Extending the Enterprise… Defense Logistics Agency LTG Robert T. Dail Director Defense Logistics Agency Warfighter Support Stewardship Growth & Development Leadership

2 Industry Partners Government Partners America’s Logistics Combat Support Agency Warfighter Support Stewardship Growth & Development Leadership Combatant Commanders Services Industrial Commands Operating Forces Global Mission 8 DOD Supply Chains 21,000 People Global Mission 8 DOD Supply Chains 21,000 People Historic Levels of Execution $35B Goods & Services OEF/OIF Disaster Relief Support Historic Levels of Execution $35B Goods & Services OEF/OIF Disaster Relief Support Flexible World Wide Presence Deployable Distribution Contingency Support Teams Flexible World Wide Presence Deployable Distribution Contingency Support Teams Historic Levels of Execution $35B Goods & Services OEF/OIF Disaster Relief Support BRAC 2005 Flexible World Wide Presence Deployable Distribution Contingency Support Teams 28 Countries Global Mission 8 DOD Supply Chains 21,000 People

DLA…Full Spectrum Supply Chain Support! Distribution Defense Distribution Center (DDC)  26 Distribution Depots Stockpile Defense National Stockpile Center (DNSC) 48 States 28 Countries A GLOBAL MISSION Reutilization & Disposal Defense Reutilization & Marketing Service (DRMS) DLA Services Document Automation & Production Services (DAPS) Defense Logistics Information Service (DLIS) Defense Automatic Addressing System Center (DAASC) Theater Support DLA Europe DLA Pacific DLA Central Demand & Supply Chains Subsistence Fuel/Energy Land Systems Maritime Systems Connected with our Customers Aviation Systems Medical Clothing & Textile Construction & Equip

Transformation & Growth… Transformation & Growth… 2007 – National Inventory Management Strategy (NIMS) 2007 – Post BRAC & Beyond 2005 – Base Realignment & Closure 2003 – Distribution Process Owner Created 2002 – Business Systems Modernization Deployed 1997 – Prime Vendor Implemented 1992 – Distribution Command Consolidation Completed 1990 – Supply Chain Consolidation 1988 – GSA Transfers Strategic Stockpile 1977 – DSA renamed Defense Logistics Agency 1962 – Defense Supply Agency Begins Operations 1961 – LTG McNamara Appointed Head of New Common Supply Agency Strengthening Supply Chain Excellence Changing Warfighting & Strategic Environment Managing Supplies Managing Suppliers TODAY ADAPTABLE & AGILE Linking Supply & Demand

Defense Logistics Agency CORPORATE STAFF DES Enterprise Support J-1 Human Resources DLA Pacific DLA Europe DLA Central Document Automation & Production Service Def Logistics Info Service Defense National Stockpile COMMANDERS & DIRECTORS SERVICE ACTIVITIES Senior Enlisted Advisor CSM David Roman United States Army J-3/4 Logistics Ops & Readiness J-5 Enterprise Transformation J-6 Information Ops J-7 Acquisition Management J-8 Financial Ops J-9 Reserve Forces Special Staff Director Lieutenant General Robert T. Dail United States Army Vice Director Major General Arthur B. Morrill III United States Air Force Defense Supply Center Richmond Defense Supply Center Philadelphia Defense Distribution Center Defense Energy Support Center Defense Reutilization & Marketing Service Defense Supply Center Columbus

CORPORATE STAFF DES Enterprise Support J-1 Human Resources DLA Pacific DLA Europe DLA Central Document Automation & Production Service Def Logistics Info Service Defense National Stockpile COMMANDERS & DIRECTORS SERVICE ACTIVITIES Defense Supply Center Philadelphia Defense Distribution Center Defense Supply Center Richmond Defense Supply Center Columbus Senior Enlisted Advisor CSM David Roman United States Army J-3/4 Logistics Ops & Readiness 20 Feb ‘07 Defense Energy Support Center Defense Reutilization & Marketing Service J-5 Enterprise Transformation J-6 Information Ops J-7 Acquisition Management J-8 Financial Ops J-9 Reserve Forces Special Staff J-3/4 Logistics Ops & Readiness J-7 Acquisition Management Two organizational changes… …to highlight DLA’s core competencies This is Where We’re Focused Today Organized for Supply Chain & Acquisition Excellence Director Lieutenant General Robert T. Dail United States Army Vice Director Major General Arthur B. Morrill III United States Air Force

Managing Suppliers FORSCOMACCMARFORCOMCFFC Industrial Operations S u p p l i e r s Operational Forces AMCAFMCNAVSEAMARCORLOGCOM Richmond Columbus New Cumberland Battle Creek Philadelphia Energy HQ: Alexandria DLA Business Units Agency Focus & Optimization Here COCOM SERVICE COMPONENTS

PEO’s Suppliers Supply, Storage, Distribution Procurement, DLR Air Log Center Depot Shipyard Depot COCOM Support Teams Deployable Distr. Center Forward Distribution Points Central Issue Strategic Contracting & Sourcing EXPEDITIONARY Linking Supply & Demand PeopleSystems Processes MAINTENANCE Production Management Maintenance Operations Readiness Service Materiel Commands Passengers Deployments Freight TRANSPORTATION DLA Prime Vendor(s) Procurement Fuel DRMS Central Issue Distribution Points USTRANSCOM Industrial Operations Naval Depot BRAC Operational Forces National Inventory Mgt Weapon Systems Focus! Organized Around the Warfighters INSTALLATIONS Moving capability to point of use SUPPLY, STORAGE & DISTRIBUTION

DLA Business Model Connected To Warfighter Demand Single Point of Accountability Standard Processes & Systems Customized Solution Low Cost - Value COCOM’S DLA Enterprise Enterprise PBL Delivery JRIMM USTC DLA Commands VENDORS Stock Prime Vendor DAASC EBS DLIS DLA Forward BRAC Cost Reductions Rates IGC Service Partners DPO

FY 08 Joint Enterprise Priorities 1.Warfighter Support…CENTCOM 2.Base Realignment & Closure (BRAC) 2005 Implementation 3.Joint Regional Inventory & Materiel Management (JRIMM) 4.Defense Transportation Coordination Initiative (DTCI) 5.Integrated Data Environment / Global Transportation Network (IDE/GTN) Convergence (IGC)

OPERATIONAL CAMPAIGN PLAN Staff Support Human Resource Development Fused Ops Center Communications Strategy – Brand Management Business / Acquisition Model – Contract Synchronizations EBS Sustain/Development – GTN-IDE (IGC) – RAPID Cost Reduction – Spend Analysis USTC/DLA TRANS Decision FISCAL YEARS * 01 OCT ‘07 * * 01 OCT ‘08 * VPV Uniforms  FT Jackson - DSCP Privatization  Tires  PKGD POL  Industrial Gases - DSCR/J-7  AOR Contract – DRMS  Battle Creek DDC/DRMS Pilot  Battle Creek  Find ~ $500M in Cost Reductions for PBR AF Fuel Sites  DESC BRAC Warner-Robins ALC  DSCR BRAC DLR Procurement Mgt  DSCR/J-7 – May ‘08 VPV – Expansion  DSCP  HQ’s Reorg ~ $110M Reduction  DDC BRAC Albany  DSCC BRAC Puget  DSCC NIMS DOD Joint Log DPO/Supply Chain Mgr Extending the Enterprise: Link Supply & Demand GWOT SUPPORT/READINESS  CENTCOM Theater Consolidation, DDC, New Cumberland  DTCI,  JRIMM

Extending the Enterprise Around the Globe… …Linking Supply & Demand