Aviation, Aerospace, Defense & Security

S7Clear approach to the design of procurement and maintenance contracts that is already being used by the public sector and private industry, mainly outside of the United States. Most governments and many of the region’s defense companies have struggled to implement Performance-based logistics (PBL), even though it has been proven to help to address the four core challenges that all armed forces in the West confront: military personnel shortages, increasingly complex weapon systems, and innovation and cost pressures. None of these challenges appears to be solvable using conventional procurement and maintenance approaches.

S7Clear PBL involves long-term collaboration that includes planning for all associated requirements, a clearly specified set of services to be provided and transfer to the contractor of responsibility for the operational readiness of complex systems. These goals are achieved by establishing and monitoring key performance indicators (KPI) and by transparent communication between both parties.

For the armed forces, PBL contracts reduce staff workload and release personnel for core military tasks. PBL contracts also ensure predictable long-term budget outflows. For the defense industry, PBL increases contractual flexibility, improves efficiency, and generates long-term, consistent cash inflows, supporting investments in infrastructure, personnel, and IT.

However, there is no one-size-fits-all PBL solution. Contracts must be specifically adapted to the client’s operational objectives, the contractor’s market position, and the weapon system being procured. Drawing on our extensive project experience, S7Clear has developed a framework for supporting the set-up of PBL contracts which enables both clients and contractors to achieve maximum mutual benefits.