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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.
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