Will Performance Based Outcomes Return to Defense?

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?

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