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Performance Base Logistics for the Ground / Air Task Oriented Radar , 5 February 2004. Presented by John Sells, Product Support Manager -. [email protected] DSN 795-7585 Comm. 570-895-7485. Discussion Points. DOD Acquisition Management Framework The beginnings of PBL

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Performance base logistics for the ground air task oriented radar 5 february 2004

Performance Base Logistics for the Ground / Air Task Oriented Radar, 5 February 2004

Presented by John Sells, Product Support Manager -

[email protected] DSN 795-7585 Comm. 570-895-7485


Discussion points

Discussion Points

  • DOD Acquisition Management Framework

  • The beginnings of PBL

  • IPT Roles & Responsibilities

  • Business Case Analysis

  • PBA Notional Approach

  • PBA development

  • Recommendations

  • Questions & Ideas


New dod acquisition management framework five phase overview

New DoD Acquisition Management Framework – Five Phase Overview

Decision to Enter

Concept Refinement

Phase

IOC

A

B

C

Decision to Enter

Technology

Development

Phase

Program Initiation & Decision to Enter System

Development & Demo Phase

Program Initiation & Decision to Enter System

Development & Demo Phase

FOC

Pre-Systems Acquisition Systems Acquisition Sustainment

Concept

Exploration

Technology

Development

Concept Technology Systems Development Production & Operations &

Development Demonstration Deployment Support

  • Inputs:

  • ICD

  • AOA Plan

  • CONOPS

Concept Component System SystemLow-Rate Full-Rate Sustain Disposal

Exploration AdvancedIntegration DemonstrationInitial Production

Demonstration Production

  • Inputs:

  • ICD

  • AOA

  • TEMP

  • Inputs:

  • Acquisition

  • - Strategy

  • - Program Baseline

  • CDD

  • AOA

  • TEMP

  • SDD RFP

Design Readiness Review

Establish

PBA

FRP Decision

Review

Readiness &

Total Ownership

Cost Objectives

  • Evolutionary Acquisition

  • End-State Requirement

  • Incremental Acquisition

  • Spiral Development

  • Desired Capability Known

  • End -State Not Known

  • Technology Maturation &

  • User Feedback Drive Future

  • increments

Develop

KPPs for

CDD

Demonstrate

Supportability

& Life Cycle

Affordability

Goal #1: Design

for Supportability

Demonstrate

Supportability

& Life Cycle

Affordability

Acquisition

Strategy

System

Design for

Operational

Effectiveness

Support

Strategy

Concepts

R&D

Goal #2: Design

& Develop Support

System

Produce

Support System

Support Concept

Develop

Support Metrics

Performance

Based

Logistics

Principles

Develop Key Logistics

Parameters (KLPs)

Goal #3: Acquire & Deploy

Supportable System

  • S&T Activity

  • ATD

  • ACTD

  • Joint Warfighting Experiments

Block Upgrades

Block Upgrades

Initial Capabilities Document Capabilities Development Document Capabilities Production

ICD CDD CPD

Block Upgrades

Document

User Needs

Validated Requirements … Minimum KPPs Set

RDT&E RDT&E SDD Procurement Operations & Support

BA3 BA4 BA5 APN WPN MILCON OPN O&M,N

Funding

DT&E OT&E FOT&E

Early and Continuous Testing

Combined DT&E and OT&E

Develop Product Support Concept Identify Product Support Integrator Update periodically

Design the Support Develop Support for the Design Establish PBA

Product Support Planning


New dod acquisition management framework documentation decisions

Decision to Enter

Concept Refinement

Phase

IOC

A

B

C

Decision to Enter

Technology

Development

Phase

Program Initiation & Decision to Enter System

Development & Demo Phase

Program Initiation & Decision to Enter System

Development & Demo Phase

FOC

Pre-Systems Acquisition Systems Acquisition Sustainment

Concept

Exploration

Technology

Development

Concept Technology Systems Development Production & Operations &

Development Demonstration Deployment Support

Concept Component System SystemLow-Rate Full-Rate Sustain Disposal

Exploration AdvancedIntegration DemonstrationInitial Production

Demonstration Production

Concept Refinement:

- Validated ICD

- Approved AOA Plan

Completed in Phase:

- Conduct AOA, Refine Concept

- Develop Tech Development Strategy

Design Readiness Review

FRP Decision

Review

  • Milestone B:

  • - Entrance Criteria

    • Validated CDD

    • Validated requirements … Minimum Key

      Performance Parameters (KPP) set

    • Mature Technology

    • APB

    • Affordability Determination

    • Full Funding in FYDP

  • - Formally initiates Acquisition Program

  • MDA approves:

  • - Entry into SDD Phase

  • - Acquisition Program Initiation

  • - ASR & APB

  • - Exit Criteria for Production Phase

  • - Acquisition Decision Memo (ADM)

  • Completed in Phase:

  • - Architecture validated thru integration

  • demo of sub-systems

  • - Design Readiness Review

  • - Testing and Demonstration

  • - Prepare RFP for LRIP

    - Capabilities Production Document

    (CPD)

  • All support elements

  • in place to sustain

  • system at acceptable

  • performance levels

  • identified in CPD and

  • Performance Based

  • Agreement (PBA) with

  • war fighter

  • Evolutionary

  • acquisition of product

  • support elements

  • continues to sustain

  • systems upgraded

  • through spiral

  • development of

  • systems in reaching

  • Full Operational

  • Capability (FOC)

  • over life cycle

  • Milestone C:

  • - Entrance Criteria

    • Technology Maturity

    • Approved CPD

    • Fully Funded

    • Acceptable:

      • Performance in DT&E

      • Manufacturing Risks

      • Interoperability

      • Operational Supportability

      • Affordability

        - Authorize entry into LRIP

  • MDA Approves:

  • - CPD

  • - ADM

  • - Acquisition Strategy & APB

  • - LRIP& Later FRP

  • Completed in Phase:

  • - Testing ( DT, IOT&E)

  • - Support & Deployment Plans

  • - Prepare RFP for FRP

  • - Prepare for FRP Decision

  • Milestone A:

  • - Initial Capabilities Document (ICD)

  • validated & approved

  • - Milestone Decision Authority (MDA):

    • Approves Tech Development Phase

    • Tech Development Strategy (TDS)

    • Exit Criteria for SDD Phase

    • Acquisition Decision Memo (ADM)

  • Completed in Phase:

    - Development of System Architecture

    - Demo of Technologies

    - Risk Reduction on Subsystems

    - Form Decision Making IPTs

    - Capabilities Development Document

    (CDD) Prepared by IPT

    - Conduct Cost Performance Trade-offs

    - Develop Acquisition Strategy (ASR)

    - Set Acquisition Program Baseline (APB)

    - Complete TEMP

    - Prepare C4ISR (if required)

    - Prepare Life-Cycle Cost Estimates

    - Prepare RFP for SDD

New DoD Acquisition Management Framework – Documentation & Decisions


New dod acquisition management framework tlcsm pbl template

New DoD Acquisition Management Framework – TLCSM & PBL Template

A

B

C

Pre-Systems Acquisition Systems Acquisition

Concept

Exploration

Technology

Development

Concept Technology Systems Development

Development Demonstration Production &Deployment

  • Consider Key Logistics Criteria:

  • Ability of Sustainment Strategy to Meet Mission

  • Capability Requirements

  • RMA Meets Performance Objectives

  • Goals for Manpower/Pers Validated

  • Final LCC Validated

  • Product Support:

  • - Completed BCA on PBL Approach Selected

  • - Completed, Approved & Funded Product Support/Sustainment

  • Approach to Include:

    • Documented PBA Between:

    • - PM, PSI and Force Provider Defining System Operational

    • Performance Requirements

    • - PM, PSI and Support Providers which Include Required

    • Support Metrics Necessary to Meet System Performance

    • Requirements.

    • Note: Support Providers may be Public, Private or Partnerships.

    • Public providers can include depots, DLA, NAVICP, & DLA

    • Distribution Depots

  • - Comprehensive Review of Support-Related Performance & Acceptance

  • Criteria for Pre-IOC Supportability Assessment:

    • Verify Implementation & Execution of PBA

    • Verify Funding of O&S to Required Levels

  • Key Logistics Info Compiled:

  • Updated Support Strategy within ASR

  • Updated Logistics Parameters in APB

  • Updated Logistics & Sustainment Criteria & Test Points

  • PBA Signed (PM, PSI, Warfighter; PM, PSI and Providers)

  • Key Logistics Activities Completed:

  • Satisfactionof sustainment criteria in IOT&E

  • PBAs

  • Fully Funded Sustainment Program

  • Pre-Initial IOC Review

  • Consider Key Logistics Criteria:

  • More Discrete Requirements to Support

  • Required Mission Operational Capabilities

  • - Metrics to Drive Performance Outcomes (Reliability,

  • Maintainability, & Availability - RMA)

  • Manpower/Pers Requirements

  • Refinement of LCC

  • Support-Related Performance/Acceptance

  • Criteria to be Demo during Testing

  • Collection, Analysis & Eval of System

  • RMA Performance Data to Determine Need

  • for Design Changes (SDOE)

  • Logistics Support Considerations

  • Verify Support-Related Design Characteristics

  • Identify Product Support Integrator (PSI)

  • ISOR and Workload Assessment

  • Develop Initial PBL BCA

  • Set PSI Performance Outcomes/Requirements

  • Develop PBL Product Support Concept w/PBA

  • Key Logistics Info Compiled:

  • Updated Support Strategy, Funding Required,

  • Key Logistics Parameters (KLPs)

  • PBL BCA

  • Auditable ISOR Core Capability & Workload

  • Assessment

  • Key Logistics Activities Completed:

  • Updated ASR, APB, CPD, & TEMP

  • Acceptable Performance in DT&E

  • Life Cycle Affordability Demonstrated

  • Consider Key Logistics Criteria:

  • Forecast Operational Environment

  • Assess:

  • - Functional Characteristics

  • - Impact of System on Maintenance

  • Capabilities Planned

  • - Preliminary Manpower/PersRequirements

  • (Quantity, Skills, Uniform or Contractor)

  • Compilation of Info and Requirements

  • Initiate Development of Operating & Support Reliability Objectives, Benefits &

  • Resource Requirements

  • Assess Concepts & Technology in using:

  • - Embedded Diagnostics

  • - Prognostics

  • - Other Maintenance Enablers

  • Compile & Assess Data on Projected:

  • - Sustainment Demand

  • - Standardization

  • - Required Support Equipment (SE)

  • Develop ROM Life Cycle Costs (LCC)

    Key Logistics Info Compiled:

  • AOA Performance-Based Support Options

  • Identify Support Parameters for CDD

  • Market Analysis

  • Identify Risks/Risk Mitigation Planning

    Key Logistics Activities Completed:

  • Sustainment Parameters for CDD

  • Product Support Strategy for ASR

  • Logistics Metrics Criteria/Funding for APB

  • Logistics Considerations for TEMP


From all of this pbl emerges

Support Parameters

Product Support Strategy (PSS)

Logistics Considerations for TEMP

From all of this, PBL Emerges…

Introduce Key Performance

Parameters (KPP)

Updated Support Strategy

Finalize PSS

Assign PSI

Sign PBAs

Logistics Metrics Criteria

ISOR Core Assessment

Supportability Demo

Life Cycle Affordability Demo

Establish PBAs


Performance base logistics for the ground air task oriented radar 5 february 2004

PBL is the Enabler for Force-centric Logistics Enterprise

COMMON RELEVANT OPERATING PICTURE

Force Provider

End-to-End Distribution

Public Private Partnerships

Performance Based Logistics grid

Condition-Based Maintenance +

Executive Agents

Enterprise Integration

Product Support Integrator

Total Life Cycle Systems Management

The interaction at the grid points establishes the linkage of the Life Cycle Logistics elements.


Performance base logistics for the ground air task oriented radar 5 february 2004

IPT Challenges


What should an ipt be able to do

What should an IPT be able to do?

Ability to

collect accurate,

near real time data

Ability to assess the

data and make

informed decisions

Ability to have

complete, accurate,

real-time total

asset visibility

Funds Flow

Ability to fund

effectively

and manage execution

Organize IPT’s around program requirements!


Performance base logistics for the ground air task oriented radar 5 february 2004

MARSYSCOM Manages:

:

The IPT Challenge:

Integrating ALL of the Solutions

Focus on Total Life Cycle Systems Management!

Organizational/Unit Measure:

TPS-59

TPS-63

TPS-73

TPQ-46A

CLAWS

MPQ-62

G/ATOR

Operational Availability

WEAPON SYSTEM-SPECIFIC SUPPORT

2-LEVEL MAINTENANCE

END TO END CUSTOMER SUPPORT

PUBLIC PRIVATE PARTNERSHIPS

DoD Logistics Value:

EFFECTIVE METRICS

ENTERPRISE SOLUTIONS

COMMON SUPPORT ACROSS WEAPONS SYSTEMS


Performance base logistics for the ground air task oriented radar 5 february 2004

DoD IPT Operational Structure

Under Secretary of Defense for

Acquisition, Technology and Logistics

Assistant Secretary of Defense for

Command, Control, Communications

& Intelligence (C3I)

RULES OF THE ROAD: A GUIDE FOR LEADING SUCCESSFUL INTEGRATED PRODUCT TEAMS,Revision 1,October 1999


Performance base logistics for the ground air task oriented radar 5 february 2004

GATOR Overarching IPT (OIPT)

Transition to

Production IPT

Funding and

Contracts IPT

Production

IPT

GATOR

Project Management IPT

(PM IPT)

Integrated

Test IPT

Logistic

IPT

Fielding

IPT

Software

Integration IPT

Rqmts/Intero

IPT

Design and

Engineering IPT

COMM

Sub-IPT

OPFAC

Sub-IPT

ProcessorsDisplays

Sub-IPT

Software

Sub-IPT

G/ATOR Integrated Product Teams Structure

A lot of IPT requirements identified, but it may be a bit Chaotic…

Integrated Product and Process Development (IPPD) for the G/ATOR Program*

Should be direct line from OIPT

If this was a fight, Could the G/ATOR Program Management IPT defend themselves?

Some of these IPT’s are requirements-driven (good), some are based on functions (not so good)

IPPD is not easy – Managers MUST shift paradigms!

* IPT structure from the SUPPORTABILITY PLAN FOR THE GROUND AIR TASK ORIENTED RADAR, Draft, 6 Jan 04


Performance base logistics for the ground air task oriented radar 5 february 2004

Integrated Product and Process Development Objectives

NOTIONAL CONCEPT ON BUILDING IPT’S

Performance-Based Business Environment

Understand what you are currently doing.

Maintenance Planning

Manpower and Personnel

Battlespace and Air Defense Systems Product Group (PG11)

Set goals for each IPT

Supply Support

Overarching IPT

Focus on TLCSM

Support Equipment

Technical Data

Choose Integrated Solutions

Training and Training Support

MARCORSYSCOM Integrated Data Environment

GATOR Integrating IPT

Benchmark & Build through experience

PHS&T

Radar Systems (PM112)

Naval Integration and Transportability

Measure Performance for Continuous Improvement

Facilities

Be willing to change!

Evolving G/ATOR ILS Elements*

Working IPT’s:

Supportability

Cost & Performance

Design & engineering

* ILS Elements from the SUPPORTABILITY PLAN FOR THE GROUND AIR TASK ORIENTED RADAR, Draft, 6 Jan 04


Performance base logistics for the ground air task oriented radar 5 february 2004

The Business Case Analysis (BCA)

  • The BCA links performance levels and resource requirements which enables a much more intelligent budgeting process.

  • The BCA is a toolset for identifying Total Ownership Costs

  • The BCA has the goal of identifying the BEST VALUE

  • It is the BCA that helps determine the best choice for Product Support Integrators, and the parameters of the Performance Based Agreements!

Bottomline –

Senior leaders need all appropriate information to make good decisions. They will not stake their reputations simply on a good “story”.


Performance base logistics for the ground air task oriented radar 5 february 2004

What is a BCA ?

Until recently, BCA was not a common term in DoD

Formerly known by the terms: “economic analysis;

cost/benefit analysis; cost of ownership analysis; analysis of alternatives; feasibility study; staff study”

“BCA is an extended form of cost/benefit analysis where the alternatives’ total costs for satisfying a business need are weighed against the alternatives’ total benefits to determine an optimum solution. BCA goes one step further than cost/benefit analysis and links each alternative to

fulfilling the strategic objectives of the organization, compliance with performance measures and impact on stakeholders. BCA identifies which alternative allows an organization to optimize mission performance given cost and other constraints. It not only includes analysis of cost, but also addresses qualitative and subjective factors directly impacting the decision-making process, along with risk and sensitivity analysis. The output of a BCA is an analysis of all viable alternative business strategies, along with recommendations for proceeding with the best value alternative.”

Dr. Jacques Gansler,

“A Business Case is a decision support tool that projects the likely financial results and other business consequences of an action. It shows the cash flow consequences, over time, and – most important – includes the methods and rationale used for quantifying benefits and costs.”

“The Business Case Guide”; by Dr. Marty J. Schmidt, Solution Matrix, Ltd; 2002 www.solutionmatrix.com


Performance base logistics for the ground air task oriented radar 5 february 2004

Why Go Through with a BCA ?

  • BCA’s required by Statute for all proposed “Prime Vendor” support arrangements; and by USD/ATL

    • Section 346, 1999 NDAA, as amended by Section 336, 2000 NDA

    • 13 Feb 2002 USD/ATL Memo to Services re: PBL Implementation Schedule

  • There is no current standard OSD format (in work)

  • BCA’s have several uses in implimenting PBL

    • Assesing viability of overall strategy, workload allocation, and cost comparisons

BCA’s are a toolset of PBL, useful in many circumstances.


Performance base logistics for the ground air task oriented radar 5 february 2004

BCA Structure

  • Introduction

  • Defines what the case is about (the subject) and why (its purpose). Presents the objectives addressed by the subject of the case.

  • Methods and Assumptions

  • Design elements analysis methods and rationale that fix the boundaries of the case (whose costs

  • and whose benefits examined over what time period). Outlines the rules for deciding what

  • belongs in the case and what does not, along with the important assumptions.

  • C. Business Impacts

  • The main business case results – financial and non-financial business impacts expected in one

  • or more scenarios.

  • D. Sensitivity and Risks

  • Shows how results depend on important assumptions (“what if”), as well as the likelihood for

  • other results to surface

  • E. Conclusions and Recommendations

  • Recommends specific actions based on business objectives and the results of the analysis.

From: “The Business Case Guide”; by Dr. Marty J. Schmidt, Solution Matrix, Ltd; 2002


Performance base logistics for the ground air task oriented radar 5 february 2004

Sample BCA Format

Executive Summary

Introduction/Overview

Subject, Purpose and Objectives

Background

Organization

Major Assumptions and Constraints

Scope of Analysis

Financial Metrics Used and Defined

Analysis Methodology

The Cost and Benefit Model Used

(Explanation of Cost Types and Categories)

Description of Alternatives

Costs and Benefits Over Time

Financial Analysis

Non-quantitative Factors, Criteria,

and Rationale for Their Use

Comparison of Alternatives (quantitative and qualitative)

Sensitivity Analysis

Risk Analysis

Conclusions and Recommendations

Results Rationale

Choice of Scenarios for Implementation

Strategy and Tactics to Optimize Results

Introduction

Methods and Assumptions

Business Impacts

Sensitivity and Risks

Conclusions &

Recommendations


Performance base logistics for the ground air task oriented radar 5 february 2004

Developing a Performance Based Agreement (PBA)


Performance base logistics for the ground air task oriented radar 5 february 2004

Performance-Based

Agreements (PBA)

Notional Approach

Strategic

  • Agree to provide the negotiated Operational Availability, Mission Capability, Operational Readiness

  • Agree to provide the Force Provider a voice on the Supportability IPT (SIPT)

  • Agree to provide funding to the PSI commensurate with the defined requirements

  • Agree to provide the PSI a voice on the Supportability IPT (SIPT)

Program

Manager

(PM)

Product

Support

Integrator

(PSI)

  • Agrees to perform the duties of the PSI as identified in the PBA

  • Agree to serve on the SIPT

  • Agree to comply with Contractors on the Battlefield policy

  • Agree to maintain a transparent supply chain with the field level

  • Agree to provide access to all performance data

  • Agree to integrate the supply chain activities of all Product Support Providers (PSPs)

  • Agree to search for increases in reliability

  • Agree to provide the funds for products and services rendered

  • Agrees to perform all field level operations in accordance with established Field Manuals and

  • Technical Manuals

  • Agrees to perform all field level maintenance in accordance with established Technical Manuals, Lube Orders, etc.

  • Agrees to using trained operators/maintainers, and/or that operators/maintainers receive proper training

  • Agrees to perform all supply chain operations in accordance with established policy

  • Agrees to perform other logistics transactions in accordance with established policy

Force

Provider

Notional/

Sustainment

Field


Performance base logistics for the ground air task oriented radar 5 february 2004

BARRIERS AND METRICS

Metrics:

Contract Types:

  • Non-Mission Capable Supply (NMCS)

  • Mission Capable Deliveries

  • Non-Mission Capable Maintenance

    (NMCM)

  • Supply Availability

  • 10% Reduction in O&S Costs

  • Customer Wait Time (CWT)

  • Mean Time To Repair (MTTR) Days

  • Fill Rate

  • Operational Availability (Ao)

  • Operational Readiness Rate (ORR)

  • In-Flight Abort Rates

  • Cost of Flight Hour

  • Turn-Around-Time (TAT)

  • Logistics Maintenance Ratio (LMR)

  • Training Equipment Availability Rate

    (TEAR)

  • Built In Test (BIT) Accuracy

  • Cost Per Mile to Operate

  • Operational Effectiveness

  • Contractor Performance Factor (CPF)

  • Non-Chargeable Down Time (NCDT)

  • Firm Fixed Price

  • Cost Plus Incentive Fee

BCA:

  • Economic Analysis (EA)

  • Best Value Analysis (BVA)

  • Business Case Analysis (BCA)

Barriers:

  • Funding Flow

  • Stability of Funding

  • Funding for Long Term Contracts

  • PBL Becomes “Must Pay” Bill

  • Business Risks

  • Working Capital Fund (WCF)

  • Guidance Not Evolving Rapidly Enough

  • Incentivizing/Disincentivizing Organic Sources

  • Statutory Rules

  • Contractor Limitation on Unit Level

    Performance

  • Contractors on the Battlefield Policy

  • Lack of PBL Training

  • Lack of or cost of Data Collection System


Developing a pba overview

Developing a PBAOverview

  • Purpose

    • Document, in terms of performance, the relevant support requirements

    • Document what that specified level of performance will cost.

  • Background

    • Brief description of program and decision criteria in choosing this solution.

  • Metrics

    • Used to measure how well a program is meeting the objectives

      • Identification of realistic, quantifiable, and measurable metrics

    • May change as requirements of the program evolve

    • Methodology:

      • Use of warfighter performance requirements to influence the design

      • Identification of all stakeholders roles and responsibilities (IPT’s) , for the collection, processing, analysis and reporting of performance data

      • Identification of the source and data to be collected

      • Formal performance review & dispute resolution process

Fightin’ words: “Where does PBL fit in with how we are doing business today?


Developing a pba overview continued

Developing a PBAOverview (continued)

  • Roles and Responsibilities

    • Includes Program Office, warfighter, Product Support Integrator Lead, Product Support Integrator Team.

  • Schedule

    • Major milestones and criteria for demonstrating successful accomplishments

  • Period of Performance

    • Not a one-time event.

    • Formally establishes an ongoing relationship between Government/Industry and the Warfighter throughout the weapon system life cycle.

    • Will require continual management throughout the weapon system life cycle

      • System evolution may lead to requirements change

  • Approving Officials

    • Should include:

      • Program Executive Office

      • Warfighter/User

      • Product Support Lead Integrator

      • Program Manager


Developing a pba template

Developing a PBATemplate

  • Performance Based Agreement Sections

    • Objective and Scope

    • Content

    • Roles & Responsibilities

    • Performance Measures

    • Revisions and Flexibility

    • Accountability and Oversight

    • Existing Agreements

    • Contingency Agreements

    • Execution of Agreement


Performance based agreements

Performance Based Agreements

  • Preface

    • Provides a common framework, a ‘checklist’ to consider, that may involve one or more organizations

    • Guidance, not direction…as the PBA matures, “best practices” will evolve and define the necessary PBA agreement restructuring.

  • Consider the following elements when developing a Performance Based Agreement:

    • Objective and Scope

    • Content

    • Roles and Responsibilities

    • Performance Measures

    • Revisions and Flexibility

    • Accountability and Oversight

    • Contingency Agreements

    • Execution of Agreement


Pba objective and scope

PBA Objective and Scope

  • Objective: Establish realistic, quantifiable, and measurable metrics between MARCORSYSCOM and Product Support Providers

  • Scope: PBA will address a basic set of criteria:

    • Document customer requirements and establish a set of mutual expectations.

    • Shall document the intent of the parties to review specific period of performance for the purpose of measuring the effectiveness of the product support providers.

    • Ideally expressed in contract-like terms which outline the desired outcome.

    • Incentives and Penalities


Pba intent

PBA Intent

  • MARCORSYSCOM and the customer sign the agreement to participate in the collaborative effort to design, build, field, and support G/ATOR

  • Clear identification of the customer performance and support requirements that will be applied

  • The program requirements will be quantified as metrics


Pba roles responsibilities

PBA Roles & Responsibilities

  • Should be clearly delineated in each individual PBA so that each stakeholder clearly understands the performance level to which they’ve subscribed.

  • Key aspects include:

    • Signature authority and the ultimate responsibility for monitoring, managing and executing all portions of the PBA agreement lies with the individuals designated therein.

    • Responsibility for executing the portions of the agreement specific to the PBA and setting the detailed arrangements for accomplishing the execution of each portion of the agreement, documenting performance targets, and monitoring through measurements lies with the signatories to the agreement.


Pba performance measures

PBA Performance Measures

  • Should be carefully evaluated and selected to measure the specific outcome that have meaningful impact on acquisition strategy.

  • Potential performance measures:

    • Operational Availability (Ao)

    • Operational Readiness Rate (ORR)

    • Turn-Around-Time (TAT)

    • Logistics Maintenance Ratio (LMR)

    • Built In Test (BIT) Accuracy

  • Should establish timelines for the performance reviews.

    • identification of metrics

    • data collectio/validation

    • base lining processes

  • Should include procedures for reconciliation of differences

    • Bring in your legal staff at this point!

  • Feedback mechanism(s) should include Notification and Resolution procedures as well as Escalation Procedures.


Pba revisions and flexibility

PBA Revisions and Flexibility

  • Unanticipated changes may necessitate a renegotiation

  • Flexibility enablers:

    • Envision and document a range for each metric to accommodate for fluctuating resources

    • PBA’s are long term(7-10 years):review periodically!

    • Synchronize the PBA review with the planning and budgeting process (POM)

    • Subsequent reviews should not require a “clean sheet negotiation” effort

  • Defining the resource level required to support specific performance thresholds is a significant step towards reducing Total Ownership Cost


Pba accountability and oversight

PBA Accountability and Oversight

  • PBAs provide for equitable and consistent expectations and enforcement for all parties

  • Guidelines:

    • Do you have adequate resources (i.e. funding, manpower support) necessary to achieve the required support levels?

    • Are incentives for performance by organic providers considered and clearly defined within scope of PBA?

  • Contingency Agreements

    • PBAs should include provisions for modification for agreed-upon periods of time under contingency situations

      • This including clauses that would be activated as a result of mission-related contingencies.


  • Pba summary

    PBA Summary

    • Performance Based Agreements are a critical element in implementing PBL

    • Define Expectations of Force Provider

    • Define range of support requirements

    • Basis for negotiating support contracts

    • Ensure accountability in meeting Warfighter requirements

    • Getting them right is critical!


    Performance base logistics for the ground air task oriented radar 5 february 2004

    RECOMMENDATIONS

    • Organize IPT’s around things that are core to your business, not around functions.

      • Set goals for each IPT.

    • Benchmark, stay current, be willing to change, keep improving

      • Execute with excellence.

    • Understand what you are currently doing

      • Focus on Total Life Cycle Systems Management.

    • Choose integrated solutions.

      • Measure performance for continuous improvement.

    • Get the right information to the right people.

      • Build through experience.


    Performance base logistics for the ground air task oriented radar 5 february 2004

    Acknowledgments & thanks!

    • Randy Fowler, Director, Center for Logistics and Sustainment Curriculum Development, Defense Acquisition University

    • Kathie McGuire, Headquarters DLA Action Officer for USMC/Army Weapon Systems

    • Resource Consultants, Inc.

    • 2650 Park Tower Drive, Suite 800

    • Vienna, VA 22180

    • John L. Tyler, Lead Logistician, MARCORSYSCOM, BMADS, PM-Radar Systems

    • George Perise, Log.Sec Corporation

    • 4150 Weeks Drive, Warrenton, VA 20187


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