Performance-based logistics (PBL) was designed as a cost-saving measure for weapons system support efforts.
And reduce weapons system cost is exactly what a joint venture between GE Aviation, IFS North America, Sogeti USA, and U.S. Navy PBL Personnel did. The F414 project, which relies on IFS Applications aerospace and defense solutions, has been given the Secretary of Defense Performance Based Logistics (PBL) Component Level Award by the U.S. Department of Defense.
The Secretary of Defense award recognizes government and aerospace and defense (A&D) industry teams that have demonstrated outstanding achievements while providing exceptional capability through PBL agreements. The F414 uses IFS’s A&D industry solutions for PBL in supporting more than 1,200 engines in the Navy inventory. It has delivered over $110 million in direct savings to the Navy Fleet Flying Hour Program and provided availability levels of over 95 percent, as well as driving substantial infrastructure cost avoidances.
“We are delighted that the DOD has recognized the importance of PBL in managing and supporting complex A&D projects such as this,” IFS North America Vice President of Defense Dan Norrish said in a recent media release. “Our solutions have helped facilitate over $110 million of direct savings through this partnership, at the same time as helping maintain an excellent level of material availability. The receipt of this award is evidence of the strong, effective relationship that has existed between IFS and GE Aviation since 2001.”
PBL is a mandated approach for defense programs in the United States, the UK and other nations. These nations, face declining defense spending with sequestration in the United States leading to significant budget challenges. But it PBL also something that, as addressed in a previous blog post, other nations with burgeoning defense budgets need to consider. PBL was also a hot topic of discussion at a special media and analyst program at the IFS World Conference (related blog post). Journalists from India, during a question and answer period, asked pointed questions about PBL given that nation’s recent increases in military spending. Indeed, PBL, which allows a ministry or department of defense to pay a predictable price not just for an asset but for the total cost of a given level of service over the asset lifecycle, is something that needs to be considered during asset acquisition. Countries like India that are adding weapons systems and programs need to be considering this lifecycle cost and PBL contracting at the earliest stages of the appropriations process.
Bottom line … whether a nation is increasing defense spending or decreasing it, good cost controls and predictable asset sustainment cost are critically important. PBL is the way to achieve this. And IFS is very proud of its role in facilitating successful PBL projects around the world.