"According to a recent survey conducted by AIA of 23 Performance-Based Agreements to support various weapons systems, the average annual program cost savings was over $21 million and the average increase in availability was more than 16 percent. Fifteen of the cases examined had cost savings of around $300 million annually," wrote Dr. Daniel Goure in a Lexington Institute press release dated June 7.
He suggested that the U.S. Department of Defense should consider expanding the scope of PBLs and use them whenever PBLs could save programs money. In addition, Dr. Goure believes DoD should think of PBLs early in a program's life and improve methodologies used to assess a PBL's success.
Speaking of PBLs, the DoD issued a very big one to Boeing on June 7. The $258.5 million PBL covers 185 AV-8B Harriers for the U.S. Marine Corps, Italy and Spain. --Lee Ann Tegtmeier