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2. Aging Weapon Systems Procurement Holiday in 1990's Average A/C Age 19 years (H-46, 34 yrs) Obsolescence Up Drive Increased Costs Declining Parts Inventories and Infrastructure Shrinking Vendor Base Rising Cost of Ownership Increased Consumption and
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1. 1 NAVAIR Performance Based Logistics OverviewSOLE Meeting, 20 February 2003Curtis J. Searl Jr., C.P.L. AIR 3.5.2
2. 2
3. 3 Turning to Industry
4. 4 Definition
5. 5 PBL Background
6. 6 PBL- the Bottom Line Stating objectives, rather than prescribing “how to” perform the work, may allow previously unforeseen solutions in the commercial sector to fulfill the desired mission requirementStating objectives, rather than prescribing “how to” perform the work, may allow previously unforeseen solutions in the commercial sector to fulfill the desired mission requirement
7. 7 DOD/DON PBL Policy Quadrennial Defense Review (30 Sept. 2001)
Directs That DoD Implement PBL to Compress the Supply Chain and Improve Readiness
FY 03-07 Defense Planning Guidance
Identifies the Implementation Schedule for Applying Performance Based Logistics to All New Weapon Systems and ACAT I and II Fielded Systems
OSD PM’s Guide to Buying Performance Released by DUSD L&MR Nov 01
USD (AT&L) Memo 13 Feb 02 Requires Service PBL Plans for All ACAT I & II Fielded Systems and All New Start Programs
DON PBL Plan 26 Apr 02 Identifies Navy PBL Strategy and Approach
ASN (R,D&A) Memo 27 Jan 03, Release of DON PBL Guidance Document SECDEF Memo 30 Oct 02 Cancels DOD 5000. From Interim “The Defense Acquisition System”:
PMs Shall Develop and Implement Performance Based Logistics Strategies that Optimize Total System Availability While Minimizing Cost and Logistics Footprint.
Contractual Requirements Shall Be Stated in Performance Terms, Limiting the Use of Military Specifications and Standards
SECDEF Memo 30 Oct 02 Cancels DOD 5000. From Interim “The Defense Acquisition System”:
PMs Shall Develop and Implement Performance Based Logistics Strategies that Optimize Total System Availability While Minimizing Cost and Logistics Footprint.
Contractual Requirements Shall Be Stated in Performance Terms, Limiting the Use of Military Specifications and Standards
8. 8 FMS Considerations
9. 9 Typical PBL Characteristics
10. 10 Typical PBL Characteristics
11. 11 As I mentioned previously, PBL accords the contractor an expanded logistics role in exchange for guaranteed deliveries, obsolescence management and technology insertion. Contractor logistics functions may include depot repair, warehousing, transportation, inventory management, configuration management, etc.
To date, we have selected candidates based on the criteria shown on the chart.
To put more rigor in the selection process, we have recently developed a PBL Opportunity Index tool that applies a qualitative formula to the process. Basically, the tool ranks items against each other in terms of reliability, repair/procurement cost, obsolescence, supply availability and a factor for manual intervention.
We have set aggressive goals for ourselves in constructing PBL arrangements and are on track to achieve those goals As I mentioned previously, PBL accords the contractor an expanded logistics role in exchange for guaranteed deliveries, obsolescence management and technology insertion. Contractor logistics functions may include depot repair, warehousing, transportation, inventory management, configuration management, etc.
To date, we have selected candidates based on the criteria shown on the chart.
To put more rigor in the selection process, we have recently developed a PBL Opportunity Index tool that applies a qualitative formula to the process. Basically, the tool ranks items against each other in terms of reliability, repair/procurement cost, obsolescence, supply availability and a factor for manual intervention.
We have set aggressive goals for ourselves in constructing PBL arrangements and are on track to achieve those goals
12. 12 Key Tenets of a Successful PBL
13. 13
14. 14 PBL Issues/Barriers
15. 15 PBL Funding Considerations
16. 16 PBL Funding Considerations
17. 17 PBL Impacts on Man Hours
18. 18 Additional PBL Issues
19. 19 PBL Future Challenges/Summary
20. 20 Performance Based Logistics
21. 21