1. Propellants & Explosives Sector Issues and Concerns February 3 rd, 2009 2009 Munitions Executive Summit - ICAP

2. Industry Concerns & Issues  Has the “Death Spiral” for the Industrial Base started?????  Modernization Strategic Planning  Compliance Issues  Realignment of AMC Special Installations Under the Installation Management Command (IMCOM)

3. Has the “Death Spiral” started????? Issues Realignment of the GWOT strategies for Iraq, Afghanistan, Iran, North Korea, etc. New Administration defense strategies and their impact on funding for ammunition –Reset –Stockpiling –Facility Costs Economic downturn and its impact on the Industrial Base –Where is our “bailout”??? Minimum/Economic Sustaining Rates for the Industrial Base –Base loading concerns –Industry Participation in the M/E Sustaining Rate process –R&D Mission in a declining market space

4. Modernization Strategic Planning Health of the Industrial Base to meet its mission –What are we doing to ensure retention of capabilities & capacities –Who pays to retain critical skills & infrastructure –Single Point failure concerns; reliance on foreign suppliers for critical supplies Risk Management –Consolidated risk management plan for the IB Funding prioritization

5. Compliance Issues  Environmental - ISO 14001 Mandate (2009) - Voluntary Protection Program Compliance (OSHA) for GOGOs  Safety - ISO 18001 Compliance/Registration  Security - Funding to correct Audit/Inspection Findings  Insensitive Munitions  PL 806

6. Realignment of AMC Special Installations Under Installation Management Command (IMCOM)  20 Installations - GOGO (Blue Grass, McAlester, Pine Bluff Arsenal, Tooele AD) - GOCO (Hawthorne AD, Holston AAP, Iowa AAP, Milan AAP, Radford AAP, Scranton AAP) - Other (ANAD, RRAD, SIAD (TACOM), LEAD (MICOM))  Timeline - Phase I – Study (Jan 09 – Apr 09) - Phase II – Mission Analysis/OPORD (Apr 09 – Jun 09) - Phase III – Execution (FY10 – FY14)  Realignment Issues - Mission definition - Funding - Facility Operations vs Production - Modernization responsibility, coordination, funding  Industry involvement in this process???