PBL programs save hundreds of millions of dollars

ARLINGTON, Va., June 11 (UPI) -- A senior U.S. government official working in the logistics arena identified a number of major Performance-Based Logistics programs that produced savings of $100 million or more across the contract period.

Randy T. Fowler documented these conclusions in his paper "Misunderstood Superheroes: Batman and Performance-Based Logistics," published in Defense AT&L in its January-February 2009 issue.

It is clear that Performance-Based Logistics can have a dramatic impact on both the cost and performance of U.S. Department of Defense procurement program sustainment and support activities.

This has been particularly important in war time. According to the Defense Acquisition University, PBL works not only in peacetime but in supporting the U.S. armed forces warfighter in Operations Iraqi Freedom and Enduring Freedom.

It increased the availability of air-based, close-in weapons systems from 80 percent to 89 percent, the availability of Grumman F-14 Tomcat targeting systems from 73 percent to 90 percent, the engine up-time for the General Electric F-404 after-burning turbofan engine to 90 percent while cutting maintenance time in half, and the wait time for Boeing F/A-18 Hornet and Super-Hornet supplies was reduced from 47 days to seven days.

Helicopter depot maintenance time was cut from 261 days to 76 days, according to a study by Jerry Cothran titled "Implementing Performance Based Logistics Support Strategies" that was delivered as a Defense Acquisition University briefing on Sept. 12, 2006.

According to the Commander, Naval Air Systems Command, "The success of Performance Based Logistics (PBL) has allowed the Naval Aviation Enterprise (NAE) to improve support to the war fighter and achieve weapon system readiness at lower life-cycle costs." Vice Admiral W.B. Massenburg stated this conclusion in his delivery, "Performance Based Logistics (PBL) Guidance and Best Practices," published by the Naval Air Systems Command, Department of the Navy, Feb. 1, 2007.

There is additional evidence of the utility of Performance-Based Logistics from other countries. Britain's Ministry of Defense, facing severe budgetary pressures for years, is relying extensively on Performance-Based Logistics for the support of critical systems. BAE Systems in Britain has demonstrated the success of the Performance-Based Logistics formula on such diverse systems as the Nimrod, the Tornado and the Sea Harrier.

The Tornado PBA has reduced down time by as much as 35 percent and repair man-hours by 40 percent. Tornado radar support now requires 50 percent less inventory, and costs are down 45 percent, according to Henry Canady in his study, "Military Maintenance for Results," published in Aviation Week on July 9, 2008.

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Part 11: How the Through Life Cycle Support program will provide $250 million in savings over 34 years for Britain's fleet of Boeing Chinook heavy-lifting helicopters while guaranteeing a specific level of aircraft availability

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(Daniel Goure is vice president of the Lexington Institute, an independent think tank in Arlington, Va.)

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