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REPORT To Central Florida Chapter

Lawrence P. Farrell JrPresident

26 March 2010

NDIA Proprietary/Confidential: For Internal Use Only by Staff, Directors, Chapter and Division Chairs. Not for release to third parties.

OVERVIEW• Aggregate NDIA Participation

• Financial Summary

• Business Centers & Affiliates

• Management/Marketing Initiatives

• Summary2

2009

• Good year for NDIA in Tough Times

– Solid Operating Net

– Membership at All Time High

– Aggregate Participation UP--Some Retrenchment Noted

– NDIA Reserves Stable and Recovering

– NTSA/WID at All Time Highs

– STEM Activity High

• Web Operations & Marketing Major Strides

– Membership growth & outreach UP--Automated Techniques

– Event Success Huge Potential--Tailored Social Networking

– Industry – leading efforts Data-Mining

– Business Intelligence--Dashboard

2009 HIGHLIGHTS

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2010 HIGHLIGHTS2010

• Good Year in the Offing

– Highest Projected Operating Net

– NDIA to Conduct SOFIC

– Global EOD New (EOD Foundation)

– Defense Maintenance Open for Bid

– MARCORSYSCOM (MCSC) APBI

– USMC Expeditionary Power & Energy Symposium

– MCSC Small Business

– AFEI/PSA New Directions

– National DEFENSE--Readership at All Time High

– Good Response from DoD Team

– AT&L

– Industrial Policy Industrial Committee

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0

10000

20000

30000

40000

50000

60000

70000

GovernmentAttendees

IndustryAttendees

Exhibitors &VEOs

Total

NDIAAggregate Participation

Exhibits: Booth Equivalents

7.5%

3691 3710

‘08 ‘09

.5%

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EVENT PARTICIPATION

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OPERATING REVENUE – BASELINE TO ACTUAL

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FY 010 OPERATING PROGRAM

Baseline W/ Potential "Adds"

Revenue $ 28.64M $30.8M

Net to NDIA* $1.06M $1.4M

*After 401K Profit Share Distribution

OPERATING REVENUEFY 010 – BASELINE & RISK

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OPERATING REVENUE AND NET TO NDIA$M

OPERATING & INVESTMENT RESERVES

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MEMBERSHIPCorporate Members – NDIA and Affiliates

0

200

400

600

800

1000

1200

1400

1600

Members 828 844 976 1,109 1,119 1,234 1,365 1,382 1,478 1,564

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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MEMBERSHIPIndividual Members – NDIA and Affiliates

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Members 22,249 22,352 24,239 29,267 34,200 38,396 43,162 48,861 61,734 73,598

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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MEMBERSHIPGovernment Members – NDIA and Affiliates

0

5,000

10,000

15,000

20,000

25,000

Members 1,244 1,457 1,961 4,227 8,673 11,587 12,579 11,869 16,722 21,049

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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NATIONAL DEFENSE 6 Month Average BPA Qualified Readers

0

10,000

20,000

30,000

40,000

50,000

60,000

Qualified Readers 22,965 22,168 21,499 23,354 24,630 27,117 29,600 31,933 33,423 34,216 35,262 36,840 38,957 43,693 50,246 55,928 58,981

Jun 2001

Dec 2001

Jun 2002

Dec 2002

Jun 2003

Dec 2003

Jun 2004

Dec 2004

Jun 2005

Dec 2005

Jun 2006

Dec 2006

Jun 2007

Dec 2007

Jun 2008

Dec 2008

Jun 2009

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NATIONAL DEFENSE BPA Qualified Readers By Month For 2009

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000

66,000

68,000

Qualified Readers 57,197 56,356 57,771 58,252 61,724 62,587 62,913 62,276 63,594 66,554 67,153

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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NATIONAL DEFENSE Summary of Advertising Performance

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Total Revenue 775,912 1,054,514 1,209,851 1,214,004 1,308,012 1,476,253 1,547,622 1,726,703 1,526,569

FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

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0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Exhibit AttendanceNet Square Feet

ExhibitAttendance

Net Square Feet

NTSAI/ITSEC Performance - Exhibits

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WOMEN IN DEFENSEMembers

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Members 305 389 305 603 775 921 1,097 1,405 1,514 1,971

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

WID Highlights for FY 2009• 1,971 members• New Palmetto (SC) and Central Florida Chapters--total of 14• HORIZONS Scholarships to three students; total 101• Donations of nearly $10,000; new goal of $50,000• 5,700 to 82 events--24% increase• New logo• 25th anniversary in 2010

OPERATIONSConference Attendance Trend

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12

14

16

18

20

22

24

26

28

30

000's 29.6 29.4 25.5 26 25.4

FY05 FY06 FY 07 FY 08 FY 09

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‘SERIES’ MEETINGS TREND

0

20

40

60

80

100

Mtgs 60 72 64 74 82

FY 06 FY 07 FY 08 FY 09 FY 10BL

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OPS FY 09 HIGHLIGHTS

• Events Growing in Size– TACOM APBI 576 699– Combat Vehicles 464 585– USCG grows past 2000 1798 2176– SOLIC 734 1042– Joint CBRN 1595 2163

• MOUs with Norway and Sweden defense assoc’s

• Five Small Business events

• International Division

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JOINT CBRN – Fastest 50

Recognized as one of 50 fastest growing exhibitions in the nation 2007-2008.

Tradeshow Week

“Joint CBRN” Exhibition is produced in a football field-sized tent.

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ISR CONSORTIUM MANAGEMENT

• ATI-NDIA team won role of ‘Consortium Mgmt Firm’

• First task order – “LEMV” - likely in Dec/Jan

“Persius” LEMV Concept – US DoD

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STEM AWARENESS CAMPAIGN

• Placing NDIA STEM logo on event brochures, emails and post cards• Easily over 3 million imprints annually• Full implementation by EOM Dec.

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• Congressional Testimony – President/CEO

- Senate Committee on Banking, Housing & Urban Affairs

- House Committee on Armed Services, Acquisition Reform

Panel

• FY-2010 Defense Authorization Act

- Major Wins

• Amicus Curiae Efforts

- Three Amicus Curiae Briefs

GOVERNMENT POLICY ACHIEVEMENTS

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GOVERNMENT POLICY ACHIEVEMENTS(Continued)

• 12 Legislative Alerts Issued:

For example:

- MOAA notice on TRICARE and pending Health Care

Legislation

• NDIA Letters to the Hill:

For Example:

- SBIR Re-authorization to House/Senate & NDAA Conferees

- Repeal of 3% Withholding Legislation

- SDVOSB Parity

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2010 LEGISLATIVE AGENDA 1. Repeal 3% Withholding Tax

Stimulus Package delayed implementation by one year. Repeal Bills pending in House/Senate. NDIA Letters sent to Senate/House Leadership and all relevant committees

2. Permanent re-authorization of SBIRHouse & Senate approved re-authorization bills this year. No Conference action yet. Defense Authorization Act for 2010 extended SBIR authority for one year. NDIA Letters sent to Senate/House Leadership and all relevant committees.

3. Promote Legislation for SDVOSB Parity NDIA Letters sent to Senate/House Leadership and relevant

committees

4. Review/Monitor House/Senate Export Control reforms28

2010 LEGISLATIVE AGENDA (continued)

5. Review/Comment on recommendations by the HASC Acquisition Reform Panel – Jan-Feb

6. Review/Comment on the implementation of:• Weapons Acquisition Reform Act of 2009 to include formulation

of OCI federal regulations• President Obama Memo on Government-wide rules to address

Sole-Source and Non-Competitive contracting, inherently governmental functions, assess workforce issues, and review outsourcing

7. Promote Government-wide expansion of the Acquisition Workforce Fund

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EXPORT CONTROL MODERNIZATION

• NDIA is one of the 17 members of the Coalition for Security and Competitiveness (CSC)

• Goal: Modernize the US export control system to be more efficient, predictable and transparent

• Aug 09: President Obama directs a comprehensive review of U.S. export controls

• Aug 09: House Foreign Affairs Committee announced plans to review export control/dual use issues

• Oct 09: CSC/NDIA letter to the White House with proposed ‘principles and objectives’ as framework for 21st century technology control regime

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DoD View of EVM and Program Management• Earned Value Management (EVM) not working

– OSD feedback – contractor policy, processes, and procedures are generally good, but companies not following their own Policies

• Industry-Unreliable program management and data• Programs characterized by-Cost and Schedule deficiencies

– For Space Programs-Significant Technical Deficiencies• Companies need to focus on improving EVM implementation • Strengthening of Program Management focus/training needed

• Note: Many companies embed EVM in financial organizations vice program management organizations

Earned Value Management and Program Management is one of NDIA’s Top Issues for 2010.

DEFENSE INDUSTRY GOING FORWARD

• QDR & 2011 Budget are Predictors• In-sourcing Continues• Fewer Platforms & Major Competitions• A 2nd “Last Supper”• IRAQ Down; Afghanistan?• Reset/Recap Continues• Acquisition Priorities Current Fight• Earned Value Management

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Comparison - Budget Outlays

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  FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

CBO Budget Outlays 3,537 3,668 3,608 3,746 3,931 4,100

Federal Unified Budget Outlays 3,164 3,256 3,155 3,286 3,499 3,688

  373 412 453 460 432 412