LOG FIPT October 16, 2009 DoD Product Support Assessment Team (PSAT) Implementation

Product Support Journey DoD QDR mandates “PBL” – First official Use of Term Section 912, 1998 NDAA: DoD to report to Congress on Product Support Reengineering Product Support Reengineering Report to Congress Program Managers Guidebook published RTOC Pilot Programs DAU PBL Course Launched > Revised DoDI Issued Product Support Assesment Team Launched F-117, APU PBLs DoD 5000 policy updated: PBL is “preferred” Support Strategy ACAT 1 & 2 to use PBL or justify non-use Over 200 current or planned PBL Programs OSD PBL Policy memos: BCA’s used to evaluate transition to PBL Contractors PBL Course Launched DoD Weapon System Product Support Assessment Report DoD WSPSA Implementation

DoD Product Support Assessments July

DoD Weapon System Product Support Assessment Purpose  Recommends to senior leadership improvement of existing weapon system sustainment strategy  Encompasses operational, acquisition, and sustainment communities  Complements the Weapon System Acquisition Reform Act initiatives with perspectives attentive to life cycle management and sustainment  Provides recommendations to improve weapon system readiness and control product life cycle cost  Current status of product support implementation  Areas for improvement to policies, procedures and practices  Way forward for performance based life cycle product support 4

Product Support Assessment Team (PSAT) Composition Working Group spans Services, Government, Industry, and Academia  Led by Senior Steering Group of senior Government, Military, and Industry personnel  Working Group comprised of Action Officers from the SSG’s organizations and more Working Group

FY’09 DoD WSPSA Approach And Timeline 6

Life Cycle Product Support Vision & Guiding Principles Implementation Guidelines Ruthlessly separate needs from appetites Understand portfolio of alternatives Tie metrics directly to Warfighter outcomes Implementation Guidelines Govern sustainment as part of the life cycle Design for sustainability, and integrate acquire-to-retire process Manage predictable costs throughout the life cycle Integrate human capital planning into life cycle focus Implementation Guidelines Exhaust opportunities for Joint economy and reduce unnecessary redundancy Build the capability to make good enterprise decisions Enforce consistency in product support processes & infrastructure Implementation Guidelines Optimize public & private product support capabilities Leverage core competencies Partnerships are effective; equitable; transparent; bilateral and long-term Implementation Guidelines Manage with facts, and drive accountability for performance and costs Build and evolve BCAs that enhance decision making Start & End with the Warfighter’s Objectives Demonstrate & Enforce Life Cycle Focus Enterprise Means Enterprise (& Joint Means Joint) Build Mutually- Beneficial Partnerships Incentivize Accountability for Performance Aligned and synchronized operational, acquisition, and sustainment communities working together to deliver required and affordable Warfighter outcomes

PSAT Recommendations 8 Product Support Business Model: Provide Program Managers a model template for a weapon system support strategy that drives cost-effective performance and capability for the Warfighter across the weapon system life cycle and enables most advantageous use of an integrated defense industrial base Supply Chain Operational Strategy: Connect platform product support strategies to enterprise supply chain approaches that produces best value across the DoD components Industrial Integration Strategy: Align and expand the collaboration between Government & Industry that produces best value partnering practices Weapons System Data: Define, collect, report, and manage the data we need to drive effective Life Cycle Product Support Metrics: Use existing metrics to catalyze sustainment strategies and trigger continuous supportability analysis O&S Costs: Improve O&S cost visibility and influence Analytical Tools: Build a toolbox of analytical approaches (including BCA) Human Capital: Integrate Product Support competencies across the Logistics and Acquisition workforce domain to institutionalize successful traits of an outcome- based culture Governance: Strengthen and develop organization and mgmt processes to deliver the right sustainment information to decision-makers

Human Capital Key Tasks 1.Identify new or modified product support competencies and proficiencies driven by proposed PSAT strategy, policy, and process changes 2.Incorporate new or modified product support competencies into DoD and industry logistics and acquisition workforce career field training, recruitment, and retention strategies 3.Identify potential assimilation requirements for supply management, maintenance support, and distribution/transportation workforce members into the acquisition life cycle logistics career field 4.Capitalize on Section 852 Defense Acquisition Workforce authorities to grow and develop the future product support workforce 5.Expand integrated life cycle management training at DoD universities, public universities and institutions, and corporate universities 6.Update key DoD guidebooks and handbooks to facilitate defense logistics and acquisition workforce professional development and workplace application Modernizes the product support workforce

Next Step: FY’10 Implementation Management BodyManagement Cadence Implementation Plan Implementation Team Product Support Business Model Governance Human Capital Strategy OADUSD MR Systems Engineering Sustaining Engineering Inventory Management ContractingComptroller Requirements Definition Independent Cost Estimating Distribution Process Owner Combatant Commanders Program Managers IndustryMaintenance Core Team Extended Team Core Team Leader and Process Leader Move out with LCM enterprise stakeholders to drive implementation

IPT Products Lead To Improved Readiness And Cost Control

 Integrated Product Sub-Teams (IPSTs)  Execute individual recommendation streams IPT #1: Product Support Business Model, Industrial Integration, Supply Chain Operational Strategy IPT #2: Metrics, O&S, Analytical Tools, Governance IPT #3: Human Capital  2- to 6-person teams  Stand up / down to support discrete implementation goals (i.e., publish analytical “toolbox” handbook)  Targeted skill sets Resource Requirements for Implementation Effort  Integrated Product Teams (IPT)  IPTs #1, #2, #3 govern integration and alignment of dependent recommendations 12

Grand Plan (Evolving) for IPT#3 Leverage the LOG FIPT resources to maximum extent possible –Creates FIPT agenda challenges….but –Most WORK happens outside FIPT meetings Other influence points: –Acquisition Management Functional Group (AMFG) –Overarching FIPT (O-FIPT) –Other Acquisition Workforce FIPTs –DoD Logistics HCSP processes –NDIA Human Capital Management Efforts Other ideas??

Break, break……next subject

Level IV Certification Under examination by the AMFG Distinction between Level IV training and certification – which does LOG FIPT prefer, or both, or neither? History: LOG FIPT interest since circa 2001 Demographics: 77% of LCL >15 yrs. Experience Competencies: Level IV competencies certainly exist (high-end integration and PM support competencies) Legislation: FY 2010 NDAA, Sec. 805, requires Product Support Managers for MDAPs Experience: More important to qualification than training If Level IV training were offered, what is the right intensity; –2 weeks –5 weeks –10-14 weeks –Enough to cover the competencies