JHP Case Study Introduction 1 UNCLASSIFIED notional data for notional program

Purpose Create a notional program and PSM to foster critical thinking – Create a scenario for a ‘new but experienced’ PSM checking in but no previous PSM to ask questions… – Large/multi-Service program with Service-Unique depot planning – Create tension from a program approaching the Pre-Milestone B/Request For Proposal DAB New O&S costs estimates exceed the previous cost goal “Why have a Use Case?” – To foster the ‘mentoring’ mentality that should be taking place – Consider how to apply the speaker and panel presentations 2 UNCLASSIFIED notional data for notional program

Joint Helicopter Program Helicopter being replaced is the “HH-66” SAR – IOC in 1990 with an estimated operational life of 5,000 flight hours and now needed ‘soon’ Draft Capability Production Document – Requirements for sustainment Understand changes from the Capability Development Document Ensure LCSP is updated to reflect them – Impact? UNCLASSIFIED notional data for notional program 3

Joint Helicopter Program Acquisition Strategy – Competition and down selection Guide the Source Selection Criteria for sustainment – Intellectual Property – Other? Impact to CORE workload considerations – Non-Developmental Item approach Should mean less unique sustainment acquisition Opportunities to leverage existing capabilities Better cost data fidelity UNCLASSIFIED notional data for notional program 4

Joint Helicopter Program Request for Proposal (RFP) – Short Engineering and Manufacturing Development Phase Less time to develop unique sustainment (if required) Impact to Organic Depot Stand Up? – Includes Low Rate Initial Production Look ahead to supporting OT&E and first unit fielding Transition to Organic capability – Field Service Representatives » How Many? How Long? – Training Materiel Updates – Tech Data Updates UNCLASSIFIED notional data for notional program 5

Joint Helicopter Program Fleet of 400 operated by the Army, Navy, Marine Corps, and Air Force – Replaced System Sustainment Plan – More fuel efficient – More reliable Is it cheaper to operate than legacy helo? Why or Why Not? UNCLASSIFIED notional data for notional program 6

Joint Helicopter Program “Interim Contractor Support (ICS) until four years after the first Initial Operational Capability” – Is this necessary? NDI acquisition? – Leverage existing capability? “Includes all training systems” – Sustainment and throughput Good PBL/Partnering Candidate? UNCLASSIFIED notional data for notional program 7

Joint Helicopter Program LCSP – Support equipment is GFE and sustained by contractor Does this make sense? “Each Service would stand up organic government Depots” – Is this least-cost? – Other benefits? – When does throughout justify additional repair lines? Service-unique school houses to train the operators and maintainers – A Sustainment Business Case Analysis (BCA) should be performed to prove that this is the ideal strategy for the system UNCLASSIFIED notional data for notional program 8

Milestone A Quad Chart UNCLASSIFIED - notional data for notional program 9 LCSP Update Product Support Strategy Final Metric HH-60 Actual JHP Original Goal JHP Current Goal Current Estimate / Actual Materiel Availability 58.4%83% Materiel Reliability: 20.5 hrs 0.25 hrs >28.5 hrs >0.30 hrs >28.5 hrs >0.30 hrs >28.5 hrs >0.30 hrs Mean Down Time 26.0 hrs≤20.8 hrs O&S Cost (BY2013$M) $32.62M $30.58M Sustainment Schedule O&S Data (Annual BY2013$M) 1 MS B MS C IOC FRP FY12 FY14 FY16 FY18 FY20 FY22 Contract Award  Performance based strategy throughout life cycle  2-level Mx Concept (same as HH-66)  ICS then transfer to Organic (O & D)  Field Service Rep (FSR) support O-level Issues  None Resolution  None BCA CDR IOT&E FSR Support Organic O Lvl CLA Metrics Data 9 Draft BCA Interim Supply Support BCA MTBCF MTBM MS A Sustainment Approach Date: Feb 12, 2013 LCSP Final Draft Organic D Lvl LCSP Update Final Draft LCSP Update Final Draft Cost Element HH-66 Estimate BY2013$K/system/year JHP Estimate BY2013$K/system/year 1.0 Unit-Level Manpower$892.13$ Unit Operations$562.11$ Maintenance$2,415.00$1, Sustaining Support$21.25$ Cont. Sys Improvements$ Indirect Support$84.09$73.31 Total$4,078.08$3, Total O&S CostsHH-66JHP BY2013$M$32,624.66$27, TY$$37, Note 1: Quantity of 400 aircraft with a service life of 20 years each.

QUESTIONS? UNCLASSIFIED - notional data for notional program 10