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.”
Component Level Award
H-46/H-53 APU
The $74.8M five-year Firm-Fixed Price H-46/H-53 APU Performance Based Logistics (PBL) contract was awarded to Hamilton Sundstrand Power Systems (HSPS), San Diego, CA, in October 2003. The PBL provides supports 16 line items. APUs provide pneumatics and hydraulic/electrical power for main engine start capability.
HSPS’s responsibilities under the PBL include inventory management, requirements determination, repair/overhaul/replace decisions, obsolescence management, technology insertion, warehousing and custody of wholesale inventory, requisition processing, and transportation to Fleet customers. HSPS is responsible to manage all facets of the supply chain and related Integrated Logistics Support (ILS) elements to ensure availability of spares to the warfighter.
The PBL has achieved a material availability of 97.8% and filled 1,296 Fleet requisitions in accordance within metric timeframes over the first four years of the program. HSPS in partnership with the Fleet Readiness Center - East at Cherry Point, brings its best practices and in-depth knowledge of the H-46/H-53 APUs to sustainment support.
The PBL incentivizes HSPS to make investments and support decisions that pay off over the long-term through improved parts support, investments in reliability, optimized depot processes, and decreased depot returns. The result has been unprecedented cost-wise performance to the Fleet.
Sub System Level Award
AH-64D Unique Subsystem Level Performance Based Logistics
The AH-64D Unique Subsystem Level Performance Based Logistics (PBL) program is a collaborative partnership between the Apache user, Apache PM, Integrated Materiel Management Center (IMMC), Tank-automotive and Armaments Command (TACOM), Communications-Electronics Command (CECOM), and Boeing.
The program provides technical and logistical support for the Apache Attack Helicopter in operations at home and in Overseas Contingency Operations. The collaborative partnership and flexible contract structure allows the program to proactively address support issues and risks to meet or exceed the required readiness rates while supporting an OPTEMPO surge of 19.3%.
The program is exceeding the peacetime materiel availability requirements by 8.2% and OCO materiel availability requirements by 13.2%. The program is exceeding the materiel reliability baseline by 65% and through the collaborative Obsolescence Working Group (OWG), avoided over $18M in costs. These combined efforts have resulted in a 24% decrease in Total Ownership Cost since 2002 which equates to $I9.2M of cost avoidance annually.
System-Level Beck Award
Shadow TUAS
The Army's Shadow Tactical Unmanned Aircraft System (TUAS) is currently in service with DoD and Foreign Military Sales (FMS) customers worldwide and is the most utilized TUAS in the world today. The Government-Contractor Team responsible for managing and performing the Shadow System-Level PBL contract has achieved exceptionally high readiness - the highest operational availability of any aviation asset in Operation lraqi Freedom and Operation Enduring Freedom.
All while simultaneously reducing system costs and improving reliability, maintainability, and supportability. Operational results have been consistently outstanding and have also contributed to reduced sustainment costs with the system achieving an average readiness rate of greater than 97% against a contract objective of 85%!
The Shadow PBL Program is also setting the standard for Public-Private Partnering by teaming with both Letterkenny and Tobyhanna Anny Depots to perform system reset at a higher volume in less time and at lower overall cost.
Total ownership costs for the Shadow PBL Program have decreased by 30% over the period from FY08 – FY10. Evidence of the effectiveness of the Shadow PBL Program is reflected in the last three consecutive years in which total contract price remained relatively constant while the number of Shadow systems supported increased by more than 31% and includes fielding several major modifications that further enhanced performance.
Shadow PBL has clearly become a cost-effective force multiplier for the Army and a combat multiplier for the warfighter!
The awards were made during AIA’s Product Support Conference in Hilton Head, South Carolina.
