Foreign military sales: contracting integrated logistics support for out-of-inventory equipment

Abstract

The Naval Air Systems Command (NAVAIR) created a new requirement for the contracting of Integrated Logistics Support of obsolete weapon systems for foreign military sales. Obsolete weapon systems are weapon systems with useful service life, scheduled for decommissioning, disposal, or potential foreign military sales transactions. The omnibus contract is defined as a total package approach contract used to deliver integrated logistics support to the foreign military sales customer. The SH2 helicopter is the first platform to attempt the use of an all inclusive omnibus type contract for foreign military sales. This thesis identifies the needs of the foreign military sales customer and relates those needs to the services an omnibus contract can provide. The omnibus contract must recognize the concerns the foreign military sales customer has with commercially contracting integrated logistics support. The strengths and weaknesses of the omnibus contract are contrasted with using separate contracts for each integrated logistics support area. Conclusions are developed to prepare NAVAIR for the interdependency required for an omnibus contract. The thesis recommends that an effective omnibus contact requires a partnering relationship between the contractor, foreign military sales customer and the United States Navy