Performance Based Logistics: Transformation Through Partnership.

Performance Based Logistics:Performance Based Logistics:Transformation Through PartnershipTransformation Through Partnership

We provide cost-wise readiness and dominant maritime combat power to make a great Navy / Marine Corps team better.

NAVAIR MISSION STATEMENTNAVAIR MISSION STATEMENT

IMPORTANCE OF NAVAIR DEPOTS

• NAVAIR Depots are Key to Readiness– Ready, Controlled Source of Depot Maintenance

– Minimize Equipment Out-of-Service Time

– Ensure Steady Flow of Engines and Components

– In-service and Emergency Repair On-Site

– Quick Response Manufacturing Capabilities

– Depot’s Have Capability to Repair Over 18,075 Different Components

We are there for the fleetwhen the fleet needs us.

We are there for the fleetwhen the fleet needs us.

Depot Enterprise Products & Services

AIRCRAFT AIRCRAFT REWORKREWORK

• F/A-18 • E-2, C-2• S-3• H-60• H-53• H-1

ENGINE ENGINE REWORKREWORK

• LM2500

COMPONENT REPAIRCOMPONENT REPAIR• CATE• INSTRUMENTS• COMM / IFF• NAV / ELEC• RADAR• CSD / ROTATING ELEC

TECHNOLOGYTECHNOLOGY• COMPOSITE REPAIR• BEARINGS• CALIBRATION• HYDRAULICS• COMMON ATE

AIRCRAFT AIRCRAFT REWORKREWORK

• P-3• EA-6B• F-14• H-60

ENGINEENGINEREWORKREWORK

• J52• F404• TF34• F414

COMPONENT REPAIRCOMPONENT REPAIR• ELECTRO-OPTICS• ASW SYSTEMS• RACKS / LAUNCHERS• AIR REFUELING STORES• ELECTRONIC WARFARE

TECHNOLOGYTECHNOLOGY• EO / EW• ENVIRONMENTAL

AIRCRAFTAIRCRAFTREWORKREWORK

• AV-8B• H-46• H-53• H-1

ENGINEENGINEREWORKREWORK

• T58• T76• T400

COMPONENT REPAIRCOMPONENT REPAIR• DYNAMIC COMPONENTS• ROTOR BLADES• PROPS• BLADES / VANES• APU / GTC• PNEUMATICS• NON-AVIONICS SPT EQUIP

TECHNOLOGYTECHNOLOGY• VERTICAL FLIGHT• FCIM• UAV / RPV• COMPOSITE REPAIR

• F402• T64• J79

FIXED / ROTARY WINGWEST COAST ROTARY WING /

VSTOL

FIXED / ROTARY WINGEAST COAST

Cherry Point

Jacksonville

North Island

NAVAIR Public-Private Partnerships

• Agreement between Public and Private Sector– Depot Provides Articles and/or Services to

Industry– Industry Leases Depot Equipment and/or

Facilities

Performance Based Logistics Partnership(PBL’s)

• Single Supplier:– Meets Material Needs– Manages Inventory, Storage and Transportation– Increases Product Availability and Reliability– Manages Obsolescence– Enable Cost-Wise Readiness

• General Business Approach:– The PBL MUST Provide the Fleet With Increased Reliability

and/or Availability at the Same or a Reduced Cost.

PBL Advantages

• Cost-Wise Readiness Helps the Fleet

• Improve Component Availability

• Improve Reliability

• Reduce Fleet Costs

PBL Benefits to Depot

• Improved Material Availability

• Capitalize on Depot Artisan Strengths

• Clear Expectations for Partners

• Distributes Financial Risks

PBLs and NAVAIR Jax

• Currently Five PBL agreements– More on the Horizon, in Negotiation

• GE, Raytheon, Boeing, Rockwell Collins, Lockheed Martin

• Covered under Contract:– Depot Skills– Products– Facilities and Equipment– Indirect Support Functions

PBL CONTRACTSat NAVAIR JACKSONVILLE

• Boeing – F/A-18 Integrated Readiness Support Team

• General Electric Aircraft Engines (GEAE) – F-404 Engine Components

• Raytheon Company– AN/AAS-44 Forward Looking Infra-Red (FLIR)

Boeing and U.S. Navy

• F/A –18E/F Integrated Readiness Support Teaming

• First of Kind

– Includes All Three Depots

– Affects Entire Aircraft Platform

• Est. Total Contract Value: $770 million

• Partnership Provides Depot Level Repair of F/A-18 E/F Unique Components

• Total Anticipated Revenue for NAVAIR Depot Jacksonville is $1.5M

• NAVAIR Jacksonville:– Currently Repairs F/A-18 E/F Gun Drive – Will Repair SUU-79/80 Wing Pylons and the Aircraft

Radome

Boeing-FIRST

FIRST Fleet Benefits

• Unites Innovation and Responsiveness of Industry with the Expertise and Capacity of NAVAIR Depot Jacksonville

• Teamwork Generates Significant Operating and Support Cost Avoidance

General Electric Aircraft Engines (GEAE) F404 Engine Component PBL

• Partnership Provides for Repair of F404 Engine Components Used to Power the FA-18 Hornet

• Five Year PBL Contract • Total Contract Award Valued at Approximately

$510M• Anticipated Revenue for NAVAIR Jax: $165M

Over Five Years

GEAE – F404 Engine Components

• Fleet Benefits– Increased Reliability Achieved by GEAE

Performance Incentives– Increased Readiness Through Parts

Availability – Allows Industry to Bring Flexibility and

Innovation Into the Management of the Supply Chain

– Reduction in Total Ownership Cost

GEAE – F404 Engine Components

• Defining Features– GEAE Provides Material, Program

Management, Warehousing and Information Technology

– Largest Dollar Revenue Generating PBL for NAVAIR Jacksonville

Raytheon AN/AAS-44 PBL

• Provides Depot Level Repair of AN/AAS-44 Forward Looking Infra-red (FLIR) System Used on the SH-60B & the HH-60H Helicopter – Ten Year PBL, 5-year Base With a 3- and

2-year Option– Total Contract Valued at Approximately

$123m– Anticipated NAVAIR Jacksonville

Revenue: $11.3M Over 10 Years

Raytheon AN/AAS-44 PBL

• Fleet Benefits

– Increased Reliability

– Increased Operational Availability

– Reduction in Total Ownership Cost

Raytheon AN/AAS-44 PBL

• First PBL for NAVAIR Jacksonville to Establish New Workload Capability

• Investment by Raytheon in:– Depot Support Equipment– Artisan Training

• Integrated Processes to Achieve Lower Cost Solutions Through Lean & R6 Sigma

Keys to Smooth Implementation

• Preplan, Preplan, Preplan• Ensure Partners Can Integrate • Create Employee Buy-In• Partners Must Have Common Goal

–WARFIGHTER SUCCESS!

Contact Information:

Director

Industrial Business Operations Office

(904) 542-4170, ext. 104