Evolving strategic performance-based logistics in the military: a total life-cycle approach perspective

This study contributes to developing a strategic performance-based logistics (PBL) that considers a failure pattern and performance indicators from a total life cycle approach perspective. After reviewing a lot of PBL literature related to the type of contract and period, we conduct a multi-case analysis focusing on 13 implementing cases in Korea as our sample. To mature a strategic PBL, we suggest different performance indicators and incentives by contract type, especially risk factors and settlements at the initial phase from the focus group interviews with government and industry experts. Through our meticulous examination, we draw a new conclusion that is efficient and effective in securing long-term contracts with firm and fixed-price contracts (FFPC) and rough and estimated price contracts (REPC). This paper may be the first to present a strategic PBL, including contract types and periods that benefit both the governments and defence companies from a total life cycle approach perspective.