"The U.S. Air Force asked RAND Project AIR FORCE to perform a congressionally required assessment of contractor versus organic sustainment strategies to determine the most cost-effective approach for the F-22 air vehicle and F119 engine sustainment. This report describes the methodology used in that analysis, which involved the development and use of notional organic organizations as a point of comparison in the resulting cost estimates. These analogous government sustainment organizations were developed through interviews with personnel at combat aircraft and engine program offices and assumptions about the likely sustainment approach for the F-22, such as the locations of the depot work for both the engine and the air vehicle. The methodology for the analysis considered the contractor management functions that would be retained under either approach, as well as the timing of the transition. An examination of the asserted benefits of the contractor versus organic approach, including those related to information management, funding flexibility, and technological advantages, and issues of concern for analysts (such as technical data rights), rounded out the analysis."--RAND website.
Machine generated contents note: ch. One Introduction and Study Methodology -- Introduction -- History of F-22 Sustainment Issues -- Current F-22 Sustainment Strategy -- Cost-Benefit Analysis Required -- Overview of Study Methodology -- Developing the Two Sustainment Alternatives -- Focus on Cost Differences -- Schedule and Timing of Alternatives -- Summary of Findings -- Caveats to Cost Estimates -- Benefits -- Other Issues -- Organization of This Report -- ch. Two Weapon System Sustainment and PSI Roles -- Defining Sustainment -- F-22 Product Support Integrator Activities and Responsibilities -- Overall Role of the Product Support Integrator -- Air Vehicle and Engine Depot Maintenance Activities -- Supply Chain Management Responsibilities -- Other Product Support Activities -- Conclusions
Ch. Three Organizational Responsibilities and the Methodology for Determining Manpower Requirements -- Air Vehicle PSI -- Base-Level Activities -- Depot-Level Activities -- Other Activities, Including Engineering and Supply Chain Management -- Lockheed Martin/Boeing Air Vehicle Sustainment Approach -- Pratt & Whitney F119 Sustainment Approach -- How Would the Air Force Support the F-22 with an Organic PSI Concept? -- 22nd Aircraft Sustainment Group (Notional) -- 22nd Combat Support Squadron (Notional) -- 119th Combat Support Squadron -- Estimating Work-Year Costs -- Impact of Organic PSI on the Lockheed Martin Team and Pratt & Whitney -- Summary of Manpower Analysis -- ch. Four Approach for Assessing Material and Surcharge Costs -- Material Costs -- Estimating Material Costs -- Surcharges -- Contractor Surcharges -- Organic Surcharges -- Engine Part Purchases Under an Organic PSI Case -- Conclusions
Ch. Five Cost Comparison Summary -- ch. Six Potential Benefits of Alternative Approaches -- Performance-Based Logistics as Context for Assessing Benefits -- An Approach to Valuing Logistics Performance -- Valuing Logistics Response Time and Reliability Through Requirement for Spare Parts -- Valuing Extra Mission Capability -- Methodology for Assessing Potential Benefits -- Potential Benefits That Management Structure Could Affect -- Centralized Asset Management of Spare Parts -- Combined Supplier Base -- Better Information Systems and Databases -- Faster Logistics Time -- Integration of Supply Chain Management with Engineering -- Funding Flexibility -- Ability to Create and Use Incentives to Reduce Costs Under a PBL Approach -- Organization-Level Benefits -- Government Funding Flexibility -- Summary of Potential Benefits -- ch. Seven Other Findings -- Introduction -- Challenges to Managing Sustainment Contractors Effectively
Achieving PBL Under Funding Shortages and Short-Duration Contracts -- Transition from Cost-Type to Fixed-Price Contracts -- Transition of Functions Between PSIs and the Depots -- Creating PBL Incentives Under Organic PSI -- Need for a Government Analytical Capability to Support Business-Case Analysis -- Logistics Metrics and Databases -- Insight into Contractor Costs -- Recommendation on the Business-Case Analysis Study Schedule -- ch. Eight Conclusions and Recommendations -- Summary of Methodology -- Recommendations -- APPENDIXES -- A. The Costs of Technical Data -- B. The F-22 Process for Assigning Depot-Level Reparable Workload -- C. F-22 Sustainment Activities.