Strategic Vision Life Cycle Logistics Functional IPT

1. Strategic Vision Life Cycle Logistics Functional IPT Mrs. Sue Dryden DASD(Materiel Readiness) January 13, 2012

2. Overview • DoD Environment • Acquisition, Requirements, and Sustainment Balance • The Product Support Journey • Product Support Alignment • Product Support Assessment Team (PSAT) Products • PSAT Challenges • FY12 NDAA “New” Changes • Sustainment Planning Delivers Real Value • Product Support Manager (PSM) Conference

3. DoD Environment ? Willie Sutton DoD Strategy – January 2012 • Strategic Turning Point • Joint Force • Leaner and smaller • Agile, flexible, and technologically advanced • Focus on people and a strong industrial base • Reduce the “cost of doing business” • World’s finest military 3

4. Acquisition, Requirements, and Sustainment are a Balance Balancing Affordability with Readiness

5. The Product Support Journey NextGen Adoption Concept Policy Section 912, 1998 NDAA: DoD to report to Congress on Product Support Reengineering Product Support Reengineering Report to Congress DoD QDR mandates “PBL” – First official Use of Term DoD 5000 policy updated: PBL is “preferred” Support Strategy Revised DoDI 5000.2 Issued DoD Weapon System Acquisition Reform Product Support Assessment PSAT Implementation Next Gen Product Support PSM Section 805 Implementation, Proof Point Assessment Phase 1, Institutionalization of Sustainment Quad Chart PSM, BCA, ILA, Post-IOC Review Guidebooks; Proof Point Assessment Phase 2 ACAT 1 & 2 to use PBL or justify non-use DoD WSAR-PSA Implementation Product Support Assessment Team Launched Program Managers Guidebook published 30 RTOC Pilot Programs Next Generation F-117, APU PBLs 1998 1999 2001 2003 2008 2009 2010 2011 2012

6. 2011 Achievements • PSA Deliverables/PSEC • Product Support Policy, Guidance, Tools & Training Repository • Product Support Manager Guidebook • Product Support Business Case Analysis (BCA) Guidebook • Logistics Assessment (LA) Guidebook • Web-based Product Support Manager (PSM) Toolkit • LCSP Release/Deployment • MR participation in DSOR policy revisions • DoDI 5000.02 Life Cycle Enclosure Development • Updated Defense Acquisition Guidebook (DAG) Chapter 5 (“Life Cycle Logistics”) PSM Implementation • First PSM Conference • Product Support Manager Rapid Deployment Training (RDT) • Product Support Manager Reference Repository • AO influence on DABs, DAES involvement • JSF Wargame Engagement • UAS Task Force Logistics and Sustainment IPT established • Nunn-McCurdy Review and PSR participation (Global Hawk and others) • Institutionalized Sustainment Quad and Crosswalk chart • MR established Logistics oversight of Rapid Fielding projects • DAU strategic partnership • New LOG 340 “Life Cycle Product Support” Course • LCSP Sessions in LOG 350 course • CLL 005 Developing a Life Cycle Sustainment Plan (LCSP) Continuous Learning Module • CLL 036 Product Support Manager Continuous Learning Module • Supported DPAP through logistics service Peer Reviews • Proactive alignment of Better Buying Power to O&S; meetings with BBP leads • Relationship with Systems Engineering • Weekly RAM team meetings 6

7. PSAT Challenges • PSAT momentum continues, needs some run time on product delivered • Products are being socialized, Services are in the process of implementing products • Feedback encouraged from PM/PSM’s on how products are being used in the development and execution of product support strategies • Industry looking for PSAT evidence in RFPs • PSEC /Service support encouraged to assist and re-enforce PSAT Vision/Strategies • Leverage PSEC / PSAT structure to address gaps and redundancies, ie MILSPEC/STDS • Need to strengthen PSAT relationship with financial and contract management communities

8. FY12 NDAA “New” Changes • Requirements prior to Low-Rate Initial Production (LRIP) • Prior to entering into a LRIP contract of a MDAP, the SECDEF shall ensure: • Detailed requirements for core depot-level maintenance and repair capabilities, • associated logistics capabilities, and • associated sustaining workloads required to support such requirements • have been defined. • Not later than 120 days after enactment, the SECDEF shall issue implementation guidance. 8

9. FY12 NDAA “New” Changes continued • 10 USC 2366a Certification • A MDAP may not receive Milestone A approval until MDA certifies: • Determination of applicability of core depot-level maintenance and repair capabilities requirements has been made • Program cost estimate has been submitted, with concurrence of the CAPE Director, and the level of required resources required to develop, produce, and sustain the program • Core depot-level maintenance and repair capabilities are as identified under Section 2464(a) 9

10. FY12 NDAA “New” Changes continued • 10 USC 2366b Certification • A MDAP may not receive Milestone B approval until MDA certifies: • Life-cycle sustainment planning, including corrosion prevention and mitigation planning, has identified and evaluated relevant sustainment costs throughout development, production, operation, sustainment, and disposal of the program, and any alternatives, and that such costs are reasonable and have been accurately estimated; • An estimate has been made of the requirements for core depot-level maintenance and repair capabilities, as well as the associated logistics capabilities and the associated sustaining workloads required to support such requirements • Core depot-level maintenance and repair capabilities are as identified under Section 2464(a) 10

11. FY12 NDAA “New” Changes continued • Sec 832, Assessment, Management, and Control Of Operating and Support (O&S) Costs • Require the military departments: • Retain each O&S cost estimates and supporting documentation developed during life cycle; • Update O&S estimates periodically throughout life cycle • Establish standard requirements for O&S data collection and revise their Visibility and Management of Operating and Support Costs (VAMOSC) • Establish standard requirements for collection and reporting data on O&S cost by contractors performing weapon system sustainment • Ensure sustainment factors are fully considered at key life cycle management decision points • Conduct independent logistics assessment of each major weapon system prior to key acquisition decision points 11

12. FY12 NDAA “New” Changes continued • Sec 832, Assessment, Management, and Control Of Operating and Support (O&S) Costs (continued) • Require the military departments: • Include reliability metrics • Use these metrics as triggers to • Conduct further investigation and analysis into metrics drivers • Develop strategies for improving reliability, availability, and maintainability of such systems at an affordable cost • Conduct periodic reviews of O&S costs after system achieve IOC to identify and address factors resulting in O&S growth and adapt strategies to reduce such cost • Not later than 120 days after enactment, the SECDEF shall issue implementation guidance. 12

13. Sustainment planning delivers real value to the Warfighter 13

14. PSM CONFERENCE • Hosted 1st PSM Conference (Govt only) • November 2-3, 2011 • 250+ attendance • Purpose: To provide a baseline in policy, guidance, expectations for the PSMs • Planning Spring 2012 PSM Conference • June 5-7, 2012 at Defense Acquisition University • Open to Government and Industry Personnel • Purpose: To integrate Product Support with Industry and the Government • http://www.acq.osd.mil/log/mr/PSM_conference.html

15. Questions