1. An Urgent National Priority Re-capitalization of the U.S. Coast Guard

2. Ken Thompson: I think we decided we’d keep this as a bkground primer. Notes updated. Ken Thompson: I think we decided we’d keep this as a bkground primer. Notes updated. What Is Deepwater? Deepwater is the US Coast Guard’s sweeping acquisition program to replace all major ships and aircraft which perform all of the Coast Guard’s vital Deepwater missions …including Homeland Security Deepwater... “A National Priority”

3. 2005 Project Scope: 93 Cutters 206 Aircraft C4ISR Systems/Network Logistics Infrastructure Project Scope: 93 Cutters 206 Aircraft C4ISR Systems/Network Logistics Infrastructure 2002 1997 2008 2007 2005 2013 2004 Today’s Deepwater Assets Reaching the End of Useful Service Life

4. National Security Cutter Modern Design to meet all of the Coast Guard’s traditional deepwater Missions and Homeland Security Requirements. Enhanced C4ISR makes the NSC a Key Asset in the Maritime Domain. New Sensors and UAV’s to Find, Enhanced domain awareness to Interdict, Highly Capable LRI Boats / VUAVs and Helos to work together to Prosecute All Targets. 425’, 3900 Ton, 28+ Knots; CODAG, Dual Stern Launch; Mission Module Capability; Dual Helo / UAV Hangar Capability; Flexible Accommodations / Operating Crew substantially smaller than comparable legacy cutters, Significantly Improved Habitability. New Requirements: Chemical, Biological, and Radiological detection

5. 110' Island Cutter Service Life Extension The Service Life Extension Program will upgrade, physically renovate and double the service life. Achieves an improved asset within the legacy fleet. The renovation program is planned to minimize disruption of Coast Guard operations The Matagorda : First 110' being renovated to a 123'. Will leave Miami January 24, 2003 and arrive at Bollinger, Lockport LA on February 2, 2003. The renovation will be completed by mid November 2003. Details on the upgrade: Upgrade C4ISR capabilities Refurbish exterior, extend hull and renovate pilot house Improve habitability Extend length 13 feet, for improved handling at faster speeds  Install stern launch ramp - for faster and safer RHIB boat launch

6. Development Integration& Test Center (DITC) Facility DITC Facts - Ground breaking – December 11, 2002 1. 46,000 sq. ft 2. 16,000 sq ft dedicated to lab space 3. Expected to open in the Fall of 2003 4. The facility will test, develop and integrate all C4ISR solutions

7. The Integrated Coast Guard System business model is designed to ensure the Coast Guard has the latest, most cost effective, operationally capable system possible. Process to ensure best value throughout program execution Downselect decisions are deferred as long as practicable Prohibits guaranteed work share that inhibits system design (i.e. no Teaming Agreements) Mandates a system engineering framework that supports continuous competition for components Requires continuous evaluation and competition through a wide variety of methods/tools Market Surveys Trade Studies Industry Days RFI’s/RFPs’ Open Business Model Update

8. Industry Day October 2002 Registration Results Total Registrations613 Individual Companies 405 Several Promising Innovations identified Approx. 40+ new suppliers under detailed consideration Approx. 17 new suppliers referred to Lower Tier Subcontractors or Programs Web Page Results Post Industry 453 Open Business Model: Industry Day/ Web Results Interview Statistics Total251 Individual Companies181 Small Businesses102 International 25 WEB PAGE WWW.ICGSDEEPWATER.com

9. Coast Guard OPTEMPO Post 9/11 statistics on USCG OPTEMPO Recalled 2,700 Reservists Boarded and Inspected 10,000 + vessels Established “Sea Marshalls” with existing personnel Established and maintain 100 “No-Sail” security zones Established and maintain 96 hour pre-arrival notice Launched a Nationwide Port Security Assessment Program Plus Responded to 31,500 + Search and Rescues Saved 3,200 + lives Seized 111,903 LBS. of Cocaine and 37,024 LBS of Marijuana Assisted 39,000 People in Distress Maintaining the Highest Level of Port Security Since WWII

10. OPTEMPO Overall Results Coast Guard Ships and Aircraft useful life projections has been decreased due to 9/11 OPTEMPO Coast Guard’s overall missions have dramatically increased including pushed out our sea borders and protecting 300+ ports and numerous waterways Decommissioning of these critical assets will accelerate due to this new OPTEMPO The Pace of re-capitalization affects both Homeland Security and traditional missions and must continue at current project levels

11. Summary Deepwater embodies prudent Financial Stewardship through a system approach to re- capitalization of assets and mission readiness Contract is performance based for both maximum Operational Effectiveness at minimum Total Ownership Cost Increased OPTEMPO, Old Expensive Assets, and Lack of Modern Technologies Mandates Deepwater funding as …. ”A National Priority”

12. “ When it comes to securing our homeland, and helping people along the coast, the Coast Guard has got a vital and significant mission… We must make sure that our Coast Guard has got a modern fleet of vessels. We must make sure that port security is as strong as possible.” President George W. Bush The President Deepwater is the Answer