Defense Logistics: Improved Analysis and Cost Data Needed to Evaluate the Cost-Effectiveness of Performance Based Logistics
Abstract
In 2001, the Department of Defense (DoD) identified performance-based logistics (PBL) as the preferred weapon system support strategy. Within DoD, PBL is the purchase of performance outcomes, such as system availability, rather than the purchase of individual elements of logistics support such as parts, repairs, and engineering support. Although PBL initially arose from efforts to reduce support costs, questions have arisen about whether PBL has reduced support costs as originally intended. GAO was asked to evaluate the extent to which DoD has used business case analyses to guide decisions related to PBL arrangements and the impact PBL arrangements have had on weapon system support costs. In conducting the review, GAO analyzed the implementation of PBL arrangements for 29 weapon system programs. GAO also looked at the use and characteristics of performance-based contracting in the United Kingdom's Ministry of Defence. GAO makes five recommendations, including that DoD require the development of business case analyses, clearly define specific criteria for their development, and require that the services improve their internal controls to ensure that the analyses are performed. GAO also recommends that DoD require program offices to collect and report detailed support cost data for their PBL arrangements. DoD generally concurred with these recommendations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2008
- Accession Number
- ADA491741
Entities
People
- Chanee Gaskin
- Charles Perdue
- Harold Brumm
- Janine Prybyla
- Jennifer Echard;
- Jennifer Jebo
- Julia Denman
- Karen Thornton
- Kevin Keith
- Mae Jones
- Matt Dove
- Tom Gosling
- William M. Solis
Organizations
- United States Government Accountability Office