1
PMA-273PMA-273T45 Contractor Logistics T45 Contractor Logistics
SupportSupportApril 2004
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ObjectiveObjective
• CLS and PBL (Performance Based Logistics)
• T-45 PBL contract
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Performance-Based LogisticsPerformance-Based Logistics
Support Provider
Warfighter/Force Provider
Weapon SystemManagement
Visibility into cost/risk decisions across life cycle
Acquisition
Provide continuous,Reliable, affordableSupport per PA
Ensure System isSustained at optimumLevel per PA
Disposal
PAPA
Sustainment
INDUSTRY/ORGANIC BuysPerformanceAs a Package
(Including Surge/Flexibility)
PM
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PBL CharacteristicsPBL Characteristics• Customer Focused – High Level Metrics• Documents the negotiated range of support metrics necessary to
meet operational objectives– Expectations
– Range of performance
– Peace and War• Involves and is recognized by all appropriate stakeholders
– Service corporate structure
– Logistics providers
– Customers• Synchronizes allocated resources (corporate decision process)
with service level expectations
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T45 FY00 ContractT45 FY00 ContractWeaknessesWeaknesses
• Actual vs. Projected Flight Hours– Projections/actuals are now significantly lower than forecasted– We pay for the labor for many more FH’s than we are flying.
• RFT is not sufficient as sole availability metric – RFT can be met with insufficient number of available aircraft (based upon %
of A30 aircraft). – RFT Range (65%-75%) is not what CNATRA desires
• No Labor Rates Established– Requires every over and above action to be priced separately
• CDFT/IMP must be re-negotiated every year due changes in scope.• USN pays CLS Contractor estimated $1.2M “pass through” annually
for engine OEM support– Rolls Royce owns the proprietary technical data; performs depot work for CLS
Contractor; provides tech support to CLS Contractor at O/I level; owns & provides parts forecasting model; and provides parts to CLS Contractor
• Although a “PWS,” there is much “how to.”
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T45 CLS SolutionT45 CLS Solution
• Performance Based Logistics (PBL) to maximum extent
• Break support effort into two separate contracts– Competition for Airframe/GBTS CLS– Sole Source Power by the Hour (PbtHTM) contract to Rolls Royce
(OEM) for Engine support
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T45 Airframe/GBTS CLST45 Airframe/GBTS CLS• Performance Based Logistics (PBL) philosophy• Reduced number of CLIN’s (from 32 to 14)• Built around two Performance Based Work Statements
– Aircraft PWS
– Ground Based Training System PWS
• Customer and Industry active in writing both PWS’s• PWS combines Commercial Best Practices and OPNAVINST 4790.2• CLINs Established for O/I and Depot Fixed Labor Rates• Performance Incentives
– Performance Bonus ($5M annually)• Ready For Training (RFT)- 57% • Sortie Completion Rate (SCR)- 98%
– Contractor Performance Factor (CPF) for GBTS
– CPARS/IPARS Grading criteria for material condition of aircraft
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T45 % Ready For TrainingT45 % Ready For Training
253035404550556065707580859095
100
Contract Requirement Kingsville Meridian61.3% 70.7% 64.8% 69.5% 57%
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T45 A/C Ready For TrainingT45 A/C Ready For Training
83.2
106.5
94.7
0102030405060708090
100110
6/6/
2003
6/20
/200
3
7/4/
2003
7/18
/200
3
8/1/
2003
8/15
/200
3
8/29
/200
3
9/12
/200
3
9/26
/200
3
10/1
0/20
03
10/2
4/20
03
11/7
/200
3
11/2
1/20
03
12/5
/200
3
12/1
9/20
03
1/2/
2004
1/16
/200
4
1/30
/200
4
2/13
/200
4
KINGSVILLE MERIDIAN T-45 TOTAL
Co
ntr
act
Sta
rt D
ate
1 O
cto
ber
200
3
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T45 Sortie Completion RateT45 Sortie Completion Rate
50556065707580859095
100105110115120125130
REQUIREMENT KINGSVILLE MERIDIAN98% 5 mos. avg 106% 5 mos. avg 106%
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F405F405 Engine Support ApproachEngine Support Approach• Break Out Engine support from Airframe/GBTS• Sole Source Power by the HourTM (FAR Part 12)• PBL focused• Single CLIN Contract with fixed price per flight hour• Contractor has total support responsibility
– Intermediate and Depot (all “off-aircraft”) maintenance– Logistics support (parts forecasting, provisioning, LSA, pubs, supplier
management)– Engineering support (RCM, EI’s, obsolescence management)– Support to O level (tech reps, PSE, pack up kits, training)
• PbtHTM Results – Guaranteed engine availability (80% FY04, 85% FY05 & out)– Stable fixed price budgeting– Low Risk– RR incentivized to improve engine performance and reliability
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F405 RFI/NRFI EnginesF405 RFI/NRFI Engines
141 141 143 144 144144147 148 148 147145 145 146 145
150145
143144145143142
29
34323333313030
34343431
333534333536353737
29
35
41
47
53
59
65
71
77
83
89
95
101
107
113
119
125
131
137
143
149
155
161
167
173
179
To
tal
En
gin
es
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
Per
cen
tag
e R
FI
En
gin
es
RFI NRFI Available%
October 2003 thru February 2004
176 Engines
177 Engines
178 Engines
179 Engines
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F405 Engine Release Life F405 Engine Release Life ComparisonComparison
FY04 Contract allows 40 Engines released with less than 500 HrsFY04 Contract allows 40 Engines released with less than 500 HrsFY05 Contract allows 25 Engines released with less than 500 HrsFY05 Contract allows 25 Engines released with less than 500 Hrs
Monthly Average
757.9737.2
1178.7
985.3870.7 822.2
916.0
763.3
1164.3
1029.3
1130.11154.7
850.9
1002.9
1292.4
637.0
1287.01324.0
937.5
1420.5
1225.9
1307.0
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
ENGINES Released under 500 Hrs.
3Q02 10<500 1Q04 3<5004Q03 2<5003Q03 8<5002Q03 6<5001Q03 8<5004Q02 7<500
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T45 CLS Report CardT45 CLS Report Card
• Team formed to review how recent PBL implementation is working– How is the program doing now?– Are there any unresolved issues?– Are there any lessons learned?
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How’s the T-45/F405 Program How’s the T-45/F405 Program doing now?doing now?
• Navy/Vertex relationship off to a good start!• Maintenance backlog at NAS Kingsville is
challenging– However, No significant drop in RFT– Vertex meeting flight ops – However, not meeting contract
incentive requirements
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Are there any Unresolved Issues?Are there any Unresolved Issues?
• CLS Report Card identified some transition issues…
• Transition issues in work - have been added to the weekly “T45 Transition Conference Call”.
• Examples:– Rolls Royce (foreign national) access to Navy websites– Off-site Access to GOLD– Exit Inventories/Surveys
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Are there any Lessons Learned?Are there any Lessons Learned?• Yes! CLS Report Card resulted in some lessons
learned• Lessons learned are being worked into transition PWS
and added to current CLS contract, and shared across platforms
– For example, all parties agree that a period of at least 30 days for “pass-down” between the incumbent and new contract is imperative to a successful transition…”continuity of services”
– Establish “transition phone call” immediately after contract award
– Have Inventories/Surveys complete 2 months prior to contract end
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T45 CLS RecapT45 CLS Recap
• T45TS Performance Based Contractor Logistics Support– Reduced operating costs
• We only pay for the performance we need
• Leverage commercial best practices and systems
• Decreased government infrastructure
– Improved availability/readiness– Increased Contractor accountability