er ing a level of performance the P BL provid er must take int o account all of

Er ing a level of performance the p bl provid er must

This preview shows page 5 - 7 out of 9 pages.

er ing a level of performance, the P BL provid er must take int o account all of the driving factors and processes that can contr ibut e to or detract from attaining the desired performance goals of the weapon sy stem . I t is equally imp ortant to be able to express the mission needs in terms the providers can use to make est imat es of their cost to perform . Ex pect to discuss these matters in depth at pre- bid conferences . The best performance requirements can be useless if there is no way to measure their achiev ement . So understanding the requirements includes understanding the measures to be used in making judgments of performance . 2. C redible perf o rm a n ce and co st estim a tes . Determining the fairness ( or the adequac y in some cases ) of potential provid er proposals requires accurate baseline data on ex isting costs of achieving ex istin g performance levels . Determining the full cost of current performance can be v ery cha llenging ; but the effort must be made to make P BL a success . F or ne w sy stems , a program manager can derive general cost and performance ex pectations from current similar sy stems . I n traditional cost est imating, program managers cost out discrete functions and then add the costs to achieve a program total est imat e . I n a P BL strateg y, evo luti onary cost baseline devel opment gathers data ov er an initial production period sufficient to forecast accurate long - term support costs . Both methods can contr ibut e to a PB L cost est imat e when experience w ith a given sy stem in devel opment is limit ed . .... rl l ~ Pag e3o f 6 Ba c k N ext
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Popup Text Considered as a Group Additional considerations when planning Contractor Logistics Support (CLS) from the start of a weapon system’s life cycle: When establishing a PBL arrangement early in the acquisition cycle (at Milestones A and B), it is important to consider that, even if CLS is anticipated for the life of the system, there may need to be a way to obtain parts-level information. There are three principal reasons: 1) CLS may not prove feasible or cost-effective after the initial support phase (e.g., low density), 2) It may not prove cost-effective for all O&S echelons (field-level pull/replace maintenance), and 3) The competitive sourcing of spares may become necessary for high-cost items or those that become the subject of separate PBL support strategies. While a good CLS arrangement can provide superior cost performance vs. break-out (i.e., overall LCC savings), provision for being able to reinstitute some level of organic support should be part of the strategic thinking.
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  • Summer '19
  • Cost underestimation, Cost overrun, Optimism bias, pbl business relationships

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