Determine Support Methods

Table 1. Product Support Strategy Implementation Matrix

Figure 1. Spectrum of Product Support Opportunities

One of the key responsibilities of the Product Support Manager is to determine whether support will be acquired from the Product Support Integrators and Product Support Providers using an outcome- or transactional-based acquisition method or a blend of both. Decision(s) are validated or made using a best value analysis consistent with the BCA.

A PSM does not perform product support. The PSM is the architect of the product support strategy, conducting a considered analysis to decide where, how, and who accomplishes that support. Once they have selected the overall architecture of product support, the PSM must decide how that support is to be acquired. The below graphic illustrates the traditional or "vertical" PSI arrangement where the PSI manages and integrates logistics elements support functions. For more information on alternative PSI arrangements, click here.

At either end of the spectrum, two options are available to acquire product support, with the possibility of blending a product support strategy at any point between these two options. At one end of the spectrum is the decision be to acquire the discrete goods and services necessary to enable the required Warfighter outcomes, or the product support strategy may be to acquire the outcomes themselves. The former is the transactional support model, and the latter is the performance based (or outcome based) model.

In addition, the PSM must decide if the product support strategy is going to be implemented at the component, subsystem, or system level.

Table 1. Product Support Strategy Implementation Matrix

Traditional transactional product support can be characterized as the procurement of individual items or activities, with low integration. Sometimes that is a valid choice, but DoD policy and guidance specifies a preference for the performance based model wherever possible. No product support strategy is ever pure. They are just at different points in the spectrum of possibilities.

Note that the acquisition approach does not inherently specify the source of product support. In any system, the PSM can blend both transactional product support and outcome-based product support, or migrate to either end of the spectrum to choose one or the other. The Product Support Providers could be organic, or could be commercial partners in the Defense Industrial Base.

Figure 1. Spectrum of Product Support Opportunities

In using the transactional model, the PSM and the organic product support structure must determine the quantities, timing, and locations where the unit-purchased goods and services must be delivered or accomplished – a demanding and complex task. If the product support purchased proves to be inadequate (or too much) the risk for performance, cost, and obsolescence, along with storage, maintenance, and distribution lies entirely with the organic acquirer of product support.

In the performance- or outcome-based model, there is a shared risk equation. The PSM, in assigning responsibility for outcomes to a PSI (who accomplishes them through management of subordinate PSPs), is responsible for specifying and incentivizing the appropriate outcomes. If specified correctly, the PSM and the PSI share the responsibility for delivering the desired outcomes. The method of product support, transactional- or performance-based, does not alter the basic functions or tasks that comprise the product support, only in how that product support is acquired. The PSM retains the overall role of and accountability for managing product support on behalf of the Warfighter.

The hybrid product support strategy is a best value blend of a PBL outcome based product support strategy and a traditional transactional based product support strategy which reflects the fact that PBL product support rarely applies to the entire system or all of the IPS elements. Those sub-systems and components that do not fall under PBL product support default to transactional based product support. The hybrid product support strategy is defined further as the best value mix of government and industry product support providers to implement an affordable product support strategy based on their capabilities, capacity and cost to perform the twelve IPS elements.

The Product Support Decision Matrix shows the continuum between component and system centric strategies and partnerships using predominately commercial or industry capabilities to government or organic capabilities. A hybrid product support strategy may evolve over time to become a full PBL product support strategy as more components and IPS elements fall under the responsibility of the PBL product support integrator. A Public-Private Partnership is an example of a hybrid product support strategy.

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