Hot Topics (Part 10): Performance Based Logistics
Welcome to the tenth and final installment of our multi-part series of DAU LOG Blog posts highlighting a range of resources, references and related learning opportunities covering a range of critically important multi-disciplinary topics of interest to the defense acquisition workforce. So far, we have examined:
- Supply Chain Resiliency & Supply Chain Risk Management (SCRM)
- Additive Manufacturing/3D Printing
- Digital Engineering, Digital Acquisition and Digital Product Support
- Data Analytics, Artificial Intelligence (AI) & Machine Learning (ML)
- Software Life Cycle Management & Agile Software Development
- DevSecOps & Cloud Computing Operations
- Cybersecurity
- Intellectual Property and Data Rights, Technical Data, and Configuration Management
- Property and Equipment Management, Property Accountability, and Financial Improvement and Audit Readiness/ Remediation (FIAR)
Today we will examine a topic we have visited before, namely an interdisciplinary product support and sustainment strategy topic that has been a foundational part of the DoD policy process for nearly 25 years, namely that of Performance Based Logistics (PBL), also known as Performance Based Life Cycle Product Support:
Definition
- Synonymous with performance-based product support, where outcomes are acquired through performance-based arrangements that deliver Warfighter requirements and incentivize product support providers to reduce costs through innovation. These arrangements are contracts with industry or inter-governmental agreements. Sources of support may be organic, commercial, or a combination, with a primary focus of optimizing customer support, increasing weapon system availability, and reducing ownership costs. (Source: DAU Glossary)
Statute
DoD Policy
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DoD Directive 5000.01 The Defense Acquisition System shall:
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Para 1.2.k. Employ Performance Based-Acquisition Strategies. To maximize competition, innovation, and interoperability, acquisition managers will consider and employ performance-based strategies for acquiring and sustaining products and services. “Performance-based strategy” means a strategy that supports an acquisition approach structured around the results to be achieved as opposed to the manner by which the work is to be performed. This approach will be applied to all new procurements and upgrades, as well as re-procurements of systems, subsystems, and spares that are procured beyond the initial production contract award.
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Para 1.2.l. Plan for Product Support. Product support strategies (PSSs) will be informed by a business case analysis conducted pursuant to Section 2337 of Title 10, U.S.C. The PSS is designed to facilitate enduring and affordable sustainment consistent with warfighter requirements. Support metrics will be established, tracked, and adjusted where needed to ensure product support objectives are achieved and sustained over the system life cycle. PSSs include the best use of public and private sector capabilities through government and industry partnering initiatives, in accordance with statutory requirements.
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Para 1.2.m. Implement Effective Life-Cycle Management. The PM is accountable for achieving program life-cycle management objectives throughout the program life cycle. Planning for operations and support will begin at program inception, and supportability requirements will be balanced with other requirements that impact program cost, schedule, and performance. Performance based life-cycle product support implements life-cycle system management.
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DoDI 5000.91 Product Support Management for the Adaptive Acquisition Framework
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Para 4.7.a. “The program manager, with the support of the PSM, will develop and implement an effective performance-based life cycle product support (synonymous with performance-based logistics strategy) (emphasis added) that will deliver an integrated and affordable product support solution designed to optimize system readiness for the warfighter.
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Para 4.7.a. “The performance-based life cycle product support strategy will be the basis for all product support efforts (emphasis added) and lead to a product support package to sustain warfighter requirements.”
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Para 4.7.b. “At the program level, all product support solutions will be performance based (emphasis added). Product support solutions will include an appropriate mix of product and process metrics with threshold values to monitor performance that may be adjusted as needed to satisfy warfighter requirements. The PSM will employ effective planning, development, implementation, and management in developing a system’s product support arrangements in support of the product support solution.”
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Para 4.7.c. While performance-based product support arrangements may be a key component of a program’s performance-based lifecycle product support solution, this does not mean that all arrangements with industry will be performance-based logistics contracts. Performance-based logistics contracts are utilized when analysis indicates they can effectively reduce cost and improve performance. Performance-based logistics contracts will be structured to specific program needs and may evolve throughout the life cycle.
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Para 4.7.d. The PSM will maximize the best use of public and private sector capabilities through Government and industry partnership initiatives (emphasis added) when developing the PSS.
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DoD Guidance
- DoD Product Support Guidebook Suite
- DoD Performance Based Logistics (PBL) Guidebook
- DoD Product Support Manager (PSM) Guidebook
- DoD O&S Cost Management Guidebook
- DoD Public-Private Partnering (PPP) Guidebook
- DoD Product Support Business Case Analysis (BCA) Guidebook
- DoD Life Cycle Sustainment Plan (LCSP) Outline
DAU Training
- DAU LOG 0110 Introduction to Performance Based Logistics Online Training (OLT) Course
- DAU LOG 0310 Performance Based Logistics Contracting Strategies OLT Course
- DAU LOG 2350 Performance Based Logistics (PBL) OLT Course
- DAU LOG 3400/V Life Cycle Product Support Virtual Instructor Led Training (VILT) Course
- WSL 001 Performance Based Logistics Mission Assist Workshop
- WSM 012 Services Acquisition Workshops (SAW)
ACQuipedia Articles
- Performance Based Logistics (PBL) Overview
- Performance Based Logistics (PBL) Contract Lengths
- Performance Based Logistics (PBL) Contracting Strategies
- Performance Based Logistics (PBL) Metrics - Overview
- Performance Based Logistics (PBL) Metrics – Techniques & Tools for Optimizing Operating & Support (O&S) Cost & System Readiness
- Performance Based Logistics (PBL) Metrics - Thresholds vs. Objectives
- Performance Based Logistics (PBL) Management
- Performance Based Logistics (PBL) Implementation
- Incentives - Motivating Achievement of Desired Product Support Outcomes
- Product Support Integrator (PSI) and Product Support Provider (PSP)
- Best Value Product Support Arrangements
- Product Support Arrangements (PSA)
- Product Support Business Model (PSBM)
- Product Support Package
- Life Cycle Sustainment Outcome Metrics
DoD PBL Proof Point Study
- ”Proof Point Project: A Study to Determine the Impact of Performance Based Logistics (PBL) on Life Cycle Costs" Redacted Study Report
- "Performance Based Logistics and Project Proof Point: A Study of PBL Effectiveness” Overview Article
- “Performance Based Logistics: Conclusive Evidence Supporting the Impact of PBLs on Life Cycle Costs” Presentation
Additional Resources
- PBL Community of Practice (PBL CoP)
- Winners of Annual Secretary of Defense PBL Award (since 2005 Program Inception)
- PBL Maturity Job Support Tool
- Video Interview - Micro-video with the late-Jerry Beck, the namesake of the SECDEF PBL Award
- PBL Success Story Powerful Example Video with NAVSUP & NAVAIR
- NAVSUP WSS Secrets to Success Webcast: Performance Based Logistics 101 (February 2022)
- PBL Articles Library (Containing Archives with Links to Twenty-five Years of PBL Articles)
Non-DAU Training (Note: The information below is provided for informational purposes only; no official DoD or DAU endorsement is intended)
- University of Tennessee “PBL: A Proven Product Support Strategy Course”
- Institute for Defense & Business (IDB) Life Cycle Executive Leadership Program (LCELP)
- Institute for Defense & Business (IDB) LOGTECH Advanced Program
Note: Some material above was taken from an earlier DAU LOG Blog post entitled “One-Stop Shop for PBL Resources, References, Training”.