Generated $144 Million In Savings

NAVAIR’s T-45 Aircraft and Engine Contractor Logistics Support (CLS) Team earned a Department of the Navy Competition and Procurement Excellence Award for generating $144 million in savings from the recently awarded T-45 CLS Airframe and Engine Support Contracts.

"The T-45 team’s Performance Based Logistics (PBL) contracts are an unprecedented example of competition in Navy procurement," said Capt. David Wooten, manager of NAVAIR’s Undergraduate Flight Training System Program (PMA-273).

The mission of the T-45 CLS team was to reduce operating costs by paying only for the level of performance needed, decreasing government infrastructure, improving availability/readiness, and increasing contractor accountability.

Together, the Chief of Naval Air Training (CNATRA) and PMA-273 decided to forego the last option year of the T-45 CLS contract and recompete one year early in response to CNATRA’s desire for improvements with the T-45 Flight Training System CLS performance and reductions in cost.

The previous CLS contract covered the T-45 Training System, which included T-45 aircraft, Ground Based Training System (GBTS), and F405 engine support. After a thorough review of performance requirements, program costs, and contract structure, the approach to T-45 CLS support was re-engineered to fully encompass increased reliance on Performance Based Service Agreements (PBSA). This strategy resulted in two separate performance based contracts. One was a competitively awarded airframe/GBTS PBL contract awarded to L3 Vertex Aerospace, LLC. The other was a sole source Engine Power by the Hour contract awarded to Rolls-Royce.

"We’ve implemented these performance-based contracts and they are really working," said Cmdr. Henry Jackson, T-45 program team lead. "In the first three months of contractor performance, CNATRA’s desired outcomes are coming to fruition. We are saving money daily over what we were paying. Jet and engine availability are improving. We are out of the ‘engine part’ buying and part management business with less government infrastructure, and we have a predictable and stable cost of operations for the next five years...no guessing or surprises for funding requirements."

Already, $37 million dollars in immediate savings have been realized by not exercising the last option year of the previous CLS contract and negotiating a contract only for ‘what we want in the end’ vice ‘how to perform the work’. The T-45 CLS team expects decreased government administration of the contracts, and a 5 percent increase in engine availability and associated increases in reliability in fiscal 2004 alone.

"As a result of the hard work and dedication of these award winners and all others in the acquisition workforce, our Sailors and Marines benefit in terms of a higher state of material readiness, in the pursuit of the war on terrorism and other missions," read the naval message from the secretary of the Navy informing the T-45 team of its award. "Moreover, competition and innovation has saved, and will continue to save, taxpayers billions of dollars and will enhance the navy's reputation for sound stewardship of public funds. The outstanding performance by all personnel involved in the acquisition process is greatly appreciated."

The T-45A aircraft is used for intermediate and advanced portions of the Navy-Marine Corps pilot training program for jet carrier aviation and tactical strike missions. The T-45A has replaced the T-2 Buckeye trainer and the TA-4 trainer with an integrated training system that includes the T-45A Goshawk aircraft, operations and instrument fighter simulators, academics, and training integration system. There are two versions of T-45 aircraft currently in operational use at this time, the T-45A and T-45C derivatives. The T-45A, which became operational in 1991, contains an analog design cockpit while the new T-45C (began delivery in December 1997) is built around a digital "glass cockpit" design.

"The T-45 Aircraft and Engine Contractor Logistics Support Team’s PBL contracts are an unprecedented "how to" textbook example of competition in Navy procurement and I am so proud of this team for being recognized with a Navy procurement award," Wooten said

(ANN salutes Renee Hatcher, PEO(A) Public Affairs)

FMI: www.navy.mil