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Accelerating Performance-Based Logistics. Government / Industry Tiger Team. 11 May 2004. Performance-Based Logistics. JACG. DoD 5000 Policy. Integrated Implementation Across Industry and Government. Oversight via DAB/DAES. Oversight via R-TOC Forum. New program implementation.

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slide1

Accelerating Performance-Based Logistics

Government / Industry Tiger Team

11 May 2004

performance based logistics
Performance-Based Logistics

JACG

DoD 5000

Policy

Integrated Implementation Across Industry and Government.

Oversight via

DAB/DAES

Oversight via

R-TOC Forum

New program

implementation

30 Pilot

Programs

Quadrennial

Defense Review

Reengineer

Product Support

  • Performance-Based Logistics
  • Legacy Systems
  • FY03 DPG
  • Service Implementation Schedules

Lessons

Learned

Operational

Demonstrations

Adjustments

  • CY02/03 PEO/SYSCOM
  • PM Roundtables
  • AIA Product Support
  • Industry/Government Tiger Team
thank you
THANK YOU!!

C-17

F-117

Common Ground Station

AWACS

JSTARS

B-2

F/A-18 E/F

Delivering Capability NOW!

where we were
Where We Were

DoD

AIA/Raytheon

Defense Business Board

  • Streamline BCA’s
  • Multiyear contracts
  • Color of Money
  • Enhanced training
  • Pilot Program results
  • Service transition schedules
  • Accelerate PBL Application
  • Consistent guidelines
  • Common metrics
  • Coherent financial strategy
  • Enhanced training

DoD/AIA Tiger Team

  • Remove barriers
  • Understand the issues
  • Joint solutions
what we ve accomplished
What We’ve Accomplished
  • Consistent BCA guidelines
    • Total life cycle costs
    • Best value
    • Operationally driven
  • Common metrics
    • Operational availability
    • Mission reliability
    • Cost per unit usage
  • Preferred contract strategy
    • Fixed Price Incentive/Award Term
    • Multiyear contracts (5+)
    • Incentives tied to metrics
    • Award Term enables consistent horizon
this is a big deal

74

Percent of Active PBLs to Total ACAT I and II Programs

This is a BIG Deal

Fundamental shift in business relationship!

the law of the land
The Law of the Land . . .
  • Management Initiative Directive 917
    • Lead programs
    • Program/budget to single activity group
  • DepSecDef Guidance
    • AT&L issue consistent guidance
    • Service plans for all ACAT I and II programs
  • Strategic Planning Guidance
    • Service BCAs for all ACAT I and II by FY 06
    • Initial management review by September 04

. . . Get on With It!

what s next
What’s Next
  • Enhanced Team Training
    • DAU Roadshow
  • Enhanced personnel exchange with Industry
    • Product Support Managers
    • ILS Managers
    • Data Managers
  • Government/Industry benchmarking
    • Process metrics
    • Voluntary participation
  • Go-forward strategy on Partnering
    • Broader than depot maintenance
    • Shared risk/rewards
    • Beyond current contract/subcontract arrangements
  • Logistics Transformation Roadmap
    • Horizontal/vertical integration
continuing development
Continuing Development
  • “Corporate” PBL contracts
    • DLA/NAVICP leading the way; can we extend to other material management centers?
  • True Partner PBL contracts
    • Can we learn from Australia, United Kingdom, and Canada?
  • Truly buying outcomes
    • Can we learn from Australia and UK?
  • Industrial Benchmarking
    • Can we enable A&D industry to achieve world-class performance?
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