DLA Disposition Services Network Optimization Army September 19, 2017 FOR OFFICIAL USE ONLY

Project Overview Problem Statement: Mission Statement: Disposition Services does not have the right staffing at the right locations with the corresponding infrastructure to meet our customers operational requirements in the most efficient and cost effective manner. Mission Statement: DLA Disposition Services will complete a CONUS network optimization analysis and planning NLT 1 OCT 16 IOT determine the organizational structure to meet customer requirements while minimizing customer impact, time, cost and churn. The network optimization plan will execute on 1 OCT 16 and complete NLT 1 OCT 18. DLA Disposition Director’s Intent: Determine our customer requirements Determine the optimal organization structure to meet our customer requirements Establish our optimal organizational structural change through methodical sequencing with minimal impact to the customer, at the lowest cost, fastest time and least amount of churn FOR OFFICIAL USE ONLY

Network Optimization Analysis Future Disposition Current Disposition Optimization Process Historical Turn-Ins MODELING TOOL ANALYSIS ANALYSIS Labor Costs Supply Chain Guru Vetted/ Rationalized Networks Vetted/ Rationalized Networks Trans. Costs Optimized on: 1. Cost 2. Customer Distance Optimized on: 1. Cost 2. Customer Distance Data Cleansing Develop Baseline COA Alternatives Facility Costs The same volume can be processed for $41.4m by consolidating sites and realigning customers Historically, it costs $48.2m to process an average of 2.1m DTIDs annually from 25k customers Data Network selected by 4 main criteria: 1. Customer Distance 3. Risk 2. Workforce Impact 4. Cost Modeling Analysis The Network of Sites are being streamlined and processes standardized. Sites are not being closed, they are being realigned; personnel will be relocated to other sites … all to better support the customer. FOR OFFICIAL USE ONLY

75.4% of DTIDs processed at Hubs and Stand Alones Current Disposition Site Type # of Sites DTID %* Color Legend Hub 18 65.6% Stand Alone 11 9.8% Feeder 43 24.6% Remote Office 10 N/A DEMIL 3 LTS 1 75.4% of DTIDs processed at Hubs and Stand Alones FOR OFFICIAL USE ONLY

Detailed Changes Gen Support Site Capacity Gordon -7K McAlester 0 (DEMIL) Pine Bluff Site Reduction Polk - 14K Fairbanks Site Increase Hood +125K Anniston +40K Letterkenny +37K Sierra +85K Net Result +252K Note #1: Warner Robins will provide General Support to Fort Gordon. Note #2: The Field Offices support the lower end of the high volume average turn-in range and are close enough to FA/FS to direct-ship property. Note #3: Capacity increases were only depicted by the red or green circles if it was significant enough to change from FS/FA to FO or FO to FS/FA. The more subtle capacity changes that didn’t amount to site category change are not depicted. Note #4: Customer % within 100 miles is the total number of DoDAACs (865) within the one-hundred mile proximity circles that cumulatively average a combined 1k High Volume = average of 1K or more DTIDs per month 24 High Volume Regions Customer% Within 100 Miles Field Activity Large 4 309 36% Field Activity Medium 5 266 31% Field Site 187 21% Field Office 19 103 12% 95.9% of DTIDs processed at Field Activities 250K Capacity Increase (DTID) 100% of High Volume Army Customers are within 100 miles of a Field Activity or Field Site FOR OFFICIAL USE ONLY

Site Definitions Field Activity or Field Site is a full service Disposition Service site that has the facilities, equipment, and personnel to receive and process usable and scrap property. These sites provide Reutilization, Transfer, Donation, Sales, and Hazardous Waste disposal support. Mobile Disposition Service Representatives (DSRs) are also available to provide training on; receipt-in-place, scheduling turn-ins, transportation support, etc. Field Office is staffed with between one and four personnel whose primary mission is to help facilitate the direct-shipment of usable property to a designated Field Activity or Field Site directly from the customer’s location. There will be no change to current Environmental and Receipt-In-Place support. A Field Office may or may not operate a scrap yard, this decision is based on volume. A Disposition Service Representative (DSR) is at each Field Office and will provide training on; receipt-in-place, scheduling turn-ins at the appropriate designated site, transportation support, etc. General Support locations have a designated Field Activity/Site/Office representative for information and customer support. Frequency and volume of property turn-ins may dictate support via TDY personnel on an intermittent basis. All property will be turned in, or picked up from the customer's location, i.e., SSA, LRS, SMU, Port, etc., and shipped to designated Field Activity/Site based on the turn-in maps. Cross-Docs are being eliminated due to the fact they don’t meet Process Excellence/Audit Readiness mandates. FOR OFFICIAL USE ONLY

Transportation Standard Transportation Options: Customers located within 60 miles of a Field Activity or Field Site are responsible for taking their property to the site via their own conveyance or ship their property to the site using their unit-funded Transportation Account Code (TAC). Customers 61 miles or greater from a their designated Field Activity or Site have the option of taking their property to their designated turn-in location or use Disposition Services’ Scheduler https://vsm.distribution.dla.mil/Scheduler/ to arrange for property pick-up at your location at DLA’s expense. NOTE: Although a full truck load (24 pallets) is encouraged before ordering a truck, on a case-by-case basis a less than truck load can be scheduled for those customers who have low volume turn ins. Customers will be responsible to ensure property is packaged for safe transport i.e., triwalls, shrink-wrap, banded, palletized, etc. *Calculations for distance requirements will be an automated process conducted through use of the Defense Table of Official Distances (DTOD) program. Mileage will be calculated from the Generating Activity pick-up location to the designated DLA Disposition Services Field Activity. FOR OFFICIAL USE ONLY

Site Sequencing IIA IIB IIC IID FOR OFFICIAL USE ONLY Start Aug 17/End Oct 17 Start Jan 18/End Mar 18 X-Sites Bragg Columbus Columbus LTS Hill Jacksonville Barstow Colorado Springs Y-Sites Crane Stewart Holloman Knox Wright Patterson Y-Sites Blue Grass Charleston Great Falls Ellsworth Puerto Rico Cape Canaveral Dyess Minot Kirtland Jackson IIA Start Jan 18/End Mar 18 Start Apr 18/End Jun 18 X-Sites Red River Lewis Warner Robins Meade Lejeune San Antonio Anchorage Y-Sites Oklahoma City Polk Benning Campbell Cherry Point Corpus Christi Y-Sites Fairbanks Bremerton Quantico Huntsville Albany Little Rock IIB 29 Palms Travis Gordon Pine Bluff Pt Hueneme Selfridge Yuma Fairchild McConnell Sheppard Tooele Cannon Mt. Home Nellis Z-Sites Start Jul 17/End in FY 19+ Start Apr 18/End Jun 18 Begin Jul 18/End Sep 18 X-Sites Susquehanna Eglin San Joaquin Riley Tucson CDD Tucson Pendleton Letterkenny Y-Sites Drum Groton Tobyhanna Aberdeen Vandenberg Bliss Y-Sites Sparta Portsmouth-Pease Watervliet Dix Rucker Great Lakes Keesler Snelling Offutt Whiteman Rock Island Scott IIC Begin Jul 18/End in FY 19 LEGEND: LTS Demil Field Activity Large Field Activity Medium Field Site Field Office with Scrap Yard Field Office without Scrap Yard General Support Office X-Sites Norfolk Sierra Hood Richmond Anniston CDD Anniston San Diego Y-Sites St. Julien’s Creek Z-Sites McAlester* IID FOR OFFICIAL USE ONLY

Additional Information and Training Disposition Services Website http://www.dla.mil/DispositionServices/networkoptimization/ FAQs http://www.dla.mil/DispositionServices/networkoptimization/ Director’s memo http://www.dla.mil/DispositionServices/networkoptimization/ Digital DSR web-based training http://www.dla.mil/DDSR/ Scheduling a pick-up https://vsm.distribution.dla.mil/Scheduler/ Finding your site http://www.dla.mil/DDSR/ Finding your Disposition Services Representative/DSR http://www.dla.mil/DDSR/ Service Level Briefs http://www.dla.mil/DispositionServices/networkoptimization/ Provide feedback http://ice.disa.mil/index.cfm?fa=card&s=683&sp=128709&dep=*DoD FOR OFFICIAL USE ONLY

End State DLA Disposition Services will provide a CONUS network that will; Maximize resiliency in our workforce at our facilities. Provide the lowest risk to the network as a whole. Sustain our current high level of customer support. Questions Please email us at dladispsvcsnetopscustomerquestions@dla.mil if you would like additional information or have any remaining questions. FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY