Contracor Logistics Support in the U.S. Air Force

by ; ;
Format: Paperback
Pub. Date: 2009-06-16
Publisher(s): RAND Corporation
List Price: $39.00

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Summary

The Air Force has several options for sustaining weapon systems and components but has, in recent years, increasingly chosen contractor logistics support (CLS) over organic support. Still, questions remain about costs and efficiency, even about whether CLS is the best option. The authors explored these by reviewing the relevant laws and regulations, analyzing program and contract costs, and speaking with individuals involved in managing and contracting and budgeting for CLS contracts. The authors noted that CLS contracts have often been awarded to original equipment manufacturers because, lacking the technical data, the Air Force could not choose a third party. Without competition, the price of CLS contracts is often determined by analysis and negotiation. They also noted that contracts that guarantee large annual sums limit the Air Force's ability to adjust when its own funding changes. The Air Force has taken steps to assess requirements for technical data early in the acquisition process and to use contracting provisions that allow funding levels to be more flexible. Requiring the reporting and collection of detailed CLS costs in a standardized format and making the data available to program offices across the Air Force would further strengthen the Air Force's ability to obtain favorable prices. Book jacket.

Table of Contents

Prefacep. iii
Figuresp. ix
Tablesp. xi
Summaryp. xiii
Acknowledgmentsp. xix
Abbreviationsp. xxiii
Introductionp. 1
Maintenance of Weapon Systems and the Use of Contractor Logistics Supportp. 1
Purpose of This Monographp. 4
Research Approachp. 5
Organization of This Monographp. 7
Chapter 2p. 9
Backgroundp. 10
Key Laws Affecting CLS Usep. 10
Key DoD Directives and Instructions That Affect CLSp. 12
Key Air Force Direction That Affects CLSp. 13
Implications of Laws and Regulations That Affect CLS Usep. 15
Chapter 3p. 17
Findings and Observations: CLS Funding and Costsp. 18
How Does the Air Force Define CLS for Funding and Costing?p. 18
What Programs Use CLS, and How Much Does Each Spend on CLS?p. 24
Programs That Account for the Growth in CLS Over the Last Seven Yearsp. 26
What Are the Key Cost Drivers for CLS?p. 29
Observations and Conclusions About CLS Funding and Costsp. 33
Chapter 4p. 35
Cost and Performance: Comparing CLS with Organic Supportp. 35
How Does the Government Measure CLS Performance and Using What Metrics?p. 35
What Has Contractor Cost Performance Been Like for Major Programs Using CLS?p. 38
How Effective Has CLS Proven for Major Programs Using CLS?p. 43
Discussion on CLS Supply Supportp. 45
How Does CLS Price Growth Compare to Organic Cost Growth?p. 47
Do Contractors Have Inherent Advantages or Disadvantages in Performing Some Tasks?p. 49
Observations on CLS Performancep. 51
Conclusionp. 52
CLS Managementp. 55
Current Processes for Choosing CLS and Ongoing CLS Managementp. 55
Reasons Existing Programs Use CLSp. 57
How Are Tasks on CLS Contracts Defined and Funded?p. 65
Why Do CLS Contracts Have So Little Variable Funding?p. 68
How Much Insight Does the Government Have Into the Contractor's Costs?p. 69
How Are CLS Contract Prices Determined?p. 72
Observations on CLS Managementp. 73
Implications for Cost Analystsp. 75
Funding Sources May Shift at Different Stages of Supportp. 75
CLS Affects the Amounts and Proportions of Costs Reported in Non-CLS O&S Elementsp. 76
The Nature and Scope of CLS Tasks Differ Among Programsp. 76
Cost and Cost Growthp. 77
Some CLS Costs Are Accounted for Differently Than Are the Corresponding Organic Costsp. 78
It Is Difficult to Generate Cost-Estimating Relationships for Total System O&S Costs Because Funding Constraints Affect Much of the Total Costp. 78
Summary and Recommendationsp. 81
Summary of Findingsp. 81
Recommendationsp. 82
Require Centralized Decisions on Buying Design and Technical Data or Use Rights to Datap. 83
Require a Uniform Format for Cost Datap. 85
Provide Centralized Guidance to Achieve Flexibilityp. 87
Strengthen Centralized Expertise to Optimize CLS Usep. 88
Retain Choices for Logistics Servicesp. 91
Appendixes
Ap. 93
Bp. 99
Referencesp. 125
Table of Contents provided by Ingram. All Rights Reserved.

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