From: COATES, CHARLES M

Sent: Thursday, January 16, 2003 11:07 AM

Moderator: Ed Kufeldt

BACKGROUND INFO:

1. During the week in DFAS-CO, CR discussed the CR Balance Scorecard and CR Directors

Scorecard.

2. (CR) Leadership Offsite at the end of this.

DFAS Executive Offsite at the end of this month in Southbridge, MA.

CORPORATE PLANNING PRODUCT LINE/CORPORATE RESOURCES:

1. No good news, no bad news!

2. (a) Per Susan Grant; it's premature right now to give end result of the 'mock' RIF,

therefore its' held in abeyance.

(b) The end state of CR is based (in part) on the status of E-Biz and its' changes

(ramifications).

(c) BRAC '05 must be taken into consideration and it's ramifications on DFAS (CR)

(d) Management Release '905 (?) and the divestiture of CDA's (Central Design Activity's =

software).

(e) The evolution of e-portal and 'plum tree(?).

CORPORATE PLANNING, Ed Kufeldt:

1. Other options on the 'mock' RIF.

(a) Targeted "area" VERA/VSIP.

(b) Identify end state.

(c) Place employees from CR into other Business Lines/Product Lines vacancies, etc.

(d) CR RIF no longer has a drop dead date of September 30, 2003.

(e) Softer impact on the employees - soft landing.

(f) September 30, 2003 could (will) become interim with finality coming in FY '04

(transition into the end state - revise concept of operations, etc).

2. Question: What impact does/will BRAC '05 have on DFAS?

Answer: Unknown, however its' effect on DFAS as a whole and CR in particular must be

taken into account.

3. CR end state has changed due to other variables, i.e., E-Biz, BRAC '05, '905', etc. This

has the potential for going into the direction of one RIF within DFAS across business

lines/product lines (see background info # 2 above).

/s/ Charles Coates, UVP

AFGE LOCAL 1533

AFGE National DFAS Council '171' RVP (Western Region)