The 2013 Secretary of Defense Performance Base Logistics Awards presentations by Paul Peters, acting assistant secretary of defense for logistics and materiel readiness, saw the Apache Sensors and Patriot PBL teams honored Thursday in Bob Jones Auditorium.

Performance-Based Logistics is a key Department of Defense strategy used to deliver an integrated, affordable, support solution to optimize system readiness.

The Secretary of Defense PBL Award recognizes government and industry teams that have demonstrated outstanding achievements while providing war fighters with exceptional operational capability.

Peters is responsible for providing world-class military logistics support by managing cost-effective policies and processes both in current and future operations. The magnitude of his oversight role measures more than $170 billion.

The secretary of defense initiated the PBL Awards program in 2005 to help enhance PBL awareness and encourage PBL excellence. Through this award, the department recognizes government and industry teams for outstanding PBL performance in three categories: System Level, Subsystem Level and Component Level.

This award is in its ninth year recognizing the teams which represent the best of the best.

"This is a great opportunity to recognize the work and the partnerships that you do for the nation," Peters said. "This is an example of our Better Buying Power initiatives and the integration of acquisition and logistics.

"It's an honor to be here with an organization that has demonstrated the performance of excellence. We want other organizations to emulate the partnership with industry that you have excelled in here, reflecting a trust between the government and the provider."

Both the Subsystem and Component Level Award selection criteria are centered on two major areas. The first is in improvements in War Fighter-Based Capabilities and Outcomes, which includes demonstrated mission success, materiel availability and materiel reliability. The second area is Sustainment Strategy Effectiveness and Efficiency, which includes ownership cost reduction, public/private partnering, systems engineering approach, logistic footprint reduction, obsolescence management and innovation in contracting.

"It will always, if done right and without exception, result in lower cost and better supportability," Peters said. "And often -- if the provider does the job right -- they're looking to save capital cost investment, and they will leverage our depot infrastructure and our workforce where it's appropriate -- within their solutions set -- to bring jobs back into the department, which is important."

The Sub-System Level Award went to the AH-64 Apache Sensors PBL Team of the Apache Project Office and Lockheed Martin, for demonstrating a comprehensive solution which provided the Soldiers with the support needed to consistently meet or exceed the required readiness rates. Major achievements included a supply availability rate of 97 percent, a 99 percent availability rate for depot repair parts, and materiel reliability improvements resulting in a cost avoidance of $19 million. The teaming efforts resulted in a decrease in sustainment costs for spare and repair parts with a cost avoidance of $126 million facilitated by a public-private partnership with Letterkenny Army Depot, Pa.

The systems engineering approach was applied to the supply chain management for early trend identification, fast stock posture and increased mission capability levels. The program has been improving fleet readiness, reducing average flying hour cost and reducing the Army's long-term inventory investment. This PBL effort has created better visibility and control of the supply pipeline and, as a result, better support to the Soldier.

The Component Level Award went to the Patriot PBL Team of the Lower Tier Project Office, PEO Missiles and Space, along with Raytheon.

The team was recognized for demonstrating a comprehensive solution to provide Soldiers the support they need. The Patriot PBL creates a single point of accountability within the Army's logistics supply chain that has dramatically increased material availability to more than 95 percent. The program has achieved cost reductions, resulting in more than $38 million direct savings to the Army while supporting a larger deployed Patriot fleet with a lower logistics footprint.

The flexible PBL arrangement with Raytheon focuses on responsive, comprehensive and efficient logistics support. The success of the Patriot PBL is a major reason for the Army's decision to keep Patriot as a flagship air and missile defense system through 2048 and beyond.

"Performance-based arrangements produce innovation, resulting in lower costs, better supportability," Peters said. "Peter Drucker has said that effective leadership is defined by results not attributes. You have won this award nine times, more than any other organization in the department. The Apache Sensors Team and the Patriot Tactical Team are clear leaders in the field of performance-based arrangements, and it's a delight for me to present these awards."