F-35 Sustainment Lockheed Martin Corporation

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Approved for public release JSF14-569 AER201405004/Australia Industry Forum ; 21 May 2014 F-35 Sustainment 2016 Lockheed Martin Corporation A hard copy of this document may not be the document currently in effect. The current version is always the version on the Lockheed Martin network.

DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Approved for public release 07-11-16 02-26-16 JSF16-756. F-35 Sustainment Overview Use or or disclosure of the of information the information contained contained herein is subject herein to is the subject restrictions to the of the restrictions Cover Pageof the Cover Page Tinker and Prime (23 Aug 16) - 2

Cost and Performance DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Approved for public release 07-11-16 JSF16-756. The Paradigm Needs to Change Legacy COST AVAILABILITY RELIABILITY Unaffordable Balance Between Cost and Performance: Aging Fleet(s) Decreased Availability & Reliability Limited to No Commonality between Systems Time Growing Economic Constraints Popular Mechanics March 25, 2016 Marines Had To Scrounge for F/A-18 Parts at a Museum Affordability... A Warfighter Necessity Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Prime (23 Aug 16) - 3

Solving the Sustainment Challenge Provides: Increased Maintainability Increased Supportability Increased Availability Supportability Designed In Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Primes (23 Aug 16) - 4

Solving the Sustainment Challenge Provides: Increased Maintainability Increased Supportability Increased Availability Supportability Designed In Provides: Pay for Performance Stabilized Budget Requests Implement Performance Based Arrangements Provides: Common DLRs Represent: 80% of CTOL DLR CPFH 75% of STOVL DLR CPFH 68% of CV DLR CPFH Reduced SCM Footprint Reduced Cost through Economies of Scale Decreased Cost for Performance Leverage Cost Effective Commonality Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Primes (23 Aug 16) - 5

F-35 Air System... More Than An Airplane Optimized Environment Common Support Integrated Information Integrated Training Sustainment... As Much A Part of the Aircraft As the Wing Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Prime (23 Aug 16) - 6

Sustainment System... Common Support Systems Support Equipment Lean Design Shared Spares Supply Chain Global Optimized Visible Sustaining Services World-wide 24/7 Standardized Fast Economies of Scale Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Prime (23 Aug 16) - 7

Availability DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. Approved for public release 07-11-16 JSF16-756. Life-Cycle Costs Global Support Solution JESB (ALAC) Services Requirements, & Partners $ JPO (Product Support Manager) Service Level Agreements Performance Based Contracts PSM: JPO & Partners Technical and Business Authority Flows Through JPO and the PSM PSM will Delegate Responsibility Based on Solution Performance and Maturity Approval of GSS Sourcing Strategies/Plans Hybrid Product Support Integrator (HPSI) Govt-Led Industry Delegated Authorities/Responsibilities HPSI: Government Led Hybrid Jointly Accountable to the PSM for System Level Metrics e.g. AVA, FMC, ME, Cost Industry Acts as Agent of the Government in HPSI Performance Based Contract will Define the Conditions and Boundaries Service Level Agreements Product Support Providers Performance Based Contracts Organic and Commercial PSP Base PSP: Mix of Organic, Sovereign and Commercial Best Value with PSM Defined Parameters Transparent Decision Making and Source Selection Process RR P&W BAE LM Aero LM MST N G Rockw ell TRANSC OM OO- ALC Et c. Partner PSP FOR OFFICI AL USE ONLY / / REL TO USA, GBR M OD, ITA M OD, NLD M OD, TUR M ND, CAN DND, AUS DOD, DNK M OD, and NOR M OD Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Prime (23 Aug 16) - 8

F-35 Sustainment In Operation Today Bases Nellis As of 30 June 2016 Edwards Luke Hill Eglin Yuma Beaufort PAX Training Luke PTC Beaufort-PTC Eglin ATC Depots Field Mods Ogden Cherry Point Supporting 175+ F-35 Aircraft at 8 Bases Today Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page Tinker and Prime (23 Aug 16) - 9

Summary F-35 Program Not Just an Aircraft, But an Entire Air System An Air System Built for Performance and Affordability F-35 Sustainment System is Operational Today Already Showing Performance Improvements Develop a Common Sustainment System With Sovereign Tailoring Partnership with Users, Military Depots, OEMs, and International Industry Committed to Affordable Outcomes Supporting the Warfighter Use or or disclosure of the of information the information contained contained herein is subject herein to is the subject restrictions to the of the restrictions Cover Pageof the Cover Page Tinker and Prime (23 Aug 16) --10