Navy Working Capital Fund and PBL

Director, Supply Chain Solutions Division

Presented at:

PSM Workshop

Ft. Belvoir

14 January 2015

Enables multiple year, long-term agreements… guarantees contractor business base

Incentivizes contractor investment

Enables flexible resource allocation

Makes PBL transparent to Fleet customers… support strategy integrated into Supply System

Navy Working Capital Fund

PBL at NAVSUP WSS is NOT CLS

• Repair/overhaul/ replace decision

• Requirements determination/forecasting

• Consumable piece parts

• Warehousing • Transportation - FOB OCONUS contracts only

• Configuration management*

• Technology/reliability insertion

• Engineering/tech services

• Obsolescence managementPBL Supplier Roles

Strategies Aligned to Fleet RequirementsStrategies Aligned to Fleet Requirements

Lower Response TimeLighten Logistics Footprint

Increase Availability

Cultivate

Long-Term

Partnerships

With Industry

Cultivate

Long-Term

Partnerships

With Industry

Leverage

Commercial

Supply Chain

Solutions

Leverage

Commercial

Supply Chain

Solutions

NWCF and PBL in practice… funding used in a non-traditional approach to enable delivery of supply support outcomes:

* Navy retains configuration control

3

Purpose

Navy Working Capital Fund

4

Design Interface

Product Support Management

Manpow

er

& P

ers

onnel

Su

pp

ly S

up

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rt

Sust

ain

ing

Eng

inee

ring

Tra

inin

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Tra

inin

g S

upport

Packag

ing

, H

an

dlin

g,

Sto

rag

e

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nsp

ort

ati

on

(P

HS

&T)

Faci

litie

s &

In

frast

ruct

ure

Com

pute

rR

eso

urc

es

Tech

nic

al

Data

Main

tenance

Pla

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port

Equ

ipm

ent

Product Support is enabled by 12 Integrated Product Support (IPS) Elements designed to deliver system readiness & availability while optimizing system life cycle cost

4

Navy Working Capital FundIntegrated Product Support (IPS) Elements

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY 05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Mech Obs Phil Obs Mech Proj Phil Proj

$M

$85

$245

$331

$481$525

$712$801

$919

$35

$1040

Business Scope

• NSNs 19,478Mech = 13,736Phil = 5,742

• 25.3% of total demand (FY15)Mech = 11.2%Phil = 36%

$1067

$1228$1227$1317

$1380

Program Status

PBL ProfileThru October 2014

$1322$1190

$1359

NAVSUP WSS Has Won 15 of 34 DoD PBL Awards Since FY05

In FY14, PBLs accounted for

26.5% of NAVSUP WSS

obligations