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Powerful Example: Partnership Key to Performance-Based Logistics Success

Through Performance-Based Logistics, the Warfighter is given a leap in performance and transparency not offered by traditional acquisition arrangements. In 2006, Naval Supply Systems Command Weapon…

Powerful Example: Partnership Key to Performance-Based Logistics Success

Powerful Example: Partnership Key to Performance-Based Logistics Success
Kendell Penington, DAU Staff Writer

Through Performance-Based Logistics, the Warfighter is given a leap in performance and transparency not offered by traditional acquisition arrangements.

In 2006, Naval Supply Systems Command Weapon Systems Support (NAVSUP WSS) began searching for a requisitions solution for the AMC computer program, a state-of-the-art system used in select high-performance jet aircraft that provides weapons targeting, digital imagery, and network-centric operations.

(Click here to watch a full screen version of the interview)

“We were having significant support issues in pre-PBL environment,” Larry Garvey of NAVSUP WSS said, during a roundtable discussion with Jeff Heron, NAVAIR, and DAU’s Betsy Lederer about Performance-Based Logistics (PBL) and the impact it’s had on solving readiness issues.

The search for a better way of doing acquisition led to Performance-Based Logistics, a weapon system sustainment strategy made to improve weapon system readiness and support and deliver items faster to the Warfighter. PBL leverages long-term performance-based agreements and incentivizes contractors to lean out the supply chain. The objective of PBL is to provide performance improvements for weapon systems, both new and legacy, as opposed to traditional sustainment models. Executed efficiently, PBL will generate substantial cost savings and improved capability.

“We were getting 37 percent materiel availability,” Garvey recounted. “Which means that only 37 percent of the time that we have an asset when we received a requisition from the fleet. At time of PBL award, we had 74 backorders.”

Through a partnership with the NAVAIR program office, NAVSUP WSS was able to secure a PBL to support the AMC computers just a couple of years later in 2008.

“We have seen significant improvements since the PBL was awarded,” said Garvey.

Garvey also explained that within six months of being awarded the PBL contract, materiel availability at NAVSUP WSS (Philadelphia, PA) improved to 100 percent and backorders were eliminated. Improvements have since been consistently maintained over the last ten years. Reliability of two of the key components has also been improved since instituting PBL, Garvey added. Advanced Mission Computer reliability is 29 percent better now than in the beginning, while the Mission Computer is 34 percent improved.

“Our goal at NAVSUP WSS is always to seek out the best possible support solution and PBL is one of the primary tools in our toolbox to do that,” Garvey stated.

In the end, both Garvey and Heron agreed that to procure the needs of the Warfighter, all parties involved need to come together to craft a solution.


[RELATED CONTENT: DAU Powerful Examples Homepage]
[RELATED CONTENT: Full-Length Podcast Interview with NAVSUP and NAVAIR Leaders]
[RELATED CONTENT: Life-Cycle Logistics Community of Practice]
[RELATED CONTENT: Life-Cycle Logistics Blog Landing Page]

For more information about this story, or to submit your own Powerful Example, send an email to the DAU Powerful Examples Team at [email protected].

Key Words: Performance Based Logistics, NAVSUP, NAVAIR, Navy, DoD, Acquisition, Lessons Learned, Best Practices

More info: https://apps.dtic.mil/dtic/tr/fulltext/u2/1016070.pdf