1. 1 Army Update Presented by: Peggy W. Butler Program Manager Subcontracting and Mentor Protégé Program 43th TRIAD Annual Spring Meeting April 21, 2008

2. 2 Army Update National and Army Prime Contract Goals – FY08 National DoD Army Small Business 23.0% 22.4% 24.0% Small Disadvantaged Business 5.0% 5.8% 8.0% Women-Owned Small Business 5.0% 5.0% 3.5% HUBZone Small Business 3.0% 3.0% 3.0% Service-Disabled Veteran- Owned Small Business 3.0% 3.0% 1.2% Historically Black Colleges Univ/Minority Institutions (HBCU/MI) 5.0% 5.0% 12.0%

3. 3 Army Update National and Army Subcontracting Goals – FY08 National DoD Army Small Business 40.0% 37.2% 45.0% Small Disadvantaged Business 5.0% 5.0% 7.0% Women-Owned Small Business 5.0% 5.0% 7.5% HUBZone Small Business 3.0% 0% 3.0% Service-Disabled Veteran- Owned Small Business 3.0% 3.0% 1.0% Historically Black Colleges Univ/Minority Institutions (HBCU/MI) 5.0% 5.0%.0%

4. 4 Army Update Dollar Obligations FY07 FY08 2 nd Qtr 2 nd Qtr (31 Mar 07) (31 Mar 08) U.S. Business $46.2M $47.5M Small Business 18.9% 20.0% Small Disadvantaged Business 5.8% 6.3% 8(a) 2.9% 3.6% Women-Owned Small Business 2.5% 2.8% HUBZone Small Business 2.3% 2.9% Service-Disabled Veteran- Owned Small Business 0.6% 0.9% Veteran Owned Small Business 1.9% 2.1%

5. 5 Army Update Mentor Protégé Program * 36 Active Contracts * Two Proposal Rounds – 15 June 2008 and 15 August 2008. * Three 2008 Nunn Perry Awardees > Booz Allen Hamilton/US Falcon > Boeing Rotorcraft Div/Pacific Contours Aerospace > SAIC/Spec Pro Environmental Services * Additional funding anticipated. * Updates to MP policy at DFARS - Appendix I

6. 6 Army Update Army Regulation AR 25-1 “Army knowledge Management and Information Technology” revisions. * Conflict between utilization of ASCP enterprise contracts for IT purchases and FAR 19.502-2. > FAR 19.502.2 mandates purchases between $3K and $100K be set-aside for small businesses. > AR 25-1 revision - Replace exceeding $25K with $100K. Omit ASCP waiver process for actions less than $100K.

7. 7 Army Update Electronic Subcontracting Reporting System (ESRS) * Phased Implementation – 1 April 08 > Defense Security Cooperation Agency (DSCA) > Defense Finance & Accounting Service (DFAS) > Defense Contract Management Agency (DCMA) – Comprehensive Subcontracting Plan participants only. > Navy – limited commands > Army – Information Technology E-Commerce and Commercial Contracting Center (ITEC4-East) – Hoffman I Bldg., Contracting Center of Excellence (CCE)- Pentagon, Capitol District Contracting Center – Fort Belvoir.

8. 8 Army Update AFARS – Appendix DD “Subcontracting Plan Evaluation Guide” – document revision > Applicable to Commercial Subcontracting Plans > Inclusion of all Small Business categories > Compliant to FAR Part 19.704 regulations