Business Case Analysis (BCA) Workshop DAU 20 Feb 03 Michael Skratulia DASN(L) Support

PBL Implementation Time Line Total Life Cycle System Management (TLCSM) Working Group Meetings Oct 02-Jan 03 DUSD(LM&R) memo TLCSM WG complete 6 Jan 03 OSD QDR Logistics IPT 26 June 01 Dec Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2001 2002 2003 DoN PBL Working Group meetings Feb-Dec 03 USD(AT&L) PBL letter 13 Feb 02 ASN(RD&A) approved PBL Implementation Plan 26 Apr 02 Naval Aviation Engine PBL Initial Planning Meeting 31 Oct 02 ASN(RD&A) PEO/SYSCOM PBL survey request memo 14 Sep 01 DoN PBL Guidance Document Approved 27 Jan 03 DoN letter establish PBL working group 8 Mar 02

DoN PBL Working Group Members of the working group (33 total members) CNO N4, N7, N8 ASN(RD&A) NAVSEA, NAVAIR, NAVSUP, SPAWAR, DASN(ACQ), HQMC, MARCOR, NAVICP NCCA

Excerpts from the ASN(RD&A) cover letter Department of the Navy Performance Based Logistics (PBL) Guidance Document Excerpts from the ASN(RD&A) cover letter “ ….Although PBL is the preferred method of providing weapons system logistics support, it is imperative that program managers use sound business judgment (i.e., Business Case Analysis) when selecting between alternative logistics support strategies.”…

DoN PBL Guidance Document Section 11 Business Case Analysis (BCA): BCA is a decision support tool Helps with determining appropriate support concept Useful to compare the estimated vs. actual Not suitable for programmatic reviews but should be updated when changes occur BCA becomes a permanent record in supportability files

DoN PBL Guidance Document Attachment B Guidelines to Developing Naval Performance Based Logistics (PBL) Business Case Analysis (BCA) Provides numerous links to references Discount rate, labor rate costs (military & civilian), & indices NAVAIR’s “Maintenance Trade Cost Guidebook” NAVICP PBL BCA Fact sheet

DoN PBL Guidance Document NCCA responsible for validity of each SYSCOM’s BCA process PM responsible for generating BCA PM can task individual SYSCOM Cost Department to assist with the BCA PBL process will be reviewed as part of the Integrated Logistics Assessment (ILA) prior to Milestone Decisions BCAs for PBL is inherent in this process Future Vision