Will Performance Based Outcomes Return to Defense?

Mnr9riDKQqCpotOUaLYv_Public Procurement Metrics Community.jpg
With President Trump releasing his budget plan for the next fiscal year today, the Pentagon is slated to get a      healthy boost. As a result, the Pentagon will need to continue to find ways to be more efficient.

 Considering that more than 70 percent of the life cycle costs of a weapons system are experienced during  sustainment, performance based logistics (PBL) arrangements have been on the rise between suppliers and the  Pentagon. Unlike traditional fee-for-service or time-and-materials contracts, PBL works by specifying outcomes,  not activities.

Questions for both buyers and suppliers:

  1. Do PBL arrangements actually work? 
  2. Do suppliers prefer a PBL arrangement?
  3. How do buyers drive further focus on outcomes?
  4. What other means of procurement are effective at reducing total life cycle costs?

——————————
Jaime Gracia
CEO
Seville Government Consulting
jgracia@sevillegovcon.com
(202) 716-0122
——————————

0

No replies

You must be logged in to post a comment.