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Assessment. Its final report, signed by Ashton B. Carter, Under
Secretary of Defense for Acquisition, Technology and Logistics, affirms the essence of the PBL concept by stating, "there remains a strong consensus that an outcome-based, performance-oriented product support strategy is a worthy objective". It further identified eight areas that would make product support even more effective, if developed and improved:
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In 2009, partially in response to some who believed that PBL concepts were inadequate, and to assess the current state of DoD systems sustainment, DoD's Office of the
Assistant Deputy Secretary of Defense for Materiel Readiness (OADUSD(MR)) initiated a Weapon System Acquisition Reform Product Support
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In PBL, typically a part or the whole payment is tied to the performance of the provider and the purchaser does not get involved in the details of the process, it becomes crucial to define a clear set of requirements to the provider. Occasionally governments, more particularly
Defence, fail to define
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Beginning in the early 1990s, emerging trends towards increases in the costs to support fielded systems and decreases in the general reliability and operational readiness of weapon systems were recognized as issues that could continue if unabated. As a result, a performance-based approach, PBL, was
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PBL strategies do not mandate that work be contracted to commercial contractors; integrating the best features of the public and private sectors is a key component of the support strategy. Instead of a pre-ordained course of action, Product
Managers are directed to implement "sustainment strategies
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should be carefully considered and supported by an operationally oriented analysis, taking into account technology maturity, fiscal constraints, and schedule. In implementing performance-based life-cycle product support strategies, the metrics should be appropriate to the scope of product support
54:(s) for a system or product. The integrator often commits to this performance level at a lower cost, or increased performance at costs similar to those previously achieved under a non-PBL or transactional portfolio of product support arrangements for goods and services.
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Since the inception of the PBL concept, there have been numerous examples of DoD systems that have yielded the anticipated results, and many that have exceeded – some extremely so – the performance expectations. Annual PBL awards highlight achievement in three areas:
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in 2001. Since then, not only has the U.S. DoD adopted the PBL approach, but other countries have adopted this strategy as well. Many programs that have employed it have yielded increased system availability, shorter maintenance cycles, and/or reduced costs.
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Asadabadi, M. R., Saberi, M., & Chang, E. (2017, August). A fuzzy game based framework to address ambiguities in performance based contracting. In
Proceedings of the International Conference on Web Intelligence (pp. 1214-1217).
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the requirements clearly. This leaves room for providers to, either intentionally or unintentionally, misinterpret the requirements, which creates a game like situation and excuses to deliver imperfect services.
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are required to develop and implement performance-based life-cycle support strategies for weapon systems. These strategies should optimize total system availability while minimizing cost and
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68:. PBL meets performance goals for a weapon system through a support structure based on long-term performance agreements with clear lines of authority and responsibility.
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that include the best use of public and private sector capabilities through government/industry partnering initiatives, in accordance with statutory requirements".
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integrators and providers responsibilities and should be revisited as necessary to ensure they are motivating the desired behaviors across the enterprise.
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Many times, employing a PBL strategy has resulted in either increased system performance issues or increased costs.. Examples include the
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Asadabadi, M. R., and Sharpe, K. (2019). The ambiguity dilemma in procurement projects. Journal of
Business & Industrial Marketing.
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42:. Rather than contracting for the acquisition of parts or services, DoD contracts to secure outcomes or results. Under PBL, the
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DoD Directive 5000.01, The
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Defense Acquisition System, Enclosure 1, Section E1.1.17 - Performance Based Logistics
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found that logistics support contracts were more expensive than undertaking support operations
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Defense acquisition strategy for cost-effective weapon system support
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DoD Weapon System
Acquisition Reform Product Support Assessment
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Life Cycle
Logistics Community of Practice PBL Topic Area
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support which has been adopted in particular by the
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28:performance-based life-cycle product support
257:Performance Based Logistics (PBL) Overview
366:Performance Based Logistics What it Takes
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167:Supply Chain Operational Strategy
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164:Industrial Integration Strategy
161:Product Support Business Model
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386:Defense Acquisition Guidebook
221:Performance-based contracting
34:strategy for cost-effective
361:Performance Based Logistics
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244:Performance Based Logistics
141:component-level performance
20:Performance-based logistics
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125:Quadrennial Defense Review
48:product support integrator
147:system-level performance
242:Ilias Solutions, N.V.,
190:United States Air Force
44:product support manager
144:sub-system performance
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211:Fixed-price contract
81:performance metrics
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421:Military logistics
206:Cost-plus contract
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416:Maintenance
396:PBL Toolkit
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261:Acquipedia
227:References
170:Governance
152:Criticism
62:logistics
200:See also
194:in-house
174:Metrics
111:History
30:, is a
132:Awards
99:, and
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95:PBL,
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101:PBtH
93:C-17
71:DoD
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