ILS and Performance Based Logistics DND Materiel Readiness

ILS and Performance Based Logistics: DND Materiel Readiness and the In-Service Support Contract Jonathan Patterson Supportability Services Manager Pennant Canada Omega. PS User Group Meeting 12 November 2013

3 M’s Logistics – Still Vital to Military Effectiveness Ø "There is nothing more common than to find considerations of supply affecting the strategic lines of a campaign and a war. " § Carl von Clausewitz Ø "A sound logistics plan is the foundation upon which a war operation should be based. If the necessary minimum of logistics support cannot be given to the combatant forces involved, the operation may fail, or at best be only partially successful. " Ø “Experience has taught me that manufacturers are now as necessary to our independence as to our comfort. ” § Thomas Jefferson Ø “In the future, competition will be among supply chains. ” § Dr. Eli Goldratt § ADM Raymond A. Spruance Material – Movement – Maintenance

Presentation Points Ø Change Drivers § DND ILS Transformation Ø “Traditional” vs. “PBL” ISS Contracting Ø The DND Equipment System Concept Ø Propose § “Service Approach” Materiel Readiness Model Perspective § Management Options

DND ILS: Change Drivers Ø Policy Ø Procedures Ø Tools Ø Guidance Ø Job Aids Ø Change Drivers § ISSCF/PBL approaches § Life Cycle Cost importance (breadth and scope) § MOTS/COTS Acquisition Strategies § Information System Strategies DND In-Service Support Contracting Framework (ISSCF): ILS Program Change Driver, but towards what?

“Traditional” vs. “PBL” Equipment Support Approach Ø Traditional § Furnishes end-items § Focus on product/resource delivery § Defines what is to be provided and often exactly how it is to be done § The more the supplier sells, the more the supplier makes § DND Manages In-Service and assumes all performance risk Ø Performance Based Logistics § Identifies outcomes (operational & support) § “Complete” latitude for industry to satisfy objectives § The less the supplier consumes, the more the supplier makes § Industry assumes all/some performance risk § DND Policy: ISSCF How must DND Adjust to PBL Paradigm?

The DND Equipment System Ø The Mission Equipment performs the operational task Ø The combination of the Mission Equipment and the Support System constitutes an Equipment System Ø An effective Support System generates and sustains Mission Equipment Ø Capable Equipment enabled by an effective Support System provides Materiel Readiness The Support System must be fully integrated and designed for the Mission Equipment

Integrated Support System: Government & Industry Ø Support System § logistic resources and manpower/training which are put in place to meet equipment system availability and operational usage requirements Ø Resources are required by “service providers” Ø In-Service Support is evolving towards CAF/DND/Industry balance ISS Arrangements/Agreements should be structured around required “services” and their outcomes: a service based model a reasonable approach

Equipment System Materiel Readiness Model “Traditional” ILS Similarities, With Some Differences

Demands of the DND ILS Manager – today Ø ILS Manager is asked to conduct many aspects of ESMR Model Ø Challenge: ILS core tasks still remain Ø May be opportune to adopt Supportability Manager in addition to ILS Manager Ø Supportability Manager “concept” is applied in some DND projects now Under ISSCF/PBL: • Who is now responsible to establish the ISSC? • Who defines the Support Services, how? • What are the DND/Industry Roles? • How are project “silos” prevented?

Supportability Manager: Possible Role within DND? Ø DOD: similar role § Product Support Manager § Direct Report to PM Ø Responsibility: § Support System Definition Development, and Realization § Best Value Analysis § Support Arrangements: ISSC/PBL, Traditional, or Both § “Steady-state” management and performance improvement Ø Challenges § Complexities of Industry/DND integrated service requirements § Balance to ensure Materiel Readiness achieved in unknown future military environments Supportability Manager and the ILS Manager : Both Roles Vital, Both Required

Summing Up Ø PBL/ISSCF § Change is occurring / has occurred Ø Materiel Readiness § Integrated Service Approach is Key Ø Equipment System Materiel Readiness § Model that combines service and resources Ø Who is responsible? § Supportability Manager Proposed for DND § ILS Manager still required