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Provisioning

ALCL 125

DAU GLOSSARY DEFINITION

The process of determining and acquiring the range and quantity (depth) of spares and repair parts, and support and test equipment required to operate and maintain an end item of material for an initial period of service. Usually refers to first outfitting of a ship, unit, or system.

General Information

Overview

An integral part of Supply Chain Management (SCM) and closely aligned with cataloging, provisioning is the management process of determining and acquiring the range and quantity of support items necessary to operate and maintain an end item of materiel for an initial period of service. Materiel managers and Primary Inventory Control Activities (PICA) will work with Program Managers (PM) to address logistics requirements and related supply chain costs within the total life-cycle systems management. They will ensure that item technical and logistics data relevant to end item supply support are documented and accessible to DoD and commercial materiel managers responsible for provisioning, follow-on support, and evaluation of supply chain performance. 

The initial period of service consists of the initial support period and the Demand Development Period (DDP). The initial support period is the period of time extending from initial system operational determination to the expected initial date of demand support. The DDP is the period of time extending from the expected initial date of demand support to a point in time when requirements may be forecast using actual demands. 

Provisioning can also apply to items not associated with the acquisition of a new major system, such as newly introduced items and items associated with the modification of a system or the introduction of a new subsystem or component.

Provisioning Methods

There are four methods of provisioning:

  • Conference team - A provisioning conference is the most common provisioning method. Normally, the conference is conducted at the contractor’s facility. A line-by-line review of provisioning data will be performed.
  • In-house / desktop - In-house / desktop provisioning is conducted during the provisioning activity. Normally this method is used for small and noncomplex items and is typically completed by Government personnel only.
  • Resident provisioning team - The resident provisioning team method is used when provisioning major systems. The provisioning team is permanently located at the contractor's facility and the team may man with multiple skills. The advantages of this method are expensive provisioning data deliverables will not need to be procured and investment in support items can be deferred until the system and its requirements are better defined.
  • Contractor - The contractor-conducted provisioning method is used to employ contractors to perform provisioning processes. This method can reduce the size of Government infrastructure.

Considerations

Following is a brief description of things to consider when conducting provisioning for DoD assets:

Provisioning planning - Provisioning planning begins with program initiation for the planning and acquisition of initial spares to support a new or existing weapon system or major end item and continues through the system acquisition. Materiel managers and  PICA will work with program and Product Support Managers (PSM) to address logistics requirements and related supply chain costs within the total life-cycle systems management. They ensure that item technical and logistics data relevant to end item supply support are documented and accessible to DoD and commercial materiel managers responsible for provisioning, follow-on support, and evaluation of supply chain performance.

Provisioning Conferences - The provisioning requirements statement or acceptable substitute will be fully coordinated with all participating Services/agencies. It will identify all conferences, as well as products to be available (for example, sample articles, screening results, and documentation) required for the conduct of business of the conference.

Types of provisioning conferences:

Provisioning Guidance Conference (PCG) - The purpose of the PGC is to bring the government acquisition manager and the Contractor together in order to ensure understanding of the contractual provisioning data requirements. A PGC is usually held 60 to 90 days after Contract Award Date (CAD). The topics discussed at a PGC might include maintenance concepts, provisioning techniques, item identification, design changes, and delivery schedules. The results of the meeting might include the establishment of tasks, provisioning milestones and submission schedules, and firm commitments for optional requirements.

Preparedness Review Conference (PRC) - A PRC is optional because it is usually required only for Contractors who have had no previous experience with the provisioning process. The purpose of this conference is to determine if the Contractor will be prepared for an upcoming Provisioning Conference (PC). At a PRC, representatives from the Service, the vendor, and the Service logistics/materiel commands will discuss what will be required for an efficient PC.

Provisioning Conference (PC) - The PC gives the Service and the Contractor personnel the opportunity to meet and discuss the specific requirements and data needed to make the technical and supply decisions that are part of the provisioning process. Some of these provisioning decisions will actually be made during the PC. At a PC the Program Office, the Contractor's technical people, the Provisioning Team meets to review the drawings and provisioning data. In addition, the acquisition office's logistics representative and ILS manager may also attend. For GFE, the equipment is usually available. As a group they will discuss all the information and assign the proper technical and supply coding at the conference.

Provisioning Data Management - The objective of provisioning data management is timely access to all data required to identify, acquire, and assess support items. An emphasis should be on the reduction of the variety of parts and associated documentation required by weapon systems or end items through provisioning screening. When DoD is the preferred source of supply for a new major system, they will integrate provisioning requirements and activities with the system acquisition process through Performance Based Logistics (PBL) or performance-based Product Support Arrangements (PSA) with PM.

Provisioning data management is done by material managers to provide PMs with applicable provisioning data requirements and deliverables for incorporation into end item acquisition solicitation documents. Submit data requirements such as provisioning technical documentation (PTD) and engineering data for provisioning (EDFP) using the standard for Logistics Product Data (LPD) as defined in GEIA-STD-000 and Military Handbook (MIL-HDBK)-502A

PTD can include the following:

  • Provisioning Parts List (PPL)
  • Short Form Provisioning Parts List (SFPPL)
  • Long Lead Time Items List (LLTIL)
  • Common and Bulk Items List (CBIL)
  • Design Change Notice (DCN)
  • Post Conference List (PCL)
  • Tools and Test Equipment List (TTEL)
  • Support Equipment Recommendation Data (SERD)

Provisioning Lists - Lists of data developed and used for provisioning purposes. These lists include provisioning parts lists, short form provisioning parts lists, common and bulk item lists, long lead time items lists, and repairable items lists

Provisioning Parts List (PPL) - The PPL is the most important provisioning data. Its purpose is to portray the physical composition of the equipment. PPL is submitted for configuration worthy equipment that the maintenance planning documentation determined is repairable. This data should contain all parts subject to wear or failure and other items required for maintenance throughout the life cycle of the equipment. A PPL describes the parts in the equipment in some logical order, such as top-down breakdown or circuit symbol number sequence. For each part, the PPL will show information such as the part number, part name, quantity of the part in the equipment, unit price, and other specified data. The PPL is the basic document used in the provisioning process on which to record the various technical decisions. The PPL is used to build APLs.

LPD - comprises the support and support-related engineering and logistics data acquired from contractors that the requiring authority needs to develop their internal materiel mana- gement processes. This data is generated as a result of the product support analysis conducted during the design, development, and initial fielding of a system or end item. LPD includes information for maintenance planning, logistics design requirements, reliability and maintainability, system safety, maintenance engineering, support and test equipment, training and training devices, manpower and skills, facilities, transportation, supply support, parts packaging, initial provisioning, cataloging, item management, and in-service feedback

Readiness-based Sparing (RBS) - RBS methods will be used by DoD Components to determine the inventory investment required for the fielding of a new weapon system, where feasible. When use of RBS is infeasible and a demand-based methodology is used. They should consider end item population build-ups during provisioning for demand and supply planning, to include; phasing, lead time, and measures of effectiveness..

MIL-HDBK-502A, Product Support Analysis, defines a wide range of analyses that are conducted within the systems engineering process. The goals of PSAs are to ensure that supportability is included as a system performance requirement and to ensure the system is concurrently developed or acquired with the optimal support system and infrastructure. This analysis includes the integration of various analytical techniques with the objective of designing and developing an effective and efficient product support package. The primary techniques used in PSAs are: Failure Mode, Effects, and Criticality Analysis (FMECA), Fault Tree Analysis (FTA), Reliability Centered Maintenance (RCM) Analysis, Level of Repair Analysis (LORA), Maintenance Task Analysis (MTA), and Core Logistics Analysis (CLA) and Depot Source of Repair (DSOR) determination process.

Provisioning Screening - is done by DoD Components to prevent unnecessary or duplicate items from entering the supply system. This is done by screening manufacturers’ part numbers and other reference numbers during the provisioning process. They should also use the DLA Logistics Information Service (DLIS) for additional screening support as needed and to enter new state-of-the-art technology into the supply system by developing new cataloging nomenclature and descriptive methods.

Transition Support - is conducted to transition from initial contractor support to organic supply support. A transition schedule based on design stability and supply support concept compatibility with maintenance concepts and other logistics support elements including logistics data, must be developed. The plan should be consistent with the system and equipment logistics support plan and consideration should be given to phasing support to allow for the cost-effective transition to organic supply support.

Provisioning Requirements Determination - is done by implementing RBS methodologies for provisioning new weapon systems to determine the optimum range and quantity of items required at all stockage and user locations to meet approved weapon system readiness goals. This is a component responsibility. The developmental/production contract award guidance conference is usually held soon after the Technology Maturation and Risk Reduction (TMRR) phase. This is shortly after the Engineering Manufacturing Development (EMD) contract is awarded. Provisioning requirements within a guidance conference are intended to ensure that both the contractor and Government have the same interpretation and understanding of the supply support and provisioning aspects of the EMD contract prior to the contractor commencing the formal provisioning process, to include: interim release criteria, PTD, deliverable provisioning data items, Service-unique requirements, and other subjects as appropriate.

Procuring Provisioned Support Items - fall to the DoD Components when they are selected as the preferred source of supply. They will create interactive support management plans that enable incremental scheduling and implementation of support, based on configuration indenture and delivery of weapon systems and equipment. This should include retail procurement levels (based on end item density factors, site activation schedules) and wholesale procurement levels (based on a time-weighted average number of end items supported each month). DoD materiel managers, with PSMs and Product Support Providers (PSP) and/or Product Support Integrators (PSI) will acquire initial spares and replenishing spares as early in the production process as possible. The initial cost associated with provisioning can be large, but early and accurate planning can reduce ,unplanned cost events. These include obsolescence and Diminishing Manufacturing Sources and Material Shortages (DMSMS).

Provisioning Performance Measures - are also the responsibility of DoD Components when they are the preferred source of supply. The measures should include criteria in customer-oriented and performance-oriented measurement goals, to include: assessment of provisioning contribution to readiness or other objectives captured in performance agreements, accuracy of provisioning buys, projected use versus actual use, ability to meet provisioning milestones, accuracy of provisioning documentation, and inventory efficiency, as measured by minimal inactive inventories.This provisioning process should carry the support through the initial period of service, which consists of the initial support period and the DDP. 

There are three primary provisioning techniques:

  • Interim release - is applied to high-cost, design-stable, and reparable items with long production lead times. It is identified by a contractor data item submittal that authorizes the contractor to produce in advance of completion of provisioning. When the provisioning strategy calls for interim release to be used, the contractor prepares a list of items that fall into this category, a Long Lead Time Items Listing (LLIL) and the items identified on the LLIL may be entered into production prior to the completion of the normal provisioning process and prior to the receipt by the contractor of a specific order for the items.
  • Initial breakout - applies when many of the new items identified for procurement during the initial provisioning process are produced by someone other than the prime contractor. One disadvantage when the Government purchases these items from a prime contractor is that the Government is often in the position of paying the prime contractor administrative charges for passing on orders to vendors. In many cases it makes economic sense to bypass the prime contractor and deal directly with the actual manufacturer of the parts. This process of identifying which items should be acquired directly from the actual manufacturer is known as initial breakout. The initial breakout technique uses GEIA-STD-0007 as the primary reference guide.
  • Spares Acquisition Integrated with Production (SAIP) -allows for certain support items intended for use as spares or repair parts to be manufactured or purchased along with similar items intended for installation on the end items during production. In this process, the Government pays the same price for the spares as they paid for the production install item, with reasonable additional charges for packaging and delivery of the spare asset. The characteristics of the SAIP provisioning technique include: spares manufactured concurrently with items intended for installation, contractor identifies SAIP candidates and production schedule via data items, government selects SAIP items for production, and most significant cost deltas include packaging, handling, and transportation.