Performance-based logistics
defense acquisition strategy for cost-effective weapon system support
Performance-based logistics (PBL), also known as performance-based life-cycle product support, is a defense acquisition strategy for cost-effective weapon system support which has been adopted in particular by the United States Department of Defense. Rather than contracting for the acquisition of parts or services, DoD contracts to secure outcomes or results. Under PBL, the product support manager identifies product support integrator(s) (PSI) to deliver performance outcomes as defined by performance metric(s) for a system or product. The integrator often commits to this performance level at a lower cost, or increased performance at costs similar to those previously achieved under a non-PBL or transactional portfolio of product support arrangements for goods and services.
As the preferred approach to supporting weapon system logistics, it seeks to deliver product support as an integrated, affordable performance package designed to optimize system readiness. PBL meets performance goals for a weapon system through a support structure based on long-term performance agreements with clear lines of authority and responsibility.
DoD program managers are required to develop and implement performance-based life-cycle support strategies for weapon systems. These strategies should optimize total system availability while minimizing cost and logistics footprint. Trade-off decisions involve cost, useful service, and effectiveness. The selection of the specific performance metrics should be carefully considered and supported by an operationally oriented analysis, taking into account technology maturity, fiscal constraints, and schedule.
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