1WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

PBL and Enterprise PBL

14 January 2015

2WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

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• Actively pursuing PBL contracts to generate cost savings and improve Warfighter support

• Working closely with Service requirements POCs

• Continue to pursue Enterprise PBL opportunities• Enterprise PBL effort with Honeywell underway

• PBL contract awarded to Boeing, phased approach• Phase 1 material availability• Phase 2 expanding to depot support• More Phases to follow (total value estimated $8B-$12.6B)

• DLA receiving more requests regarding partnering under PBL arrangements from program offices and contractors/vendors

DLA PBL Approach & Ongoing Actions

3WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Industry has consistently stated that DoD can save 10 to 20% by migrating to a joint PBL structure, while providing better availability and reliability

Army

Air Force Navy

PBLPBL

PBL

•Rationalize the Business Structure

•Leverage economies of scale & scope

•Garner efficiencies associated with one standard business process & one supply chain

•Move from PBL 1.0 (separate efforts) to PBL 2.0 (enterprise PBL structures that span DoD)

Leverage One Supply Chain, One Set of Rules, One Business Model, and One Overarching Public Private Partnership

Adopt an Enterprise Approach

4WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

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Honeywell EPBL Requirement Portfolio

Aviation Ground Power Unit

H-60 APU

B-1 APU & A/C Mounted

Accessory Drives

C-5 APU

E-3 AWACS

APU

F/A-18 EnCS &

Wheel and Brakes

V-22 Env Control Sys, IR

Suppressor, Valves & Avionics

Existing PBL USAF SPLS I

C-130, Ground Cart

APUs

Existing PBL Navy TLS

F/A-18 APU & MFC

P-3 APU & EDC C-2 APU

A-10 APU

F-15 Jet Fuel Starter & Acc

Drives (SPLS II)

Value Proposition Platforms / Components

CH-47T-55

Engine

P-8A Poseidon – all HON

Components

Additional Opportunities (not included in savings calculations)

KC-767 – all HON

Components

M1 Abrams Tank –

AGT1500 Gas Turbine

Engine

And associated FMS Customer orders

F-16 Turbine

Power Unit

AH-64ApacheClutch Assembly

E2/C2 ECS

Estimated value $3B-$4.5B over 10 yearsSavings estimated at 10%-20%

5WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

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Back up

6WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

Source: The Telephone Book by Henry M. Boettinger 1977, Riverwood Publishers

Telecommunications Circa 1912

While the introduction of the telephone improved communications, multiple phone companies utilized separate lines and systems. AT&T was able to rationalize the business model,

reducing cost and improving performance.