Logistics & Supply Management

Public Private Partnerships (PPP)

Public-Private Partnerships (PPP) (10 U.S.C. §2474) for Depot-Level Maintenance is defined as “a public-private partnership for depot-level maintenance under a cooperative arrangement between an organic depot-level maintenance activity and one or more private sector entities to perform DoD or Defense-related work and/or to utilize DoD depot facilities and equipment. Other government organizations, such as program offices, inventory control points, and materiel/systems/logistics commands, may be parties to such agreements.” [1]

Performance-Based Logistics implementation strategies shall consider PPP to satisfy the core capabilities requirements of 10 U.S.C. 2464 “Core logistics capabilities” and the limitations on the performance of depot-level maintenance and materiel requirements contained in 10 U.S.C. 2466 “Limitations on the performance of depot-level maintenance of materiel”.

The three (3) basic types of PPP are: [2]

  1. Workshare: A partnership in which a government buying activity, in collaboration with a contractor and a depot maintenance activity, determines the best mix of work capitalizing on each partner’s capabilities. The workload is then shared between the contractor and the organic activity. The contractor is funded through a contract, and the organic activity is funded through a project or work order (in the case of depot maintenance). The partnering agreement between the contractor and organic activity focuses on the roles and responsibilities of each partner. The partners work jointly to accomplish the overall requirement.
  2. Direct Sale (Sales of Articles and Services): An arrangement, currently authorized primarily for depot maintenance activities designated as Centers of Industrial and Technical Excellence (CITE), and other working capital funded industrial facilities under specified circumstances, whereby military and commercial entities enter into a contractual relationship for the sale of depot maintenance articles and/or services to an outside (non-government) entity, usually a contractor.
  3. Lease: An arrangement that allows a private sector entity to have access to, and beneficial use of, facilities or equipment located at an organic depot designated as a CITE. Facilities and equipment may be made available for lease so long as the arrangement does not preclude the depot maintenance activity from performing its mission. The goal is to make government-owned facilities more efficient through better utilization.

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Updated: 7/19/2017

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