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11 May 2004

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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  1. Accelerating Performance-Based Logistics Government / Industry Tiger Team 11 May 2004

  2. 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

  3. THANK YOU!! C-17 F-117 Common Ground Station AWACS JSTARS B-2 F/A-18 E/F Delivering Capability NOW!

  4. 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

  5. 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

  6. 74 Percent of Active PBLs to Total ACAT I and II Programs This is a BIG Deal Fundamental shift in business relationship!

  7. 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!

  8. 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

  9. 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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