1. Naval Inventory Control Point 1 Performance Based Logistics: A New Business Paradigm Ready. Resourceful. Responsive! Naval Inventory Control Point CAPT Steve Nagorzanski ILS Director, NAVICP 28 October 2002

2. Naval Inventory Control Point 2 Agenda PBL Background Acquisition Process Business Case Analysis Statutory Requirements Awarded PBLs PBLs on the Horizon Lessons Learned Take-Aways

3. Naval Inventory Control Point 3 PBL Background Concept:  Single Supplier / Integrator (Commercial or Organic)  Provide Fleet Improved Weapon System Support Through: C ost: Reduced Total Ownership O bsolescence Management R eliability Improvement/Tech Refreshment A vailability Improvements  Comply with USC Title 10 CORE Statues: Partner with Government (e.g. Depots)  Must pass Business Case Analysis (BCA): Sound Business Decision Merits Must Stand-up to Audit  Reduced Total Cost to the Fleet

4. Naval Inventory Control Point 4 PBL Background A Necessary Transformation A Fundamental Change in the way NAVICP provides Weapons System Support!!! PhilosophyDrives PerspectiveICP Role Historically Today Inventory Based Performance Based Lowest Price Best Value Manage Supplies Manage Suppliers Results  Focus Exclusively on Supply Availability  More Infrastructure  Higher Total Costs  No Incentive to Improve Reliability or Quality  Focus on Customer Service, Reliability and Readiness  Less Infrastructure  Lower Total Costs  Increased Reliability  Higher Quality Change Driven by: Fewer Resources, Acquisition Reform, & Technology Advances The Result... High Yield Logistics

5. Naval Inventory Control Point 5 PBL Background A Necessary Transformation Guaranteed Warehousing Obsolescence Availability Management Inventory Mgmt Transportation Reliability Improvement Engineer/Technical WarrantiesConfiguration Support Control Piece Part Support Roles Purpose Reduce Cost Lower Response Time Lighter Logistics Tail Increase Availability Buying Performance … Not Parts Cultivate Long Term Partnerships With Industry Leverage Commercial Supply Chain Solutions