Deliver the right solution on time every time

Deliver the right solution on time, every time Class II Clothing & Textiles WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 1

Deliver the right solution on time, every time Clothing & Textiles Mission Provide world-class integrated logistics solutions for clothing, individual equipment and textile items to Warfighters and Emergency Responders in peace and in war; around the clock and around the world. WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2

Deliver the right solution on time, every time Clothing & Textiles Organization Supply Chain Directors Customer Operations Plans & Integration Supplier Operations WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3

Deliver the right solution on time, every time Class II Clothing & Textiles Sales Customers & Items $Billions 2 Customers: Orders: 12, 800 4. 8 M annually Items: 57, 000 NIINs $1. 9 $1. 8 1 FY 16 Forecast $1. 828 B $1. 8 $1. 6 0 FY 11 FY 12 FY 13 FY 14 FY 15 The Big Picture 2 1 $Billions $1. 5 $1. 4 Employees (auth): $1. 2 $1. 1 $1. 2 Suppliers: 0 348 civilian + 6 military 383 FY 11 FY 12 FY 13 FY 14 FY 15 Inventory Personnel & Vendors WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4

Deliver the right solution on time, every time Clothing & Textiles Sales FY 15 Service Breakout Air Force 13% Navy 14% Army 48% Other 16% Marine Corps 9% Other: Coast Guard $ 11. 0 M . 7% FMS $ 78. 8 M 5. 1% Other Do. D Fed $126. 1 M 8. 1% Non Do. D Fed $ 28. 1 M 1. 8% WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5

Deliver the right solution on time, every time Class II Products & Services Ecclesiastical Items Body Armor Flight Suits Chem Suits Class A Uniforms Go-to-War Camouflage Tents WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6

Deliver the right solution on time, every time Clothing & Textiles… A Unique Supply Chain Sized items • Combat boot… 140 sizes • Airman Battle Uniform (ABU)… 155 sizes • Men’s Army dress coat… 65 sizes Focus on Customers • Agencies – Army – Navy – Air Force – Marine Corps – Coast Guard – ROTC Programs Focus on Industry • Domestic manufactures Army already fewest sizes of utility/combat Uniform… moving to a single camo pattern • Offices – AAFES, NEXCOM, MCEXC – Recruit Centers – Central Issue Facilities – National Guard / Reserves Military unique • Simple garments to complex protective clothing (combat helmet, chem suit) • Service driven requirements – Usually small business – Berry Amendment • Mandatory sources – National Institute of the Blind (NIB) – Source America – Federal Prison Industries (UNICOR) • Other business considerations – Women-owned – Veteran-owned – HUB zone • Characteristics – Driven to support the customer BLUF: Class II is a complex supply chain WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 7

Deliver the right solution on time, every time • Berry Amendment and the Domestic US Do. D must buy C&T items from domestic sources including all components and Industry Number of Workers (in Thousands) processes • In existence in some form since 1941 - permanent by Public Law 103 -139 in 1994 U. S. Apparel-Textile Employment - 1990 -2014 1000. 0 800. 0 600. 0 400. 0 200. 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Apparel Manufacturing Employment Levels Textile Mills Textile Product Mills Imports Square Meter Equivalents (SMEs) Source: Current Employment Statistics Survey, Bureau of Labor Statistics (BLS), U. S. Department of Labor U. S. Apparel-Textile Imports - 1990 -2014 30, 000, 000 25, 000, 000 20, 000, 000 15, 000, 000 10, 000, 000 5, 000, 000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Apparel Textiles Source - Office of Textiles and Apparel (OTEXA), U. S. Department of Commerce WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 8

Deliver the right solution on time, every time Support to the Small Business Industrial Base Clothing & Textiles • FY 15… $740 M total small business contract dollars – – HUBZone Small Business… Women-owned Small Business… Small Disadvantaged Business… Veteran-owned Small Business… $182 M $146 M $119 M $98 M • Small Business suppliers are a vital component of our domestic industrial base • In 2015, over 78% of Clothing & Textiles contract dollars were awarded to domestic small businesses • Many small business suppliers met the rapidly escalating demand during recent deployments/assistance operations WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 9

Deliver the right solution on time, every time Uniform Transition 2003 MCCUU • First unique design • Woodland Desert patterns • Permethrin added Apr 2007 2005 ACU • Mandatory wear date May 2008 • FR Version 2009 • Permethrin added 2010 2006 ABU 2007 NWU Type I • Rolled out 2007 2011 RABU • LW uniform introduced • CNO approved Feb 2006 2011 NWU Type II / III • Type II (desert) approved for Navy Special Warfare only • Type III (woodland) approved for Navy Deployers 2010 OEF-CP • Approved for Afghanistan 2014 OCP • Initial procurements started to outfit all Soldiers • To be issued to Military Clothing Stores starting 1 Jul 15 • To be issued to Recruit Training Centers starting 1 Jan 16 WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 10

Deliver the right solution on time, every time Active Utility Uniforms 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Army OEF Camouflage Pattern (OEF-CP)… Afghanistan only Army Operational Camouflage Pattern (OCP) Army Combat Uniform. . . Fire Resistant with Permethrin (UCP) Army Combat Uniform. . . Fire Resistant without Permethrin (UCP) Army Combat Uniform. . . Standard (UCP) Marine Corps. . . Desert (MCCUU) Marine Corps. . . Woodland (MCCUU) Navy. . . Desert Camo Uniform (phase out for all other Services) Navy. . . Woodland BDU (phase out for all other Services) Navy. . . Type I Blue Working Uniform (TFU) Navy. . . Type II Camo (Desert, in development) Navy. . . Type III Camo (Woodland, in development) Air Force. . . Airman Battle Uniform (Change being made to fabric) Coast Guard. . . Operational Duty Uniform WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 11

Deliver the right solution on time, every time JROTC Item Update Utility Jackets –Get Well Date Dec 2017 WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Deliver the right solution on time, every time Top Concerns • BB status vs BD status • Item/SIMI Notes • CRM Tickets • Materiel Receipt Acknowledgement (MRA) WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 13

Deliver the right solution on time, every time Clothing & Textiles What We Want to Leave You With • Collaboration with Services and industrial base • Professional, dedicated workforce • Aggressive supply chain execution Focused on providing warfighters what they need, when they need it, wherever they need it WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 14

DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE