,594 $2,334 $2,205 $2,075 $389 $96,379,168

e. Cost / Flying Hour: Contractor, Sustaining, & Indirect Support $2,822 $2,540 $2,399 $2,258 $423 $104,857,674

Asset N/A N/A $0

INTE

RN

AL Cost Effective Supply

Chain Operations

GAP

OpportunityAFMC

PERFORMANCE ATTRIBUTE (GOALS)

Responsiveness N/A

Reliability

EXTE

RN

AL

Improve Material Availability

Improve Customer Satisfaction

COMPETITIVE POPULATIONAFMC KEY PERFORMANCE INDICATOR

CurrentStateKPISCOR From CHIP

Cost

PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING

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SRA PROPRIERTARY

Performance Based Lifecycle Management (PBLM©)

Government

ProductSupport

Integrator

P BL M

HappyPlace

ProductSupportManager

ProductSupportIntegrator

ProductSupportProvider

Customer

ProductManager

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SRA PROPRIERTARY

• LCM GOALS– Overcome culture of “Acquisition

then Logistics”

– Reduce Life Cycle Cost

– Optimized decision making

– Affordability Benefits

– Increased sustainability

– Better Responsiveness to

Customer Requirements

– Equip and Sustain

– Better, Faster, & Cheaper

Integrate & Synchronize Acquisition, Logistics & Technology

A

Life Cycle Cost COMMITTED

CU

M P

ERC

ENT

B CYEARS

0

100

RDT&E

PRODUCTION

OPERATION & SUPPORT

ACTUAL FUNDS SPENT

RDT&E, PA $$$ OMA, AWCF $$$

$40B+ in FY08

28.6% of the

Army’s budget

Shift

Supportability

What can we leverage to help address these problems?

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SRA PROPRIERTARY

What is Performance Based Logistics?

It’s not aboutIt’s all about

Assigning Responsibilityto the RequiringOrganization

NotAssigning

Responsibility to the Provider

Defining the Process and Methods to achieve a pre-determined course of action

NotBuying a Solution or Outcome

Using DesignSpecificationsNotUsing Performance

Specifications

Buying Resources

Buyer assumes responsibility for performance results

NotBuying Results

Provider Assumes Responsibility Buyer wants a solution that works

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SRA PROPRIERTARY

LMS View of PBLM CONOPS

1INCREASE

Mission Reliability

2REDUCE

Logistics Response Time

3IMPROVE

Operational Availability

4REDUCE

Cost Per Unit Usage

5INTEGRATE / REDUCE

Logistics Footprint

LIFE

CY

CLE

GO

ALS

LIFE

CY

CLE

OB

JEC

TIV

ES

RE

SP

ON

SIB

ILIT

YA

PP

RO

AC

HP

RO

CE

SS

CO

MP

ETE

NC

IES

EN

AB

LER

S

6ENABLE

Effective LCM strategies and mechanismsthat promote, foster and direct LCM

improvements

7OPTIMIZE AND CONTROLEnd to End LCM performance,

Proactively responding to non-immediateand immediate issues

8ESTABLISH CLEAR LINKAGES

Between process performance and LCMObjectives, for day to day monitoring,

execution and redirection

9ADVOCATELCM interestswith players

10SUPPORT

LCM improvement

11CONDUCT

LCM constraintanalysis

12INFLUENCE

Buy/repair prioritiesand execution

13STANDARDIZEand consolidatereqs. and reports

14PREPAREand present

formal reviews

15MANAGE

LCM operationsto a strategicbusiness plan

27Executive

sponsorshipfor LCM role

28Organizational

Construct

29LCM

standardizationSCOR, DCOR,

CCOR

30Value propositions

For WeaponsSystems

Data/input/output

31LCM

Processtransparency

32Clear and Consistent

communications

16DEFINE

or understandLCM

process

17MEASURE

LCMprocess

performance

18ANALYZE

theperformance

data

19REALIZE

LCMprocess

improvements

20CONTROL

LCMProcess

performance

21EQUIPStrategicBusinessplanning

22ANALYZE

Businessprocess

performance

23ADVOCATE

Businesscase

development

24INTEGRATECollaboration& relationship management

25MONITORContinuous

process improvement

26INFLUENCE

Teambased

thinking

© 2009 SRA International. All rights reserved

1INCREASE

Mission Reliability

2REDUCE

Logistics Response Time

3IMPROVE

Operational Availability

4REDUCE

Cost Per Unit Usage

5INTEGRATE / REDUCE

Logistics Footprint

LIFE

CY

CLE

GO

ALS

LIFE

CY

CLE

OB

JEC

TIV

ES

RE

SP

ON

SIB

ILIT

YA

PP

RO

AC

HP

RO

CE

SS

CO

MP

ETE

NC

IES

EN

AB

LER

S

6ENABLE

Effective LCM strategies and mechanismsthat promote, foster and direct LCM

improvements

7OPTIMIZE AND CONTROLEnd to End LCM performance,

Proactively responding to non-immediateand immediate issues

8ESTABLISH CLEAR LINKAGES

Between process performance and LCMObjectives, for day to day monitoring,

execution and redirection

9ADVOCATELCM interestswith players

10SUPPORT

LCM improvement

11CONDUCT

LCM constraintanalysis

12INFLUENCE

Buy/repair prioritiesand execution

13STANDARDIZEand consolidatereqs. and reports

14PREPAREand present

formal reviews

15MANAGE

LCM operationsto a strategicbusiness plan

27Executive

sponsorshipfor LCM role

28Organizational

Construct

29LCM

standardizationSCOR, DCOR,

CCOR

30Value propositions

For WeaponsSystems

Data/input/output

31LCM

Processtransparency

32Clear and Consistent

communications

16DEFINE

or understandLCM

process

17MEASURE

LCMprocess

performance

18ANALYZE

theperformance

data

19REALIZE

LCMprocess

improvements

20CONTROL

LCMProcess

performance

21EQUIPStrategicBusinessplanning

22ANALYZE

Businessprocess

performance

23ADVOCATE

Businesscase

development

24INTEGRATECollaboration& relationship management

25MONITORContinuous

process improvement

26INFLUENCE

Teambased

thinking

© 2009 SRA International. All rights reserved

® Registered Copyright of the Supply Chain Council, Inc.

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SRA PROPRIERTARY

LMS PBLM Construct

Customer

MACOMs

FMS

OtherAgencies

OtherServices

NATO

ProgramManager

(PM)PBA

Product SupportIntegrator

(PSI)

ComSupplier

DLA

OtherServices

TRADOC

AMC

PBA

SYSTEMSSUBSYSTEMSCOMPONENTS

Product SupportProviders

(PSP)

SYSTEMSSUBSYSTEMSCOMPONENTS

OrganicPSP2

ComPSP1

PSP4

PSP3

Business Case Analysis (Benchmarking)

Monitors Performance

PM Oversight & Accountability

(MONITORS) PERFORMANCE OUTCOMES

FLEXIBILITY Data

Warehouse

MOA

MOU

PBA

PSI (EXECUTES)

(REDIRECTS)PPP

Product SupportManager

(PSM)

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SRA PROPRIERTARY

Lacrosse Player, Founder, Coach, Referee, Author, Past Owner

1970

• 4 Years Regular Army 75th Rangers, 101st Airborne.• 25 Years Commercial Experience – Operations P&L, IT, 

Supply Chain P&L, Management Consulting.• Johnson & Johnson, Dun & Bradstreet, Siemens, Barnes & Noble, 

Supply Chain Associates, Total Plastics, Xelocity Ltd, SRA International. • 6 Years implementing SCOR® best practices within DoD at operational levels.

(KC‐135, B‐52, A‐10, AFMC, PM CAS, CECOM LCMC)• Has project led 18 SCOR SCE Implementations within industry and DOD.

(Siemens Warranty Management, B16 Class IX Retrograde)• APICS Certified, L6S Master Black Belt, SCC Certified SCOR®/M, PBL Practitioner. • Chairperson for SCOR® SOURCE Technical Development Committee 1998‐1999.• Chartered the SCC SCOR® Lean Six Sigma Convergence Forum in 2003.• Two‐Time Winner of SCC Award for Operations Excellence (1998 and 2009).• Currently Life Cycle Management Technical Program Lead for SRA International.• International SCM experience in Haiti, China, Singapore, Germany, New Zealand)• Something Unique About Me....

Bob DaniellSenior PrincipalLifecycle Management Solutionsbob_daniell@sra.com732‐861‐1487

® Registered Copyright of the Supply Chain Council, Inc.

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SRA PROPRIERTARY

Give Us A CallBob DaniellSenior PrincipalLifecycle Management Solutionsbob_daniell@sra.com732‐861‐1487