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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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11 May 2004

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11 may 2004

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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