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Andrew H. Adsit Robins AFB, GA

Warner Robins Air Logistics Center. Performance-Based Logistics Affordability: Can We Afford Categorical Conversion to Performance-Based Acquisition?. Developing, Fielding, and Sustaining America’s Aerospace Force. Andrew H. Adsit Robins AFB, GA.

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Andrew H. Adsit Robins AFB, GA

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  1. Warner Robins Air Logistics Center Performance-Based Logistics Affordability:Can We Afford Categorical Conversion to Performance-Based Acquisition? Developing, Fielding, and Sustaining America’s Aerospace Force Andrew H. Adsit Robins AFB, GA I n t e g r i t y - S e r v i c e - E x c e l l e n c e

  2. Overview • History of Performance-Based Acquisition • Recent Proposal • Challenges • Our Approach • Summary

  3. History • Traditional build-to-print acquisition strategy • Leads to continuation of “bad design” • No room for product improvement/ innovation • Obsolescence a factor History Proposal Challenges Approach Summary

  4. Proposal • Eliminate strict design criteria • Buy performance, not product • Allow manufacturer to innovate • Heavy reliance on commercial specifications and products History Proposal Challenges Approach Summary

  5. Challenges • Often performance parameters don’t exist • Funds to develop specifications may not be available or timely • Low quantities may drive higher unit cost above that of build-to-print • Configuration control may be more difficult • Acceptance testing as configuration changes History Proposal Challenges Approach Summary

  6. Approach • Separate candidates based on a broad list of factors • Only focus on items with multiple factors of consideration • Otherwise, continue build-to-print until another opportunity to innovate arises History Proposal Challenges Approach Summary

  7. Approach (Con’t) Factors • Decreasing or low reliability • Increasing sustainment cost • Diminishing sources • Obsolete technology • High cost items (system cost drivers) • Items that utilize rapidly changing technologies • Life cycle cost pay-back period exceeds expected remaining system life History Proposal Challenges Approach Summary

  8. Approach (Con’t) • Develop triggers for fine tuning of candidates based on data • Triggers developed using experts across the acquisition community • Weight triggers to determine “tendency” to performance-based acquisition • Middle of road candidates should use a risk reducing “split-buy” approach History Proposal Challenges Approach Summary

  9. Approach (Con’t) Support Strategy Triggers • Do we have build-to-print data?   • Is the build-to-print data sufficient for a vendor other than the current vendor to reproduce, test, and deliver a quality product? • Is the item a reliability or maintainability driver? • What is the expected system life (e.g. has it been scheduled for decommission and if so, how many years are left)? • Quantity required vs. installs + inventory? History Proposal Challenges Approach Summary

  10. Approach (Con’t) Supplier Incentives Triggers • What is the lead time required on the current item?   • What is the impact of the time delay necessary to develop performance-based specifications? • How many vendors currently exist for the item? • How viable is (are) the vendor(s) currently producing the part? • Are you experiencing a vanishing vendor base for the item? History Proposal Challenges Approach Summary

  11. Approach (Con’t) Acquisition Strategy Triggers • Are resources available to convert a new item to a performance-based acquisition? • What is the current unit-cost (percent of system cost)?  • What is risk of new technology vs. existing item technology? • What available technology could be used in a redesign of this item compared to the current technology?   • What is the expense trend (annual support cost) for the item? History Proposal Challenges Approach Summary

  12. Approach (Con’t) Configuration Management Triggers • What is the current repair methodology? • What is the desired repair methodology? • What level of support equipment and T.0. data exists for the current item and how much could be used for the proposed item? • How much training would be required due to changing configurations? History Proposal Challenges Approach Summary

  13. Summary • Process resulted in consistent selection of candidates both for build-to-print strategies and performance-based acquisition • Potential cost savings by not developing performance-based specification where not indicated • Feed-back mechanism critical for success of approach (adding/deleting relevant factors and triggers) History Proposal Challenges Approach Summary

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