I could not be prouder to be a part of this team and of what we have accomplished working together. We have continued to adapt to change and overcome challenges as they come our way, encompassing the true One-AIT spirit. AIT provides the important service of repairing and modernizing United States Naval vessels. To provide our ship repair services, we all have vital roles in AIT’s ability to win new work, plan that work, then execute the work in a timely and efficient manner. Winning new work is essential to the overall health and future of AIT and the continuing employment of our work force. Initially, we watch for repair opportunities and connect with potential customers. AIT identifies opportunities for bidding on ship repair contracts that fit within our capabilities and that we can support with skilled manpower. Our Estimating Department solicits competitive bids from subcontractors and develops labor and material cost estimates using prior production efficiencies to bid and win new contracts. AIT proposals are evaluated by the Navy to ensure our understanding of the work requirements and confirm that we have adequate capabilities, manpower resources and competitive prices to execute the work they need accomplished on their ships. Our Supply Chain Department is responsible for the timely and efficient supply of materials and subcontracts to support schedules. There are often materials with excessively long delivery times that Supply Chain works on to seek alternative suppliers or solutions in order to obtain the material in a timely manner. Without the necessary materials being on hand when needed, production can be slowed, and work becomes less efficient. Our Planning Department works with our Production Management Team to determine activities and build schedules that can be executed within the schedule milestones imposed by the contract. An accurate schedule is part of a critical framework necessary for monitoring progress towards meeting the completion milestone of the contract. Our Production Department is critical because it maintains the skilled trades that fulfill the requirements of the work specifications that our customer needs repaired on its ships. A typical contract can contain as many as 200 to 300 repairs and ship alterations to be made on a ship within the schedule milestones. A ship alteration or “Shipalt” is a designed upgrade to a class of ships, intended to modernize, enhance safety or extend the life of a ship. The Production team is tasked with executing these repairs and alterations. During the course of executing a contract, there are sometimes differences in interpretation of the customer language in the specifications. In these instances, our Contracts Department aids in determining AIT’s position to negotiate a reasonable and mutually agreeable outcome. Additionally, they estimate the cost and negotiate a price for any new work added to the contract. Each one of you make an impact on the economy; locally and nationally, and you serve as a reminder of the work we do and how important it is to our nation’s defense, our economy, the communities in which we live, and our families. Ship repair is hard work but is also unique and particularly rewarding. Thanks for being a part of it. Please share my appreciation with your spouses, partners, and families. I know from personal experience that we could not do what we do every day without their love and support. I look forward to seeing you all each day as we prepare to take on new ship repair opportunities. May you and your families have a wonderful summer holiday. Earl Proetzel