Mr. Frank J. Anderson, Jr. Director, AT&L Human Capital Initiatives

1. NDIA STEM Initiative Strategy Session Mr. Frank J. Anderson, Jr. Director, AT&L Human Capital Initiatives President, Defense Acquisition UniversityJuly 27, 2007

2. The Baby Boomer and older generations comprise 71 and 76 percent of the DoD and the AT&L civilian workforce, respectively. DoD faces significant challenges related to mitigating the pending departure of its highly experienced and seasoned talent – the critical challenge.

3. U.S. Civilian Workforce ChangeNumeric Change in Labor Force, 2004 - 2014 65+ +3,689 55 - 64 +7,616 +1,769 45 - 54 35 - 44 -2,813 4,548 25 - 34 -110 16-24 - 5,000 10,000 - 10,000 5,000 Source: Department of Labor

4. College Graduates - 2005 It will take about a generation to reverse the ratio of highly skilled workers between the U.S. and India and China. … When the generation of engineers and scientists that sent the man to the moon retires, who is going to replace them?” Academic Disciplines & Employment Trends’Applied Information Management Institute, Jan 2006 3,500,000 3.2M 3.1M Graduates 3,000,000 College Engineering 2,500,000 2.0M 2,000,000 1,500,000 1,000,000 600k 500,000 300k <100k 0 China United States India

5. Dropping out of the educational pipeline The USA ranks 16th of 27 countries in college-completion rates, says the Organization of Economic Cooperation and Development. • Studies report that of every 100 9th graders, only 18 will graduate from college within 6 years immediately after high school. Those rates have barely budged since the 1990s. Of the 18, even less will have technical degrees… • 39% of students attending degree granting institutions are over the age 25. Nearly 60% enroll in more than one college or university, and 40% go part time. 68 For every 100 Ninth graders: 40 27 18 9? Graduate from High school on time Immediately enroll in college Students still enrolled sophomore year Graduate from college in six years Technical Degrees Source: National Center for Higher Education Management Systems, 2002 estimates.

6. Today, DoD is having success in hiring to meet its needs.

7. National Security Council for Excellence in Government & the Gallup Organization, December 5, 2006 Awareness & Interest in Key Federal Agencies DoD has high name recognition and is viewed as an interesting place to work by potential employees.

8. Based on attrition projections and hiring rates, annual hiring would have to increase by 1,000 to maintain current workforce levels.

9. Total AT&L WorkforceSPRDE - Systems Engineering by Years of Service

10. Raytheon Company Employee Population Profile 5,000 4,500 4,000 3,500 3,000 Number of Exempt Employees 2,500 2,000 1,500 1,000 500 0 <1 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 45+ Years of Service Age: Under 25 26-35 36-45 46-55 56-65 66-75 76-85 The Emerging Competition For Talent Targeted College Hires Targeted Experienced Hires • Raytheon: build • Lockheed : “One in every three of Lockheed’s employees is over 50. to sustain our talent base, we’re hiring 14,000 people a year. In two years, we’re going to need 29,000 new hires; in three years, 44,000. If this trend continues, over the next decade we will need 142,000.” Robert J. Stevens, Chairman, President and CEO of Lockheed Martin. Wall Street Journal, April 19, 2006.

11. AT&L Human Capital Strategic Plan v 3.0 Supporting Alternate Funding Proposal for Section 844