This website uses cookies to ensure you have the best experience. Learn more

Performance Based Logistics In The Department Of Defense

1791 words - 8 pages

Performance-Based Logistics grew out of the efforts to comply with Section 912c of the 1998’s National Defense Authorization Act (NDAA). Section 912c called for the use of the best commercial practices, competitive sources, modernizing through spares, program manager oversight, and the expansion of the prime vendor programs. In 2001, the Quadrennial Defense Review (QDR) mandated the use of PBL to make the supply chain more efficient and improve the readiness of major weapons systems. On May 12, 2003, DoD Directive 5000.01, The Defense Acquisition System, directed Project Managers to “develop and implement performance-based logistics strategies that optimize total system availability while minimizing cost and logistics footprint” (DoD, 2003). This directive changed the old practice of buying and contracting for resources, to buying and contracting for results. A contractor, the government, or a combination of both can achieve this level of performance.
In general, PBL contracts define performance goals desired by the customer and provide incentives to the contractor for achieving those goals. These performance goals are oriented towards operational objectives such as readiness, reliability, and maintainability. Providing goals and not telling the contractor what to do, or how to do it, “gives the contractor more flexibility and there is more room for innovation and creativity” (Sols, Nowick, & Verma, 2007). Simply put, the Army is buying outcomes at an agreed price, instead of purchasing assets at variable prices when needed. For PBL to be effective, the support provider needs to ensure that the demanded elements are available to provide the agreed level of availability. This process assigns responsibility to the supplier, not the customer.
The incentives offered to the supplier in PBL are key for the motivation of the contractor to achieve and surpass the agreed goals. These beneficial incentives could be monetary, or non monetary. The use of incentives is beneficial because they keep competitive pressures on the government and industry providers. In addition, these incentives allow the private industry to execute efficient practices already proven in the private sector. Customers analyze the performance of the contract over an extended period of time to allow for the balance of rewards and penalties earned by the contractors. Failure to achieve the established goals, results in penalties to the contractor that include: price reduction, performing a service at no cost, or terminating the contract. The incentives offered to the contractor under PBL are purposely attractive to ensure that the contractor remains motivated to perform during the life of the contract and to avoid unstable support. Therefore, it is extremely important to establish the performance goals in an “appropriate and well understood form of metrics or figures of merit” (Sols et al., 2007). These metrics are unique for each PBL arrangement; there is no one size fit all...

Find Another Essay On Performance-Based Logistics in the Department of Defense

Time To Rebuild; The Department of Defense must be restructured

837 words - 4 pages The Department of Defense takes up the majority of the US budget; it not only pulls in over a trillion dollars of taxpayer money yearly, but it also is unable to accurately account for the exact whereabouts of those funds year after year. The DoD does, of course, offer its own budget, however, due to the byzantine and ineffective nature of the Federal Bureaucracy, it is impossible to verify if the money is even so much as used for its intended

Performance Measurement in Logistics Operations Essay

1508 words - 7 pages 1. Introduction Due to the expanding diapason of performances required by the current emulous environment, performance measurement and monitoring, as a subject, has been arousing growing interest in various scopes, especially in the field of logistics operations. Explicit performance measurements provide a common groundwork for decision-making in companies. For performance measurement in Logistics operations, Key Performance Indicators are


1049 words - 5 pages 1. This has caused an imbalance among the enlisted force, when it comes to educational opportunities. This change is centered on accreditation, changes in lesson plans, man-power, and budgets. The quality of enlisted education within DoD and DHS would increase with standardization, educational opportunities, and improved contingency operations capabilities. These various existing programs should be consolidated into a Joint Defense Forces


1503 words - 7 pages 1. The Community College of the Air Force was stood up in 1972 and has become the largest community college in the world and is the only community college in the Department of Defense. The resistance to this change is centered on accreditation, changes to lesson plans, man-power, and budgets. The enlisted education DoD and DHS wide would increase with standardization, educational opportunities, transcripts, and improved contingency operations

Defense of the Insanity Defense

2558 words - 10 pages age, a public misperception has arisen surrounding this defense. Whenever a mass killing or an unthinkable crime is committed, most people assume that the defendant will enter a plea of insanity. It has increased in publicity as well, whenever it is involved, many people are aware of the crime. In 2001, Andrea Yates murdered her five children by drowning them in a bathtub but was not found guilty (Lilienfield 2010). Her defense was based on her

Defense Department Directives and Uniform Code of Military Justice

2972 words - 12 pages There are multiple military directives and regulations that limit service members’ free speech rights. These are found within Defense Department Directives and Uniform Code of Military Justice (UCMJ). Outside of the military, much of these restrictions would be allowed unconstitutional. However, courts tend to defer to the military’s courts, so these limitations have continued. Congress enacted the UCMJ in 1950. Listed in the UCMJ are the

In Defense of the Cynic of Politics

2881 words - 12 pages , and as such, the actions of both Oliverotto and Cesare Borgia were justified. To again quote Machiavelli, “In the actions of all men, and particularly the prince, where there is no higher justice to appeal to, one looks at the outcome” (Machiavelli, 2007, p. 70). In other words, the achievement of the desired outcome is how an action is to be judged: not whether it was right or wrong based on moral or legal constraints. To show that

In Defense of the Study of Cryonics

1733 words - 7 pages Ferraris, Corvettes, large estates, gold dusted ice creams, or even hundred dollar socks all have something in common: they are all luxurious desires. However is cryonics, the process of preserving one's body for the hopes of future medical treatments to save, a mere luxury? Can no one find a real need to utilize cryonics? Does cryonics have any intrinsic value to society as a whole? Many believe that cryonics is just an “indulgence [for] rich

In Defense of Consumerism

696 words - 3 pages We as Americans celebrate the idea of a well educated populace. It is the general thought that a person who has been through the rigors of a formal education has a better understanding of the world around them. These alumni are more able to adapt to new situations and resolve them. They are better suited for the workplace, and are therefore more valuable to society. The authors in the two essays, In Defense of Elitism and On the Uses of a

In Defense of Literacy

1020 words - 5 pages In “In Defense of Literacy,” Berry explains, that we live in a country that everyone has the privilege to have an education, that it is ridiculous to have to defend literacy yet he still has to do so. Literacy, is the ability to read and write. As well as the ability to think critically. If we didn't have the ability to think critically, reading and writing would just be skills, to move words around. Anyone that’s ever read and written  knows

In Defense Of Food

1254 words - 5 pages about the health consequences of their food choices than we Americans-and no people suffer from as many diet-related problems. We are becoming a nation of orthorexics: people with an unhealthy obsession with healthy eating." (Pollan 8)Works CitedPollan, Michael. In Defense Of Food: An Eater's Manifesto. New York: Penguin, 2008.Print.

Similar Essays

Performance Of The Nursing Department In A Healthcare Institute

1111 words - 5 pages Introduction In any healthcare institute arrangements related to patient hygiene, medication management and other associated problems such as risk of falls are some common problems that need to be addressed and streamlined in an effective manner. The performance of the nursing department of any healthcare institute can easily be assessed through these components and whether they are being followed in a proper manner or not. For this the

Department Of Defense Strategy For Operating In Cyberspace

2042 words - 8 pages . The rapid advancement of information technologies within our society is one invention in which the world has yet to understand its true potential capabilities and applications. Works Cited Adams, J. (2001). Virtual Defense. Foreign Affairs, 80, (3), 98-112. Department of Defense Strategy for Operating in Cyberspace. (2011). Retrieved from Grange, D. L. (2000). Asymmetric Warfare

The Economics Of Department Of Defense Base Closures

791 words - 3 pages The Economics of Department of Defense Base ClosuresIn its most basic element, economist David Colander explains that economics considers how producers and consumers use scarce resources in an attempt to satisfy their unlimited wants (Colander, 2004). Throughout the past decade, and most recently with the announcement of the Efficient Facilities Initiative (EFI), the Defense Department has forged ahead with a plan to complete multiple rounds of

The Economics Of Department Of Defense Base Closures

824 words - 3 pages Internet Article Review:The Economics of Department of Defense Base ClosuresIn its most basic element, economist David Colander explains that economics examines how producers and consumers use scarce resources in an attempt to satisfy their unlimited wants (Colander, 2004). Over the past decade, and most recently with the announcement of the Efficient Facilities Initiative, the Department of Defense has forged ahead with a plan to complete