PBL Background
The Support Spectrum
Naval Inventory Control Point
PBL Support Spectrum
Traditional
MSP
PBL-O
PBL-C
Full PBL
CLS
ORGANIC SUPPORT
COMMERCIAL SUPPORT
Mini-stock
point
“Full Service”
Commercial
Off-the-shelf
 Warehousing
 Warehousing
 Rqmts Determination  Rqmts Determination
 Some Level of Repair  Wholesale Ownership
 Config Mgmt
 Some Obsolescence

Mgmt
Some Repair / Overhaul
/ Replace









Contractor
Logistics Support
Warehousing
 Vendor Manages
Rqmts Determination
ILS Elements
Wholesale Ownership
Config Mgmt
Obsolescence Mgmt
Reliability Guarantees
Eng / Tech Support
Govt / Industry Partnership
Repair / Overhaul / Replace
1
Acquisition Process
Naval Inventory Control Point
PBLs: One Size Does NOT fit All …Each is Unique!
 Contract Type:
• Fixed, Cost, Both, …Hybrid
 Cultivate Long Term Partnerships:
 Length:
• 5–15 Years; Base & Option(s)
 Metrics:
 Leverage Best Business Practices
• Requirements, IDIQ
• Cost, Availability, Reliability,
Availability
 Incentive:
• Profit (Monetary, Non-Monetary,
Gain Sharing
 Risk Sharing:
• Ramp-up Periods
• Exit Provisions
• Promote Supplier Investment
• Technology Infusion
• Enable Supplier ROI
• Supply Chain Management
• Warehousing
• Forecasting
• Other?
 Obsolescence Management
 Reward Performance
 Metrics: Meaningful and Measurable
• Joint Review Boards
 Manage Supplier NOT Supplies
Procuring the Performance End-State …NOT the How To
2
Naval Inventory Control Point
Acquisition Process
Candidate Selection
FLEET
SYSCOM
(Program Office)
Industry
NAVICP
Targets
New Items
Commercial for Life
Obsolescence Challenges
Low Reliability
Poor Availability
High Cost/High Demand
OSD
(ACAT I, II, and
New Start Programs)
DON APR 02 MEMO
3
Naval Inventory Control Point
Acquisition Process
Systems… earlier is better
Mission
Need
HSC Selects
Identified
OEM
E&MD
Full Rate
Production
MSD
Traditional
Ideal
RINU/AHRS
NGS
IOC
ALR-67 (V)3
SCADC
4
Acquisition Process
Targeting Legacy Systems
Naval Inventory Control Point
Low
Median = 0.033
1.000
Cost Index = DCI
Cost
High
Cost-Performance Matrix - Top 200 Aviation Systems
P-3 Prop
AAS-38 F-18 FLIR
H-53 MRH
APG-73 F-18 Radar
AWG-9 F-14 Radar
APG-65 F-18 Radar
H-53 Xmission
ASN-92 INS (Common)
APU
AAR-50 F-18 Infrared
APG-71 F-14 Radar
F-18 MLG
F-18 Arresting Gear
0.100
APS-120 E-2 Radar
Median = 0.79
AWG-9 Ctrls and Displays
E-2 Signal Processor
0
0.010
0
0.010
EA-6B Longitudinal
Pitch Ctrl Surface
0.100
1.000
Performance Index = RI + SI
Good
Performance
Poor
5