PublicPrivate Partnerships 22 Mar 06

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Public-Private Partnerships22 Mar 06
Ogden Air Logistics Center

• Brett J. Swanson
• OO-ALC/XPXP
• DSN/[phone]

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Overview

• Sustainment Strategy Spectrum
• Authority
• What is Partnering?
• Why Partner?
• DoD Objectives
• Benefits
• How Does Partnering Work?
• Types of Partnerships
• Summary

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Sustainment Strategy Spectrum
More Commercial
More Organic
Organic Support
Organic
TSPR
MIX
Contractor Support
Contractor responsible for majority of support
Traditional organic support environment
Public/Private Partnering Opportunities

• Support strategy varies depending on
• Age of system (phase in life cycle)
• Existing support infrastructure
• Organic Commercial capabilities
• Legislative Regulatory constraints

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Authority
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Partnering Methods
Overarching Partnering Strategies Leverages the
core competencies of the public sector and
innovative concepts developed and proven within
the public and private sector to support the
warfighter at best value
IMPLEMENTING TECHNIQUES
Workshare 10 USC 2474 FAR Part 45
Direct Sales 10 USC 2563 10 USC 2208(j) 22 USC
2770 10 USC 2474
Leasing 10 USC 2667 10 USC 2474
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DoD Guidance
Diane Morales Interim Policy Letter, 30 Jan 02
PPP in their many forms shall be used.. DoD
can benefit from PPPs that combine the best of
commercial processes and practices with our own
extensive maintenance capabilities.
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AF Guidance
General Lyles Mr. Sambur Policy Letter, 15 Apr
02
The Air Force strategy specifies that
sustainment support for AF products shall be
aggressively pursued through public private
partnering via performance based logistics
contracts.
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What is Partnering?
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Partnership vs Contracting

• Partnering is not purchasing
• Private companies use partnerships to purchase
  services, supplies or facility usage from DoD
  depots
• Depots use contract to purchase services and
  supplies from private companies.
• Comply with FAR (Fed. Acq. Regulation) CICA
  (Competition in Contracting Act)
• So where does the money come from?
• Provided by requiring activities SPO or other
  DoD contract
• Sub documents define financial arrangements

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Who Can Partner in the Government?

• Partnering requires all organizations to be
  involved
• Program management, Supply Chain Managers
• Maintenance
• Contracting
• Only working capital funded organizations may
  sell
• Depot maintenance
• Laboratories funded through working capital fund

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Current Business Relationships
Single TransactionsFinite Relationship
Depot
SPO
User
Contractor
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Partnering Relationship
F-22A Weapon System
Data
Technology
Development
Maintenance/Repair
Manufacturing
Process Improvement
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Why Partner?
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DoD Objectives

• Why Is DoD Pursuing Partnering Opportunities?
• To provide more responsive, timely, and reliable
  product support to the warfighter
• To seek additional workload that will enable
  depots to sustain Core capabilities
• To decrease the cost to military forces of the
  goods and services provided by its maintenance
  depots by
• Improving Facility and equipment utilization.
• Providing sufficient work content to maintain
  workforce competencies.
• Inserting commercial innovation into organic
  product support processes.
• To foster cooperation between DoD and private
  industry

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Benefits Government and Industry

• DoD Program Manager
• Avoid Investments in Duplicative
• Capabilities
• Permit Single-Point Accountability
• Compliance to Statutory
• constraints

• Warfighter
• Improved Logistical Support
• Improved Responsiveness
• Technology Infusion
• Increased Reliability

• Organic Depots
• New Investments
• Preserve Skilled Workforce
• Enhance Operating Efficiency
• Access to Technical Support
• (Laboratories other facilities)

• Industrial Firms
• Access to Process Permits
• Minimize Process Flows
• Long-term Agreements
• Avoid Investment in Duplicative
• Capabilities

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How does Partnering Work?
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Partnering Documentation

• Letter of Intent
• Non-Disclosure Agreement
• Partnering Agreement
• Implementation Agreement

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Documentation

• Letter of Intent (LOI)--Optional
• Describes the parties desires to partner
• May be used to commit resources to investigate
  partnering
• Non Disclosure Agreement (NDA)--Optional
• Used to protect competition sensitive or
  proprietary data of both the private and public
  organizations
• Signed at 2 levels Organization and Individual

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Documentation

• Partnering Agreement (PA) Mandatory
• Defines general terms, conditions, and rules of
  engagement between the parties
• Implementation Agreement (IA) Mandatory
• Describes specific requirements and obligations
  of each party to the partnership

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Multi-TransactionalUmbrella Agreements
Cost/Benefit Analysis
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Types of Partnerships
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Types of Partnerships

• Workshare
• Direct Sales
• Teaming
• Lease
• Resource
• Select type based on approach or combination of
• approaches that best serves the objectives of the
  partnership

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Workshare AFMC Preferred Method

• Combination of depot and commercial facilities/
  employees provide a service or supply to a
  DoD user
• Requiring activity issues
• Contract to private company
• Government program office pays the Center.

Authority Inherent to PCO Via FAR Part 45 10 USC
2474
Program Office
..Funds .
Prime Contract
Prime Contractor
Deliver as GFS/S
DEPOT
Partnering Agreement
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Direct Sales

• Government sells services or supplies to a
  private company
• Fulfills a DoD contract or subcontract
• Company pays the depot directly

Authorities 10 USC . . . 2474 2563
2208J 22 USC 2770
Program Office
Prime Contract Relationship
Prime Contractor
DEPOT
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Teaming

• Contractual relationship to provide a service or
  a product to a DoD customer
• Government leads
• A joint bid is submitted
• Established through teaming agreement
• Formalized as a contract following award

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Lease

• Private company pays (in cash or in kind) for use
  of facilities equipment
• In kind payment may include
• maintenance
• protection
• alteration
• repair
• improvement or restoration

• Authorities
• 10 USC 2667/2474
• Promotes National Defense
• Public Interest
• Not More than 5 Yrs
• Revocable

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Government-Furnished Resources
Agreement for private-sector use of public depot
maintenance facilities, equipment, and/or
employees. At no monetary exchange but a value
exchange between the parties.
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OO-ALC Areas of Focus Core Depot
Maintenance

• Fighter Attack platforms and structures
• Software
• Missile and Space Launch
• Missiles Strategic
• Low Observable Composites
• Hydraulics/Pneudralics
• Landing Gear
• Training and Simulation
• Instruments and Displays
• Weapons
• Ammunitions
• Printed Wiring Boards

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Summary

• Partnering process is relatively new
• Each opportunity requires a tailored approach
• Success of partnering has been to leverage the
  best of both public and private sector to make
  both organizations better-our experience
  validates it
• Road ahead is very bright