Leadtime Away Procurement of Modification Kits. Executive Summary.
DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA
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The leadtime away policy for procurement of depot level modification kits restricts the services from buying modification kits in the current year if they can not install them in the following year. This policy is not formally defined in DoD or service headquarter directives or regulations. However, the leadtime away policy has been implemented informally. This policy will be formalized by the Air Force in the future with the issuance of a revision to AFR 57-4 and a new AFR 400XX. The purpose of this policy is to prevent the early delivery of modification kits while awaiting the input of aircraft into a two 2 to five 5 year depot cycle. Several buys of kits may be required to support this policy, increasing costs 25 to 30 over one or two buys. As a result, there is currently some question as to the necessity for such a policy. This report provides background information on the leadtime away concept in the three services. The advantages and disadvantages of leadtime away procurements are discussed. It is concluded that more innovative contracting methods should be found to minimize procurement costs. In addition, more data and further studies are required to quantify any cost advantages of the leadtime away concept. Author
- Logistics, Military Facilities and Supplies