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04272002

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Performance Based Pilots

In their R-TOC Forum briefings, quarterly reports, and discussions at PEO/SYSCOM Commanders' conferences and workshops, R-TOC Pilot Programs have been consistent in identifying a number of barriers to further improvements. These have included: mismatches in flexibility, visibility and accountability for budget funds; lack of clear objectives and performance criteria between Program Managers and users; and lack of clear objectives and performance criteria with organic providers of product support.

In October 2000, OSD designated four R-TOC Pilot Programs to experiment with new product support techniques. These programs were requested to develop special implementation plans by November 2000 which would address:

  • Establishment of formal performance agreements between the program managers and their warfighter customers based on warfighter expectations and mission availability, particularly for legacy systems.
  • Use of program-specific formal agreements (or "contracts") with organic providers based on output and availability.
  • Use of a program-specific working capital fund to pool funding sources and provide a robust financial base for the program managers to fund product support providers to meet mission availability expectations.

The four Pilot Programs selected to participate in this experiment were: Abrams Tank System, Guardrail/Common Sensor, EA-6B Prowler, and F-16 Fighting Falcon. All four of these programs described their initial plans at the 5th R-TOC Forum (January 2001) and provided updates at the 8th R-TOC Forum (November 2001). In general, the programs have reported good progress in meeting the first two objectives, but less support for the working capital fund. Each Pilot's specific approach is described in the Forum briefing and summarized in the Pilot Program descriptions on this web site [Pilot descriptions page].

Based in part on the experience with these Pilot Programs, DUSD (Logistics and Materiel Readiness) announced a new Performance Based Logistics concept early in 2002. This concept was briefed at the 9th R-TOC Forum.