The DoD Weapon Systems Acquisition Reform Product Support Assessment (WSAR-PSA), dated Nov 2009, identified eight principal areas to improve product support effectiveness. One of those areas, "Governance," included the recommendation to implement independent Logistics Assessments during weapon system development, production and Post-Initial Operational Capability (Post IOC) acquisition phases. Thorough Logistics Assessments provide leaders with a health assessment of each Integrated Product Support element and assist in making informed decisions at milestones and/or at key program decision points.
The DoD Logistics Assessment (LA) Guidebook, issued in the summer of 2011, supports the USD(AT&L) November 2010 memorandum on "Better Buying Power" and the WSAR-PSA by addressing the themes of affordability, controlling cost growth, and innovation in industry. It provides a structure for conducting Logistics Assessments and helps Components establish baseline assessment criteria specific to their weapon systems. Logistics Assessments should be performed at Milestones B and C, prior to Full Rate Production (FRP) decisions, at Post-IOC reviews, or at least every five years. These assessments will ensure that there is adequate supportability planning, management, resource identification, and risk mitigation for each program at different phases of its life cycle.
The Program Manager must continuously assess system performance, affordability, supportability, cost, and schedule and use these key factors to make program tradeoffs and decisions. The Milestone Decision Authority (MDA) must then validate system viability and the program's ability to meet established performance requirements, as well as total ownership cost targets at major program reviews and milestone decision points. A periodic and formal assessment of a program's supportability plan validates its ability to meet established performance requirements and successfully deliver a supportable system to the Warfighter.
As part of the LA, statutory, regulatory, and Component required documentation is reviewed and assessed for completeness and compliance prior to the milestone decision. The focus is on whether the program planning and methodology has a basis and can be successfully executed. Conducting the LA early in the program phase where the design can be influenced, and re-assessing the planning at each milestone and periodically thereafter as the design matures, is critical to fielding a sustainable system. It also provides senior decision makers critical information for making strategic trades within and across various programs, especially as today's Acquisition Category (ACAT) programs are becoming increasingly complex and integrated with other systems. The issues that are commonly identified and may have significant cost impacts have to do with incomplete or insufficient analysis, or results that suggest the program will not be able to achieve planned supportability thresholds. Findings from the LA are intended to help the program in a positive manner, identifying issues that may need more senior-level attention to correct.
Execution of the LA is at the discretion of the Components, but preferably by a team independent of the program; each Component may develop their own implementing processes and guidance to meet their unique requirements. During acquisition there are several other assessments, reviews, and test events between milestones, such as the Systems Engineering Technical Reviews (SETRs) and Defense Acquisition Program Support (DAPS) Assessments, which feed into milestone decisions. These assessments, reviews, and tests should be considered when scheduling LAs, since information from these events can complement the LA and provide valuable information for use by the LA team.
Note that the individual military Services have their own methodologies for implementation of logsitics assessments, including the Department of the Navy, which mandates them in policy as "Independent Logistics Assessments (ILA)." In addition, Public Law 112-81, Section 832, paragraph (b) (8) "requires the military departments to conduct an independent logistics assessment of each major weapon system prior to key acquisition decision points (including milestone decisions) to identify features that are likely to drive future operating and support costs, changes to system design that could reduce such costs, and effective strategies for managing such costs."
This statutory requirement has been incorporated into both Enclosure 1, Table 2. ("Milestone and Phase Information Requirements") and Enclosure 6, Paragraph 5 ("Product Support Reviews") of DoD Instruction 5000.02. Specifically, Table 2 states that ILAs are "Statutory for weapon system MDAPs only. For the FRP assessment required if the decision is more than 4 years after Milestone C. Assessments after FRP will be accomplished at a minimum interval of every 5 years after Initial Operational Capability (IOC)."
Paragraphs 5.b. states: "the DoD Components will conduct independent logistics assessments (ILAs) for all weapon system MDAPs prior to Milestones B and C and the Full-Rate Production Decision to assess the adequacy of the product support strategy, and to identify features that are likely to drive future operating and support costs, changes to system design that could reduce costs, and effective strategies for managing such costs. The reviews will focus on sustainment planning and execution, to include the core logistics analyses and establishment of organic capabilities. Each DoD Component will establish its criteria for independence, and will provide (1) guidance to ensure consistency within the respective Component and (2) the scope of the assessment for key acquisition decision points. At a minimum, these reviews will be chartered by the CAE and conducted by logistics, program management, and business experts from outside the program office."
Paragraph 5.c. goes on to add "after IOC, the DoD Components will continue to conduct ILAs at a minimum interval of every 5 years. DoD Components will provide results to the Assistant Secretary of Defense for Logistics and Materiel Readiness. Assessments will focus on the weapon system-level product support performance in satisfying warfighter needs, meeting sustainment metrics, and providing best-value outcomes. They must specifically assess O&S costs to identify and address factors resulting in growth in O&S costs and adapt strategies to reduce such costs. Results will inform LCSP and analyses updates."
The DoD Logistics Assessment (LA) Guidebook is also slated to be updated in the not too distant future as well. In addition, Service policies and processes are evolving to reflect the latest statutory requriements and DoD guidance, including:
- On June 9, 2013, the Army issued a new DA PAM 700-28 Independent Logistics Assessments (ILA). This "pamphlet provides a standard framework for assessing the status and/or health of the logistics program in preparation for key milestone decision reviews in the materiel acquisition process. The use of this pamphlet provides guidance for uniform independent logistics assessments (ILAs) across all commodity types (for example; major information management system (MAIS), combat vehicles, aircraft, electronic, or training equipment) thereby reducing subjectivity in the process. This guidance may be applied to any Acquisition Category (ACAT) program, however, each ILA criterion should be carefully tailored to individual program requirements."
- Department of the Navy (DoN) ILA policy was updated on 9 November 2012 with the issuance of SECNAV Instruction 4105.1C "Independent Logistics Assessment and Certification Requirements", along with the updated September 2012 NAVSO P-3692 Independent Logistics Assessment Handbook.
- Marine Corps Systems Command (MCSC) Acquisition Policy Letter 3-08 "Independent Logistics Assessment (ILA) Process," dated 18 Dec 08 and Marine Corps Systems Command (MCSC) Independent Logistics Assessment (ILA) Checklist are in the process of being updated to reflect the twelve Integrated Product Support (IPS) Elements and the most current DoD and DoN policy.
- The Air Force leverages the DoD Logistics Assessment Guidebook per paragraph 6.21 of the March 7, 2013 Air Force Instruction (AFI) 63-101/20-101 Integrated Life Cycle Management, which states "LAs shall be conducted for all programs prior to each required milestone or decision point and documented in the LCSP. For ACAT I programs at the MS B, C, and FRP decisions, the certification should be provided to the Deputy Assistant Secretary of Defense for Materiel Readiness (DASD(MR)) at least 30 days prior to the milestone or decision point. ACAT II and III programs shall document as part of the LCSP and present to the MDA at each milestone. Refer to DoD Logistics Assessment Guidebook for criteria and process recommendations on completing the LA." In addition, see also Air Force Logistics Health Assessments (LHA) a stand-alone Decision Support Module accessible in the Air Force's System Metric and Reporting Tool (SMART).
Note that DAU offers ILA training as part of both LOG 340 Life Cycle Product Support classroom course, as well in CLL 020 Independent Logistics Assessment (ILA) continuous learning module.