MEASUREMENT ISSUES IN PERFORMANCE-BASED LOGISTICS

Performance Based Logistics (PBL) is an acquisition reform that is intended to improve weapon systems logistics by reducing cost, improving reliability, and reducing footprint. PBL is an extension of a broad process of rationalizing and, in many cases, outsourcing government services. As with other examples of governmental service outsourcing, measurement issues arise in the gap between governmental objectives and service measurement, and in the contrast between clear profit-centered vendor metrics, and more complex mission-oriented governmental metrics. Beyond this, however, PBL presents new challenges to the relationship between governmental agencies and their service vendors. In many cases, weapons systems logistical support involves levels of operational risk that are more difficult to measure and more difficult to value than other government services. We discuss the implications of operational risk and other measurement issues on PBL implementation.