Performance-Based Logistics Reform in the U.S. Department of Defense

Introduction and Research Questions

An analysis of how the battlefield logistics contractor policy in the Department of Defense (DOD) can be reformed was performed using survey data from 26 program managers, excluding the Air Force. The research drew on existing compiled data and examined supply, maintenance, and transportation as the primary areas where logistics were a concern and where Performance-Based Logistics (PBL) implementation could or could not be completed. The study also examined how much of a difference PBL implementation made, based on the hypothesis that definite differences would be observed between PBL and non-PBL approaches across various logistics areas within the different branches of the military. Although this outcome was not guaranteed, the determination was made based on compiled information and existing data regarding logistics and their effect on the present-day military. All data used came from accepted sources with a high expected degree of reliability and validity.

The following three research questions guided this study:

1. What are the barriers and how do they influence PBL implementation?

2. What are the enablers and how do they influence PBL implementation?

3. What strategy and actions would lead to more successful PBL implementation?

PBL is becoming a vital part of the military's ability to operate effectively, both at home and abroad. The current logistics systems are not sufficiently effective or efficient, and the military is spending substantial sums on logistics without eliminating the persistent problems that remain (DOD, n.d.; Coogan, n.d.). Money that is spent inefficiently harms the military and the people the troops are fighting for, because troops cannot obtain the equipment they need to do their jobs. PBL is not solely about delivering items to troops in the field. It also concerns the broader flow of goods from defense contractors and other suppliers — those building and shipping components, parts, and finished items — to the DOD as a whole.

Data Display and Discussion

According to the data collected, there were numerous instances of misunderstanding regarding the PBL concept, resistance to its initiatives, and problems in implementation. Many individuals working in the DOD and other areas of the military are not clear on what PBL is and how it can affect their finances and equipment logistics (DOD, n.d.). Because of this lack of understanding, it is clear that more work must be done. The areas explored — maintenance, supply, and transportation — all showed deficiencies in understanding and efficiency. PBL is primarily needed to forecast what will be required under specific conditions. Although these forecasts are far from perfect, they allow for educated estimates about the equipment needed, the appropriate number of troops in a given area, and whether sufficient transportation and supplies will be available. How equipment and vehicles will be maintained is also critically important and is often the most easily overlooked dimension of logistics.

Of the 26 program managers surveyed, 22 were not entirely comfortable with the concept of PBL, and 15 of those individuals were unclear as to how it would work. There was a high degree of skepticism among all managers regarding whether PBL would outperform their current logistics methods. Resistance to change is expected in any organization, but the widespread and pronounced resistance seen within the military goes beyond simple uncertainty about something new. Even the four program managers who were comfortable with the concept of PBL remained skeptical about whether it could help them enough to justify the transition. Two were willing to try, and the other two were very reluctant.

The 22 managers who were uncomfortable with PBL felt that way largely because of what they had heard from others and what they had experienced with companies where PBL had previously been used. It was not clear whether those companies had implemented PBL correctly, or whether incorrect usage had contributed to the program managers' current skepticism. Of the 15 who were unclear about PBL, 12 had no genuine desire to change their existing logistical plans, while three were interested in learning whether PBL could offer a better approach. The military, in many ways, functions like any other large organization: it performs a service and depends on suppliers for goods and services to continue performing that service effectively.

Obtaining the right items and services at the right time is essential to military operations, and PBL is one means of achieving that. However, it will only function as intended if it is used correctly and consistently. Incorrect use of PBL is one of the largest barriers to its adoption, because personnel who do not find a new system efficient or useful will tend to abandon it in favor of more familiar methods. The DOD acknowledges that PBL has a significant learning curve (DOD, n.d.), but that does not diminish its value to an organization that regularly moves large quantities of personnel and equipment hundreds or thousands of miles. Doing so as efficiently and inexpensively as possible is the core purpose of PBL (Coogan, n.d.).

Data Analysis

An analysis of the data collected from the program managers shows that the largest barrier to PBL is a lack of understanding of the concept, closely followed by a lack of motivation to adopt it. Personnel are inclined to continue doing things the way they have always been done, which is understandable from a human standpoint but may not be defensible from a logical or financial perspective. PBL is the preferred method currently endorsed by the DOD, which has found that more consistent use is producing cost savings that would not otherwise have been realized. Cost itself is another important barrier, however. Even though PBL is more affordable in the long term than older methods, not all users find that it saves money — particularly when implemented incorrectly, in which case it can actually become more expensive. This underscores the need to implement PBL properly, invest in training, and work continuously to improve it.

The largest enabler of PBL is the DOD's move toward consistent adoption. Without consistent use, the highest levels of efficiency cannot be achieved. By making PBL a routine part of military maintenance, supply, and transportation operations, the DOD is enabling better outcomes across the board. There are still areas where PBL falls short, and there are missions for which the DOD may elect not to use it. Some of these decisions are straightforward, while others are less transparent — the DOD does not publicize all of its operational decisions, for reasons of mission security and troop safety. This also means that obtaining comprehensive information for studies of this type can be difficult, since DOD personnel are not always in a position to share details about how troops are supplied.

Another significant enabler is the demonstrated results seen when PBL is applied correctly (Coogan, n.d.). As the DOD observes its defense dollars stretching further, institutional interest in expanding PBL grows. While the military's purpose is not profit in the commercial sense, it is still responsible for delivering high-quality work and capability at the cost borne by the DOD. Any approach that achieves this more effectively without compromising troop safety or the quality of goods and services they receive warrants serious consideration.