Performance Based Logistics

Bionetics provides consulting and third-party logistics support to the Navy in identifying, analyzing and implementing Performance Based Logistics (PBL) opportunities. A PBL is a long-term agreement where the provider (Government, commercial, or public-private partnership) is incentivized and empowered to meet customer oriented performance requirements (reliability, availability, etc.) that ensure fleet readiness requirements while reducing Total Ownership Costs (TOC). More simply, a PBL is a contract to meet a performance objective while allowing the provider to determine the most efficient way of achieving that objective.

Bionetics offers customers considering a PBL approach a combination of staff thoroughly familiar with the PBL process, plus over 30 years of corporate experience in logistics and cost analysis. Successfully navigating the PBL process requires rigorous adherence to a formal program review process. There are numerous statutory, regulatory and contractual issues which must be addressed. In-depth analysis of systems and subsystem components for trends, failure rates and other factors must be completed to develop an accurate cost model and risk mitigation strategy. Finally, effective coordination among multiple Navy organizations and commercial stakeholders to determine the probability of meeting cost wise readiness goals through PBL implementation is a key requirement.

Bionetics has a proven track record in support of the Naval Air Systems Command (NAVAIR) in their implementation of a highly successful PBL for Auxiliary Power Units. We have also begun work on a Lean Sigma initiative to streamline the PBL process. Other PBL-related services include working with private sector contractors to help them understanding the implementation process. And, while PBL is primarily a Navy initiative, the tools and techniques Bionetics has developed are equally appropriate for programs such as USAF Contractor Logistics Support (CLS) initiatives.