ISO 9001 Registered ISO 14001 Registered OHSAS 18001 Registered

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COLONEL CHERI PROVANCHA, DEPOT COMMANDER

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MISSION STATEMENT Deliver superior maintenance, manufacturing, logistics, life cycle support and service worldwide to the Joint Warfighter and our Allies.

VISION LEAD is the depot of choice for Industry, Government, and the Greatest Warfighters in the world. Keys to success:

• Cost-deliver goods and services to supported agencies at the lowest cost possible • Quality-deliver goods and services to supported agencies IAW quality parameters established by contract and specifications • Schedule-deliver goods and services to supported agencies on or before required delivery date • People-develop personnel to ensure: Personnel growth, motivation and cost/quality/schedule • Growth-grow the business

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THE INDUSTRIAL COMPLEX Leased Space 409,444 sq. ft.

Bldg. 350

Bldg. 320

318K sq. ft.

66K sq. ft. Bldg. 370 296K sq. ft.

18,668 Acres

3.6 million labor hours

$175 million Specialized Equipment

Approx 1.3 million Sq ft shop floor $1.54 billion infrastructure

1711 Government employees. 1163 Contract/Mil. 866 Tenants and contractors = 3740 3

DEPOT POPULATION Directorate Command Group Maintenance TRMD Product Assurance Supply-Transportation Public Works Information Management Resource Management Risk Management PFI Soldiers Depot Total Authorized 16 Tenants

O/B Military 2 0 0 0 0 0 0 0 1 81 84 2

O/B Civilian 59 1052 97 96 67 186 51 28 75 0 1711 1588

O/B Contractors 3 932 31 2 63 45 3 0 0 0 1079 205

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704

162

Depot Proper Total = 2874

46% less than 5 years federal service

6% Minority

43% Veteran

8% Disabled Veterans

14% more than 30 years federal service

17% Women Average age of workforce is down from 47.5 to 45.6

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WHERE WE ARE

Germany LEAD, PA

Istanbul, Turkey Taji, Iraq Kuwait/ Qatar

Bagram, Afghanistan Okinawa, Japan

Kuwait RCV

Ft Buchanan, Puerto Rico

Korea

Schofield Barracks, HI Wheeler Army Airfield, HI Currently CY09

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A CAPABILITIES BASED DEPOT • Metal Pretreatment, Plating & Painting • Sheet Metal Fabrication Capabilities • Missile Maintenance • Generator Overhaul • Wire Harness Fabrication • Motor Rebuilding Aviation & Missile Command PATRIOT

ATACMs

MLRS

HAWK FMS

TOW

Armor Projects

Special Operations Command Air Force

Army SF

Avenger

• Electronic System Integration • Machine shop • Circuit Card Repair • Hydraulics • Diagnostic Testing • Automotive Recap

Army SF Navy Navy SEALS SEALS Armor Door

Marine Corps

Hellfire

M939 Cabs

Army Ranger Secondary Item Repair

Ranger Ambulance

Ranger

Mine Roller

War Pig

Buffalo

BAE/LEAD Rhino Kits

AGPU

TACOM Life Cycle Mgt Command Force Provider

Joint PEO-Chemical Biological Defense

MKT

HMMWV Recap

Communication Electronics Command 6

Forklifts

Cranes

MMPV

JBPDS Trailer BIDS M31A2

ESV

Generators

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The Premier DOD Center of Industrial & Technical Excellence for

Air Defense & Tactical Missile Ground Support Equipment and

Mobile Electric Power Generation Equipment Named Depot Source of Repair for Route Clearance Vehicles

Cougar

RG31

CITE Initiatives 1. Patriot Missile Recertification from Red River to Letterkenny 2. Route Clearance Vehicle (RCV) 3. UAS Ground Support 4. Material Handling Equipment (MHE)

Buffalo

JerrV

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Husky MKII

LETTERKENNY ARMY DEPOT WORKLOAD Direct Labor Hours

FY11 Executable Workload is 3,253,550 as of 28 Feb 2011

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LETTERKENNY ARMY DEPOT WORKLOAD ($ in Millions)

FY11 Executable Workload is $1,056M as of 28 Feb 2011

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PARTNERSHIPS M/Hrs 400,000 350,000

FY11 Projection = 11.6% in Partnerships 5 year Goal = 20%

300,000 250,000 200,000

150,000 100,000 50,000

0 2004

Lockheed Martin TADS/PNVS HIMARS components Wind Corrected Munitions

2005

2006

2007

2008

BAE Systems Deep Digger testing RG33x4 Modifications/Rework RG33x6 Final Assembly MRAP Plus RG33 x6 Final Assembly MMPV Complete Assembly

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2010

2011 Projection

AAI Corporation Shadow 200 TUAS Support Equipment GCS Shelter Modification Lockheed Martin/Raytheon JAVELIN Hardware Repair Program

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LEAD & RAYTHEON PARTNERSHIP •

Objective: Establish Letterkenny Army Depot (LEAD) as a viable source

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for potential Patriot capacity constraints based on projected U.S. and FMS workload Approach: Establish a Public Private Partnership pilot project in 2008 – Additional increase to LEAD work share based on pilot program performance

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Status: – 83 cable and electrical assembly part numbers identified for pilot from current Pure Fleet contract – Draft SOW and Terms & Conditions provided to LEAD – Signed agreement in September 2008

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Future: – Foreign Military Sales – Additional domestic and international Pure Fleet cables and electronic assemblies – Cables and electronic assemblies for UAE and other intern’l new build – Launcher build for UAE and other international new build – Missile assembly – Other opportunities

Partnering for Future Success

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BAE/LEAD PARTNERSHIP SOCOM RG33 MRAP (4 wheel) –259 units • Completed engineering design changes and added additional components.

RG33 MRAP (6 wheel) –111 units • Completed final assembly of most interior and exterior parts. Present & sell to the government.

MRAP + (6 wheel) - 183 units • Completed final assembly of most interior and exterior parts. Present & sell to the government.

MMPV Prophets Variant (6 Wheel) –18 units • Completed build of vehicle from the armor shell, including the engine, power train & final assembly. Present & sell to the government.

SOCOM RG33 A1 (4 Wheel) –36 units • In current production • Complete final assembly of most interior and exterior parts. Present & sell to the government.

MMPV Plus ONS Engineering Variant –161 units • In current production • Complete build of vehicle from the armor shell, including the engine, power train & final assembly. Present & sell to the government.

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Continuous Process Improvement Hands on Action

Employee Involvement 6X Shingo Recipient Patriot ’05 HMMWV ’06 HMMWV ’07 Power Generator ’07 BIDS ’08 Patriot ‘10

Lean Success – FY10  Completed 10 Value Stream Analysis  47 Rapid Improvement Events 15 Two-Piece Summaries  Hard Savings $ 23,405,669  Space Savings = 31,031 square feet

Value Added Results

Recap Cost as Percentage of New 60% 50% 40% 30% 20%

Consistent Reduction in Cycle time

10% 0% FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

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COMMANDER’S FOCUS 1. Maintain/provide a safe, effective and efficient work place. 2. Gain visibility of the business - evolve LMP into a viable ERP. 3. Meet cost, quality and schedule goals/metrics across all depot functions. 4. Continually improve every day.

5. Professionally develop our human capital.

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KEY TERRAIN #1 PAYROLL IN SOUTH CENTRAL PA #1 INFORMATION TECHNOLOGY EMPLOYER $201M INSTALLATION PAYROLL Approx. $315M into COMMUNITY Average LEAD Salary: : $50,602 Average County Salary: $31,812

Average State Salary: $38,793

CONTRACTS (FY09) WORLDWIDE: $248,238,367 IN PENNSYLVANIA: $45,909,977

11 Major Tenants - Defense Information Systems Agency (DISA) - Letterkenny Munitions Center (LEMC) - Computer Science Corporation (CSC) - U.S. Army TMDE Support Center (TMDE) - CECOM Industrial Logistics System Office (ILSO) - 99th Reserve Readiness Command (99th RRC) - U.S. Army Material Systems Analysis Activity (USAMSAA) - U.S Army Health Clinic - Defense Reutilization & Marketing Office (DRMO) - Lower Tier Project Office, PATRIOT Office - Defense Automated Printing Service (DAPS) 15 15

WOUNDED WARRIOR PROGRAM LEAD provides white-tailed deer hunting opportunities: • Seriously wounded service members in the U. S. Army’s Wounded Warrior Program (AW2) participated in seven whitetailed deer hunts in the fall of 2010. • This was the 4th year Soldiers were provided access to an area normally off-limits to all hunting. • LEAD volunteers and escorts from Walter Reed Army Medical Center (WRAMC) helped organize and assist 14 Soldiers in the hunt. Three bucks and 13 doe were harvested.

Hunt of a Lifetime:

Spring Turkey hunting (FY10):

• LEAD provided white-tailed deer hunting opportunities for the past four years to young adults with life-threatening illnesses. • The hunts are a great success with hunters and families enjoying a day in the field. • This year a two-day hunt was held for three hunters, each harvesting a deer. • Volunteers aided in the hunt and the Post Restaurant provided lunch.

• Seven AW2 soldiers hunted at LEAD this Spring, three turkeys were harvested. • Volunteers escorted and aided in the hunt. • AW2 Soldiers are scheduled to hunt next spring 2011.

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• In 2001 the Secretary of the Army recognized LEAD as the Center of Industrial and Technical Excellence for tactical missiles and air defense systems • Winner of the SecArmy Awards for Environmental Restoration FY02, Environmental Quality FY06 and Environmental Sustainability FY09 -Industrial Installation

• Named by BRAC Commission in 2005 as the # 1 depot for tactical wheeled vehicles for military value • Expansion Management Magazine lists Letterkenny Army Depot and Franklin County as # 7 in the magazine's "2006 Military Communities of Excellence" survey • DLA Customer of the Year 2007

• Army Superior Unit Award presented in May 2007 and September 2009 • Lockheed Martin Logistics Facility Award for Excellence and Contractor-Military Collaboration of the Year Award

• JDM Excellence Award for Outstanding Contributions to Depot Maintenance- MRAP/MMPV Team 2009 • Fifth Annual Business Opportunity Showcase – June 2010 • Chief of Staff of the Army Combined Logistics Excellence Award 2010

• BAE Chairman’s Bronze Award 2010

Six-Time Shingo Recipient

Patriot 05 HMMWV 06 HMMWV 07 Power Generator Equipment 07 Biological Detection Shelters 08 Patriot 10 17

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