Burke-Macgregor Group LLC Change is Imminent Key Point: Bill Gates, the founder of Microsoft, noted that when waves of change appear, “You can duck under the wave, stand fast against the wave or, better yet, surf the wave.” Capstone Concept for Joint Operations Wargame, Andrews AFB 7 May 2012 Executive Summary (EXSUM): “Situations generally required combinations of capabilities from across the joint force organized into mission packages under functional command structures rather than according to strict regional boundaries. A proposed template for joint mission packages included the following essential building blocks: Mission Command, ISR, Sustainment, Maneuver and Strike, each requiring differing capabilities from the various services.” As industry strives for market advantage, the ISR-Strike-Maneuver-Sustainment Complex framework can guide investment planning over the next decade to capture market share.

Burke-Macgregor Group LLC MNVR 15% ISR – STRIKE 60% SUST 25% Army Navy - Marine Air Force Old WW II/Cold War Industrial Age Paradigm Post-Industrial Information Age Paradigm Strategic Assumptions New Operational Concept New Force Missions New Force Design & Capabilities New Force Development / Management / Employment Paradigm What do the trend lines mean for 21 st Century Defense Establishments? Critical Tasks for the U.S. Defense Establishment and its new leadership: Align defense investments with evolutionary trends in technology, organization and command structures; Align defense commitments and missions with a changed strategic environment; and Optimize today’s forces within the trend lines to guide strategic investment over time.

Burke-Macgregor Group LLC Old WW II/Cold War Industrial Age Paradigm Post-Industrial Information Age Paradigm Old paradigm inefficiencies and duplications reduce operational impact and perpetuate unsustainable “cost exchange ratios” with our adversaries Optimizing “capability at cost” in new paradigm dramatically increases operational impact of each dollar spent – maintaining /increasing security at reduced spending levels. Paradigm Shift Signals Greater Operational ROI Operational Impact Relative sizes indicate Return on Investment $1 Investment yields $0.78 Result$0.82 Investment yields $1.19 Result

Burke-Macgregor Group LLC ISR-Strike-Maneuver-Sustainment Complex Build an ISR-Strike-Maneuver-Sustainment Complex inside the regional unified commands to integrate U.S. Defense capabilities at the operational level to detect, deter, disrupt, neutralize or destroy opposing forces decisively. Employ the ISR-Strike-Maneuver-Sustainment Complex as a baseline to optimize U.S. Armed Forces to: (1) More effectively and efficiently execute expeditionary operations; and, (2) Shape future force development. Apply the ISR-Strike-Maneuver-Sustainment framework as a methodology for incorporation into U.S. Defense investment planning and programming cycle to enable informed choices as constrained budgets compel force optimization. The Central Idea: Cross-domain synergy. The complementary vice merely additive employment of capabilities in different domains such that each enhances the effectiveness and compensates for the vulnerabilities of the others… JOINT OPERATIONAL ACCESS CONCEPT (JOAC) VERSION January 2012

Burke-Macgregor Group LLC A New Business Model for the Paradigm Shift Critical Path: Pilot the ISR-Strike-Maneuver-Sustainment operational framework: o Team with customer to share in the discovery of new capabilities that maximize operational capability at cost. The critical path points to these outcomes: o Full spectrum DOTMLPF,P rapid prototyping to demonstrate prioritization of good enough over “unobtanium”; o Customer arbitrates trades among requirements, technology, cost and risk; o Get into production sooner - where manufacturing optimizations and vendor management allow greater margins; and o Efficiently field (time and cost) new capabilities that reduce total ownership and manpower, freeing up resources for further recapitalization.