Defense management
DOD needs to demonstrate that performance-based logistics contracts are achieving expected benefits : report to the Subcommittee on Readiness and Management Support, Committee on Armed Services, U.S. Senate
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Contributions
- United States. Congress. Senate. Committee on Armed Services. Subcommittee on Readiness and Management Support - Contributor
Publication
2005 - U.S. Government Accountability Office, Washington, D.C., District of Columbia
Language
English
Word Count
4,500 words, Guess
Page Count
18 pages
Identifiers
- Library of Congress Control Number2005410812
- OCLC Control Number65377177
- Open LibraryOL31660919M
Classifications
- LCCUC263 .U543 2005
Alternate Titles
- Defense management, Department of Defense needs to demonstrate that performance based logistics contracts are achieving expected benefits
- DOD needs to demonstrate that performance-based logistics contracts are achieving expected benefits
- Performance-based logistics
Description
DOD program offices could not demonstrate that they have achieved cost savings or performance improvements through the use of performance-based logistics arrangements. Although DOD guidance on implementing these arrangements states program offices should update their business case analysis based on actual cost and performance data, only 1 of the 15 program offices included in GAO's review had performed such an update consistent with DOD guidance. In the single case where the program office had updated its business case analysis, it determined that the performance based logistics contract did not result in expected cost savings and the weapon system did not meet established performance requirements. In general, program offices had not updated their business case analysis after entering into a performance-based logistics contract because they assumed that the costs for weapon system maintenance incurred under a fixed-price performance-based logistics contract would always be lower than costs under a more traditional contracting approach and because they lacked reliable cost and performance data needed to validate assumptions used. Furthermore, the Office of the Secretary of Defense has not established procedures to monitor program offices to ensure they follow guidance and update the business case analysis. Additionally, program officials said because of limitations in their own information systems, they typically relied on cost and performance data generated by the contractors' information systems to monitor performance-based logistics contracts. The program offices, however, had not determined whether contractor-provided data were sufficiently reliable to update their business case analysis.
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