Work with all stakeholders early in the PBL formulation process to develop system support strategy

1
Acquisition ProcessIntegrated Process Team

• Work with all stakeholders early in the PBL
  formulation process to develop system support
  strategy
• Develop SOW and determine contractual metrics
• Ensure that Core issues are being addressed
• Is the system Core?
• Is there Navy/DoD core logistics capability?
• What is depot impact?
• What is Core strategy?
• Address Core compliance strategy in the JA
• Construct the Business Case Analysis
• Initiate Congressional Notification as early as
  possible

2
Business Case Analysis

• Proposal
• Material Procure Repair
• Inventory Control
• Management OH
• Warehousing
• PHST
• Asset Visibility
• Engineering
• Other

Business Case Analysis
PBL Proposal Should Target Performance
Improvements and Not Cost More Than Tradition
Support
3
Statutory RequirementsThe 50/50 Rule
10USC 2466

• Not more than 50 percent of the funds made
  available in a
• fiscal year to a military department or a Defense
  Agency
• for depot-level maintenance and repair workload
  may be
• used to contract for the performance by
  non-Federal
• Government personnel of such workload for the
  military
• department or the Defense Agency. Any such funds
  that
• are not used for such a contract shall be used
  for the
• performance of depot-level maintenance and repair
• workload by employees of the Department of
  Defense

Applied at the Service (DON) level
4
Statutory RequirementsCLC Rule
10USC 2464

• Core Logistics Capabilities shall include those
  capabilities that are
• necessary to maintain and repair the weapon
  systems and other
• military equipment (including mission-essential
  weapon systems or
• material not later than four years after
  achieving initial operational
• capability, but excluding systems and equipment
  under special
• access programs, nuclear aircraft carriers, and
  commercial items)
• that are identified by the Secretary, in
  consultation with the
• Chairman of the Joint Chiefs of Staff, as
  necessary to enable the
• armed forces to fulfill the strategic and
  contingency plans prepared
• by the Chairman of the Joint Chiefs of Staff.

If system is Core, DoD must have Core logistics
capability
5
Statutory RequirementsCore Determination

• NAVSEA core determination is made at the platform
  (ship) level
• NAVAIR normally takes core determination down to
  the individual repairable component (DLR) level
  however precedence has been set for a
  platform-level CORE determination on some PBLs
• NAVSEA and NAVAIR interpret Core logistics
  capability differently

6
Statutory Requirements Other Restrictions

• Congress must be notified when
• Under 10 USC 2461 for any work being changed from
  performance by DoD civilian employees to the
  private sector
• Under 10 USC 2464 the first time an item is
  determined commercial for the purposes of
  applying the section 2464 commercial item
  exception
• Under 10 USC 2469 can not move more than 3M
  workload/year from a DoD depot unless merit-based
  selection procedures/competitive procedures are
  used

7
Awarded PBLs
M
Obligations
The Wave of the Future
8
Awarded PBLs
Auxiliary Power Unit
Title 10 Compliant

• Supports C-2, F/A-18, S-3 and P-3.
• Public / Private Partnership
• Honeywell... Program Management
• NADEP Cherry Point... Sub-contractor
  performing touch labor
• 10-Yr Performance Based, Firm Fixed Price
  (5 year base 5 one-year options)
• 25 - 45 Reliability Improvement
• Delivery Guarantees... 2 Days (IPG 1)
• Obsolescence Management
• Surge Capability...120 of Annual FHs
• Product Support Engineering

Plus
On-Line Shipping Inv Mgmt