1. DAU PANEL 17 April 2007 DAU PANEL 17 April 2007 MG(P) Jeff A. Sorenson Deputy for Acquisition & Systems Management Office of the Assistant Secretary of the Army (Acquisition, Logistics and Technology) 27 February 2007

2. Agenda “Big A – little a” of Acquisition Army Budget Status Industrial Base Rapid Acquisition Process Summary 2

3. CAPABILITY NEED ACQUIRE DEVELOP CONTRACT TEST PRODUCE FIELD a acquisition OPERATE/ SUSTAIN UPGRADE/ MODERNIZE FMS RETIRE DEMIL A ACQUISITION D O T L M P F ? RESOURCES Doctrine, Organizations, Training, Leader Development, Materiel, Personnel, Facilities “Big A – Little a” One Process – One Team 3

4. Army Base + GWOT Funding – FY03-09 ($B) Army FY03-08 Supp Funding = ~ $360B Army FY03-08 GWOT Growth = $58.8B * Note: FY 07/08 Supp requests pending ? 115.1159.5171.4134.2200.6213.4 * ActualsRequest Note: Figures do not include JIEDDO, ISFF, ASFF 6

5. Industrial Base – Family Tree Source: SDC, DACIS DM&A 1990 1988 1980198219841986199219941996199719981999 First Wave Second Wave 20002001200220032004 Fairchild Weston Systems Inc. Loral Honeywell-Electro-Optics Ford Aerospace BDM International Inc. Librascope IBM–Federal Systems Unisys Defense General Dynamics–Ft. Worth MEL Lockheed General Electric–Aerospace Martin Marietta LTV–Missile Business Gould Ocean System Division COMSAT Corp. Affiliated Computer Services Inc. (ACS) Loral BDM (Carlyle) Aerospace Electronic Systems Lockheed Martin Teledyne Ryan Aeronautical General Dynamics Space Business LTV–Aircraft Operations Grumman Corp. Ryan Aeronautical Kistler Aerospace Corp. Alvis Logistics–EDD Business Northrop Logicon Westinghouse El. Defense TASC (Primark) PRC (Black & Decker) General Instruments–Defense Varian–Solid State Devices Taratin Litton Industries Avandale Industries Newport News Shipbuilding TRW Commercial Aerostructures Northrop Grumman Northrop – West Virginia Federal Data Corp. Lockheed Martin Defense Sys, Armament Sys GM Defense Veridian Corp Primex Technologies Computing Devices International, Inc GTE Government Systems Corp. Units Motorola Integrated Info Sys Gulfstream Aerospace General Dynamics Lucent Advanced Technology Systems NASSCO Holdings, Inc. Galaxy Aerospace Bath Iron Works Chrysler Defense, Inc Santa Barbara General Dynamics Space Propulsions Space SystemsFort Worth Div. Electronics Division Missile Operations Rockwell Argo Systems Litton Precision Gear Hughes Electronics Satellite Boeing McDonnell Douglas Jeppesen Sanderson Boeing Hughes General Motors BET PLC's Rediffusion Simulation Magnavox REMCO SA STC PLC–Navigation Systems TRW-LSI Products Inc. Corporate Jets E-Systems Chrysler Techn. Airborne Texas Instr. El. Defense Raytheon General Dynamics Missile Division Eng & Const. Int’l Aircraft Integration Systems Segment Vertex Aerospace Hughes Electronics Raytheon Raytheon – Flight Simulation Raython Co-Plant, Quincy 7

6. Big DoD Contractors Dwarf Field Lockheed Martin Boeing Northrop Grumman General Dynamics Raytheon Halliburton Source: DoD Directorate for Information Operations and Reports Procurement Statistics 6 Companies receive 50% of payments to top 100 contractors For 2006 $0 $7 $14 $21 $28 $35 15913172125293337414549535761656973778185899397 2006 Direct DoD Contracts ($B) 8

7. Spiral Development Balancing Act 11

8. PBDs PDMs Auth. Act Approp. Act DoD Budget Data over 17 years serves as a heads up! Is this known occurrence factored into OSD and Joint Staff processes and planning? DoD Budget OMB President’s Budget to Congress ACAT 1 Programs - Cumulative Rebaselines by Month (Period over 1988-2005) ACAT 1 Programs - Cumulative Rebaselines by Month (Period over 1988-2005) 12

9. Current Process ONS AR2B DEVELOPMENT/ PROCUREMENT SAFETY RELEASE RELIABILITY FIELD OIF / OEF Accelerated Process DoD 5000 13

10. # of Approved Operation Needs Statements (ONS) 14

11. Way Ahead “Big A – little a” Acquisition Health of Industrial Base Critical to Success Rapid Acquisition – Team Sport! 19

12. Bottom Line Program Manager’s Ultimate Decision Tool: When All Factors Are About Equal, What Is Best For The Soldier? 20