51Contractor Logistics Support Traditional Logistics support conceptsDoD manages the overall logistics processDoD establishes depots for repairs and modificationsDoD maintains a spares buffer at these depotsDoD purchases/maintains technical data packagesDoD manages spare parts inventoriesDoD maintains control of the support processContractor Logistics Support conceptsContractor manages the overall logistics processContractor establishes a depot for repairs/modifications usually at their facilityContractor maintains technical data packages & provides us accessContractor manages spare parts inventoriesNumber of spares is minimal
52Contractor Logistics Support Why the change?Change to DOD R (mandatory policy) stating that use of contractor support is the preferred support approach unlessTotal life cycle cost estimates indicates organic support less costlyExisting DoD support capabilities availableProgram Managers are now responsible for total Life Cycle Cost (LCC)They were not responsible for LCC in the past
53Contractor Logistics Support Life Cycle CostSystem AcquisitionProductionSystemResearch,Development,Test andEvaluationOperation and Support10%30%60%||||||MilestonesYearsDSMC Systems Engineering Management Guide
54Contractor Logistics Support Impact of CLSContractor is in direct contact with the userContractor controls large amounts of GOV’T propertyChange from a large depot spares buffer to reduced inventories and just in time deliveriesFailure of the contractor to perform can/will result in impact to weapon system’s operational readiness
55Contractor 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
56Contractor Logistics Support Logisticians roleEvaluate the contractor’s logistics management processesSupport logistics reviews (ILSMTs)Plan, coordinate & monitor KTR schedulesMonitor KTR performanceDiscuss risk areasPlan to assure KT requirements metPlan to assure the fleet needs are met
57Contractor Logistics Support Logisticians role (cont.)Evaluate KTR depot operationsReport to the customer surveillance results, outcomes, risk & status (monthly report)Provide predictive analysis to customerNext months delivery will be late by 2 weeksEvaluation 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
58Contractor Logistics Support (Program Level) DCMC Engineering RoleEnsure systems and design engineering address logistics issues.Evaluate contractor logistics capabilities, includingReviewing logistics management informationReviewing the need for support and automated test equipmentEnsuring the availability of the maintenance plan, provisioning parts list, logistics support analysis, and technical drawingsBe aware of contractor spares delivery performanceIdentify any special packaging, handling and transportation requirements, hazardous materials, and training materials.