Applicability of performance-based logistics to Brazilian Armed Forces contracting processes improvements

Abstract

In recent years, the Brazilian Armed Forces (BAF) has started the adoption of Performance-Based Logistics (PBL) contracts for maintenance of defense systems such as operational aircraft and frigates. It was a migration from the traditional method of using in-house capability to outsourced maintenance structure with performance requirements. The life cycle of a system is costly and may span decades. Hence, the correct contractual choices made during all phases of a program may represent a significant amount of savings to the Brazilian branches. This research had as the main issue finding out how BAF can optimize its performance-based contracting processes by identifying best contractual practices developed by the U.S. Department of Defense (DoD). This study identified several best practices distributed in different phases of the Contract Life Cycle that can promote cost reduction and system performance improvement. Finally, even though there are differences between the DoD and the BAF contracting cultures, financial capacity, and number of defense systems, this study concluded that the PBL best practices could be used in the BAF and also made recommendations on how to apply them in the Brazilian Defense Sector.