Based on experience in other countries, successful PBCs have proven its benefits by:
- Improved contractor delivery/performance;
- Consistent operational capability and readiness;
- Improved asset/equipment/system reliability;
- Better decision making on contract extension; and
- Monetary savings on non-performance.
PBC arrangements should be considered in the following circumstances:
- Systems availability or derivative sub-requirement for sub-system or component is consistently below the required threshold.
- Part/Spare demand and/or labour hour requirements have achieved a level of post-fielding/usage stability that supports predictability of future demand to enable consistent pricing.
- Number of potential product support providers is sufficiently large to serve as a competitive market, or leverage exists to structure internal competitive pressure in a limited or sole-source situation.
- Sufficiently operational life remains (typically 5-7 years) in the product to be an attractive capital investment opportunity for potential product or service providers.
- Common sub-systems or components among platforms and/or Defence/ Enforcement Agencies that, when combined, improve the Government’s negotiating leverage and offer industry the opportunity to benefit from the scale of economies.
- Actual sustainment/maintenance costs exceed lifecycle cost estimates, or should cost management indicates an opportunity to lower the cost of required performance.