DoD policy related to Performance Based Logistics (PBL), also referred to as Performance Based Life Cycle Product Support, is clear:

·         DoD Directive 5000.01, Para E1.1.17. Performance-Based Logistics states, “PMs (Program Managers) shall develop and implement performance-based logistics strategies that optimize total system availability while minimizing cost and logistics footprint... Sustainment strategies shall include the best use of public and private sector capabilities through government/industry partnering initiatives, in accordance with statutory requirements.”

·         DoD Instruction 5000.02, Enclosure 2, Para 8.c.(1)(d) states, “the PM shall employ effective Performance- Based Life-Cycle Product Support (PBL) planning, development, implementation, and management. Performance-Based Life-Cycle Product Support represents the latest evolution of Performance-Based Logistics. Both can be referred to as “PBL.” PBL offers the best strategic approach for delivering required life cycle readiness, reliability, and ownership costs. Sources of support may be organic, commercial, or a combination, with the primary focus optimizing customer support, weapon system availability, and reduced ownership costs.

On 14 May 12 the Acting Undersecretary of Defense for Acquisition, Technology and Logistics issued an important new memorandum to the Service Acquisition Executives entitled "Endorsement of Next-Generation Performance Based Logistics Strategies." In this memo, he reiterated the department’s commitment to these PBL product support strategies, stating “appropriate use of Performance-Based Logistics (PBLs) will help to achieve affordable sustainment strategies and is a method for achieving our Better Buying Power (BBP) goals. PBLs can be an effective method of achieving notable cost savings while improving readiness and should be broadly applied across the Department.”

In the memo, he goes on to state that “developing correctly structured, priced, and executed PBLs is often a more complex task than initiating a standard transactional arrangement. It requires a combined and focused effort by the Program Manager, the Product Support Manager, and the Contracting Community, among others. However, the ability to more affordably support the Warfighter at a greater level of readiness is worth the effort. I will closely track our progress toward the goal of aggressively implementing PBLs and solicit your endorsement, commitment of resources, and active support.”

Encourage you to read this important new memorandum from the Acting USD(AT&L).