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Naval Inventory Control Point

F/A-18E/F Integrated Readiness Support Teaming (FIRST) concept, an alternative support strategy emphasizing Government/Industry partnerships, risk management and shared accountability.

Awarded May 01

Features:•Guaranteed response time•Teaming arrangement with three NADEPs•Reliability improvements-targeted at 10%•Streamlined configuration control and obsolescence mgmt•Industry support for E/F peculiar WRAs, lower assemblies and piece-

parts•Reduced cycle time•Reduced cost of ownership•Integrated funding streams

F/A-18 E/F FIRST

Awarded PBLs

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Naval Inventory Control Point

Awarded PBLs

E-2 Mission Computer

• $16M obs over 5 years• Contractor will manage

piece part inventory• Guaranteed availability

2 days • reliability guarantee of

10,000 hours MTBF (15 year warranty, 5 years priced, 2 other 5 year periods are options

• loaner spares clause if reliability is not met

Aircraft Tires

• $266M obs over 15 years

• 23 types...17 platforms

• Inv mgmt / warehousing transportation

• Guaranteed availability 95% in 2 days CONUS / 4 days OCONUS

• First performance review… filled over 8000 reqn… 96.43% availability!

Aviation Successes

• $66M obs over 8 years

• Inv mgmt/warehousing

• Obsolescence mgmt

• Contractor manages wholesale (forward- positioned) ship stock

• Guaranteed availability 90% in 5 days…ipg1s in 2 days

F-14 Night Target System

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Naval Inventory Control Point

Awarded PBLs

50 Person Life Raft

• $6.6M Obs over 5 years

• COTS replacement for MILSPEC item

• Vendor owned inventory

• Commercial technology

• Replacement for MK 6 25-Person Life Raft (2:1)

• Over 50% cost avoidance for CV/CVNs

•4-year base contract w/ one 4-year option; $33.5M for 4-year base

•1600 line items; Transitioned from a Mini Stock Point to Full PBL; minimum fill rate of 87% …

•Contractor Responsibilities: material requirements determination, requisition support, CONUS transportation and tracking, Class II ECP authority

AEGIS Spy 1 Radar ARC-210 Radio

• $35.9M Obs Over 5 Years

• Inv Mgmt/warehousing

• Config/Obsolescence Mgmt...MTBF Guarantees… Growth Incentivized

• Guaranteed Availability 85%/90% with Incentives… 2 Days Pri 1-3...5 Days Pri 4-15

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Naval Inventory Control Point

PBLs on the HorizonFY03 Outlook - Aviation

Good to GoSE EWSE 11/02 F/A-18 Displays 12/02 H-60 Tip-to-Tail 6/03

CommonTCAS 11/02 Engines F404 12/02 H-46 APU 6/03EA-6b Tailpipes11/02 H-60 Dynamic 3/03 H-53 APU 6/03H-60 FLIR 12/02 Components

Promising – FY03

P-3 EDC EA-6B Jax Hydraulics Common APR-39A v2SE RSTS Engines T58/64 Fuel Ctrls EA-6B ASW-40/41H-46 Rotor Head Engines F404-400 Fuel Ctrl Engines F404-402 Fuel CtrlEngines T400 Fuel Ctrl P-3 APS-137B AV-8B HISSP-3 AIP F/A-18 Flight Surfaces F/A-18 LEF Wingfold

More to Do

Engines F414 GILS V-22 Tip-to-Tail EA-6B ICAPIII/TJSR Engines J52

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Naval Inventory Control Point

• PBL Features – 116 NIINs ... –400 / -402 series – Availability / reliability incentives– 20% surge requirement– 5 year base

• J&A at ASN awaiting approval• Next Steps

– Finalize BCA– Complete PWS– Alpha contracting ... Targeting Dec '02 Award

F404 7R Components

Next step ...Consumables for

I-level / whole engine repair

PBLs on the Horizon

Driving towards Time On Wing (TOW) Metric

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Naval Inventory Control Point

Avionics Dynamic Components Tip-to-Tail- Lockheed Martin - Sikorsky - MHSCo- 42 Avionics - 14 major dynamic - 1331 total

components components components- Awarded May 02 - Est. award Oct 02 - Est. award Dec 02- $5M contract - $150M contract - $1.3B contract- Guaranteed - Guaranteed - Guaranteed response time response time response time- Obsolescence - Obsolescence - Obsolescence

Management Management Management - Firm-fixed price per - Firm-fixed price per

flying hour flying hour - Guaranteed reliability

improvements

PBLs on the Horizon

H-60 PBL Evolution

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Naval Inventory Control Point

PBL Lessons Learned

Target new systems– Reduce initial inventory investments

Make deals attractive to industry– Long term agreements w/ incentives

Streamline the negotiation process– Deals significantly more complex than traditional

contracts

Strike the right arrangement– Specific response time / reliability goals by system

Consider Title 10 upfront– Depot partnerships can be "Win-Win"

Tie profit to performance

Each deal is handcrafted

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Naval Inventory Control Point

Take-Aways

• NAVICP is teaming with Industry, NAVICP is teaming with Industry, Systems Commands and Fleet Systems Commands and Fleet customers to develop innovative customers to develop innovative support alternatives.support alternatives.

• NAVICP is making significant NAVICP is making significant investments of NWCF and personnel investments of NWCF and personnel to accomplish this goal.to accomplish this goal.

• PBLs… Procuring the performance PBLs… Procuring the performance end state, not the how toend state, not the how to