benefits in support of the Services, weapon system programs, their Warfighter customers, and ultimately
the taxpayer, including:
1.
Increased Material Availability
2.
Improved Reliability Reduced Diminishing Manufacturing Sources & Materiel Shortages
(DMSMS) and Obsolesce Issues
3.
Decreased Logistics Response Times
4.
Decreased Repair Turnaround Times
5.
Major Reduction of Awaiting Parts Problems
6.
Major Reduction in Backorders
7.
Reduced Logistics Footprint
8.
Decreased Operating & Support (O&S) Costs
e.
PBL Governing Policies
i.
PBL is addressed in DoD policy to include:
1.
DoD Directive 5000.01
a.
DoD Directive 5000.01, paragraph E1.1.17, requires Program Managers (PMs) to:
i.
Develop and implement performance-based product support strategies that
optimize total system availability while minimizing cost and logistics footprint
ii.
Sustainment strategies shall include the best use of public and private sector
capabilities through Government/industry partnering initiatives, in accordance
with statutory requirements
2.
DoD Instruction 5000.02
a.
DoD Instruction 5000.02, Enclosure 6, paragraph 2 also requires that the PM, with
support of the Product Support Manager (PSM), will develop and implement an
affordable and effective performance based product support strategy.
b.
The product support strategy will be the basis for all sustainment efforts and lead to a
product support package to achieve and sustain Warfighter requirements.
c.
The PM/PSM will employ effective PBL planning, development, implementation, and
management in developing a system's product support arrangements.
d.
PBL ties objective metrics delivered logistical system performance to incentives that will
motivate the support provider.
f.
PBL Guidance
i.
Better Buying Power (BBP) Implementing Directive includes specific actions to increase effective use of
PBL including the development of a PBL Guidebook to be utilized as the source for PBL processes.
ii.
PBL’s success is dependent on ensuring the workforce has the expertise and support to properly develop
and implement PBL arrangements.
iii.
PBL Comprehensive Guidance Memorandum
1.
According to the memo, “this comprehensive guidance is provided to assist the Services in
adopting and expanding Performance Based Logistics (PBL) for all weapon system programs."
This memorandum expands on BBP guidance to assist the Services with increasing effective use
of PBL. The following are key considerations of this document:
a.
Emphasizes that PBL “arrangements are contracts with industry or inter-governmental
agreements
b.
Reiterating that PBL is neither outsourcing nor CLS
c.
Memo identifies a series of “attributes of effective PBL arrangements”
d.
Memo identifies circumstances when PBL arrangements should and should not be
considered
e.
Memo makes clear that effective PBL arrangements require a robust Integrated Product
(IPT) team with coordination between Life Cycle Logistics, PM, Contracting, Engineering,
Business/Cost Estimating and Business/Financial Management personnel
f.
