Clothing & Textiles Update to AAFA COL Paul Diamonti, USA Director

Why We’re Here ……

Why We Need Your Support …

SALES: FY 01 - $1.2B FY 02 - $1.5B FY 03 - $2.1B FY 04 - $2.6B FY 05 - $2.5B INVENTORY: FY 01 - $1.2B FY 02 - $1.1B FY 03 - $1.0B FY 04 - $1.4B FY 05 - $1.4B PEOPLE: Customers – 14,000 Vendors – 220 Employees – 295 (+ 2 Europe, + 50 interns) MAGNITUDE: 3,600,000 orders per year -31,000 different items -$2,000,000,000 spent each year - FY$2.08B FY05 – The C&T Big Picture

Cost C&T – FY05 Budget Execution Cost (9/30/04)… $831.8M Month Only Cumulative Balance FY05 Net Cost.… $1,962.1M Net Cost……… $2,222.1M Cost……… $571.7M C&T sold off some of their backorders

Oct K 30 K Sep K 10 K Thousands BO Goal: 75.9K BO Goal: 75.9K BO > 180 Goal: 15.3K Oct M 800 M Sep M 450 M Backorders $$ Backorders > 180 Data Source: EIS Portal Oct 04 – Jan 05 backorders are from the R3 DORRA interface Backorders On Hand

Logistics Challenge OEF / OIF Demand is Erratic Average Monthly Demand Item Prior to OEF FY 04FY 05 Boots Hot Weather Desert5,00082,60036,674 Coat/Trousers Desert17,250160,000125,335 Boots Intermediate Cold Wet9,39224,0007,648 Hat Camouflage Desert7,00090,00019,253

Clothing & Textiles The BIG Picture OEF / OIF Top Sales Items

Currently Working –‘Chocolate Chip’ Desert Uniform Initial Requirement: 280K sets Coats/Trousers 242K sets delivered; shipping 40K sets/month thru Oct 2005 –50 other items Boots, Helmets, Cold Weather Items, Tents, Gloves, Duffel Bags, Berets, ECWCS Berets Delivered 172K ($1.7M) Flash removal – 25K/month Winter Aviator Gloves 164K order; RFI Item; Delivered 4K ($153K) Delivered 80K Trousers, 88K Parkas ($21.8M of ECWCS) Delivered 131K ($8.7M) Hot Weather Boots Totals to date: $136M ordered / $90M filled Delivered 38K ($1.3M) Poncho Liners Delivered 47K ($2.2M) Ponchos " I wanted to thank you for DLA’s assistance in helping advance the ball so substantially. DLA has been a key element in what we’ve been able to accomplish, and the progress in recent months had been particularly noteworthy. Purchasing stocks through DLA channels has consistently provided us with high quality items that are delivered on time and to the desired location. " - LTG David Petraeus, April 22, to VADM Lippert, Director, DLA Support to MNSTC-I

DSCP solution: Use an existing web-based program which currently supports 631,000 Guard/Reservists  Serves 360K Army National Guardsmen  ANG saving $10M / year Test Case: 7 Units deployed in Iraq Ran from Jun-Oct 2004 Very Successful – all orders filled complete 311 orders worth $36K Expansion on-going Afghanistan (16K soldiers) & Horn of Africa (100 soldiers); 78 units ordering 100% Fill Rate, CWT of days – Next Step Phase 2 expansion underway Sustainment vehicle; OCIE CONUS support 28 total items: Boots, Caps, Hats, Cold Weather Coats,BDU Coats/Trousers, Helmet Covers & more… 1. Deployed Soldier Needs Item 3. Places Order Via Army Knowledge On-Line 2. Accesses Internet 4. Order Received Stateside at DSCP site (KyLOC) 5. Items Picked; Patches / Insignia Sewn on 6. Order Ships Via US Postal System To Individual Soldier  CSA authorized a test of Internet ordering capability Additional Desert Patch awards allowing Guam Natl Guard unit in Horn of Africa to order/ receive. Prior sustainment was of void of approx 8 months. Army Direct Ordering (ADO) Web-Based Logistics

BSM Update

D/DD DSCP Army Recruit Cell Navy Recruit Cell USMC Recruit Cell AF Recruit Cell USCG Recruit Cell Army CIF Cell USMC, Navy, USCG OCIE Cell Recruit Customer Facing Division Clothing Sales Stores Cell National Guard & Reserves Cell AF IEE Cell Dress Clothing IPT Field Clothing IPT Organizational Clothing IPT Individual Equipment IPT Clothing & Textiles Customer Operations Directorate Director Paul C. Diamonti, Mil 0-6 Deputy Director Gary Shute, GS-15 OCIE Customer Facing Division Other Customer Facing Division Other C&T Customers Cell Operating Forces Support Team Other & FMS Support Team Installation Support Team Item Planning Division Customer Support Division See DSCP Customer Operations Directorate Left Side Clothing & Textiles Customer Operations

Gloves/Wet Weather IST D / DD DSCP Dress Uniforms IST Outerwear IST Dress Shirts/Headwear Footwear IST Battledress IST Accessories IST Chemical IST Product Services Branch Organizational Clothing Division ECWCS Individual Equipment Division Safety IST Individual Equipment IST Tentage & Shelters IST Heraldics IST Product Services Branch Non-NSN IST Coverall/Special Purpose IST Dress Clothing Division Field Clothing Division Supplier Support Div SMSG Clothing & Textiles Supplier Operations Directorate Director Dennis Dudek, GS-15 Deputy Director Sally DiDonato, GS-15 Right Side Clothing & Textiles Supplier Operations

Release 1.0 (Aug 2002) Included sampling of most of DLA business C&T was NOT included due to distribution methods Release 1.1 – Battledress Uniform (and Subs) Went live: 1 December 03 For C&T, 700 NSNs, $220M Release Flags & Insignia Went live: 1 Jan 05 Release Chemical Suits Went live: 1 Apr 05 Release Tents Went live: 1 Jul 05 What’s Next?  Nov 05 – Accessories The Future Business System Modernization What’s Left? Mar 06 – OCIE Jun 06 – Dress Clothing Aug 06 - Footwear

Dollars, and Sense…

Recruit CBU Plan Key Drivers $M As of Oct 7 ACU$395.5 Footwear$296.8 PT/PFU$95.7 Dress Clothing$61.7 Other$36.7 BDU/DCU$35.4 MCCU$28.7 Total$950.5

OCIE CBU Plan Key Drivers $M As of Oct 7 SAPI$175.2 MOLLE$97.0 OTV$78.8 ECWCS$71.9 ABDU/Coveralls$61.6 Others$56.8 Helmets$54.5 Carriers/Trunks$53.0 Mod Sleep Sys$46.0 Gloves$42.0 WW Gear$19.0 Mattresses$10.0 Safety Gear $7.2 Total$773.0

Readiness CBU Plan Key Drivers $M As of Oct 7 JSLIST$373.7 Tents$178.0 Other$6.7 66P Coveralls$6.6 Chem Gloves$1.0 Total$566.0

Professional Dedicated Workforce Professional Dedicated Industrial Base Collaborative Industrial Base Management Aggressive Supply Chain Execution – Tailored Logistical Support Focus on getting the Warfighter what they need, when they need it, wherever they need it Clothing & Textile What We Like to Leave You With …