1. Performance-Based Logistics
Status Report
2 March 2004

2. Weapon System Support Challenges
Availability of parts
High maintenance levels
Retention/turnover of maintenance personnel
Large maintenance/supply footprint
Operational Challenges
Implications for Transformation
Mid-Term Solutions
Will not support rapid force projection
Large footprint (people and equipment)
Complex, disjointed logistics chains
Limited asset visibility
Total Life Cycle Systems Management
Performance-Based Logistics
Depot Partnering
Conditioned-Based Maintenance +
Structural Challenges
Equipment designed to 75-85% availability
Disjointed acquisition and logistics processes and accountability
$67B per year in cost; no link to output
Disjointed, functional support structure
16-day CWT for high priority parts
50% of cost tied to maintenance; vast majority at O&I level
Aging organic depot infrastructure
Integrated strategy to achieve end-to-end accountability for weapon system support that meets transformation goals and requirements.

3. Performance-Based Logistics
JACG
Oversight via
DAB/DAES
Oversight via
R-TOC Forum
DoD 5000
Policy
New program
implementation
30 Pilot
Programs
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
CY02/03 PEO/SYSCOM
PM Roundtables
AIA Product Support
Industry/Government Tiger Team
A joint, disciplined program to successfully implement PBL!

4. Future System Sustainment
Real-Time System Status
(CBM+)
Industry/Government
Performance-
Based Logistics
Weapon System
Manager
Force Provider
Partnerships
Ensure system is
sustained at optimum
level
Performance Agreement
Performance Agreement
Provide continuous,
reliable, affordable
support
Acquisition
Visibility into cost/risk decisions across life cycle
Sustainment
Disposal
Providing operational availability; not parts.

5. PBL FY03 Accomplishments
Policy and workforce development in place
Program migration on schedule
Documented $15B in savings in PBBE 05
Demonstrated best in class readiness during OIF
Initiated PBL Roadshows
Established Logistics Community of Practice (DAU)
Completed DBB Review

6. Logistics Response Time*
Sentinel
Days
F-18 E/F
APU
PBL
Programs
MCRS
F-117
HIMARS
(To date)
Calendar Year
*National level fills, all requisitions
PBL programs providing significantly improved response times.

7. PBL Logistics Response Time
Aircraft And Equipment Pre-PBL and PBL Logistics Response Times (LRT’s) Availability Improvements
F/A-18 Stores Management System (SMS)
Pre - PBL LRT = 42.6 Days PBL LRT = 2 Days CONUS Days OCONUS
F-14 LANTIRN
Pre - PBL LRT = 56.9 Days PBL LRT 5 Days
Tires
Pre - PBL LRT 28.9 Days PBL LRT = 2 Days CONUS Days OCONUS
H-60 Avionics
Pre - PBL LRT = PBL LRT = 8 Days
ARC Pre - PBL LRT = 22.8 Days PBL LRT = 5 Days
APU Pre-PBL = 35 Days PBL PBL LRT = 6.5 Days
Achieving Commercial Standards through PBL.

8. Programs Contributing to GWOT*
JSTARS
B-2
F/A-18 E/F
Delivering Capability NOW!
F-117
C-17
Common Ground Station
AWACS
* PBL programs readiness exceeded traditional support; several achieved historically high availability!

9. GWOT PBL Results
Availability on Demand

10. Common Ground Station PM is life cycle manager
Government led PBL strategy
Tobyhanna is product support integrator
Deployed 30 CGS to support OIF
Streamlined maintenance flow
Achieved 99% Ao during OIF
Forward-located repair activity at Baghdad International Airport
Achieved real-time fleet management/asset visibility

11. DBB Recommendations Major Recommendation Key Elements (From the DBB)
Ongoing Action
1. Pursue PBL Aggressively
New and legacy system application as supported by business case
Services on schedule for BCAs
Pending SPG language
2. Issue Standard Guidance
Consistent approach to PBL
Consistent Business Case Analysis
Consumable item manager
BCA Tiger Team 11/7
Coordinated BCA guidelines
Updated Guidebook
3. Reform financial and contract management
Move toward a single manager
Seek funding flexibility and multi-year authority
Management Improvement Directive
4. Leverage DAU to accelerate PBL implementation
Create PBL Center of Excellence
Partner with industry to share lessons learned
Create Exportable teams to assist PM offices
Ongoing at DAU
Ongoing via LOGCOP and AIA
Roadshows emerging via DAU regional centers
5. Increase exposure to private sector practices
Expand AF education with industry
Leverage Defense Corporate Fellows Program to include supply chain assignments
6. Change structure/culture of PM office
Create a central “log provider” entity to coordinate all logistics activity for the PM
Streamline program offices based on the F-117 and FCS models
Review PM assignments for applicability of civilian PM
Specify tenure for Deputy PM for Logistics
Enforce Congressional mandate to keep military PMs in place for 4 years

12. 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
Historic
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

13. FY 04 PBL Acceleration Strategic Planning Guidance
Directs assessment of PBL at system level for all ACAT I and II programs
Management Initiative Directive
Lead programs for single-line accounting
OSD Special Interest Programs
Application of commercial supply chain practices
Weapon System Support Metrics
Implemented via Logistics Balanced Scorecard
Government/Industry Tiger Team
Monthly meeting to eliminate barriers

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

15. We Must . . . . . . therefore, we will!! FIELDED CURRENT FUTURE
Transaction-based
Fractured Supply Chains
Random Failures
Batch Process orders
Limited Accountability
Performance-Based
Integrated Chains
Fleet Management
Integrated Systems
PM Accountability
Capability-Based
Industrial Integration
Autonomic Logistics
End-to-End Solutions
Single-Line Accounting
F-18 C/D
DDG
BRADLEY
F-18 E/F
LPD-17
Stryker
JSF
DDX
FCS
Response
Time:
2000
2010
16 days
5-8 days
1-5 days
. . . therefore, we will!!