16. September 2021

Dau Performance Based Agreement

Beginning in the early 1990s, emerging trends of increasing costs of supporting systems used and lowering the overall reliability and availability of weapons systems were recognized as problems that could continue if not addressed. As a result, a performance-based approach, PBL, was promoted by the U.S. Department of Defense in its annual quadrennial Defense Review in 2001. Since then, not only has the U.S. DoD adopted the PBL approach, but other countries have also adopted this strategy. Many programs that have used it have resulted in increased system availability, shorter maintenance cycles and/or reduced costs. [which one?] DoD program managers are required to develop and implement support strategies based on the life cycle of weapons systems. These strategies should optimize overall system availability while minimizing cost and logistics requirements. Trade-off decisions include cost, useful service and efficiency. [Clarification needed] The selection of specific performance indicators should be carefully considered and supported by an operational-oriented analysis, taking into account technological readiness, fiscal constraints and timing. When implementing life-cycle implementation strategies, measures should be proportionate to the responsibility of integrators and product port providers and, where appropriate, reviewed to ensure that they motivate the desired behaviours throughout the undertaking. [2] [3] Performance-based Logistics (PBL), also known as performance-based life-cycle product support [citation needed] or performance-based contracting,[citationed] is a strategy for cost-effective support of weapons systems.

Instead of entering into contracts for the purchase of goods and services, the product upgrader identifies product port integrators (PSIs) to deliver performance outcomes defined by performance metrics for a system or product. The integrator often commits to this level of performance at lower or higher costs, similar to those previously obtained as part of a non-PBL product portfolio or transactional product port agreements for goods and services. . . .