Performance Based Logistic Support of Missile Systems

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1 Performance Based Logistic Support of Missile Systems 8 th December 2015 This document and the information contained herein is proprietary information of and shall not be disclosed or reproduced without the prior authorisation of

2 Company Overview 37.5% 37.5% 25% SSA* DEUTSCHLAND FRANCE UK ITALIA ESPAÑA Circa 50 missile product types in -service Worldwide Variety of product types and operational environments Variety of customer demands from significant self sufficiency level to totally dependant. USA Page : 3

3 Contents Why adopt a Performance Based Logistics support approach? Evolution of contracting for In-Service support activities in UK and France How have Performance Based Logistics support contracts been achieved? Conclusions - Lessons learnt and Benefits Page : 4

4 Why change to a Performance Based Logistics Approach? Customer constraints: Budget reduction pressure Primary Requirement / Demands Operational Readiness & Availability Value for Money High reliability of modern weapons systems Skills sustainment challenges within Customer Organisation Complex Platforms required Contractor flexibility Tailoring of services Contracting for Availability Long Term Partnering Incentivised Performance Asset Performance Based Logistic Approach Page : 5

5 Missile System In Service Support Evolution in UK On Demand Support Service Spares Contracting for Availability (CfA) Evolving Support Partnering Approach Risk transfer from Customer to Industry Rapier TRADERS Rapier ADAPT ASRAAM ALARM RAID Sea Skua ReViSE Sea Wolf SWISS Unified Support Environment (USE) Sea Viper Brimstone TLEC Storm Shadow Page : 6

6 Missile System In Service Support Evolution in France No Availability commitment Partial availability commitment Full Availability commitment Spares & Repairs On request manages LRU s Customer manages I-Level responsible for Maintenance Stockpile management A/c Launchers and countermeasures Exocet Aster Scalp Meteor Magic 2 Mica Mistral Saphir 400 Page : 7

7 How has this been achieved? Page :

8 Contracting for Availability - CfA Long Term Partnering Asset Incentivised Performance Performance Based Logistic Approach Page : 9

9 Contracting for Availability CfA Industrial Cooperation Industrial co-operation delivering effective System Authority services working in partnership. Long Term Partnering Incentivised Performance Asset Performance Based Logistic Approach Missile Availability Navy Customer Ship Equipment Availability Ship Availability Platform DA Industrial Cooperative Agreement Page : 10

10 Contracting for Availability CfA Key Performance Indicators Key Performance Indicators Long Term Partnering Incentivised Performance Asset Performance Based Logistic Approach KPI 1 Ship equipment operational availability (Operational Defective (OPDEF) days) KPI 2 Missile out load requirements KPI 3 Missile readiness requirements User Requirement Asset availability as a function of usage Missile outload and readiness Page : 11

11 Incremental Approach to Full CfA - Transition Phase Initial CfA Capability Transitional CfA Phase Full CfA Capability Define KPI s Criteria Met Evaluate KPI s Asses collated In-service data Asses progress on an agreed set of FSC criteria Asses gaps and improvements to the support solution Assess risk provision and associated mitigation activities required for moving to full CfA Availability and outloads measured against the agreed KPI s Page : 12

12 Delivering Services when needed Technical Services Services for Operations Supply Support Services Services Asset Training Services Page :

13 Contracting For Availability (CfA) - Conclusion CfA can mean contracting for one or more of the following Equipment readiness to deploy for training, exercises and operation Ground equipment, ship equipment, aircraft equipment Including maintenance of stockpiles, spares etc Equipment availability whilst deployed CfA Benefits Proven innovative approach to transforming In-Service Support Satisfies operational needs by: Ensuring equipment is ready and available Providing flexibility to changing requirements Allowing User to focus on front line operational needs Value for money Reduced cost of ownership Jointly driving out inefficiencies Transfer risk to industry Optimised spend profile Page : 14 Reduced Cost / Optimised spend profile Improved Service to the End User Transfer of Risk from MoD to Industry

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