JHP Case Study Exercise 1 UNCLASSIFIED notional data for notional program

Purpose Apply Learning from the Workshop Prepare a Quad Chart for the Pre-RFP DAB Prepare Sustainment Should Cost Initiatives Ensure the DRAFT LCSP (for the DAB) is updated 2 UNCLASSIFIED notional data for notional program

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 3

Milestone A Quad Chart UNCLASSIFIED - notional data for notional program 4 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 4 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.

UNCLASSIFIED - notional data for notional program 5 Tracking O&S Costs through the DAB charts 5 UNCLASSIFIED notional data for notional program “Sand” Chart “Spruill” Chart “Quad” Chart Portfolio Data Data O&S Data DRAFT “O&S Spruill” Chart (DRAFT)

UNCLASSIFIED - notional data for notional program 6 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  Partnering for Depot  Leverage Existing Sustainment Structure  Organic (O & D)  Limited Field Service Rep (FSR) support Issues  O&S Cost versus O&S Cap Resolution  Monitor Closely BCA CDR IOT&E FSR Support Organic O Lvl CLA Metrics Data 6 Draft BCA Interim Supply Support BCA MTBCF MTBM MS A Sustainment Approach Date: Sept 20, 2014 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.

Proposed Initiatives to Assess UNCLASSIFIED - notional data for notional program 7 Shorten Period of ICS and FSRs? Combine School Houses? Leverage Existing Sustainment Structure Could the GFE SE be supported organically? – Would probably require a Performance Based Agreement to ensure the SE meets the contractor requirements Other?

Other Document Updates Update RFP – Include Contractor Option to pursue best value solutions via partnering with organic depots – What Else? Update SOW – Include corrosion requirements – What Else? UNCLASSIFIED notional data for notional program 8

QUESTIONS? UNCLASSIFIED - notional data for notional program 9