Performance Based Logistics: Optimizing Total System Availability and Reducing Program Cost.

摘要

Incorporating industry best practices into an evolutionary process under the program manager, as a single point of accountability for Total Life Cycle Management, remains a fundamental principle in DoD's strategy. Arguably, funding constraints create a barrier to achieving strategic objectives with respect to meeting growing user requirements and providing cash flow stability to contractors in a dynamic wartime environment. Program managers are challenged to obtain economies of scale based on the availability of multi-year funding, which falls short in providing the leverage necessary for long-term commitments with suppliers. As a result, contractors increasingly procure components with company funds to deliver items on schedule and maintain system availability. The phenomenon, considered 'at-risk purchases,' affords contractors the flexibility to lean forward in procurement. However, the action creates unintended consequences for program managers in areas of public policy as well as federal acquisition regulations. This paper explores funding as a barrier to achieving PBL strategic objectives. Additionally, it explores the phenomenon of contractor-funded purchases and its potential impact on system availability and cost.