TOW 2A & TOW 2B STOCKPILE Serviceable Tactical Inventory

TOW 2A & TOW 2B STOCKPILE Serviceable Tactical Inventory

UNCLASSIFIED Improved Target Acquisition System Contractor Logistics Support PM-CCMS and Raytheon Teaming for Success 02/29/20 UNCLASSIFIED UNCLASSIFIED ITAS Contractor Logistics Support One for One Replacement of the Ground TOW 2 (M220A2) System Modified ITAS (MITAS) Supported By CLS Provided by Raytheon, McKinney TX 02/29/20 UNCLASSIFIED UNCLASSIFIED System / Customer Overview TARGET ACQUISITION

SUBSYSTEM INTEGRATED SIGHT 2nd GEN FLIR Detector (w/Monitor) SADA II Laser Range Finder Direct View Optics 4 CLS Supported LRUs FIRE CONTROL SUBSYSTEM Embedded Training Cards Missile Guidance BIT/BITE TRAVERSING UNIT MODS POWER SUPPLY / BATTERY BOX Dismounted Power Power Conditioning Built-In Battery Charger Brake Pistol Grip New TAS Mount

Ground Mounted w/Tripod ITAS ITAS Designed Designed to to Improve Improve Performance Performance CLS CLS Designed Designed to to Increase Increase System System Availability Availability and and Reduce Reduce Ownership Ownership Cost Cost The Light, First to Fight Army: 82d Airborne, 101st Airborne (Air Assault), 25th Infantry Division (Light) (Hawaii), 2ID (Korea), etc. Rapid, Worldwide Deployability - 18 Hours Wheels-Up Forced Entry Capable, i.e. Fight Their Way in Limited Support, Arriving 3-5 Days Later 02/29/20

UNCLASSIFIED A Support Challenge!!! UNCLASSIFIED ITAS Reduces Support Footprint and Cost 18 LRUs 6 LRUs TOW 2 ITAS No No IFTE IFTE Van Van or or Any Any Other Other Support Support Equipment Equipment For For ITAS ITAS 02/29/20 UNCLASSIFIED

UNCLASSIFIED CLS Execution A Team Effort Infantry Battalions Support Battalions / Forward Repair Activity Field Level Maintenance Military / Contractor Partnership Raytheon Depot Agreements RSC / PMO CLS Concept (Later Turned Into Contract) RSC / Unit / PMO For Duties and Responsibilities PMO / LOGSA For STAMIS Interfaces 02/29/20 UNCLASSIFIED UNCLASSIFIED ITAS Contractor Logistics Support

Support Goal: To Improve System Availability While Reducing Support Costs Accomplished By Contracting With the Prime Contractor For: Operational Readiness (OR) Minimum 90% Incentivized for Greater Than 90% Penalized For Less Than 90% Contractor Not Required On Battlefield, Deploys Per Commanders Guidance Free Issue of Repair Parts to Units Limited Depot Level Maintenance Facility Collocated With Units Separate Options for Contingencies and Transition to Follow-on Source (NTEs Provided) CLS Provides High Operational Readiness (OR) 02/29/20 UNCLASSIFIED UNCLASSIFIED Fixed Price - Performance Adjustment Operational Readiness = Profit 100% Profit Plus Maximum Performance Adjustment

+$ 95% 90% Profit Plus Minimum Performance Adjustment 85% Minimum Profit $ 02/29/20 80% Additional Metrics to Prevent Gaming Separate Metrics for Contingency Options UNCLASSIFIED UNCLASSIFIED CLS 5 Year Contract Strategy Fixed Price Portion of Contract $$$ $

Price per System Total Price per Year $$$ FY00 FY01 Contract Price FY02 FY03 FY04 FY05 FY06 $ Price per System per Year Incentives: $$$$ Fixed Price Contract - Contractor Incentivized to Improve Quality, Efficiency, and Performance. Operate, Smarter, Better, Faster, and Cheaper. Result = Contractor Profit Performance Adjustment for Exceptional Effort

Future (Potential) CLS Customers (SBCTs, USMC, FMS) 5 Year Effort 02/29/20 UNCLASSIFIED UNCLASSIFIED Government Challenges Funding (ITAS CLS Is Not In AWCF) PMO Experience With Different Colors of Money Budgeting / Funding Process (End of Year, Incremental Funding , Etc.) Budgeting for Surprises (Fielding Schedule Changes, Contingencies, Etc.) Funding Cuts (Contract is Must Fund or ???) Contracting CLIN Structure For Tracking Different Colors of Money Long-Term How To Incentivize Contractor Contractor on Battlefield Issues Information System Interfaces Post Production Support (Affordability) 02/29/20

UNCLASSIFIED UNCLASSIFIED Contract Objectives, Challenges & Solutions 02/29/20 UNCLASSIFIED UNCLASSIFIED Raytheon Contractor Logistics Support Objectives Product Support through System Life Cradle to Grave Supporting the Soldiers Teaming with the Program Office Long Term Contract Technology Insertion via Product Support Incentive Based Contract Reducing

Product O&S Costs 02/29/20 UNCLASSIFIED UNCLASSIFIED Raytheon Challenges Issues beyond our control Optempo affecting number of failures and spares Damage vs failures Contractors on the Battlefield OR> 90% Support the Soldiers on the Battlefield Commitment to meet or exceed Operational Requirement Interface to Army supply system Moving from T&M type contract to Incentive Based contract Lack of database information on OR Measurement of OR 02/29/20 UNCLASSIFIED UNCLASSIFIED

Approaches to Success IPT created with approach as partners ALPHA Contracting method for: Development of SOW Negotiation of a 5-year CLS contract Agreement between the Tactical Units, PM-CCMS and Raytheon Integrated with the Army as one team to support the system Solid, definable metric that benefits the Soldier, PM & the Contractor: Operational Readiness Commercial solution to supply and asset management 02/29/20 UNCLASSIFIED UNCLASSIFIED Keys to Success Army/Raytheon Teamwork Government sharing of information Funding Issues/Profiles Continuous dialog on fielding status Program/Tactical Unit Objectives Funding as required to support readiness Agreed-to-requirements form a successful Army/Contractor team Flexible contract CLIN to adjust for changing world conditions 02/29/20 UNCLASSIFIED

UNCLASSIFIED Exceptional Results Quantity 250 100 225 90 200 80 175 70 150 60 125 50

100 40 75 30 50 20 25 10 0 1/17 CAV 505 325 504 PIR AIR PIR 82nd Airborne Cumulative Quantities

02/29/20 OR % OR at 100% 24 months 0 SBCT 1/503 INF 1/327 3/2 ID INF 1/506 INF 2 ID REG 101st Korea Operational Readiness UNCLASSIFIED Deployments & Training Ops Operation Enduring Freedom MC02 JRTC NTC

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