DoD Announces the Winners of the 2016 Secretary of Defense Performance Based Logistics (PBL) Awards
In a November 17, 2016 memo entitled “2016 Secretary of Defense Performance Based Logistics (PBL) Awards Selection”, the Undersecretary of Defense for Acquisition, Technology and Logistics (AT&L) announced the winners of the twelfth annual Secretary of Defense PBL Awards:
· System Level Gerald R. Beck Award: Towed Artillery System PBL Team, U.S. Marine Corps and U.S. Army
Program Executive Officer (PEO) Land Systems, Marine Corps, Quantico, VA and PEO Ammunition, Picatinny Arsenal, NJ Summary of Accomplishment: The Towed Artillery System PBL Team implemented a 10-year firm-fixed price effo11 with BAE Systems, the Product Support Integrator, to incentivize performance of overall system readiness and cost savings for the support of the joint Marine Corps and Army M777 A2 Towed Howitzer system. By proactively reviewing incoming requisitions, the PBL team realized savings in excess of $1.6 million. The teamwork has driven behavior to order only what is needed, resulting in approximately $479,000 in cost avoidance for 2015 and delivering outstanding supply chain service that provides 89.2 percent of critical parts to Warfighters within 4 days (objective of 85 percent) and 97.8 percent of all critical parts within 30 days (threshold of 90 percent), resulting in an average system readiness rate of 94 percent.
· Sub-system Level Award: Secondary Power Logistical Solutions (SPLS) PBL Team, U.S. Air Force
448th Supply Chain Management Wing, Tinker Air Force Base, OK Summary of Accomplishment: The SPLS PBL Team implemented a 10-year firm-fixed price effort with Honeywell, incentivizing Honeywell to incorporate supply chain management and engineering efficiencies into the SPLS support strategy. This PBL effort includes the following major achievements: backorder reductions by approximately 99 percent, an increase in pre-PBL organic depot maintenance efficiencies from 35 percent to 95 percent, and approximately 93 percent increased material availability, from an availability as low as 33 percent. The affordability analysis determined the PBL effort will achieve approximately $40 million in reduced cost throughout the life of the contract, with $4.7 million in cost avoidance realized in 2015.
· Component-Level Award: AN/SLQ-32(V) Electronic Warfare Suite PBL Team, U.S. Navy
Naval Surface Warfare Center, Crane, IN Summary of Accomplishment: The AN/SLQ-32(V) Electronic Warfare Suite PBL Team implemented an organic arrangement between Naval Supply Weapon System Support (NAVSUP WSS) and DLA Supply Centers to perform Lean Projects to salvage and reutilize material to aggressively manage inventory costs. The use of salvaged material to offset Warfighter requirements resulted in an additional $26.4 million cost savings. Further, a reevaluation in Navy Tier pricing produced an additional $4.8 million in cost savings. A reduction in logistics footprint was achieved by improving in-house repair turnaround time by 60 days, and identification and removal of obsolete and unusable equipment resulted in reduced warehousing space, generating $1.3 million in annual cost avoidance. Material Availability increased to 99 percent, with the average response time of 1.1-day as compared to a 15-day goal.
The memo goes on to state that “PBL is a key Department of Defense strategy used to deliver an integrated, affordable support solution to optimize system readiness and reduce Operating and Support costs. The Secretary of Defense PBL Awards recognize Government/industry teams that have demonstrated outstanding achievements in providing our Warfighters with exceptional operational capability. These teams successfully utilize PBL agreements and are examples of Better Buying Power in action. Please extend my sincere congratulations on behalf of the Secretary of Defense to this year's winners. Attached is a detailed summary of their outstanding PBL accomplishments. The 2016 PBL Award winners will be recognized at the June 6-8, 2017 Product Support Manager Workshop and will be presented the award at their commands.”
Detailed information on past and present winners of this prestigious award dating back to its inception in 2005 are available on the "Award Winning PBL Programs" site on the DoD Performance Based Logistics Community of Practice (PBL CoP).
Well done to each of the nominated program teams, with special kudos and congratulations to this year's three Secretary of Defense PBL Award winners in particular!