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ABSTRACT.
Performance Based Logistics (PBL) is an acquisition reform that is intended to improve weapon systems logistics by reducing cost, improving reliability, and reducing footprint. PBL is an extension of a broad process of rationalizing and, in many cases, outsourcing government services. As with other examples of governmental service outsourcing, measurement issues arise in the gap between governmental objectives and service measurement, and in the contrast between clear profit-centered vendor metrics, and more complex mission-oriented governmental metrics. Beyond this, however, PBL presents new challenges to the relationship between governmental agencies and their service vendors. In many cases, weapons systems logistical support involves levels of operational risk that are more difficult to measure and more difficult to value than other government services. We discuss the implications of operational risk and other measurement issues on PBL implementation.
INTRODUCTION
Attributes of the New Public Management (NPM) reforms include disaggregation and decentralization of public services, as well as an emphasis on the adoption of private sector management practices within the public sector (Osborne & McLaughlin, 2002). Accordingly, the NPM literature often addresses the establishment of alternative forms of service delivery, including outsourcing or privatization of government functions (Borins, 2002). It has been argued that where changes in institutional arrangements for service delivery are designed to give organizations specific mandates to focus on providing greater benefits to specific groups of users, responsiveness and the quality of service should improve (Aucoin, 1998). In addition, it has been asserted that reductions in information costs have led to an increase in the effectiveness of process-oriented structures, such as independent organizations with focused service delivery responsibilities, relative to functional structures with a wide scope of responsibilities such as large government departments (Jones & Thompson, 1999, p. 29).
Advocates of NPM also have leveraged the concept of the minimalist state, where government arranges for specific services but does not necessarily provide them (Jones & Thompson, 1999, p. 18; Savas, 2000, p. 65; Pollitt, 2002). In contrast to traditional public administration, NPM also is concerned with implementation rather than solely with policy prescriptions (Kelman, 2003). The focus is therefore more on the operation of management systems and techniques, and associated outcomes. Often these approaches cannot be decided upon or implemented unilaterally, but require some type...