One-Stop Shop for DoD Performance Based Logistics (PBL) Resources

Bill Kobren

March 13, 2024

As a follow-up to yesterday’s “New Performance-Based Logistics (PBL) Video Published!” DAU LOG Blog post, as a public service today we will examine this interdisciplinary product support and sustainment strategy in greater detail and in so doing, provide you with a detailed listing of key references, resources, and training on this important topic:

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 primary focus optimizing customer support, weapon system availability, and reduced ownership costs. (Source: DAU Glossary)

Statute

10 U.S. Code 4324 Life Cycle Management & Product Support

DoD Directive 5000.01 Policy. The Defense Acquisition System will:

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 (emphasis added). “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[1]procurements of systems, subsystems, and spares that are procured beyond the initial production contract award (emphasis added).
Para 1.2.l. Plan for Product Support. Product support strategies (PSSs) will be informed by a business case analysis conducted pursuant to Section 4324 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.
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 (emphasis added).
Para 1.2.n. Implement Reliability and Maintainability by Design. DoD Components, MDAs, and acquisition leaders must implement fundamentals of design, manufacturing, and management that result in reliable and maintainable systems. These key fundamentals must be established early in the acquisition process and improved over the service life of the system.

DoDI 5000.91 Product Support Management for the Adaptive Acquisition Framework Policy.

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.
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.”
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.”
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 (emphasis added), 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 (emphasis added).
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.