1. U. S. Coast Guard Aircraft Repair and Supply Center

2. Our Mission We provide Air Stations with depot level maintenance, engineering, supply and information services to support Coast Guard missions.

3. “We keep ‘em flying” by providing: the Right Stuff at the Right Place at the Right Time at the Right Cost Every time. Our Vision

4. HH-65 XO HU-25 Safety HH-60 C-130 HC-144 CO Organization ALDISD IODPRDOPS EISD ISDEISDIODPRDOPS

5. Military: 159 –55 Officers –104 Enlisted Civilian: 552 –218 GS –334 WG Contractor: 700+ HS Apprentice: 32 Total: 1400+ Staffing

6. Budget

7. Facilities u Total: 14 buildings u 508,500 sq ft

8. 2 Production Hangars Facilities

9. Stripping Hangar Paint Hangar Facilities

10. 3 Acre Warehouse

11. Engine Shop Facilities Gear Box Shop

12. Facilities Machine Shop

13. Facilities Avionics Repair Facility

14. Depot Maintenance 23 - HH65/year 9 - HH60/year 4 - HU25/year 3 – C130/yr @ EC

15. Depot Maintenance Aircraft Modifications –HC130 DF-430, HSI Replacements, ASIP Inspections, Selex Radar, Wing Rewire –HH65 C Re-Engining –HU25 Avionics Upgrade –HH60 T Conversion, AUF, Avionics, Rewire

16. Depot Maintenance Component Repair –90 Jet Engines –400+ components (wheels, doors, actuators, servos, avionics, etc.)

17. Engineering Technical Center u Set Coast Guard aeronautical maintenance policy and direction u Define/refine/field ALL proposed aircraft changes

18. Engineering Technical Center 8000 publications & 450,000 technical drawings 2775 Pubs Owned By ARSC Web-Based

19. Aviation Inventory Control point $930M parts (ARSC warehouse and 26 air stations) 33,000 line items 5.5M parts Supply Services

20. IT Services Data Center Fully Deployed Contractor Sites DHS Prototype Sites

21. Current Initiatives u Lean Manufacturing u Unique Identification (UID) u C130 Organic PDM u USAF JDLM u Logistics Transformation Initiatives

22. World Class Quality ISO 9001:2000 Certification ISO 14001:2004 Certification Commandant’s Quality Awards 2 Silver and Gold 2006 White House CTC Env Award 2005/2006 CG Industrial Maintenance Innovation Awards

23. Performance Based Logistics Prior to PBL with Rockwell Collins u Equipment repaired via firm fixed price orders. u All Non-RFI physically flowed thru ICP – ARSC. u ICP would fund and issue an order and ship material to Rockwell repair center. u QDR/UR issued if quality was bad and unit was returned on no-cost delivery order. u Numerous repair orders and modifications increased the administrative burden on the government and the contractor. u Vendor essentially received more profit for more failures. u “Throw back over the fence” repair quality. u Inefficient shipping pathways. u Repairs were only done as necessary. u Test equipment was problematic, resulting in more questionable repair actions...$$.

24. Current PBL Process u Description of Scope u Mission Readiness Requirement Of 85% u Contractor Management of Customer Assets, including test equipment. u Guaranteed Reliability baseline with incentives (MTBUR not MTBF) u Provides onsite training to field users u Platforms Supported u All Rockwell Collins content on the HU-25 and HH-65 aircraft u Supports 74 different LRU’s u Supports 113 Aircraft at 25 CONUS locations u Availability to Support the Fleet u 85% Availability Guaranteed u 24 Hr OST (Order Ship Time) For Class 1 Requisitions u 5 Day OST for Class 2 Requisitions u Average Ship Times Reduced to less then 3 Days for all requisitions

25. Current PBL process, cont’d u One order placed against the contract @ the beginning of the year. u Failed boxes are shipped directly to and from the repair center at Rockwell Collins. u Rockwell must have access to CG inventory database. u QDR/UR are practically unnecessary and are “For Information Only”

26. Incentivized Performance Supply Metrics u Ability to fill CG requisition in a timely manner u Priority 02 within 24 hours u Priority 05 within 5 work days u Priority 12 within 15 work days u Ability to meet these requirements counts for two thirds of the total incentive $ u Vendor issues a monthly report on their own performance, which is then verified by the Coast Guard.

27. Incentivized Performance Quality Metrics u Ability to make repairs that last on-wing. u MTBUR as measured against a established baseline MTBUR. u Counts as one third of total incentive. u Rockwell issues a quarterly report on their own performance.

28. Then and Now ComparisonPastPastTodayToday Failure Response Operational Availability Reactive Proactive Inconsistent Zero Variability Rigid, Inflexible Agile, Reconfigurable, Customized Unresponsive, Unavailable Responsive, Customer-Centered Price Value

29. Advantages of PBL u The cost is contained (number of flight hours versus number of repairs). u The administrative costs of issuing numerous orders is eliminated. u More efficient shipping path from CG units to repair center. u Rockwell’s incentive for doing quick marginal repairs is eliminated and replaced with an incentive for doing improved repairs. u Rockwell manages assets in order to maximize availability. u Test equipment and training for covered assets is partnered with vendor.

30. PRODUCT LINE DRIVEN ORGANIZATION u Single belly button u Ownership u Teamwork u Synergy u Flexibility

31. CHALLENGES u Adequate, Qualified Staffing u Adequate Budgeting u Timely identification of requirements u Adequate definition of requirements and roles and responsibilities

32. QUESTIONS?