Ogden Air Logistics Center
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1 Ogden Air Logistics Center Air Logistics Center Support Proposal for USAF Training Systems 309 th Software Maintenance Group Hill A.F.B. Utah Kenny Bennett Misty Goss
2 Purpose To provide Industry with a high level understanding of a proposed approach to coordination of ALC and Industry efforts with regards to USAF Training Systems
3 Overview Background AFI Changes Compliance with Purpose ALC SMXG Software Enterprise Proposed Way Forward - Initial Pilot Programs How? Public-Private Partnerships
4 Acquisition and Sustainment Life Cycle Management (63-101) Training systems are now required to undergo the Depot Source of Repair (DSOR) process for posturing of depotlevel maintenance workloads
5 AFI and Other Driving Forces February AFI revisions encourage organic support for Training Systems OSD and HQ AFMC focus on increasing organic SORAPs vs. RFPs 50/50 Considerations Reduced Budgets and Growing Needs Bottom line Compliance with Purpose proactively determine the best way to implement organic support of Training Systems
6 Compliance with Purpose Questions to Consider Do we seek value added solutions or just checkboxes and percentages? Are there possibilities for win-win scenarios? Is it possible that the ALCs will actually provide value added support capabilities?
7 ALC Software Enterprise Three Partners One Mission OO-ALC, Hill AFB Ogden, UT OC-ALC, Tinker AFB Oklahoma City, OK WR-ALC, Robins AFB Warner Robins, GA 2,100+ Software Engineers Software Enterprise Three Groups United with One Mission!
8 The ALC Software Support Enterprise Three ALCs united to provide the USAF a broad scope of capabilities Ogden ALC is designated as point of contact for Training Systems activities with support from Oklahoma City and Warner Robbins as appropriate Extensive experience across the three Centers in the design, implementation and maintenance of complex simulation, modeling and emulation systems and some training systems (mostly legacy system upgrades) CMMI Level 5 certified Central repository/configuration management Reduction of redundancy and leveraging similar efforts
9 Proposed Way Forward Crawl, Walk, Run Ensure continued full involvement of Industry New paradigms distributed development Initial test cases F16 TSSC XCITE Tinker/Industry Partnership about to be announced XCITE on emerging RFPs Data Packages (what does Industry need to include XCITE on proposals) Getting a seat at the XCITE table Planned Partnerships Government Partnering 101
10 Ogden Air Logistics Center Public-Private Partnership Center Business Office Misty Goss
11 Overview General Partnering Concepts Authority Why Partner? How Does Partnering Work? Types of Partnerships
12 Partnering Defined A public-private partnership for depot maintenance is A written agreement between an organic maintenance activity and one or more private entities to perform work or to utilize facilities and equipment Intent is to Leverage the Best Capabilities of Both Public and Private Sectors
13 Key Players Program Management CONTRACT Organic Depot Mx Organic Supply Engineering Financial Planning Personnel Industry Enabling Support Industry Supply Chain Contracting Facilities Services Legal
14 Depot Partnering Capabilities Repair & Maintenance diagnostics refurbishment, overhaul, and rebuild Manufacture fabrication of parts, assembly of components, final assembly, and painting of end items Technical Services testing and analysis, repair process design and in-service engineering Software Support development and sustainment
15 AUTHORITY
16 Partnering Statutes Overarching Partnering Strategies Leverages the core competencies of the public sector and innovative concepts developed and proven within the public and private sector to support the warfighter at best value IMPLEMENTING TECHNIQUES Direct Sales 10 USC USC 2208(j) 10 USC 2539(b) 10 USC 2563 Leasing 10 USC USC 2474 Workshare FAR Part USC 2474
17 AF Guidance General Lyles & Mr. Sambur Policy Letter, 15 Apr 02 The Air Force strategy specifies that sustainment support for AF products shall be aggressively pursued through public private partnering via performance based logistics contracts.
18 F-22 Guidance Lt. Gen Zettler & Mr. Sambur Policy Letter, 16 Dec 02 life-cycle product support will be managed through a long-term performance based logistics contract and partnership between Lockheed Martin, Boeing, Pratt & Whitney and the Air Force. The Specific roles of partners may change over time, but the partnership will remain intact for the life of the weapon system.
19 Space and Missile System Guidance Lt. Gen Pawlikowski Policy Letter, 01 Feb 2012 intent to pursue Public- Private Partnerships (PPP), as authorized by 10 U.S.C. Section 2474, between our industry product support providers and Air Force organic depots. A cooperative and co-located team approach is key to success.
20 Current Guidance HQ AFMC Public-Private Partnering Policy 16 Jan 2009 Provides guidance on PPP process & reporting requirements DoDI April 2007 Public-Private Partnerships for Depot-Level Maintenance Implements policy, assigns responsibilities, and prescribes the procedures for depot level maintenance PPPs AFI April 2009 Acquisition and Sustainment Life Cycle Management Public-Private Partnering, Section 3D, Paragraph Identifies the Program Manager s roles & responsibilities
21 WHY PARTNER?
22 10 USC 2474 DoD Objectives Why is DoD Pursuing Partnering Opportunities? To provide more responsive, timely, and reliable product support to the warfighter To seek additional workload that will enable depots to sustain Core capabilities To decrease the cost to military forces of the goods and services provided by its maintenance depots by: Improving facility and equipment utilization Providing sufficient work content to maintain workforce competencies Inserting commercial innovation into organic product support processes To foster cooperation between DoD and private industry
23 AF Objectives Reduce cost of DoD parts and services Reduce DoD cost of ownership, in operations and maintenance Improve use of available organic capability Leverage private sector investments to re-capitalize depot maintenance activities (facilities and equipment) More responsive, timely, and reliable support to warfighter Sustain parts availability, reduce repair cycle times Sustain core capabilities Enhance industrial base to improve and sustain manufacturing and repair capabilities Introduce improved business practices and updated technology to DoD maintenance operations and products Improve government facility utilization Improve Air Force 50/50 and Core Posture
24 Benefits to Program Managers Compliance with Statutory Constraints 10 USC /50 rule for depot maintenance workload distribution AF (service level) requirement All work, in dollars, performed by government personnel regardless of location (either at Government or Contractor locations) Dollars include all factors of production: overhead, materials, and indirect costs 10 USC 2464 core logistics functions DoD level Government owned facilities, equipment, & government personnel The SECDEF determines the core logistics capabilities and the workload required to sust those capabilities
25 Benefits to Industry Economical Manufacturing & Repair Capabilities A Motivated, Skilled Workforce with extensive repair, maintenance, and manufacturing process expertise Low Risk not for profit, don t strike, won t go out of business Reduce Operating Costs with shared facilities, equipment, information, and resources Laboratories, Centers, Ranges, etc. for the testing of materials, equipment, models, computer software, etc. Process Permits (e.g. coating removal, plating, etc.) for facilities already covered by hazardous materials licenses
26 Benefits to Organic Depots Lower Cost of Production Spread cost across a broader workload base Preserve Labor Base Access to Commercial Expertise & Management Methods Improved Technical Support and Training Access to OEM technical support Depot maintenance use of Industry proprietary repair data for duration of partnership
27 HOW DOES PARTNERING WORK?
28 Partnership vs. Contracting Partnering is not purchasing Partnerships are used by depot maintenance to sell goods and services to contractors or government buying activities Contracts are used by Program Managers to purchase goods and services from contractors Comply with Federal Acquisition Regulations (FAR) Competition in Contracting Act (CICA) So where does the money come from? Provided by requiring activities SPO, DoD, or DCS contract Sub documents define financial arrangements
29 Partnering Documentation Strategic Partnering Agreement (SPA) Optional Non-Disclosure Agreement (NDA) Optional Partnering Agreement (PA) Mandatory Implementation Agreement (IA) Mandatory Business Case Analysis (BCA) Mandatory
30 TYPES OF PARTNERSHIPS
31 Workshare Types of Partnerships Direct Sales Direct Commercial Sales Lease Select type based on approach or combination of approaches that best serves the objectives of the partnership
32 Keys to Successful Partnerships Early acquisition community involvement Long-term relationship & commitment Shared partnership vision & objectives Right metrics & incentives Complementary skills & abilities Senior-level advocacy & support Sound business case analysis Mutual trust & shared risk Flexibility to change partnership scope Balanced workloads Independent review & oversight Enforcement of partnership decisions & requirements Full coordination with all stakeholders Clearly documented objectives in partnering agreement
33 Lease Air Force Depot Authorities: 10 USC USC 2667 Not More Than 5 Years Public Interest Contractor Benefits AF Increase utilization of facilities and equipment Contractor Cash or in-kind lease payments Contractor Use of existing AF buildings/equipment saves company capital
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