Performance Based Logistics: Transformation Through Partnership

We provide cost-wise readiness and dominant maritime combat power to make a great Navy / Marine Corps team better. NAVAIR MISSION STATEMENT

IMPORTANCE OF NAVAIR DEPOTS NAVAIR Depots are Key to Readiness –Ready, Controlled Source of Depot Maintenance –Minimize Equipment Out-of-Service Time –Ensure Steady Flow of Engines and Components –In-service and Emergency Repair On-Site –Quick Response Manufacturing Capabilities –Depot’s Have Capability to Repair Over 18,075 Different Components We are there for the fleet when the fleet needs us.

Depot Enterprise Products & Services AIRCRAFT REWORK F/A-18 E-2, C-2 S-3 H-60 H-53 H-1 ENGINE REWORK ENGINE REWORK LM2500 COMPONENT REPAIR CATE INSTRUMENTS COMM / IFF NAV / ELEC RADAR CSD / ROTATING ELEC TECHNOLOGY COMPOSITE REPAIR BEARINGS CALIBRATION HYDRAULICS COMMON ATE AIRCRAFT REWORK P-3 EA-6B F-14 H-60 ENGINE REWORK ENGINE REWORK J52 F404 TF34 F414 COMPONENT REPAIR ELECTRO-OPTICS ASW SYSTEMS RACKS / LAUNCHERS AIR REFUELING STORES ELECTRONIC WARFARE TECHNOLOGY EO / EW ENVIRONMENTAL AIRCRAFT REWORK AV-8B H-46 H-53 H-1 ENGINE REWORK ENGINE REWORK T58 T76 T400 COMPONENT REPAIR DYNAMIC COMPONENTS ROTOR BLADES PROPS BLADES / VANES APU / GTC PNEUMATICS NON-AVIONICS SPT EQUIP TECHNOLOGY VERTICAL FLIGHT FCIM UAV / RPV COMPOSITE REPAIR F402 T64 J79 FIXED / ROTARY WING WEST COAST ROTARY WING / VSTOL FIXED / ROTARY WING EAST COAST Cherry Point Jacksonville North Island

NAVAIR Public-Private Partnerships Agreement between Public and Private Sector –Depot Provides Articles and/or Services to Industry –Industry Leases Depot Equipment and/or Facilities

Performance Based Logistics Partnership (PBL’s) Single Supplier: –Meets Material Needs –Manages Inventory, Storage and Transportation –Increases Product Availability and Reliability –Manages Obsolescence –Enable Cost-Wise Readiness General Business Approach: –The PBL MUST Provide the Fleet With Increased Reliability and/or Availability at the Same or a Reduced Cost.

PBL Advantages Cost-Wise Readiness Helps the Fleet Improve Component Availability Improve Reliability Reduce Fleet Costs

PBL Benefits to Depot Improved Material Availability Capitalize on Depot Artisan Strengths Clear Expectations for Partners Distributes Financial Risks

PBLs and NAVAIR Jax Currently Five PBL agreements –More on the Horizon, in Negotiation GE, Raytheon, Boeing, Rockwell Collins, Lockheed Martin Covered under Contract: – Depot Skills – Products – Facilities and Equipment – Indirect Support Functions

PBL CONTRACTS at NAVAIR JACKSONVILLE Boeing –F/A-18 Integrated Readiness Support Team General Electric Aircraft Engines (GEAE) –F-404 Engine Components Raytheon Company –AN/AAS-44 Forward Looking Infra-Red (FLIR)

Boeing and U.S. Navy F/A –18E/F Integrated Readiness Support Teaming First of Kind –Includes All Three Depots –Affects Entire Aircraft Platform Est. Total Contract Value: $770 million

Partnership Provides Depot Level Repair of F/A-18 E/F Unique Components Total Anticipated Revenue for NAVAIR Depot Jacksonville is $1.5M NAVAIR Jacksonville: –Currently Repairs F/A-18 E/F Gun Drive –Will Repair SUU-79/80 Wing Pylons and the Aircraft Radome Boeing-FIRST

FIRST Fleet Benefits Unites Innovation and Responsiveness of Industry with the Expertise and Capacity of NAVAIR Depot Jacksonville Teamwork Generates Significant Operating and Support Cost Avoidance

General Electric Aircraft Engines (GEAE) F404 Engine Component PBL Partnership Provides for Repair of F404 Engine Components Used to Power the FA-18 Hornet Five Year PBL Contract Total Contract Award Valued at Approximately $510M Anticipated Revenue for NAVAIR Jax: $165M Over Five Years

GEAE – F404 Engine Components Fleet Benefits –Increased Reliability Achieved by GEAE Performance Incentives –Increased Readiness Through Parts Availability –Allows Industry to Bring Flexibility and Innovation Into the Management of the Supply Chain –Reduction in Total Ownership Cost

GEAE – F404 Engine Components Defining Features –GEAE Provides Material, Program Management, Warehousing and Information Technology –Largest Dollar Revenue Generating PBL for NAVAIR Jacksonville

Raytheon AN/AAS-44 PBL Provides Depot Level Repair of AN/AAS- 44 Forward Looking Infra-red (FLIR) System Used on the SH-60B & the HH- 60H Helicopter –Ten Year PBL, 5-year Base With a 3- and 2-year Option –Total Contract Valued at Approximately $123m –Anticipated NAVAIR Jacksonville Revenue: $11.3M Over 10 Years

Raytheon AN/AAS-44 PBL Fleet Benefits –Increased Reliability –Increased Operational Availability –Reduction in Total Ownership Cost

Raytheon AN/AAS-44 PBL First PBL for NAVAIR Jacksonville to Establish New Workload Capability Investment by Raytheon in: –Depot Support Equipment –Artisan Training Integrated Processes to Achieve Lower Cost Solutions Through Lean & R6 Sigma

Keys to Smooth Implementation Preplan, Preplan, Preplan Ensure Partners Can Integrate Create Employee Buy-In Partners Must Have Common Goal –WARFIGHTER SUCCESS!

Contact Information: Director Industrial Business Operations Office (904) , ext. 104