UNITED STATES TRANSPORTATION COMMAND Together we deliver 1

UNITED STATES TRANSPORTATION COMMAND Together, we deliver. 1

Agenda • Our Mission – Unified Command Plan Responsibilities – Distribution Process Owner – Global Distribution Synchronizer • Capabilities • Readiness Initiatives • Enterprise Readiness Center • Congressional Authorizations • Total Delivery Services (TDS) (formerly Worldwide Express and Domestic Express) • Defense Freight Transportation Services (DFTS) Together, we deliver. 2

Unified Command Plan (UCP) • Key doc for Do. D “Roles and Missions” Geographic Combatant Commands (6 x) • President uses UCP to: – Define general and specific responsibilities & missions – Assign force structure • Effective command control of U. S. forces, regardless of branch of service – 9 Combatant Commands • USTRANSCOM has 6 specified tasks, to include: – Distribution Process Owner (#4) – Global Distribution Operations (#5) Functional Combatant Commands (3 x) – US Special Operations Command – US Strategic Command – US Transportation Command Together, we deliver. 3

Distribution Process Owner (DPO) The Process Owner has the responsibility to: • Coordinate, sustain, and improve processes; • Coordinate creation of new processes, where appropriate; and be accountable for their outcomes • Advocate improvements for and across all DOD Components for effectiveness, efficiency, and alignment relevant to a particular process The Distribution Process Owner (DPO) will: • Coordinate and oversee the DOD distribution system to provide interoperability, synchronization, and alignment of DOD-wide, end-to-end distribution. • Develop and implement distribution process improvements that enhance the Defense Logistics and Global Supply Chain Management System What that means to USTRANSCOM: • JDDE Enterprise Governance (Forums) • Distribution Portfolio Management (DPf. M) • Acquisition Authority Expansion Together, we deliver. Synchronizing the Logistics System to Deliver the “Right Things” to the “Right Place” 4

Global Distribution Synchronizer BY: Campaign Plan for Global Distribution • Providing a framework for CCMD/Service/ Agency distribution plans THE GLOBAL DISTRIBUTION SYNCHRONIZER (GDS) WILL: • Assess the global distribution network • Identify and prioritize issues, determine risk • • • & recommend solutions Pursue solutions through existing Department forums Assess the strategic environment and effectiveness of the Campaign Plan-Global Distribution Provide annual distribution IPR to the Department with recommendations and ways to reduce risk IN ORDER TO: • Preserve and enhance an efficient and strategically flexible global distribution network Together, we deliver. Synchronizing Distribution Planning, Optimizing the Global 5

UNCLASSIFIED Campaign Plan for Global Distribution Year One Highlights: Munitions Distribution Port Infrastructure Aerial and Sea Port Damage Repair Decontamination Standards Cyber Together, we deliver. UNCLASSIFIED 6

Strategic Capabilities: • • • • Scheduled Airlift Services (Airport to Airport) Military or Commercial Charters (SAAM) Military Operated/Controlled Ocean Platforms Rail Movements (CONUS) 3 rd Party Logistics Contracts (CONUS) Motor Carrier Contracts (LTL/TL/Specialized) Small Package Express Contracts (O/CONUS) Heavy Airlift Contracts (Worldwide Service) Ocean Liner Contracts – Scheduled Routes Ocean Chartered Lift – When/where needed Multi-modal Service (Ocean/Air/Ground) Consolidation Services (partnered with DLA) Theater Express Specialty: • Outsize cargo to austere locations Together, we deliver. Leveraging USG Owned and Commercially Available Lift Current to Execute ERC as of 02 the MAY Mission 13 7

UNCLASSIFIED DTS Workload & Mission Readiness Customer Requirements Potential DTS Workload USTRANSCOM Actions Ø Improve efficiencies and reduce costs Ø Ensure DTS retains ability to provide agile and timely response for the full range of Do. D missions Ø Achieve enterprise-level readiness of the DTS at lowest overall cost to the Government Ø Improve collaboration across the entire enterprise What does “Readiness” mean to USTRANSCOM? Together, we deliver. Preserving Strategic Readiness Capability & Capacity 8

Enterprise Readiness Center Business Management Enhance DTS Capabilities, Identify Workload Opportunities and Develop Customer-Focused Solutions Intermodal Programs Ensure Viability of Commercial Air and Sea Lift Through Civil Reserve Air Fleet and Voluntary Intermodal Sealift Association Partnerships Schedules Price Policy “TRANSPORTATION PROVIDER OF CHOICE” Global Reach Flexibility Integrated Systems Together, we deliver. 9

UNCLASSIFIED Readiness Initiatives • Strategic Integrator Supporting Do. D Readiness • Identifying Workload Opportunities • Cost Efficiencies • Improving DTS Services • Better collaboration with DSCA, Service Implementing Agencies, Inter-Agency • Synchronization of Security Cooperation Priorities - Campaign Plan-Global Distribution - Strategic Engagement Plans Together, we deliver. Partnering with FMS Nations to Improve Readiness and Enhance 10

Congressional Authorizations Ø Expanded authority to Do. D to provide Do. D shipping rates to: • • Federal Agencies (Department of State, Transportation) State and Local Entities Foreign Military Sales Do. D Contractors (Coordinating/executing movement of Do. D materiel) Ø Not a blanket process • Agency requests Do. D support/pricing through normal channels • Must improve use of transportation capacity without impact on Do. D operations • Limits on annual transportation spend Ø Benefits • Maintains readiness on Do. D capabilities (Organic/Commercial lift platforms) • Fully utilizes available space within the Do. D network • Provides over/outside lift to non-traditional customers Together, we deliver. 11

Total Delivery Services (TDS) Contract Ø Multiple-award program comprised of 5 Indefinite Delivery, Indefinite Quantity (IDIQ) contracts Ø Integrates small package requirements into single contract to consolidate shipments and achieve economies of scale Ø Provides Both International & Domestic Commercial Express Package Services • International Segment – Mandatory for Do. D • Optional for Civilian Federal Agencies & Cost-reimbursable contractors • Domestic Segment – Mandatory for Do. D; Optional users (Do. D Contractors) Ø Provides time-definite, door-to-door pick-up and delivery Ø Intransit Visibility (ITV), Government Third Party Payment System (TPPS) participation, and customs clearance processing Together, we deliver. 12

Defense Freight Transportation Service Ø Follow on to the Defense Transportation Coordination Initiative (DTCI) • Incorporated lessons learned where applicable Ø Leverages Commercial 3 rd Party Logistics (3 PL) entity to: • • Integrate a robust Transportation Manage System (TMS) with Do. D systems Arrange, coordinate, monitor, and control North America freight shipments Manage carriers to meet performance requirements Provide In-Transit Visibility Capture/report shipment metrics from request to final disposition Identify and report process improvements to gain efficiencies/lower costs Mode neutral program based on customer’s demand signal Ø Prime Customers • Defense Logistics Agency (DLA) • Defense Contract Management Agency (DCMA) • On-ramps for Services or other Federal Agencies Ø Contract Award Date: Sep 15 Together, we deliver. 13

USTRANSCOM Key Take-Aways • Maintaining Strong Engagement with Industry • Surface / CRAF / VISA Executive Working Groups • Industry partners have a seat at the table • Preserving Readiness of a Global Distribution Network • Leveraging Our Collective Buying Power to Provide Best-value Transportation Solutions to Our Customers Providing full-spectrum mobility solutions and related enabling Together, we deliver. capabilities for supported customers’ requirements in peace and 14

Together, we deliver. 15

DISCUSSION Together, we deliver. 16

BACKUPS Together, we deliver. 17

UNCLASSIFIED Distribution Process Owner (DPO) Geographic Combatant Commands USTRANSCOM Component Commands SDDC USTRANSCOM provides full-spectrum global mobility solutions and related enabling capabilities for supported customers’ requirements in peace and war. UNCLASSIFIED MSC JTRU AMC Together, we deliver. JECC 18

UNCLASSIFIED Campaign Plan for Global Distribution (CP-GD 9033): • Is an iterative, process oriented plan with a future state vice an end state • Establishes a framework for CCMD/Service/Agency distribution plans • Provides an integrated means to synchronize global distribution • Identifies issues and assesses risks • Prioritizes issues and coordinates through the Distribution Community of Interest UNCLASSIFIED Together, we deliver. 19

UNCLASSIFIED CP-GD and En-Route Infrastructure Master Plan (ERIMP) A global distribution network that provides agile, scalable and resilient distribution from point of origin to point of employment to meet the needs dictated by the current and future operating environment. ERIMP Develop and maintain an en route infrastructure master plan, prioritized across the future years defense program which aligns GCC mobility requirements. Air Mobility Command En Route Strategy International and Acquisition and Cross Servicing Agreements DOD Enduring Location Master List GERISC Joint Staff J 4 Evaluate En route Infrastructure (Identify Issues) CP-GD • Collaborative • Visibility • Advocacy Issue Resolution Strategic Guidance Logistics Estimate GEF JSCP UCP Theater Campaign Plans Together, we deliver. UNCLASSIFIED 20

UNCLASSIFIED ERIMP: What It Is…and Isn’t ERIMP Objective “Define USTRANSCOM’s long-term global posture and access strategy necessary to operate globally, anywhere and anytime” Focused on Intermediate OCONUS Nodes “…supports refueling, maintenance, crew change/crew rest, or transload of cargo or passengers for onward movement to final destination. ” – 2014 ERIMP Requirement-Driven / Analysis-Supported Considers Defense Planning Guidance (GEF, JSCP), GCC plans (OPLANs, Theater Posture Plans), historical mission data, and ops/intel forecasts Forward Looking (5 to 15 Years) Anticipates future mobility events and USTRANSCOM requirements in each region Considers All 3 Elements of Global Posture: Forces, Footprint & Agreements 1) Enabling Capabilities; 2) En Route Locations/Infrastructure; Access/Transit/Protection Agreements 3) Together, we deliver. The ERIMP justifies and advocates for strategic access priorities 21

UNCLASSIFIED ERIMP: What It Is…and Isn’t ERIMP Objective “Define USTRANSCOM’s long-term global posture and access strategy necessary to operate globally, anywhere and anytime” Focused on Intermediate OCONUS Nodes Not CONUS locations, origins or final OCONUS destinations Requirement-Driven / Analysis-Supported Not all locations of GCC interest are needed or preferred by USTRANSCOM Forward Looking (5 to 15 Years) Not specific to Current Operations (e. g. NDN for OEF) Considers All 3 Elements of Global Posture: Forces, Footprint & Agreements Together, we deliver. The ERIMP justifies and advocates for strategic access priorities 22

FAR Based Contracts vs. Tenders Ø FAR based contract is the preferred instrument for acquiring supplies/services FAR BASED CONTRACTS TENDERS In compliance with LM&R policy (Do. DI 4500. 57) Yes No Maximize performance based & best value solutions Yes No Guaranteed minimum performance levels (metrics) Yes No Incentives to improve customer satisfaction Yes No Maximizes Government buying leverage Yes No Structured competitive process Yes No Employs best commercial practices Yes No Carries out spirit and intent of Federal Statues Yes No Compliance with Procurement Integrity Act Provisions Yes No Legal remedies more easily enforceable Yes No Together, we deliver. 23

DPO Strategic Opportunities (DSO) Chartered in March 2009 by the heads of organizations responsible for executing Do. D distribution Executive sponsorship critical for DSO success DSO represents the performance improvements attainable from aligning distribution processes across organizations Suppliers Transporter Customer COCOMS Identify high-level strategic opportunities that will dramatically advance the objective of making the DOD’s distribution process as “effective and efficient as possible” Together, we deliver. 24

“Readiness” Defined Means Ways Ends Doctrinal Definition: “The ability of military forces to fight and meet the demands of assigned missions” (Joint Publication 1 -02) • CRAF & VISA • Surge Capacity Organic • Universal Services • Component • Secure C 4 I Systems Contract (Multi-modal) • Working Capital Fund Commands • Global Freight Mgmt. • Global Enroute Access • Subordinate • Organic Airlift Fleet • Organic Sealift Fleet ENDSCommands • Maritime Administration Commercial • US Flag • Foreign Flag Ways Means USTRANSCOM further refines to: “The Capability and Capacity of military the Defense Transportation System, both commercial and organic, to satisfy the transportation requirements of the most demanding contingency scenario” Ends Global Force Mobility Provider Single Manager for Transportation Single Manager for Patient Movement Distribution Process Owner Global Distribution Synchronizer Together, we deliver. Standing Joint Task Force Headquarters 25