1. Office of the Assistant Deputy Under Secretary of Defense
(Logistics and Materiel Readiness)
Materiel Readiness and Maintenance Policy

2. Warfighter Combat Capability Government Logistician
Product Support Goal
Warfighter Combat Capability
Ensure a Ready and Controlled Source Capable of Providing Combat Ready Weapon Systems Anytime and Anywhere Efficiently and Effectively.
Program Manager
Private Sector
Government Logistician
Partnering

3. Partnering is a Cooperative Effort Not a Competitive Engagement
What Is “Partnering”
Partnering is a Logistics Sustainment Philosophy involving a Cooperative Agreement among:
Program and/or System Support Manager
Original Equipment Manufacturer and/or other Private Sector Firm[s]
Service Maintenance Depot[s]
DoD’s Goals for Partnering include:
More Responsive Product Support
Increased Facility Utilization
Improved Depot Processes and Technology
Reduced Cost of Ownership
Partnering is a Cooperative Effort
Not a Competitive Engagement

4. When Should We Partner? Organic Support CLS ORGANIC Public/Private
Contractor Support
Organic Support
CLS
ORGANIC
More Organic
More Commercial
MAJORITY
SUPPORT
CONTRACT
Public/Private
Partnering
Opportunities
MIX
I hope that this chart is not copyrighted because at least some version of it has been shown all over the DOD. I think it is important because it captures the challenge and possibilities available when we pursue partnering. Through partnering we are sliding the MIX box along the scale between organic and contract support until we find the best mix of public – private logistics support.
Notice that neither the right nor left blocks contain “all government” or “all contractor” support. We simply do not have any weapon systems where there is no participation by either party We are in this business together.
Like everything in the logistics business…the devil is in the details. Our partnering challenges are to:
(1) find the best mix of public & private support
(2) find innovative (low cost) ways to implement the best solutions
(3) develop the appropriate documents and authorities to implement an effective partnership
(4) know when to change this mix as the weapon system evolves and/or the warfighter needs change over the long haul.
GOAL: Leverage Innovative Concepts of the Private and Public Sectors to Support the Warfighter at the Best Value for the Department of Defense and the Taxpayer

5. Available Depot Capabilities
Depot Capabilities that are available through partnering:
Manufacturing – Including the fabrication of parts, assembly of components, final assembly, and painting of end items.
Repair – Including diagnostics, refurbishment, overhaul, and rebuild.
Technical Services – Including testing and analysis, repair process design, and in-service engineering.

6. All Stakeholders Can Benefit from Depot Maintenance Partnering
Organic Depots:
New Investments
Preserve Skilled Workforce
Enhance Operating Efficiency
Access to Technical Support
Commercial Firms:
Access to Process Permits
Minimize Process Flows
Long-term Agreements
Avoid Investment in Duplicative
Capabilities
Warfighter:
Improved Logistical Support
Improved Responsiveness
Technology Infusion
Increased Reliability
DoD Program Manager:
Avoid Investments in Duplicative
Permit Single-Point Accountability
Compliance with Statutory
Constraints
All Stakeholders Can Benefit from Depot Maintenance Partnering
Lesson Title =
Government Benefits.
Program Offices/ICPs.
Benefits to Maintenance Depots.
Industry Benefits. Private sector use of public sector equipment and facilities to perform work for the public sector.
War Fighter Benefits.
PBL/Partnering.

7. Partnering is a PBL Enabler
Depot maintenance partnerships can be an effective mechanism for fully implementing a Performance Based Logistics strategy, while complying with Title 10 requirements
Strategy: When the PBL contractor subcontracts an appropriate portion of the depot maintenance workload to a public sector maintenance depot, this support provides:
Compliance with core logistics and the 50 percent limitation
Single point accountability and responsibility in the PBL contractor

8. Growth in Partnering Depots
Trend line shows cumulative participation.
Naval Surface Weapon Center – Crane is the FY04 addition.
Only AMARC does not have a DM partnership.

9. Growth in Industry Partners
Separately identified business units are counted as distinct partners.
Trend line shows net participation.
115 partners are mentioned in reported data; 88 are participating in partnerships at end FY04 [due to completed partnerships].
Almost 60% of the 60 partnerships created in FY04 are with one of the 20 largest Defense contractors.

10. Growth in Partnerships
Total Partnerships Created = 206
Trend line shows net ongoing partnerships.
206 partnerships have been formed through end FY04.
132 partnerships were ongoing at the end of FY04.

11. Depot Maintenance Partnerships Can Take Many Forms
Range of Possibilities Includes:
Depot provides articles and/or services to industry
Industry leases depot equipment and/or facilities
Performs work for either the public or private sector
Worksharing arrangements
Teaming arrangements where depot and industry jointly contract with a Program Manager
An arrangement between the public and private sectors for one or more of the following:
Use of public depot maintenance activity & employees to provide articles and/or services for the private sector
Private sector use of public depot maintenance activity equipment and/or facilities to perform work for either the public or private sector
Worksharing arrangements, using both public depot maintenance activity and private sector facilities and/or employees
Teaming arrangements whereby a public depot maintenance activity and a private entity enter into a contractual relationship with the DoD in order to accomplish the tasks specified in the contract

12. Distribution by Type of Partnership Arrangement
84 Partnerships
Incorporate Two or More Arrangement Types

13. Benefits Are Being Realized From Depot Maintenance Partnerships

14. “Stryker” Vehicle Anniston Army Depot General Dynamics Land Systems
Partners
Anniston Army Depot
General Dynamics Land Systems
Scope
At last count there were 32 partnering programs at Anniston Army Depot. I’d like to highlight two of them. The first involves the Stryker Vehicle, known until a few weeks ago as the Interim Armored Vehicle.
Start Date = FY 2001 End Date = FY 2007
This is a Sale of Services arrangement
Anniston personnel work side-by-side with General Dynamics Land Systems employees to perform Stryker Vehicle assembly using components manufactured elsewhere. Anniston also performs final vehicle paint and some other production services.
GDLS has a facility use agreement for three separate facilities at Anniston and is provided the use of the test track complex in support of this program.
GDLS also purchases utilities, hazardous waste disposal, fire protection, health services, security, etc. from Anniston.
Stryker Vehicle Assembly

15. AGT 1500 Recuperator Anniston Army Depot Honeywell International
AGT 1500 Engine
Anniston Army Depot
Honeywell International
Partners
Scope
Recuperator Manufacturing
START DATE = FY 1998 END DATE = Ongoing
The AGT 1500 engine is used on the M-1 tank. The recuperator is a sophisticated heat exchanger used to warm inlet air for the engine. Manufacturing capabilities were provided by Honeywell at the Strafford, CT government plant. As part of BRAC 95, that plant was identified for closure and Honeywell sought to relocate the operations. Anniston offered them space.
This is a facility use arrangement – Honeywell occupies 30,000 sq ft of former warehouse space for the Recuperator Core Facility. Honeywell also purchases utilities, local transportation, fire protection, health services, security etc. from Anniston.
Anniston also provides production support services as a subcontractor to Honeywell.

16. Auxiliary Power Units NADEP Cherry Point Honeywell International
CAT Logistics
Partners
Scope
Repair of APUs and field technical support
START DATE = June 2000 END DATE = June 2010
Contract period is 10 years, with a 5 year base period with 5 one-year incentive periods
This is a Sale of Services arrangement – it’s part of a performance- based Total Logistics Support contract involving Honeywell, CAT Logistics and NAVICP.
Involves 4 different APUs used on F/A-18, P-3, S-3, and C-2 aircraft.
1st Navy Public private partnership where a NADEP is subcontractor to an OEM.

17. F/A-18E/F Integrated Readiness Support Teaming (FIRST)
Partners
Scope
NADEPs (3)
Boeing Military Aerospace Support
NADEPs provide depot repair for unique components
START DATE = June 2001 END DATE = June 2006
(if all option years exercised)
The FIRST partnership is a sale of services arrangement involving all three Naval aviation depots and Boeing
As items come off ICS and the operating fleet expands, all repair of peculiar E and F components will eventually be accomplished by the NADEPs
FIRST is a Performance Based Logistics (PBL) contract worth $770 million if all three options are exercised for a five-year performance period
Under the PBL arrangement, Boeing is incentivized to improve supportability, readiness, and mission capability, while reducing product support costs and providing life cycle product management

18. JSTARS Joint Surveillance Target Attack Radar System
Warner Robins Air Logistics Center
Northrop Grumman
Partners
Scope
Repair and maintenance of:
Prime mission equipment
Ground support systems
Software
JSTARS Joint Surveillance Target Attack Radar System
My next example involves the E-8C Joint Surveillance Target Attack Radar System (JSTARS) aircraft.
START DATE = Dec 2000 END DATE = FY 2007
This is a Government Furnished Supplies and Services arrangement – it’s part of a Total Systems Support Responsibility (TSSR) contract.
Warner Robins performs maintenance and repair of:
Prime mission equipment
Ground support systems
Software
Depot also provides technical services such as chemical analysis and precision measurement equipment calibration.
Northrop Grumman determines depot’s work requirements and provides sustaining engineering.
Benefits of collocated functions include reduced transit times and inventory requirements, and improved system availability.

19. LANTIRN Low Altitude Navigation and Targeting Infrared for Night
Partners
Warner Robins Air Logistics Center
Lockheed Martin
Scope
On-Site Repair and Maintenance of:
Shop-Replicable Units (by WR-ALC)
Line-Replaceable Units (by LM)
Complete Pods and Modules (by LM)

20. B-2 Composites Ogden Air Logistics Center Northrop Grumman
Partners
Scope
Manufacture and repair of
Composites
Low-observable components
START DATE = Oct 98 END DATE = Ongoing
This is a workshare arrangement involving a teaming agreement between Air Force Materiel Command and Northrop Grumman to provide the Ogden Air Logistics Center with an advanced composites and low observables manufacturing and repair capability.
As Northrop Grumman completed primary build and mod phases of B-2 program, the large capacity of its Pico Rivera facility was no longer needed
Initial phase of partnership was to:
Transition manufacturing equipment from Pico Rivera, CA to Hill
Construct facilities and install equipment at Hill
Transition computer systems and databases
Train Government manufacturing and support personnel in B-2 composites techniques
Ogden B-2 Composites Repair Facility was culmination of $33M skills and modernization project

21. Partnering Can be a Winning Strategy for All
Conclusion
Partnering Can be a Winning Strategy for All
Win for Warfighter
A Weapon System—Ready When Needed
Win for Acquisition Offices
Single-Point Accountability to Maximum Extent Practicable
Optimum Solutions for Weapon System Balanced with Overall Service Objectives
Win for Industry
Utilization of Existing & New Organic Investments
Profits / Reputation Associated With Partnerships
Win for Organic Maintenance Depots
Workload to Maintain Core Capabilities
In summary, recall that partnering can be a winning proposition for all parties.
I believe that if we approach public-private partnerships from the angle of cooperation—and not competition—we can move a lot closer toward our common objective of providing the warfighters with the most efficient and effective (world class) support ever.
Thank You.

22. For Further Information About Partnering, Go To:

23. - Authorities and Additional Examples -
Reference Charts
- Authorities and Additional Examples -

24. General Themes of Partnering Authorities
Partnerships can exist without statutory authority
Statutory authorities have restrictions, conditions
Depot involvement generally supports
Existing DoD contracts or
Goods/services not available in private sector
Generally, government will not compete with private sector
In some cases proceeds reimburse the DoD account incurring partnership-related costs

25. Authorities

26. Authorities (continued)

27. Army Examples M1/M1A2 Upgrade at Anniston with General Dynamics
Disassemble, hull upgrade, turret demil, overhaul of subassemblies & components - Ship to Lima OH
Firefinder Block II Program at Tobyhanna with Raytheon
Design, fabricate, & integrate prime power group & vehicle communications
Multiple Launch Rocket System M270A1 at Red River with Lockheed Martin
Overhaul vehicle and ship to L-M for integration of upgrades
M1 Recuperator Facility Use at Anniston by Honeywell
Provide 30K sqft of former warehouse space to Honeywell for use as a manufacturing facility
The M1/M1A2 Upgrade and the MLRS are Workshare arrangements
The M1 Recuperator is a Lease under 10 USC 4543
The Firefinder is a Sale of Services under 10 USC 2208(j)

28. Navy Examples F/A-18E/F Components at All Naval Air Depots with Boeing
Performance based logistics with organic depots providing repair services
Auxiliary Power Unit - Direct Vendor Deliver at Cherry Point with Honeywell
Repair of items and field team support
Amphibious Assault Vehicle - RAM & Rebuild to Standard at Albany with United Defense
Disassemble vehicles, ship bare hulls to United Defense for modification, upon return finish rebuild
AV-8B Remanufacture Program at Cherry Point with Boeing-BAE Team
Disassemble aircraft & reuse/refurbish components for stock
The AAV is a Workshare arrangement
The F/A-18E/F, APU and AV-8B are Sale of Services under USC 2563

29. Air Force Examples
C-17 Structures and Avionics at Warner-Robins with Boeing
Identify hidden defects, deteriorating conditions, corrosion, fatigue, overstress, & other structure conditions
JSTARS Total System Support Responsibility at Warner-Robins with Northrop Grumman
Provide repair of prime mission equipment, software support, and backshop functions
B-2 Composite Manufacture & Repair at Ogden with Northrop Grumman
Manufacture and repair of composite & low observable components
LANTIRN Phase I at Warner-Robins by Lockheed Martin
Facility use for contractor at WR-ALC for component repair
The C-17 is a Sale of Services under 10 USC 2563
The B-2 is a Workshare arrangement
The JSTARS and LANTIRN are Government Furnished Resources under FAR 45.3