Performance-Based Logistics: Examining the Successes and Challenges when Operating in Stressful Environments

Abstract

Given current and anticipated budgetary constraints, the Department of Defense (DoD) must heighten its focus on affordability, especially with regard to operations and maintenance costs, which account for almost two thirds of the defense budget. At the same time, new and evolving threats demand superior technology that is highly reliable. To a large extent, these twin objectives "reduced costs and better performance" can be achieved through the wider implementation of performance-based logistics (PBL) contracting, a proven strategy to obtain economical and innovative support solutions. Unfortunately, however, PBL contracting is not being aggressively pursued across the DoD.