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Panel – Considerations in Making Logistics Support Choices for Weapon Systems Thursday, May 18, 2006 10:15 a.m. – 11:45 a.m. Considerations in Making Logistics Support Choices for Weapon Systems Chair: Reuben Pitts – Major Program Manager Integrated Combat Systems, PEO IWS 1.0 Discussant: CAPT Stephen Huber, USN – Commander, Naval Surface Warfare Center, Port Hueneme Papers: On Budget Allocation to Increase Operational Availability and Reduce Readiness Risk through Improvements in Weapon Systems Logistics Keebom Kang, Naval Postgraduate School Kenneth Doerr, Naval Postgraduate School Uday Apte, Naval Postgraduate School Ira Lewis, Naval Postgraduate School Evaluation of Performance Based Logistics Kenneth Gabriel, University of Maryland Jacques Gansler, University of Maryland William Lucyshyn, University of Maryland = = ==================^Åèìáëáíáçå=oÉëÉ~êÅÜW=ÅêÉ~íáåÖ=ëóåÉêÖó=Ñçê=áåÑçêãÉÇ=ÅÜ~åÖÉ=======- 313 - = =
On Budget Allocation to Increase Operational Availability and Reduce Readiness Risk through Improvements in Weapon Systems Logistics Overview Presenter: Keebom Kang, Naval Postgraduate School Kenneth Doerr, Naval Postgraduate School Uday Apte, Naval Postgraduate School Ira Lewis, Naval Postgraduate School The goal of this research is to develop a decision support framework to inform the acquisition of logistic services for a weapon system. The primary element of this decision support framework is an explicit choice model of the tradeoff between life-cycle cost on the one hand and improvements in Operational Availability (Ao) on the other hand. This tradeoff is encountered when there are a number of opportunities to improve Operational Availability through the acquisition of logistics services for a weapon system with a limited budget, so that all opportunities cannot be pursued. In such a case, several criteria are important, including both average operational availability, as well as the risk that operational availability may fall below some planning threshold (which we call readiness risk). The Department of Defense (DoD) is increasingly interested in contractual agreements and public-private partnerships to improve weapon systems logistics. Such agreements and partnerships are often established under the umbrella of Performance Based Logistics (PBL). Under PBL agreements, performance outcomes are specified, and vendors are given a large degree of autonomy to determine the means of accomplishing those performance outcomes. Often, PBL agreements are established at the component level (e.g., depot-level maintenance of an aircraft engine), and a recent review by the Government Accountability Office 2 was supportive of component-level agreements for PBL, but critical of system level agreements. However, the DoD values performance at the systems level because only systems, and not components, help to determine war-fighting outcomes. Recent guidance has been directed toward five key performance criteria: 1) weapon system operational availability, 2) weapon system operational reliability, 3) weapon system cost per usage, 4) logistics footprint for a weapon system, and 5) response time required for weapon system logistics support. 3 . 2 Government Accountability Office (2004). “Opportunities to Enhance the Implementation of Performance Based Logistics,” Report the Subcommittee on Readiness and Management Support, Committee on Armed Services, U.S. Senate. August 2004. 3 Office of the Secretary of Defense, Undersecretary for Acquisition, Technology & Logistics (2004). PBL Purchasing Using Performance Based Criteria. Proceedings of the 2004 DoD Procurement Conference, Orlando, FL. = = ==================^Åèìáëáíáçå=oÉëÉ~êÅÜW=ÅêÉ~íáåÖ=ëóåÉêÖó=Ñçê=áåÑçêãÉÇ=ÅÜ~åÖÉ=======- 314 - = =
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Author(s) Title Publisher Issue Dat
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The research presented at the sympo
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Preface and Acknowledgements Those
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The NPS A Team Rear Admiral James B
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4 th Annual Acquisition Research Sy
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PANEL -- IMPLEMENTING AN OPEN SYSTE
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Plenary Panel - Acquisition Reform
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In May 1996, Rear Adm. Hamilton bec
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Panel - Enhancing Collaborative Cap
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Collaborative IT Tools Leveraging C
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Group’s Perceived Usefulness Grou
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diagnose collaborative capacity enc
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Organization A Problem Interagency
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Incentives - Collaboration as a pre
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Two other frequently cited barriers
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Panel - Analytic Approaches to Shap
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Discussant: Michael McGrath - Deput
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Panel - Strategic Sourcing Wednesda
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Abstract In this paper, we examine
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support from the taxpayer. A key co
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etc. (Figure 1) (Kraljik, 1983). Vi
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that companies adopted a strategic
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Benchmarking Industry According to
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80% 70% 60% 50% 40% 30% 20% 10% 0%
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initiatives. In efforts to reduce s
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eduction goals. Also, in the same m
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Conclusion The DoD is struggling to
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Gabbard, E. G. (2004, April). Strat
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Staff. (2005, December 8). Hacket r
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Panel - Implementing RFID in the De
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What Is the Right RFID for Your Pro
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Introduction The evolution and appl
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Literature Review RFID technology w
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The reader is a device used to coll
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Active tags sometimes have sensors
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An RFID network with open architect
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Passive tag application: Railcar ta
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This system has lowered the risk of
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Because of the temperature-induced
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Thereafter, through a process of tr
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to be read at a few inches by an op
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RFID technology has even enhanced s
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The Costs of RFID operation An RFID
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• Abandonment: The ability to aba
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Fleisch, E., & Tellkamp, C. (2005).
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Williams, D. (2005, August 4). Pres
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logistics systems from the military
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Panel - Transforming the DoD Acquis
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upon the best knowledge and practic
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cost, this form appears to be the m
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access to, and conducted his analys
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organizational problems surface thr
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Change in analytic framework. Burea
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As we look at the effort to change
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interpretation or narrative. What
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common construction. Rather, sense-
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There will be a temptation for acto
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modeling suite. The key comparison
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This model provides us also with th
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here, particularly if the organizat
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organization identified through pri
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Levitt, R.E., Thomsen, J., Christia
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BACKGROUND To an extent, we are add
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Concept Refinement Concept Decision
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some subset of commercial “best p
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transforms the value of a public-se
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We also assume that since the gover
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Of course, we know in reality that
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CONCLUSIONS The acquisition of publ
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Panel - Issues in Acquisition and P
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To What Extent are DoD Activities C
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NAVSUP Data Call (2003 and 2004) FI
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exemption from a particular regulat
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time in the procurement schedule, a
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should be fully supported by applic
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example, federal government, state
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ADR Techniques Traditional litigati
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out the top three with 25.7% of res
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It is a consensus building, public
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Investigative Question 1—Conclusi
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Question 3b: Did the ADR process us
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suited than another to resolution.
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Investigative Question 7: Barriers
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customer, and each of these service
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Panel -- Implementing an Open Syste
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Open Systems and Modular Open Syste
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procurement planning phase include
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procurement documents and specific
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system technical architecture requi
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These evaluation factors are tradit
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In the Cost Reimbursement contract
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technical, schedule, and past perfo
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Developing Performance Based Requir
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The DoD Performance Specification d
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due to many of the reasons presente
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even if there were ten other upgrad
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software developers can employ when
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Conducting this analysis will be as
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integration of “best of breed”
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Reform of Budgeting for Acquisition
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350000 300000 250000 200000 150000
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In fact, the disagreement between t
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Functional Area Analysis D O T M L
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Though many in Washington blame the
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In response to an open-ended questi
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CAPITAL BUDGETING IN THE DoD AND TH
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investment. Full funding also helps
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c. Functional Requirements If it is
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4. Budgeting Phase of Capital Progr
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private firm, one can combine the t
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4. Acceptance of a project using th
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Another disadvantage of the payback
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Another guideline is that firms mus
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This concept has remained consisten
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purchases. Also, the Office of Mana
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CONCLUSIONS The current practices o
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REFERENCES Bierman Jr., H., & Smidt
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Ratnam, G. (2005, December 12). Big
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Brian C. Payne, Captain Instructor
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A Transactions Cost Economics (TCE)
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SECTION 1: INTRODUCTION This report
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SECTION 2: REVIEW OF TRANSACTION CO
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cooperative agreements, but since t
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characteristic that defines many ou
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The added risk faced by military co
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J) Some Empirical Evidence On the w
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unproductive bargaining and influen
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also include the costs of internal
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N) Results from a Bargaining-game M
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efforts to screen for reliability a
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Program Managers lead Program (Proj
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Table 2. Research, Development, Tes
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To minimize transaction costs for t
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A recent initiative to accommodate
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Technical complexity within a syste
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As briefly introduced above in Sect
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Page 289 and 290: enchmarks, and the like. Elements T
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Page 319 and 320: Using KVA and Real Options Analysis
Page 321 and 322: Estimating Return on Investment and
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deadline and ensuring that it is re
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unrealistic due to drastic changes
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Kharbanda, O., & Pinto, J. (1996).
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Panel - Service Contracting Thursda
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Managing the Services Supply Chain
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include professional, administrativ
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Service Characteristics and their I
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given stage is made dependent on th
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contracted effort. The procurement
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Construction, Repair and Maintenanc
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The second phase of the procurement
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human capital. This is partially du
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for the contracting of services wil
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Yet a RAND study of the Army showed
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services, the Army appears to have
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(janitorial) services, food service
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Each requirement organization provi
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Brown, S. W., Gummesson, E. Edvards
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Gronroos, C. (1982). Strategic mana
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What Works Best when Contracting fo
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Panel - Earned Value Management Thu
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Measuring Uncertainty in Earned Val
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level of rate-of-change and the abs
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But, if the widget is only half com
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so more rapidly in environments cha
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Impending Task Delays (ITD) can be
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with: v: In the Fisher model, it re
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In discrete time form, the estimati
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Thus, various types of delay such a
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Entropy The uncertainty (non-specif
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Panel - Contractors in Support of M
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Contractors Supporting Military Ope
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drivers and other historical refere
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Another factor driving toward incre
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number of highly experienced Blackw
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Unity of command is one of the prin
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was reimbursed for expenses actuall
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principles, such as unity of comman
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aircraft involved in re-supply miss
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President Cheney) has apparently ma
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modest proposals for incremental ch
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In July 1937, the “China Incident
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President Roosevelt’s assistant,
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Pilots of the Flying Tigers receive
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was larger than the marine aid stat
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Merchant vessels kept Britain in th
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The final vignette involves Charles
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contract (Wake Island pre-war). In
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purposes continues to be the “leg
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Going to War with Defense Contracto
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Abstract This paper reports on an e
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Table 1: Factor loadings and alpha
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depict causal relationships tested
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work-related experience than younge
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Discussion and conclusion On averag
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2003 - 2006 Sponsored Acquisition R
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NPS-PM-04-017 Matthews, David. The
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Technical Reports NPS-GSBPP-03-003
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