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NAVAIR Performance Based Logistics Overview SOLE Meeting, 20 February 2003 Curtis J. Searl Jr., C.P.L. AIR 3.5.2

2. Aging Weapon Systems Procurement Holiday in 1990's Average A/C Age 19 years (H-46, 34 yrs) Obsolescence Up Drive Increased Costs Declining Parts Inventories and Infrastructure Shrinking Vendor Base Rising Cost of Ownership Increased Consumption and

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NAVAIR Performance Based Logistics Overview SOLE Meeting, 20 February 2003 Curtis J. Searl Jr., C.P.L. AIR 3.5.2

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    1. 1 NAVAIR Performance Based Logistics Overview SOLE Meeting, 20 February 2003 Curtis J. Searl Jr., C.P.L. AIR 3.5.2

    2. 2

    3. 3 Turning to Industry

    4. 4 Definition

    5. 5 PBL Background

    6. 6 PBL- the Bottom Line Stating objectives, rather than prescribing “how to” perform the work, may allow previously unforeseen solutions in the commercial sector to fulfill the desired mission requirementStating objectives, rather than prescribing “how to” perform the work, may allow previously unforeseen solutions in the commercial sector to fulfill the desired mission requirement

    7. 7 DOD/DON PBL Policy Quadrennial Defense Review (30 Sept. 2001) Directs That DoD Implement PBL to Compress the Supply Chain and Improve Readiness FY 03-07 Defense Planning Guidance Identifies the Implementation Schedule for Applying Performance Based Logistics to All New Weapon Systems and ACAT I and II Fielded Systems OSD PM’s Guide to Buying Performance Released by DUSD L&MR Nov 01 USD (AT&L) Memo 13 Feb 02 Requires Service PBL Plans for All ACAT I & II Fielded Systems and All New Start Programs DON PBL Plan 26 Apr 02 Identifies Navy PBL Strategy and Approach ASN (R,D&A) Memo 27 Jan 03, Release of DON PBL Guidance Document SECDEF Memo 30 Oct 02 Cancels DOD 5000. From Interim “The Defense Acquisition System”: PMs Shall Develop and Implement Performance Based Logistics Strategies that Optimize Total System Availability While Minimizing Cost and Logistics Footprint. Contractual Requirements Shall Be Stated in Performance Terms, Limiting the Use of Military Specifications and Standards SECDEF Memo 30 Oct 02 Cancels DOD 5000. From Interim “The Defense Acquisition System”: PMs Shall Develop and Implement Performance Based Logistics Strategies that Optimize Total System Availability While Minimizing Cost and Logistics Footprint. Contractual Requirements Shall Be Stated in Performance Terms, Limiting the Use of Military Specifications and Standards

    8. 8 FMS Considerations

    9. 9 Typical PBL Characteristics

    10. 10 Typical PBL Characteristics

    11. 11 As I mentioned previously, PBL accords the contractor an expanded logistics role in exchange for guaranteed deliveries, obsolescence management and technology insertion. Contractor logistics functions may include depot repair, warehousing, transportation, inventory management, configuration management, etc. To date, we have selected candidates based on the criteria shown on the chart. To put more rigor in the selection process, we have recently developed a PBL Opportunity Index tool that applies a qualitative formula to the process. Basically, the tool ranks items against each other in terms of reliability, repair/procurement cost, obsolescence, supply availability and a factor for manual intervention. We have set aggressive goals for ourselves in constructing PBL arrangements and are on track to achieve those goals As I mentioned previously, PBL accords the contractor an expanded logistics role in exchange for guaranteed deliveries, obsolescence management and technology insertion. Contractor logistics functions may include depot repair, warehousing, transportation, inventory management, configuration management, etc. To date, we have selected candidates based on the criteria shown on the chart. To put more rigor in the selection process, we have recently developed a PBL Opportunity Index tool that applies a qualitative formula to the process. Basically, the tool ranks items against each other in terms of reliability, repair/procurement cost, obsolescence, supply availability and a factor for manual intervention. We have set aggressive goals for ourselves in constructing PBL arrangements and are on track to achieve those goals

    12. 12 Key Tenets of a Successful PBL

    13. 13

    14. 14 PBL Issues/Barriers

    15. 15 PBL Funding Considerations

    16. 16 PBL Funding Considerations

    17. 17 PBL Impacts on Man Hours

    18. 18 Additional PBL Issues

    19. 19 PBL Future Challenges/Summary

    20. 20 Performance Based Logistics

    21. 21

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