1. Performance-Based Logistics
Good afternoon. I want to thank Gen. Skibbie and Gen. Landis for the opportunity to chat with you about our ongoing efforts to transform logistics.
Performance-Based Logistics
17 June 2003

2. QDR Direction Project and sustain the force with minimal footprint
Implement performance-based logistics to improve readiness for major weapon systems and availability of commodities
Reduce cycle times to industry standards
Our national logistics performance goals were documented in the Quadrennial Defense Review.
They were driven to support operational performance requirements of rapid deployment, precision engagement, and decisive action.

3. Performance-Based Logistics
JACG
Oversight via
DAB/DAES
Oversight via
R-TOC Forum
DoD 5000
Policy
New program
implementation
30 Pilot
Programs
F/A-18 E/F
JSTARS
Quadrennial
Defense Review
Second major topic for today was status of PBL
Currently preferred sustainment strategy for new systems in R
Endorsed by QDR for application to legacy systems
03 DPG included requirement for Service Implementation Schedules to be submitted by March 2002
Reengineer
Product Support
Performance-Based Logistics
Legacy Systems
FY03 DPG
Service Implementation Schedules
Lessons
Learned
Operational
Demonstrations
Adjustments
A joint, disciplined program to successfully implement PBL!
CY02/03 PEO/SYSCOM
PM Roundtable
AIA Product Support

4. Performance-Based Logistics
Real-Time System Status
Industry/Government
Buys
Performance
As a Package
(Including Surge/Flexibility)
Weapon System
Manager
Force Provider
Partnerships
PBA
Ensure system is
sustained at optimum
level per PBA
PBA
Provide continuous,
reliable, affordable
support per PBA
Acquisition
Visibility into cost/risk decisions across life cycle
Sustainment
Disposal

5. Delivering Capability
PBL Programs in OIF
JSTARS
B-2
F/A-18 E/F
F-117
C-17
Common Ground Station
AWACS
Delivering Capability

6. Weapon System Sustainment Roadmap
PM accountable for life cycle
JROC established sustainment requirements
Enabling Depot legislation
Revised Maintenance Policy
Industry Supply Chains
Reengineered Training
Number
Number of Partnerships (1998 & 2002)
Joint Strike Fighter
Future Combat System
Advanced Amphibious Assault Vehicle
Today
Suppressed Readiness
Marginal reliability
Fractionated Accountability
$67B/year
Huge footprint
Warfighter-driven readiness
Ultra-reliability
Clear PM accountability
Minimal Footprint s
Financial Reform (PR05)
Single-line Accounting
Life Cycle Cost Management
Operational requirements synchronized with PBBS
2000
2005
2015

7. Road Ahead On Schedule TLCSM WG JROC Adjustments Workforce Development
5000 Series Updates
Revised WSM
Logistics Curriculum
Workforce Development
Service
PBL Schedules
Program Transition per Service Schedules
Enabling Financial Mechanisms
On Schedule

8. Emerging Issues Industry wrap-rates on performance contracts
Product Support enabling financial processes
Integration of PBL strategies and DLA consumable management
Evolution of PM toolkit to support PBL