Performance-Based Logistics Contracts: A Basic Overview
CNA Corporation Alexandria United States
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Performance-Based Logistics PBL contracts provide services or support where the provider is held to customer-oriented performance requirements. These contracts are not necessarily designed to save money, but rather to maintain or improve current system or platform performance in a cost constrained world. The Navy began using PBL contracts in 1999, and since then, contract managers have reported improved availability and reduced customer wait time. The Chief of Naval Operations, Director of Assessments, Deputy for Readiness N-814 asked CNA to look at the Department of Navys use of PBL contracts and determine whether they were providing the advertised results. This study is expands on an earlier study in which CNA was asked to examine the success of PBL contracts for three programs.