A fundamental component of the successful PBL support strategy is the utilization of the best capabilities of all support providers, both organic and commercial. Toward this end, DoD, with support from Congress, has emphasized the use of Public/Private Partnerships (PPP). Although partnering can be implemented in many areas and functions, the primary focus has been on depot activities.
Depot Maintenance Partnerships — The primary intent of the depot maintenance partnership initiative is to enhance depot support to the warfighter by enabling and empowering the DoD organic depots to develop appropriate partnerships with the commercial sector, while recognizing the legitimate national security need for DoD to retain depot maintenance capability.
Partnerships — A Logistics Sustainment philosophy that focuses on a Cooperative Agreement between the following:
- Program Manager;
- System Support Manager;
- Depot Maintenance Manager; and
- Private Sector Supplier of Sustainment and Modernization.
Service Secretaries are required to designate Centers of Industrial & Technical Excellence (CITE) and the head of a CITE has authority to enter into partnerships. The CITE designation provides an exemption from 50-50 limit (10 USC 2466) provided:
- Depot has been designated a CITE
- Work must be performed on the depot by industry personnel
- Work must be pursuant to a partnership
Sec 342 of the NDAA for FY 2002 and sec 334 of the NDAA for FY 2003 amended 10 USC 2474 creating an exemption to the 50 percent limitation in 10 USC 2466(a) ("50-50 rule") on contracting for depot maintenance. Work performed at a CITE by a contractor pursuant to a partnership with funds made available for depot maintenance is not counted for purposes of applying the 50 percent limitation. This exclusion had applied to contracts entered into during Fiscal Years 2003 through 2009. The FY07 NDAA was signed into law on 17 Oct 06 and was assigned Public Law 109-364. In it, the authority to exclude amounts expended for the performance of depot-level maintenance workload by nonfederal government personnel at a Center of Industrial and Technical Excellence from the percentage limitation in section 2466(a) of title 10, United States Code, if the personnel performing the work are provided pursuant to a public-private partnership was made permanent.
Defense Acquisition University (DAU) Acquisition Community Connection Web site for Public-Private Partnerships: https://acc.dau.mil/ppp