90.1501  Requirement

(a)  Performance Based Logistics (PBL) acquisitions are a major contributor to ensure the Agency continues to improve combat support to the warfighter while reducing investment costs in inventory and infrastructure. PBLs support Program Managers' and Military Services Commands' goals of improving weapon system support (including the Soldier as a System) through contractual performance metrics that support increased availability, increased reliability, reduced mean down time, and reduced ownership costs.

(b)  The Defense Logistics Agency (DLA) has established a structured approach to serve as a model for managing and executing PBL contracts. This process will be implemented by each Primary Level Field Activity (PLFA) for all contracts which meet the definition of a PBL contract (See Appendix A).

(c)  The purpose of this guidance is to outline the procurement role in the PBL acquisition process and to ensure participants involved are aware of and understand all aspects of the PBL contracting process. Given the dollar value, complexity, and importance of these types of contractual arrangements, there is a need to implement a program management approach that integrates business strategies with the acquisition process and enhances the Agency's ability to provide the best support available to its customers. It is also imperative that DLA align its PBL approach fully with both the customer's requirements and financial posture and that the PBL arrangement remains consistent with the acquisition strategies established and owned by the Service Program Manager.

(d)  PBL acquisitions may support a full weapon system, sub-system(s), commodities or components, a maintenance process, or a supply sub-process. Requirements originate from an identified need to enhance support in any of these areas through a contracting vehicle that produces measurable performance outcomes (rather than simply providing parts or technical services, for example). The need for a PBL support arrangement may originate from many sources, including the weapon system Program Manager, DLA Demand or Supply Chain, industry, or Service industrial sites. The Program Manager/Program Executive Office must approve PBL arrangements that support full systems or major sub-systems and extensive service coordination and concurrence must be obtained for PBL support procurements. It is also helpful to have senior level "Champions" identified on both the Government and Industry side. PBL procurements often are difficult and require strong advocates to steer the team through legacy and transactional support mindsets.

(1)  The scope of a PBL contract will be based upon one or more of the following Integrated Logistics Support (ILS) elements. The scope of the ILS elements included will be determined by the Service customer, in most cases the Service PM or ICP Weapons Manager. Performance outcomes must be outlined based upon the individual elements to be supported by the PBL contract. ILS elements include:

1.  Maintenance planning

2.  Supply support

3.  Support and Test Equipment/Equipment support

4.  Manpower and personnel

5.  Training and training support

6.  Technical data

7.  Computer Resources support

8.  Facilities

9.  Packaging, Handling, Storage, and Transportation (PHS&T)

10.  Design interface

(e)  In order to ensure successful PBL contracting implementation and to ensure that the appropriate level of buy-in is obtained from all responsible parties, PBL acquisitions will be developed in an Integrated Product Team (IPT) environment. For PBL procurements that include both consumable and DLRs, the IPT should be co-chaired by DLA and the managing Service(s). The team will be efficiently comprised of representatives from both within and outside the organization - Government and Industry (Industry for consultation, when appropriate, but not as formal members of the IPT). Appendix A provides a definition of an IPT. With a structured and integrated process in place, DLA can achieve even greater benefits through the sharing of information, lessons learned, best practices, and a multi-functional approach to acquiring PBL support.