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Twelfth PEO/SYSCOM Commanders Conference . The NAVSEA Perspective On Full Service Partnering. Mr. John Goodhart Assistant Deputy Commander Fleet Logistics Support NAVSEA 04L. November 20, 2002. Wall Street. DoD/OSD. DoN, SYSCOMS. Shipbuilder w/ System Integrator as sub-contractor.

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Presentation Transcript
slide1

Twelfth PEO/SYSCOM Commanders Conference

The NAVSEA Perspective

On

Full Service Partnering

Mr. John Goodhart

Assistant Deputy Commander

Fleet Logistics Support

NAVSEA 04L

November 20, 2002

full service contracting wargame product support business model

Wall Street

DoD/OSD

DoN,

SYSCOMS

Shipbuilder w/

System Integrator

as sub-contractor

LPD-XX

Viking

System Integrator

& Shipbuilder as sub

PHOENIX

CORTEZ

DDG-XX

Commercial

full-service

contracting

company

  • CONTROL
  • Environment: Economics and Conflict
  • Politics: Local and National

ORION

Depots

Congress

In Service Engineering

Warfighter

Full Service Contracting WargameProduct Support Business Model

Wargame Environment

  • Wargame Objectives
  • Define the scope of FSC
  • Identify critical areas of concern
  • Explore opportunities for change
  • Explore potential for cost reductions

Simulated 3 Scenarios & Multiple Events over 3 Days

we learned
We Learned…
  • Should be Full Service Partnering – “FSP”
  • Phased approach for Legacy systems- Risk mitigation
    • Step-by-Step until FSP takes over whole ship/system
    • Allows both sides to assess true costs and opportunity to integrate
    • Government participation with contractor
  • More ambitious approach for cradle-to-grave projects
  • Need to understand what would be the best mix of organic NAVY and FSC assets that plays to strengths of each to overall benefit of the Navy.

This begins to look like “PBL”.

slide4

PBL Background Information

  • PBL Mandated by
  • FY 2003-07 QDR. “Compress supply chain, eliminate non-value added steps, reduce TOC and improve readiness”
  • FY 2003-2007 Defense Planning Guide – Implement PBL to all new weapon systems and ACAT I and II fielded systems
  • DoDD 5000.1 (DRAFT) – “PM shall develop and implement performance-based logistics strategies…”
  • Navy PBL Implementation Plan - Issued by DoN 1 May 2002 listing 23 NAVSEA and PEO programs as pursuing PBL strategies.

DoD Definition

A strategy for weapon system product support that employs the purchase of support as an integrated, affordable performance package designed to optimize system readiness. It meets performance goals for a weapon system through a support structure based on long-term performance agreements with clear lines of authority and responsibility.

slide5

Best Value Support Solutions

Balance is the Key

Traditional Organic Support

Commercial Business Practices

Full Contractor Logistics Support

Performance Based Logistics

Mini Stock Point

Public/Private Partnership

Commercial NDI

Legacy

Tailored, affordable support options

the benefits of implementing pbl
The Benefits of Implementing PBL
  • Focus on Customer Service, Reduced Product Support Cost, Life Cycle Product Management and Effective Infrastructure.
    • TOC reduction of 20% and higher
    • Targeted reductions to ship and shore maintenance workload
    • Best Commercial Practices
      • Total Asset Visibility
      • Customer Service Center
      • Obsolescence Management
      • Life Cycle Warrantees
    • Surge Capacity up to 120% and higher
    • Availability Improvement – 24 hour parts response time

War Fighter focused TOA reduction and performance improvement.

expanding pbl focus to total life cycle support

80

Depot

67.2

70

Maintenance

65.6

64.4

62.5

63.1

61.8

59.2

59.3

58.4

Materiel

60

Management

50

Transportation

$ in Billions

40

Operational

Maintenance

30

Operational

20

Supply

10

Other

0

99

00

01

02

03

04

05

06

07

Expanding PBL Focus to Total Life Cycle Support

Sustainment Cost*

PBL

SCN/OM,N

WCF

PBS

Fiscal Year

*Source: FY02 BES, TY Dollars

slide8

Near Term and Strategic Opportunities for Change

  • Vertical FSC stays the same for platform integration
  • Initiate Public / Private Partnership for horizontal integration

FSC 1

FSC 2

FSC 3

FSC X

LPD

DDG

CVN

etc...

HME

SYSTEM

Performance Based Public - Private

COMBAT

Partnership

SYSTEM

WEAPON

SYSTEM

COMM

SYSTEM

New NAVSEA organization facilitates cross platform integration

the navsea pbl process model

Infrastructure

Fleet

Warfighter

PBA

Core

Big “L”

Maintainer

Operator

“Strategic

Business

Analysis”

Ao, TOC

Manning

The NAVSEA PBL Process Model

NAVSEA PBL Core Focus

Affordable

Support

Product

Support

Trades & BCA

Metrics, ROI,

Drivers

Incentives

Performance

Based

Contracting

ORD, MNS, PPBS, CRD, APB

Support

Metrics

Logistics Assessment/IOCSR

Support

Metrics

CFFC

Cost and Performance Benefits

Build in Fleet-focused support from the start

summary

8

5

1

5

2

2

Summary
  • 23 NAVSEA ACAT I & II Programs
  • 28 Joint NAVSEA/NAVSUP PBLs
  • 19 Performance Based Support Services contract
  • Other NAVSEA PBLs: AEGIS Weapon System, ARCI, Q-70, AN/UYK-70, AN/BLQ-10, Towed systems, MK 48, 11 meter RIBs, and others.

NAVSEA Performance Base Full Service Pilots

  • MCM/MCH Diesel Engines - Horizontal in-service PBL for main propulsion and electric generators.
  • Cooperative Engagement System – Horizontal PBL for new acquisition of an electronic system.
  • LPD 17 Electronic Systems – Vertical PBL for eight electronic equipments on a new acquisition.
  • ARCI/MFOP – Vertical PBL for in-service Submarine Sonar upgrades.
  • Other areas of Interest – Non Standard parts, Refrigeration & AC Plants, HP Air systems, LM-2500 and others.