ILS and Performance Based Logistics:
DND Materiel Readiness and the
In-Service Support Contract
Jonathan Patterson
Supportability Services Manager
Pennant Canada
OmegaPS User Group Meeting
12 November 2013
3M’s Logistics – Still Vital to
Military Effectiveness
 "There is nothing more common
than to find considerations of
supply affecting the strategic
lines of a campaign and a war."
 Carl von Clausewitz
 "A sound logistics plan is the
foundation upon which a war
operation should be based. If
the necessary minimum of
logistics support cannot be
given to the combatant forces
involved, the operation may fail,
or at best be only partially
successful."
 “Experience has taught me that
manufacturers are now as
necessary to our independence
as to our comfort.”
 Thomas Jefferson
 “In the future, competition will be
among supply chains.”
 Dr. Eli Goldratt
 ADM Raymond A. Spruance
Material – Movement – Maintenance
Presentation Points
 Change Drivers
 DND ILS Transformation
 “Traditional” vs. “PBL” ISS
Contracting
 The DND Equipment
System Concept
 Propose
 “Service Approach” Materiel
Readiness Model Perspective
 Management Options
DND ILS: Change Drivers
 Policy
 Procedures
 Tools
 Guidance
 Job Aids
 Change Drivers
 ISSCF/PBL approaches
 Life Cycle Cost
importance (breadth
and scope)
 MOTS/COTS
Acquisition Strategies
 Information System
Strategies
DND In-Service Support Contracting Framework (ISSCF):
ILS Program Change Driver, but towards what?
“Traditional” vs. “PBL”
Equipment Support Approach
 Traditional
 Furnishes end-items
 Focus on product/resource
delivery
 Defines what is to be
provided and often exactly
how it is to be done
 The more the supplier sells,
the more the supplier makes
 DND Manages In-Service
and assumes all
performance risk
 Performance Based Logistics
 Identifies outcomes (operational
& support)
 “Complete” latitude for industry
to satisfy objectives
 The less the supplier consumes,
the more the supplier makes
 Industry assumes all/some
performance risk
 DND Policy: ISSCF
How must DND Adjust to PBL Paradigm?
The DND Equipment System
 The Mission Equipment performs
the operational task
 The combination of the Mission
Equipment and the Support System
constitutes an Equipment System
 An effective Support System
generates and sustains Mission
Equipment
 Capable Equipment enabled by an
effective Support System provides
Materiel Readiness
The Support System must be fully
integrated and designed for the
Mission Equipment
Equipment
Button
System
Mission
Equipment
Support
System
Integrated Support System:
Government & Industry
 Support System
 logistic resources and
manpower/training which are
put in place to meet equipment
system availability and
operational usage requirements
 Resources are required by
“service providers”
 In-Service Support is
evolving towards
CAF/DND/Industry balance
Integrated
Equipment Support System
Button
Generates and Sustains
Equipment
Government of Canada / CAF / DND / Industry
Service Alignment
Contracting/
Agreements
Program
Management
Performance
Assessment
ISS Arrangements/Agreements should be structured
around required “services” and their outcomes:
a service based model a reasonable approach
Equipment System
Materiel Readiness Model
Materiel Readiness
Materiel
Readiness
Capable Equipment &
Effective Support
System
Integrated Service
Providers
Integrated
Equipment Support System
Generates and Sustains
Equipment
Equipment Support System Services
Integrated Services
Engineering Maintenance Materiel Training Operating Information
Support
Support
Support
Support Support Support
Service
Service
Service
Service Service Service
Support System Analyses & Resources
Engineering
Facilities &
Infrastucture
Maintenance
Planning
Personnel
Requirements
& Integration
Support &
Test
Equipment
Supply
Support
PHS&T
Training &
Training
Support
Technical
Information
& Data
Processes and Resources
Computer &
Software
Support
“Traditional” ILS Similarities, With Some Differences
Demands of the
DND ILS Manager – today
 ILS Manager is asked to
conduct many aspects of
ESMR Model
 Challenge: ILS core tasks still
remain
 May be opportune to adopt
Supportability Manager in
addition to ILS Manager
 Supportability Manager
“concept” is applied in some
DND projects now
Under ISSCF/PBL:
• Who is now responsible to
establish the ISSC?
• Who defines the Support
Services, how?
• What are the DND/Industry
Roles?
• How are project “silos”
prevented?
Supportability Manager:
Possible Role within DND?
 DOD: similar role
 Product Support Manager
 Direct Report to PM
 Responsibility:
 Support System Definition
Development, and Realization
 Best Value Analysis
 Support Arrangements:
ISSC/PBL, Traditional, or Both
 “Steady-state” management
and performance improvement
 Challenges
 Complexities of
Industry/DND integrated
service requirements
 Balance to ensure Materiel
Readiness achieved in
unknown future military
environments
Supportability Manager and the
ILS Manager :
Both Roles Vital, Both Required
Summing Up
 PBL/ISSCF
 Change is occurring / has occurred
 Materiel Readiness
 Integrated Service Approach is Key
 Equipment System Materiel Readiness
 Model that combines service and resources
 Who is responsible?
 Supportability Manager Proposed for DND
 ILS Manager still required