(a) The Defense Logistics Agency (DLA) Senior Procurement Executive (SPE) has established a structured approach to serve as a model for managing and executing performance based, long term logistical support acquisitions. This process will be implemented by each Inventory Control Point (ICP) for all acquisitions which meet the definition of a Performance Based Logistics (PBL) acquisition (See Appendix A). Those acquisitions requiring review and coordination at headquarters (see 90.1503(b)(i) will be reviewed and approved by the DLA Integrated Acquisition Review Board (I-ARB), chaired by the SPE with representation from J-34 (Readiness and Customer Support Directorate), J-37 (Distribution and Reutilization Policy Directorate), J-38 (Business Management Directorate), J-81 (Deputy Comptroller, Budget and Program Integration Operations), J-6 (Deputy Director, Information Operations/Chief Technology Officer), the ICPs, and the Defense Distribution Center (DDC). Representatives from the DLA Office of General Counsel and Small & Disadvantaged Business Utilization Office are advisors to the I-ARB. The I-ARB has the option to continue the acquisition, modify the strategy, terminate the process, or determine how to proceed into the next phase. The head of contracting activity or field activity Chief of Contracting Office shall establish and chair a similar review board based upon the approval thresholds in 90.1503(b)(i).
(b) PBL acquisitions are a major contributor to ensure the Agency continues to improve combat support to the warfighter while reducing investment costs in inventory and infrastructure. There are several types of initiatives/contractual arrangements underway within DLA with regard to acquisitions of performance based logistical support - Strategic Supplier Alliances (SSAs), PBL partnerships with the Military Services. These initiatives could take the form of long-term contracts - corporate contracts, Virtual Prime Vendor (VPV), Prime Vendor (PV), etc. These initiatives represent our strategic efforts to transform business practices from managing supplies to managing suppliers and have the potential to greatly reduce costs as well as improve the availability of items DLA provides to its customers. Appendix A provides a description of each initiative.
(c) The purpose of this guidance is to integrate current logistical support initiatives into a structured and manageable integrated acquisition process, and to ensure participants involved are aware of and fully understand all aspects of the PBL acquisition process. Given the dollar value, complexity, and importance of these types of contractual arrangements, there is a need to implement a program management approach that integrates business strategies with the acquisition process and enhances the Agency’s ability to provide the best support available to its customers.
(1) In addition, this approach incorporates the business case analysis (BCA) into the acquisition process to emphasize its importance as a tool for making sound business decisions in determining appropriate implementing strategies, and streamlines the review and approval process by establishing a single approval for both the business case and the acquisition. Throughout the entire acquisition process, contracting activities will be required to perform a continuous review/updating/assessment of both the BCA and the contract.
(2) In order to ensure successful PBL acquisition implementation and to ensure that the appropriate level of buy-in is obtained from all responsible parties, PBL acquisitions will be developed in an integrated product team (IPT) environment. The team will be efficiently comprised of representatives from both within and outside the organization - Government and Industry (when appropriate). Appendix A provides a definition of an IPT. With a structured and integrated process in place, the centers and DLA can achieve even greater benefits through the sharing of information, lessons learned, best practices, and a multi-functional approach to acquiring PBL support.
