About

Performance-Based Logistics Award

Developed by the Defense Department, the Defense Acquisition University and AIA, the Performance-Based Logistics Awards recognize excellence in providing our warfighters with exceptional operational capability through PBL agreements. They are made to system, sub-system and component teams.

“Performance-based logistics definitely provides an edge to the business of weapons systems management,” said Marion Blakey, president and CEO of AIA. “The pressures on our maintenance and modernization budgets make these types of partnerships a cost-effective model for the future.”

Highlights about the 2012 winners are below:

Component Level Award

Industrial Prime Vendor, USAF Depot Consumables Support

In April 2006, the Defense Logistics Agency (DLA) Defense Supply Center – Philadelphia awarded a performance-based Industrial Prime Vendor (IPV) contract to Lockheed Martin (LM) that consolidated end-to-end supply chain management responsibility for over 96,000 unique consumables supporting all Air Force depot maintenance activities. Prior to the PBL contract, DLA was experiencing growing inventory carrying costs utilizing a labor-intensive process involving frequent contracting actions for each part type across numerous manufacturers, small businesses, and distributors. These variations in customer demand complicated manufacturer’s delivery times which resulted in frequent stock-outs and delays. Under the IPV PBL contract, bin fill rates have averaged 99.77 percent (as compared to a low of 62 percent under non-PBL support) and reduced annual costs by $3.8M.

Sub System Level Award

P-3 AN/APS-137D(V)5 Radar

The P-3 Orion Radar PBL team has set the benchmark for performance-based logistics at the sub-system level.  The results of the team’s efforts culminated in the award of a 10-year contract valued at $120.7M.  The PBL supports 72 Navy P-3 Anti-Submarine Warfare (ASW)/Anti-Surface Warfare (ASuW) Improvement Program (AIP) aircraft with total operations of approximately 26,000 flight hours per year.  Raytheon responsibilities under the contract encompassed logistics and inventory management, requirements determination, depot repair and spares production, sustainment engineering, and a reliability growth program.  The firm-fixed price PBL incentivized Raytheon to make investments which produced a $4.5M in direct savings to the Fleet Flying Hour Program (FHP), improved availability to 99 percent, and increased reliability by 121 percent.  This was achieved through improved parts support, investments in reliability, optimized depot processes, and decreased depot returns.  The P-3 AIP Radar system currently stands at its highest level of combat readiness and customer satisfaction since its introduction to the Fleet.

System-Level Beck Award

C-17 Globemaster Integrated Sustainment Partnership

The C-17 Globemaster Integrated Sustainment Partnership (GISP) is recognized for its performance-based logistics teaming of the United States Air Force and The Boeing Company to provide global sustainment support to all operators of the C-17.  This team ensured high aircraft availability and reliability for 239 aircraft, based at 18 main operating locations for the air or defense forces of the United States, the United Kingdom, Australia, Canada, Qatar, the United Arab Emirates, and NATO.  Using a “Virtual Fleet” construct, they pooled and positioned spares and services enabling 55,000 sorties and over 220,000 flying hours, while maintaining an 86 percent aircraft in-commission rate with an average of 49 sorties flown between aircraft failures.  By aggregating requirements, examining demand patterns, and repositioning buy and repair processes, costs per flying hour were reduced by 10 percent.

PBL Winners by Year