LOG FIPT October 16, 2009

1. DoD Product Support Assessment Team (PSAT) Implementation LOG FIPT October 16, 2009

2. Product Support Journey Over 200 current or planned PBL Programs DoD 5000 policy updated: PBL is “preferred” Support Strategy OSD PBL Policy memos: BCA’s used to evaluate transition to PBL DoD QDR mandates “PBL” – First official Use of Term Contractors PBL Course Launched DAU PBL Course Launched F-117, APU PBLs NextGen Adoption Concept Policy Product Support Reengineering Report to Congress Section 912, 1998 NDAA: DoD to report to Congress on Product Support Reengineering Revised DoDI 5000.2 Issued DoD Weapon System Product Support Assessment Report ACAT 1 & 2 to use PBL or justify non-use Product Support Assesment Team Launched Program Managers Guidebook published 30 RTOC Pilot Programs DoD WSPSA Implementation 1999 2001 2004 1998 2003 2006 2008 2009 >

3. DoD Product Support Assessments July 1999 2009 1999

4. DoD Weapon System Product Support Assessment Purpose • Recommends to senior leadership improvement of existing weapon system sustainment strategy • Encompasses operational, acquisition, and sustainment communities • Complements the Weapon System Acquisition Reform Act initiatives with perspectives attentive to life cycle management and sustainment • Provides recommendations to improve weapon system readiness and control product life cycle cost • Current status of product support implementation • Areas for improvement to policies, procedures and practices • Way forward for performance based life cycle product support 4

5. Product Support Assessment Team (PSAT) Composition • Working Group spans Services, Government, Industry, and Academia • Led by Senior Steering Group of senior Government, Military, and Industry personnel • Working Group comprised of Action Officers from the SSG’s organizations and more Working Group

6. FY’09 DoD WSPSA Approach And Timeline 6

7. Life Cycle Product Support Vision & Guiding Principles • Implementation Guidelines • Ruthlessly separate needs from appetites • Understand portfolio of alternatives • Tie metrics directly to Warfighter outcomes • Implementation Guidelines • Govern sustainment as part of the life cycle • Design for sustainability, and integrate acquire-to-retire process • Manage predictable costs throughout the life cycle • Integrate human capital planning into life cycle focus Start & End with the Warfighter’s Objectives Demonstrate & Enforce Life Cycle Focus Aligned and synchronized operational, acquisition, and sustainment communities working together to deliver required and affordable Warfighter outcomes Enterprise Means Enterprise (& Joint Means Joint) Build Mutually- Beneficial Partnerships • Implementation Guidelines • Optimize public & private product support capabilities • Leverage core competencies • Partnerships are effective; equitable; transparent; bilateral and long-term • Implementation Guidelines • Exhaust opportunities for Joint economy and reduce unnecessary redundancy • Build the capability to make good enterprise decisions • Enforce consistency in product support processes & infrastructure Incentivize Accountability for Performance • Implementation Guidelines • Manage with facts, and drive accountability for performance and costs • Build and evolve BCAs that enhance decision making

8. PSAT Recommendations Product Support Business Model: Provide Program Managers a model template for a weapon system support strategy that drives cost-effective performance and capability for the Warfighter across the weapon system life cycle and enables most advantageous use of an integrated defense industrial base Industrial Integration Strategy: Align and expand the collaboration between Government & Industry that produces best value partnering practices Supply Chain Operational Strategy: Connect platform product support strategies to enterprise supply chain approaches that produces best value across the DoD components Governance: Strengthen and develop organization and mgmt processes to deliver the right sustainment information to decision-makers Analytical Tools: Build a toolbox of analytical approaches (including BCA) Metrics: Use existing metrics to catalyze sustainment strategies and trigger continuous supportability analysis Human Capital: Integrate Product Support competencies across the Logistics and Acquisition workforce domain to institutionalize successful traits of an outcome-based culture O&S Costs:Improve O&S cost visibility and influence Weapons System Data: Define, collect, report, and manage the data we need to drive effective Life Cycle Product Support 8

9. Human Capital Modernizes the product support workforce Key Tasks Identify new or modified product support competencies and proficiencies driven by proposed PSAT strategy, policy, and process changes Incorporate new or modified product support competencies into DoD and industry logistics and acquisition workforce career field training, recruitment, and retention strategies Identify potential assimilation requirements for supply management, maintenance support, and distribution/transportation workforce members into the acquisition life cycle logistics career field Capitalize on Section 852 Defense Acquisition Workforce authorities to grow and develop the future product support workforce Expand integrated life cycle management training at DoD universities, public universities and institutions, and corporate universities Update key DoD guidebooks and handbooks to facilitate defense logistics and acquisition workforce professional development and workplace application

10. Next Step: FY’10 Implementation Implementation Team Core Team Leader Core Team and Process Leader Combatant Systems Commanders Engineering Distribution Sustaining Process Owner Engineering Product Human Support Requirements Inventory Capital Definition Management Business Strategy OADUSD Model MR Maintenance Industry Governance Comptroller Contracting Independent Cost Program Estimating Managers Extended Team Management Body Management Cadence Implementation Plan Move out with LCM enterprise stakeholders to drive implementation

11. IPT Products Lead To Improved Readiness And Cost Control

12. Resource Requirements for Implementation Effort • Integrated Product Sub-Teams (IPSTs) • Execute individual recommendation streams • IPT #1: Product Support Business Model, Industrial Integration, Supply Chain Operational Strategy • IPT #2: Metrics, O&S, Analytical Tools, Governance • IPT #3: Human Capital • 2- to 6-person teams • Stand up / down to support discrete implementation goals (i.e., publish analytical “toolbox” handbook) • Targeted skill sets • Integrated Product Teams (IPT) • IPTs #1, #2, #3 govern integration and alignment of dependent recommendations 12

13. Leverage the LOG FIPT resources to maximum extent possible Creates FIPT agenda challenges….but Most WORK happens outside FIPT meetings Other influence points: Acquisition Management Functional Group (AMFG) Overarching FIPT (O-FIPT) Other Acquisition Workforce FIPTs DoD Logistics HCSP processes NDIA Human Capital Management Efforts Other ideas?? Grand Plan (Evolving) for IPT#3

14. Break, break……next subject

15. Under examination by the AMFG Distinction between Level IV training and certification – which does LOG FIPT prefer, or both, or neither? History: LOG FIPT interest since circa 2001 Demographics: 77% of LCL >15 yrs. Experience Competencies: Level IV competencies certainly exist (high-end integration and PM support competencies) Legislation: FY 2010 NDAA, Sec. 805, requires Product Support Managers for MDAPs Experience: More important to qualification than training If Level IV training were offered, what is the right intensity; 2 weeks 5 weeks 10-14 weeks Enough to cover the competencies Level IV Certification