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Designate Product Support Integrators

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Long Description

Product Support Manager (PSM) Toolkit Implement & Assess Establish/Refine Product Support Arrangements Identify/Refine Financial Enablers Identify Product Support Provider(s) Designate Product Support Integrator(s) Determine Support Method(s) Product Support Value Analysis Business Case Analysis Identify/Refine Performance Outcomes Baseline the System Form the Product Support Management IPT Integrate Warfighter Requirements and Support


Brief History NDAA Section 805

Relationship of the PM, PSM & PSI for Product Support Strategy

Product Support Business Model (PSBM)

Figure 1: The PSBM highlights that the PSM is the Warfighter's principle product support agent...

Role of the PSI

Candidates for the PSI Role

Potential Candidates

Considerations in the Evaluation of PSI Candidates

Considerations by the Commercial PSI

Title 10 and Workloads

After the determination of the acquisition approach, if an outcome based strategy for support is selected, the PSM must identify the Product Support Integrator(s) who will be delegated the responsibility to integrate product support providers to deliver the specified outcomes assigned consistent with the scope of their delegated responsibility. These decision(s) are validated or made using a best value analysis consistent with the BCA.

Brief History NDAA Section 805

In October 2009, President Barack Obama signed the Fiscal Year 2010 National Defense Authorization Act. The legislation (Public Law 111-84) contained a provision in Section 805 entitled, "Life Cycle Management and Product Support" requiring: (1) that the Secretary of Defense issue comprehensive guidance on Life Cycle Management (LCM), and the development and implementation of product support strategies for major weapon systems; (2) that each major weapon system be supported by a Product Support Manager (PSM); and (3) that each PSM position be performed by a properly qualified member of the armed forces or full-time employee of the Department of Defense. Implementation of this law is in progress, with the latest guidance published in "Directive-Type Memorandum (DTM) 10-015, Requirements for Life Cycle Management and Product Support (Change 1), DTD 29 Apr 11."

Relationship of the Program Manager (PM), Product Support Manager (PSM) & Product Support Integrator (PSI) for Product Support

The PM's responsibilities for oversight and management of the product support function are delegated to the PSM, who leads the development and implementation of the product support strategy and ensures achievement of desired product support outcomes during sustainment. The PM/PSM and the Product Support Management IPT employ a PSI or a number of PSIs as appropriate, to achieve those outcomes. The PSI is an entity performing as a formally bound agent (e.g., Performance Based Agreement (PBA), contract, Memorandum of Agreement (MOA), Memorandum of Understanding (MOU), Service Level Agreement (SLA), etc.) charged with integrating all sources of support, public and private, defined within the scope of the product support arrangements to achieve the documented outcomes. The PSM, while remaining accountable for system performance, effectively delegates the responsibility for delivering Warfighter outcomes to the PSI. In this relationship, and consistent with outcome based product support, the PSI has considerable flexibility and latitude in how the necessary product support is provided, so long as the outcomes are accomplished.

Product Support Business Model (PSBM)

A fundamental tenet of the Product Support Business Model (PSBM) is identifying single-point accountability for product support. That responsibility belongs to the PSM, who delegates, as supported by the BCA, responsibility for one or more components of support to one or more PSIs who are responsible for integrating their sources of support, public and private, to meet the identified performance outcomes. The PM or PSM selects a PSI from the Government or private sector to coordinate the work and business relationships necessary to satisfy the product support arrangement.

The PSBM defines the hierarchical framework in which the planning, development, implementation, management, and execution of product support for a weapon system component, subsystem, or system platform will be accomplished over the life cycle. The PSBM effectively describes the methodology by which DoD intends to ensure achievement of optimized product support through balancing maximum weapon system availability with the most affordable and predictable total ownership cost. The model provides a clearly delineated description of the roles, relationships, accountability, responsibility and business agreements among the managers, integrators, and providers of product support. Those roles and responsibilities are portrayed, consistent with their level of accountability and responsibility, in Figure 1.

The PSBM highlights that the PSM is the Warfighter's principle product support agent responsible for integrating PSIs to achieve Warfighter requirements. Source: Product Support Manager Guidebook

Figure 1: The PSBM highlights that the PSM is the Warfighter's principle product support agent responsible for integrating PSIs to achieve Warfighter requirements.
Source: Product Support Manager Guidebook

Given the stated preference (by policy and statute) for outcome or performance based acquisition of product support services, an effective product support strategy will generally require designation of one or more Product Support Integrators who will be responsible, within the scope of their assigned product support outcomes, for managing and integrating the functions and Product Support Providers necessary to achieve the specified performance and/or product support outcomes designated by the PSM. Note that there are circumstances when transactional support is a correct support solution and may be evaluated as an alternative. In all cases, the PSM is accountable to the PM for the product support outcome.

Role of the PSI

The role of the PSI can be narrow or broad, as directed and designed by the PSM.

  • At one end of the spectrum, a single PSI could be assigned with the responsibility for entire system level outcomes (e.g., Operational Availability, Materiel Availability). This approach has the advantages of clearly assigning responsibility (and visibility) of Warfighter outcomes to a single point of responsibility and provides for a comprehensive and horizontally integrated support solution that accounts for all the product support elements.
  • Alternately, the PSM can assign top level PSI roles for the major system subsystems; the most prevalent example would be dual PSIs for an aircraft system, with a PSI designed for the airframe and a PSI designated for the propulsion system.
  • Devolving further, PSIs could be assigned for multiple major subsystems that comprise a larger platform system capability, such as a naval vessel.

The determination of the number, designation, and responsibilities of the PSIs comprising a product support strategy framework will result from both the BCA process as well as the PSM‘s consideration of the operational mission role, environment, and support requirements of the objective system.

The PM or PSM selects a PSI from DoD or the private sector. Activities coordinated by support integrators can include, as appropriate, functions provided by:

  • Organic organizations;
  • Private sector providers; and/or
  • Partnership(s) between organic and private sector providers.

The PSM ensures that the product support strategy is integrated across the IPS elements to provide an agile, robust, and cost-effective combat capability. The PM/PSM invites the Service and DLA logistics activities to participate in product support strategy development and IPTs. These participants help to ensure effective integration of system-oriented approaches with commodity-oriented approaches (common support approaches), optimize support to users, and maximize total logistics system value.

The primary role of the PSI is to integrate the activities of the various PSPs. The PSI function can be aligned along vertical (weapons system platform) or horizontal (at the sub-system, commodity, or component level) axes. The primary difference in the two approaches is whether or not the PSI is assigned the responsibility of implementing and managing the product support functions from the top down (a weapons system platform approach), or implements product support incrementally across a range of subsystems, etc., that may support multiple platforms.

The Life Cycle Sustainment Plan (LCSP) documents the PSI function as a key component in the product support strategy and support to the Warfighter. While product support execution is accomplished by numerous organizational entities (also called Product Support Providers or PSPs), the PSI is the single point of responsibility for integrating all sources of support necessary to meet the agreed to support/performance metrics.

For more information on alternative PSI arrangements, click here.

The PSI should be:

  • Knowledgeable about the system;
  • Accountable for meeting performance metrics;
  • Responsible for integrating product support sources;
  • Incentivized to continuously improve reliability, maintainability, and technology; and
  • Involved early in the program life.

While the PM is ultimately accountable for weapon system performance, the PSI is accountable for meeting the performance metrics and is responsible for integrating all sources of support. To do this, they must be knowledgeable of the system and must be properly incentivized to continuously improve the Reliability, Availability, Maintainability, and Supportability (RAM&S) and technology of the system. The earlier they are involved in the development of the weapon system, the better they will be able influence those factors that will ensure success in support of the program.

Candidates for the PSI Role

There are a limited number of viable candidates qualified to assume the PSI role. They can, as previously mentioned, come from either the government (organic) or private (commercial) sectors. The fundamental PSI attributes are:

  • A track record of experience with the technology to be supported;
  • Expertise and experience providing integrated logistics support; and
  • Willingness and capability to be responsible for integration of support within the scope of their negotiated responsibility for achievement of the PBL outcomes.

PBL product support strategies are not 'best effort' relationships; they are essentially warranties of performance, with commensurate rewards for achievement (via contractual incentives, discussed later), and, if warranted, sanctions for non-achievement.

Potential Candidates

  • The system's original equipment manufacturer or prime contractor. The principle prerequisite for successful PSI performance is in-depth system knowledge. The Prime Vendor/OEM, with responsibility for designing, producing, and successfully fielding a subject system has a vast array of system knowledge and corresponding robust infrastructure (equipment and facilities), along with in-place sub-contractor support, trained personnel, technical data, proprietary rights, and numerous other irreplaceable qualities and skills that make them eminently qualified to assume the PSI role
  • An organic agency, product, or logistics command (e.g., Depots, DLA, NAVSUP Weapon Systems Support - formerly Naval Inventory Control Point (NAVICP)). For legacy systems with an existing organic support infrastructure in place, wholesale transition to a contractor PSI led PBL product support strategy is generally not possible, which promotes subsystem and component or process level product support strategies as the most viable opportunities for performance based product support.
    • For these systems, where PBLs will most often be initiated at 'less than system' level, the overall PSI top-level integration function will usually be done organically, either directly through the Program Office, or in partnership with a key organic support organization, such as a Depot or Inventory Control Point.
    • Organic agencies assuming a PSI role must be willing and able to execute binding performance agreements (e.g., Memorandums of Understanding, Memorandums of Agreement, and/or Service Level Agreements) to which they will be held responsible for achieving documented performance and product support outcomes.
    • Organic agency leadership must ensure that management processes, including resourcing and work prioritization, are in place and are adequate to meet the needs of the PBL product support partnership.
  • A third-party logistics integrator from the private sector. The use of 3PLs is becoming more prominent in both the public and private sectors. 3PLs are good candidates for "system of system" platforms that are not produced by a single prime contractor. Because 3PLs are not normally involved in the sale of weapon systems to DoD, they are normally viewed as a neutral party. 3PLs are attractive PSI candidates when they meet one or both of the following criteria:
    • Significant expertise in a Logistics functional area encompassed by the PBL relationship. For example, the PBL product support strategy may be limited to Supply Chain Management (SCM). As such, a 3PL with significant expertise in SCM would be eminently qualified as a PSI.
    • Significant experience in integration management, especially when there is no clear Prime vendor/OEM. For some systems, there may be a range of suppliers, with no clear Prime vendor able to encompass the range of suppliers and support functions needed to effectively integrate support. In those situations, a 3PL with significant experience at integrating a range of product support providers to achieve top-level outcomes may be the best candidate for the PSI role.
  • The PM's own logistics organization. The Product Support Integration function may be accomplished within the PEO/PMO when integrating a horizontal PBL product support strategy composed of both PBL product support and non-PBL discrete functional product support strategies.

Considerations in the Evaluation of PSI Candidates

Once the PM has answered some key questions, he or she is better able to evaluate the PSI options and select the alternative that provides the greatest benefits. Typical questions the PM may want to consider are:

  • What sustainment functions are included in this product support strategy?
  • What specific capabilities are required to perform these functions?
  • Are these functions inherently Governmental?
  • Are there statutory or regulatory limitations associated with performance of these functions?
  • Are the desired functions more commonly performed in the commercial sector?
  • Which product support provider offers the optimal mix of required performance at the lowest LCC (also frequently referred to as best value)?

Considerations by the Commercial PSI

Commercial PSIs anticipate reward and accept risk when entering into PBL partnerships. The primary reward, and risk, is financial. The potential for reward must be weighed against their financial risk from the partnership. With such risk, what are the offsetting benefits to PSIs for entering into PBL partnerships? There are several:

  • Stable Workload and Cash Flow. In transaction-based (e.g., level of effort) relationships, the DoD workload required and financial resources available can vary significantly from year to year. PBL partnerships are generally more stable, with a predefined range of workload and commensurate income over time.
  • Flexibility. In PBL product support strategies DoD buys outcomes, without dictating "how to" accomplish those outcomes. This provides the PSI significant latitude to exercise a creative and entrepreneurial approach to not only meet, but often exceed, DoD requirements.
  • Long Term Relationships. PBL partnerships focus on continuity, as long as the desired outcomes are achieved. A common feature of these partnerships is Award Term contract incentives, where additional contract option years are awarded non-competitively based on continuing excellent performance.
  • Mitigation of Government Oversight. Performance-based contracts are generally characterized by fewer administrative oversight requirements (e.g., government approved cost accounting systems and reporting requirements).

Title 10 and Workloads

As mentioned, the viable candidates to assume the PSI function are limited, given the significant responsibility, risk, and range of management and integration functions inherent in the role. The Office of the Secretary of Defense (OSD) has consistently stressed that PBL does not equal contracting out. In other words, PBL is not just outsourcing workloads. It should be emphasized that selection of a private sector commercial PSI does not presuppose outsourcing workloads.

The allocation of workloads in a PBL relationship will continue to be sourced in compliance with Title 10 and where it makes the best sense and provides best value given both public and private sector capabilities, infrastructure, personnel, and resources. The willingness of Congress to enact Title 10 changes to facilitate public private partnering is clear evidence that there is ample flexibility to maintain public sector workloads within the bounds of a contractor-PSI based PBL relationship.


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Date CreatedThursday, December 16, 2010 7:24 AM
Date ModifiedTuesday, March 31, 2015 1:47 PM
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