Bruno Mucciolo, Aerospace & Defence Consultant with Frost & Sullivan, says that “the basic value of PBL lies in the creation of industry dynamics that incentivise the private sector to reduce costs and increase systems availability. At the same time, by improving the performance of military equipment, PBL significantly increases front-line support capability. Moreover, reduced costs enable end-users to re-invest savings into defence acquisition projects.”
However, the implementation of PBL involves structural changes within MoDs that would encourage flexible and collaborative efforts between the public and private sectors, facilitate transparency in the PPP arena and, most importantly, foster mutual understanding between all parties involved. Once these are put into perspective, contractors, MoDs and end-users can all reap considerable benefits from PBL.
Jon Newsome, PBL/Sustainment Solution Principal at software giant SAP says that “to successfully execute PBL contracts, contractors and MoDs must re-evaluate both current processes and enabling technologies. The shift toward level-of-service contracting puts additional requirements on technology to provide integrated views of the extended supply chain, enable rapid decision making and drive behaviour that meets immediate operational demands and supports strategic lifecycle sustainment. Customer focus is paramount, and exceeding MoD operational availability and mission reliability targets is the ultimate objective.”
Pic: SA Combat soilders in Young Eagle Exercise Nov 2008