50. Contractor Logistics Support (Program Level)

51. Contractor Logistics Support
Traditional Logistics support concepts
DoD manages the overall logistics process
DoD establishes depots for repairs and modifications
DoD maintains a spares buffer at these depots
DoD purchases/maintains technical data packages
DoD manages spare parts inventories
DoD maintains control of the support process
Contractor Logistics Support concepts
Contractor manages the overall logistics process
Contractor establishes a depot for repairs/modifications usually at their facility
Contractor maintains technical data packages & provides us access
Contractor manages spare parts inventories
Number of spares is minimal

52. Contractor Logistics Support
Why the change?
Change to DOD R (mandatory policy) stating that use of contractor support is the preferred support approach unless
Total life cycle cost estimates indicates organic support less costly
Existing DoD support capabilities available
Program Managers are now responsible for total Life Cycle Cost (LCC)
They were not responsible for LCC in the past

53. Contractor Logistics Support
Life Cycle Cost
System Acquisition
Production
System
Research,
Development,
Test and
Evaluation
Operation and Support
10%
30%
60% | ||
|||
Milestones
Years
DSMC Systems Engineering Management Guide

54. Contractor Logistics Support
Impact of CLS
Contractor is in direct contact with the user
Contractor controls large amounts of GOV’T property
Change from a large depot spares buffer to reduced inventories and just in time deliveries
Failure of the contractor to perform can/will result in impact to weapon system’s operational readiness

55. Contractor Logistics Support
DoD Total Asset Visibility defines the quantity, condition, location, movement, status, and identity of materiel, units, equipment and supplies, and its ability to use that information to enhance logistics processes.
The contractor’s logistics MIS will need to track all of the above elements

56. Contractor Logistics Support
Logisticians role
Evaluate the contractor’s logistics management processes
Support logistics reviews (ILSMTs)
Plan, coordinate & monitor KTR schedules
Monitor KTR performance
Discuss risk areas
Plan to assure KT requirements met
Plan to assure the fleet needs are met

57. Contractor Logistics Support
Logisticians role (cont.)
Evaluate KTR depot operations
Report to the customer surveillance results, outcomes, risk & status (monthly report)
Provide predictive analysis to customer
Next months delivery will be late by 2 weeks
Evaluation of the contractor’s logistics Management Information System is critical to measuring success!
Analysis of the MIS system data will provide insight into customer support effectiveness

58. Contractor Logistics Support (Program Level)
DCMC Engineering Role
Ensure systems and design engineering address logistics issues.
Evaluate contractor logistics capabilities, including
Reviewing logistics management information
Reviewing the need for support and automated test equipment
Ensuring the availability of the maintenance plan, provisioning parts list, logistics support analysis, and technical drawings
Be aware of contractor spares delivery performance
Identify any special packaging, handling and transportation requirements, hazardous materials, and training materials.