Advancing Sustainment through Public-Private Partnership

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1 Air Force Sustainment Center Advancing Sustainment through Public-Private Partnership Mr. Earl Williams AFSC/LGXB 21 August 2017 Version 1 1

2 Overview Public-Private Partnerships Public-Private Partnerships Definition AF Strategy to Maintain Industrial Balance Public-Private Partnership Benefits Types of Partnerships Partnership Documentation Characteristics of a Successful Partnership Public-Private Partner Relationship Management (P3RM) Active Partnerships Partnership Challenges AFSC PPP Contact Information Summary 2

3 Public-Private Partnerships 3

Public-Private Partnerships Definition In general, a Public-Private Partnership

or more private sector entities to perform defense-related work, utilize DoD

Other government organizations, such as program offices, inventory control

4 Public-Private Partnerships Definition In general, a Public-Private Partnership is a cooperative arrangement between an organic product support provider and one or more private sector entities to perform defense-related work, utilize DoD facilities and equipment, or both. Other government organizations, such as program offices, inventory control points, and sustainment commands, may be parties to such agreements. PEO, OSS&E & Program Management Organic Supply Chain Complex Organic MRO 4

5 Strategy to Maintain Industrial Balance More Organic More Commercial Private Partner Viable Air Force Depots Right Balance Strong Commercial Base Data Rights Public/Private Partnering Early Source of Repair Decisions Sustained Infrastructure Investment 5

6 FY12-16 PPP Workload 6

7 Public-Private Partnership Benefits Benefits - Air Logistics Complexes Core Depot-Level Maintenance and Repair Capabilities (10 USC 2464) DoD maintains a core depot-level maintenance and repair capability in support of mission-essential weapon systems Government-owned facilities, government-owned equipment, and government personnel Requires sufficient workload to ensure cost efficiency and technical competence in peacetime, preserves the ability to provide an effective/timely response to a mobilization, national defense contingency situations, and other emergency requirements More Cost Effective Production Spread cost across a broader workload base Access to Commercial Expertise & Management Methods Improved Technical Support and Training Access to OEM technical support Improved forecasting Accuracy Benefits - Industry Partner A Motivated, Skilled Workforce Software Engineers trained in mature software engineering processes Extensive repair, maintenance, and manufacturing process expertise Multi-disciplined sustainment expert Avoidance of Capital Investment through utilization of existing organic facilities and infrastructure Reduce Operating Costs shared facilities, equipment, information, and Resources Quality & Safety Focused Partner Laboratories, CITEs, Ranges, etc. Process Permits (e.g. coating removal, plating, etc.) Benefits Government Program Office Overall project cost reduction through improved joint efficiencies gained by leveraging combined strengths and competencies Improved overall product support Increased Speed of Delivery Quality & Safety Focus Cost Effective Support Increased trust over time allows partners to consider new innovations i.e. possibility of integrated workforce and management structures Reduced investments in what could otherwise be duplicative capabilities Improved forecasting accuracy 7

8 Types of Partnerships 8

Types of Partnerships Work Share Agreement (WSA) Direct Sales Agreement (DSA) Direct Commercial Sales Agreement (DCS) Lease A combination of depot and commercial resources that share responsibilities

sells goods or services to a private company - Fulfills a commercial sales contract with foreign country -Prime pays the depot directly Foreign (Friendly) Country Facilitate efficiency of Depot

9 Types of Partnerships Work Share Agreement (WSA) Direct Sales Agreement (DSA) Direct Commercial Sales Agreement (DCS) Lease A combination of depot and commercial resources that share responsibilities for the execution of DoD workload requirements AF Depot sells goods or services to a private company - Fulfills a DoD contract - Prime pays the depot directly Government Buying Activity AF Depot sells goods or services to a private company - Fulfills a commercial sales contract with foreign country -Prime pays the depot directly Foreign (Friendly) Country Facilitate efficiency of Depot infrastructure / equipment Contractor cash or in-kind lease payments Contractor use of existing AF buildings/equipment saves company capital Air Force Depot Prime Contractor Prime Contractor Contractor Prime Contractor Air Force Depot Air Force Depot Air Force Depot Roles/Responsibilities Defined by Partnership Type 9

10 Partnership Documentation 10

11 Partnership Documentation Non-Disclosure Agreement (NDA) Optional Used to protect competition sensitive or proprietary data Partnership Agreement (PA) Mandatory Contains mandatory and sample articles and language Enterprise PA for Partnerships with more than one complex Prime Contract Mandatory Establishes Industrial Partners roles and responsibilities Implementation Agreement (IA) Mandatory Describes specific requirements and obligations of each party Business Case Analysis Mandatory Validates PPP is in best interest of the government 11

12 Characteristics of a Successful Partnership 12

Characteristics of a Successful Partnership Engaged Leadership and joint ownership to do something together that will

duplication of efforts Enhancing the impact and effectiveness of action through combined and more efficient use of

the same strategic vision Gaining mutual trust & respect Clear & constant communication Creating a culture of sharing

13 Characteristics of a Successful Partnership Engaged Leadership and joint ownership to do something together that will benefit all involved, delivering results that could not be achieved by a single partner operating alone Reducing duplication of efforts Enhancing the impact and effectiveness of action through combined and more efficient use of resources Promoting innovation and efficient processes Distinguished by a strong commitment from each partner Sharing the same strategic vision Gaining mutual trust & respect Clear & constant communication Creating a culture of sharing & collaboration Established performance metrics to monitor success or the need for improvement Relationship is fundamental 13

14 Public-Private Partnership Relationship Management 14

15 P3RM In order to maximize the effectiveness of our partnerships, we have developed a strategic P3RM framework to enable strong working relationships and develop those relationships at all levels between the private partner, AFSC, and USAF Continually assess the health of the partnership Manage risks, opportunities and issues Resolve conflict emergent in any relationship Assess forward planning and workload options 15

16 Active Partnerships 16

17 Boeing C-17 Partnership OC-ALC Instrument/Displays and Pneudraulics OO-ALC Electrical Components Secondary Power System Wheel and Brake Repair WR-ALC Airframe Avionics Software Structures 17

Maintenance Door, Panel and Cover Repair WR-ALC

18 LM F-22 Partnership OC-ALC Liquid Coolant Pump Air Valves & Air Cycle Machine OO-ALC Air Vehicle Modification and Heavy Maintenance Door, Panel and Cover Repair WR-ALC Communication Navigation Electrical Power System Electronic Warfare 18

19 PW Engine Partnerships OC-ALC F117, F119, F135 Engines and Modules Front Shop Assembly/Disassembly Inspection (Visual) Back Shop Cleaning Inspection (NDI) Stripping Heat Treat Plating Machining Welding Engine Run/Testing F135 19

20 NG Partnerships OC-ALC B-2 Software Sustainment OO-ALC B-2 Advanced Composite Manufacture and Repair WR-ALC JSTARS Chemical Lab JSTARS Mission Support JSTARS PME/PMEL 20

21 Partnership Challenges 21

22 Partnership Challenges De-risking the move from CLS to Organic via Public-Private Partnership Culture/Business like rather than Partnership Assess strengths, weaknesses, threats and opportunities in relationships 22

23 AFSC PPP Contact Information Ms. Shannon Wagner, AFSC/LGX, (405) , Mr. Earl Williams,AFSC/LGX, (405) , Ms. Misty Goss, OO-ALC/OBP, (801) , Mr. John Page, OC-ALC/OBP, (405) , Ms. Courtney Clark, OC-ALC/OBP, (405) , Ms. Noel Anderson, WR-ALC/OBP, (478) , Mr. Herbert Duncan, AFSC/PZI, (405) , 23

24 Summary The AFSC and Private Partners provide the warfighter war-winning capabilities through successful partnerships Successful partnering strengthens a Reliable, Agile & Responsive Organization, Focused on Achieving Art of the Possible P3RM will take our partnerships into a future of Partnering with Intent The AFSC is leading the way in implementing successful partnerships 24

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