1. Public-Private Partnering (PPP)
Key Points and Frequently Asked Questions
Mr. Greg Dierker
AFMC/A8R
Business Integration Office
3 September 09

2. PPP Foot-stomps and FAQs
What is the Common Characteristic of all PPPs?
What is the Primary PPP Statute used to Authorize PPPs?
What are the Objectives of PPPs?
When should a Program Partner?
What New Policy Exists on PPPs?
Do I Have to Complete a Business Case Analysis (BCA) for a PPP and what does it Entail?
Who Is the Final Authority to Approve Partnerships?
How Many Active Partnerships does the Air Force have and what is the Future Direction?
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

3. Common Characteristic of all PPPs 16 Jan 09 AFMC PPP Policy, states:
Existing Air Force PPPs typically take the form of public sector repair, overhaul, modification or production of goods and services for a DoD contractor or where private industry leases public sector equipment and/or facilities. The government also takes advantage of PPPs by bringing in contractor workers to perform repair, modernization, refurbishment and testing of government systems, using government equipment in government facilities. A key element in each of these arrangements is the utilization of some aspect of organic depot maintenance capability to support the partnership.
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

4. PPP Foot-stomps and FAQs
What is the Common Characteristic of all PPPs?
What is the Primary PPP Statute used to Authorize PPPs?
What are the Objectives of PPPs?
When should a Program Partner?
What New Policy Exists on PPPs?
Do I Have to Complete a Business Case Analysis (BCA) for a PPP and what does it Entail?
Who Is the Final Authority to Approve Partnerships?
How Many Partnerships does the Air Force have and what is the Future Direction?
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

5. Thumbnail Description – Not Exhaustive
PPP Statutes
Authority
Thumbnail Description – Not Exhaustive
USC Title 10 Section 2208(j)
Permits depot financed through working capital funds to sell articles and services outside DoD if the purchaser is fulfilling a DoD contract and the contract is awarded pursuant to a public-private competition.
USC Title 10 Section 2474
Requires the Military Departments to designate depot-level maintenance activities as Centers of Industrial and Technical Excellence (CITEs), authorizes and encourages public-private partnerships, permits performance of work related to depot-level maintenance core competencies, permits use of facilities and equipment, and permits sales proceeds from public-private partnerships to be credited to depot accounts.
USC Title 10 Section 2539b
Authorizes the sale of services for testing of materials, equipment, models, computer software, and other items.
USC Title 10 Section 2563
Authorizes sale of articles or services outside DoD (excluding those authorized under 10 U.S.C. 4543) under specified conditions.
USC Title 10 Section 2667
Allows leasing of non-excess facilities and equipment.
USC Title 22 Section 2754
Allows sales or lease of articles or services to friendly countries under specified conditions.
USC Title 22 Section 2770
Allows sales of articles and services to a U.S. company for incorporation into end items to be sold to a friendly foreign country or international organization under specific conditions.
FAR Subpart 45.3
Permits provision of government-furnished material, facilities and equipment to contractors.
FAR Subpart 45.4
Provides for contractor use and rental of government property.
USC Title 10 Section 2464
Requires the DoD maintain a core logistics capability that is Government-owned and Government-operated (personnel, equipment and facilities) to ensure a ready and controlled source of technical competence
USC Title 10 Section 2466
Provides 50/50 percentage limitation not more than 50 percent of funds made available for depot level maintenance for performance by non-Federal Government personnel

6. PPP Foot-stomps and FAQs
What is the Common Characteristic of all PPPs?
What is the Primary PPP Statute used to Authorize PPPs?
What are the Objectives of PPPs?
When should a Program Partner?
What New Policy Exists on PPPs?
Do I Have to Complete a Business Case Analysis (BCA) for a PPP and what does it Entail?
Who Is the Final Authority to Approve Partnerships?
How Many Partnerships does the Air Force have and what is the Future Direction?
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

7. Objectives and Goals of Partnering
30 Jan 2002 PPP for Depot Maintenance Memo and USC Title 10 Section 2474
Reduce cost of DoD parts and services (produced or maintained at a Center)
Reduce DoD cost of ownership, in operations and maintenance, and environmental remediation
Improve use of available organic capability
Leverage private sector investments to re-capitalize depot mx activities (facilities and equip)
More responsive, timely, reliable support to warfighter
Sustain parts availability, reduce repair cycle times, enhance readiness (improved supportability and reliability)
Sustain Core capabilities (economically)
Enhance industrial base to improve and sustain manuf. & repair capabilities (org and private)
Introduce improved business practices & updated technology to DoD maintenance operations and products.
Draft AFI (2008)
Improve facility utilization
Improve Air Force 50-50/Core posture

8. PPP Foot-stomps and FAQs
What is the Common Characteristic of all PPPs?
What is the Primary PPP Statute used to Authorize PPPs?
What are the Objectives of PPPs?
When should a Program Partner?
What New Policy Exists on PPPs?
Do I Have to Complete a Business Case Analysis (BCA) for a PPP and what does it Entail?
Who Is the Final Authority to Approve Partnerships?
How Many Partnerships does the Air Force have and what is the Future Direction?
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

9. Most Programs are “Ripe” for Partnering.
When to Partner
No data or limited data for repair—Partner
No data or limited data for parts—Partner
Expensive depot activation—Partner
Prime wants to stay engaged—Partner
Expensive contractor repair rates—Partner
Obsolete parts/processes—Partner
Prime & govt do different things better—Partner
Truly COTS / truly supportable solely in private sector for the long-term—Contract
Most Programs are “Ripe” for Partnering.

10. PPP Foot-stomps and FAQs
What is the Common Characteristic of all PPPs?
What is the Primary PPP Statute used to Authorize PPPs?
What are the Objectives of PPPs?
When should a Program Partner?
What New Policy Exists on PPPs?
Do I Have to Complete a Business Case Analysis (BCA) for a PPP and what does it Entail?
Who Is the Final Authority to Approve Partnerships?
How Many Partnerships does the Air Force have and what is the Future Direction?
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

11. AFMC PPP Guidance for Depot Maintenance (16 Jan 09)
AFMC/CC directed standup of AFMC/A8R Business Integration Office - Jan 08
A8R charter for shaping AFMC best business practices approved Feb 08
AFMC/A8R conducted data call, reviewed PPPs and revised policy during 2008
16 Jan 09 - AFMC/CC Memo issued to provide PPP guidance for depot maintenance
Replaced 29 Mar 06 AFMC PPP guidance for Depot Maintenance Memo
PPP Approval Authorities (aggregate annual values, anticipated or actual):
ALC/CC – Less Than $25M
AFMC/CC – Greater Than or Equal to $25M OR lesser valued PPPs deemed to be of significant interest
All PPPs are sent to AFMC/A8R for review
PPPs over $25M threshold are coordinated at AFMC Group prior to AFMC/CC approval
PPP reviews for approval may be comprised from some or all of the following:
Partnering Agreements (PAs)
Implementation Agreements (IAs)
Business Case Analyses (BCAs)

12. AFMC PPP Guidance for Depot Maintenance (16 Jan 09)
16 Jan 09 - AFMC/CC Memo issued to provide PPP guidance for depot maintenance
Established PPP goals, approval authorities, procedures for approvals
Requires BCAs at the IA level for all PAs
Requires quarterly metrics tracking the achievement of the stated objectives or the partnership
Established SPA, PA and IA templates to expedite the drafting of agreements
Center Business Offices (CBOs) established at each Air Logistics Center to “secure the right workload” and manage partnership agreements
2 CBO Summits held to date with another planned for Oct 09
CBOs have established a Business Development (BD) team at each Center and are charged to develop BD Plans and Strategies
A BD workshop was held with all CBOs to develop a BD concept for the Command in April 09
AFMC/A8R and the CBOs supported a booth at the Jul 09 United States Air, Trade, and Technology (USATT) Expo and InfoTech Conferences
USC Title 10 Section 2474 “Foot-stomp” (broad and simplifies)

13. PPP Foot-stomps and FAQs
What is the Common Characteristic of all PPPs?
What is the Primary PPP Statute used to Authorize PPPs?
What are the Objectives of PPPs?
When should a Program Partner?
What New Policy Exists on PPPs?
Do I Have to Complete a Business Case Analysis (BCA) for a PPP and what does it Entail?
Who Is the Final Authority to Approve Partnerships?
How Many Partnerships does the Air Force have and what is the Future Direction?
Program Managers play a significant role in development of partnership relationships. It is their responsibility to champion establishment of partnerships early in the acquisition process for programs within their control.
Partnerships between the depot and private contractors are strongly endorsed to preserve maintenance core competencies and achieve the best value repair or manufacturing capability for the warfighter.
Program managers should include partnering costs for core and best value organic capabilities when developing program requirements and investment appropriations’ budgets.

14. # of Active PPP and Future Direction
OO-ALC PPPs 14
OC-ALC PPPs 11
WR-ALC PPPs 17
All three ALCs have created a Center Business Office and are chartered to “Secure the Right Workload” at their respective Center
AFMC is working with each CBO to provide oversight and procedures to ensure an Enterprise Perspective

15. Summary
16 Jan 09 - AFMC/CC Memo issued to provide PPP guidance for depot maintenance
New processes and emphasis being placed on PPP Management
Additional focus on performance management to ensure PPPs achieve their stated objectives
Center Business Offices (CBOs) established at each Air Logistics Center to “secure the right workload” and manage partnership agreements
USC Title 10 Section 2474
Broad range of applications
Allows approval at a lower level in many cases
A key element in each of these arrangements is the utilization of some aspect of organic depot maintenance capability to support the partnership (facilities, manpower, equipment)