Sustainment Transition Capabilities

Mission— Sustainment Transition Capabilities

Mission Description: FY 2022 NDAA Section 142 requires the Department to transition Sustainment functions from the F-35 Joint Program Office to the Military Departments (MILDEPs) of the Air Force and Navy no later than end of 2027. The Under Secretary of Defense (USD) Acquisition & Sustainment (A&S) Report to Congress dated 30 January 2023, states that the MILDEPs will achieve Initial Operating Capability (IOC) by end of 2027 to act as the Inventory Control Point (ICP) and reach Full Operating Capability (FOC) by end of 2029. Additionally, for NDAA Section 142 to effectively occur, FY 2024 NDAA Section 1005 mandates that the Department achieve an unmodified audit opinion by the end of 2028. To achieve both statutory requirements and allow the MIPDEPS to assume ICP control by the end of 2027, the Department requires a Logistics Information Technology (LogIT) network that will facilitate necessary data exchange via Department standard Defense Logistics Management Standard (DLMS) transactions and the F-35 prime vendor systems. Once the network is established the Departments’ financial and business systems will have enabled capability for full asset visibility, financial transactions, and Inventory Control Points (ICPs) accountability operations. This investment will deliver that data architecture design, implementation, and capability which will provide the MILDEPs with the necessary asset visibility and controls to assume full ICP responsibilities from the prime vendors. F-35 spares are currently maintained within the current Prime vendor databases. The vendor did not use established standardized Department of Defense supply and inventory control processes when the F-35 program originated. As a result, this prevents the Department from easily capitalizing the parts and assuming full ICP responsibilities from the prime vendors. The establishment of the data exchange will allow the Department to begin the transition of the spares inventory into the ICPs for lifecycle management. This transition will be accomplished through establishing provisioning and cataloging actions of the F-35 spares, estimated in value around $15 billion. Provisioning and cataloging the spares will convert the spares to National Stock Numbers (NSNs) facilitating their integration into the Defense Logistics Agency’s (DLAs) Warehouse Management System (WMS) for worldwide inventory management and asset visibility. The outcome will provide the MILDEPs with necessary data elements to accomplish demand planning, procuring and repairing spares. Justification: The RDT&E funds will be used to ensure the necessary data architecture is designed and implemented to automate data between the prime vendors and the Department’s business systems. The Deputy Chief Finance Officer (DCFO) requires a mandated milestone of October 2026 for Services to financially report on the program to ensure two years of clean data in support of an unmodified opinion two years later in October of 2028, as mandated by FY 2024 NDAA Section 1005. To accomplish this mandate, the design and production of the data architecture will be built early in 2026 for testing and validation. Follow on funding in FY 2027 and FY 2028 will drive incremental development of data pipelines to facilitate FY 2022 NDAA Section 142 ICP transition to the MILDEPs (i.e. linking requisitions within industry systems to the MILDEPS so they can perform ICP functions). Note: The program will use both RDT&E and Procurement funding to accomplish the program requirements to meet FY 2022 NDAA Section 142 implementation schedules and NDAA Section 1005 mandates. Procurement funding will be used to support the program requirement for FY 2022 NDAA Section 142 implementation. The P-40 captures the programs procurement requirement needs to complete the full funding to complete both: FY 2022 NDAA Section 142 implementation schedule and FY 2024 NDAA Section 1005 mandates. The Procurement dollars will fund portions of the technical data needed to support the aforementioned Provisioning and Cataloging of the spares to enable the MILDEPs to perform their ICP functions of demand planning and procuring the parts, as well as create NSNs for ingestion into Department systems such as DLA’s WMS to provide inventory asset visibility.

Mission— Sustainment Transition Capabilities

Mission Description: FY 2022 NDAA Section 142 requires the Department to transition Sustainment functions from the F-35 Joint Program Office to the Military Departments (MILDEPs) of the Air Force and Navy no later than end of 2027. The Under Secretary of Defense (USD) Acquisition & Sustainment (A&S) Report to Congress dated 30 January 2023, states that the MILDEPs will achieve Initial Operating Capability (IOC) by end of 2027 to act as the Inventory Control Point (ICP) and reach Full Operating Capability (FOC) by end of 2029. Additionally, for NDAA Section 142 to effectively occur, FY 2024 NDAA Section 1005 mandates that the Department achieve an unmodified audit opinion by the end of 2028. To achieve both statutory requirements and allow the MIPDEPS to assume ICP control by the end of 2027, the Department requires a Logistics Information Technology (LogIT) network that will facilitate necessary data exchange via Department standard Defense Logistics Management Standard (DLMS) transactions and the F-35 prime vendor systems. Once the network is established the Departments’ financial and business systems will have enabled capability for full asset visibility, financial transactions, and Inventory Control Points (ICPs) accountability operations. This investment will deliver that data architecture design, implementation, and capability which will provide the MILDEPs with the necessary asset visibility and controls to assume full ICP responsibilities from the prime vendors. F-35 spares are currently maintained within the current Prime vendor databases. The vendor did not use established standardized Department of Defense supply and inventory control processes when the F-35 program originated. As a result, this prevents the Department from easily capitalizing the parts and assuming full ICP responsibilities from the prime vendors. The establishment of the data exchange will allow the Department to begin the transition of the spares inventory into the ICPs for lifecycle management. This transition will be accomplished through establishing provisioning and cataloging actions of the F-35 spares, estimated in value around $15 Billion. Provisioning and cataloging the spares will convert the spares to National Stock Numbers (NSNs) facilitating their integration into the Defense Logistics Agency’s (DLAs) Warehouse Management System (WMS) for worldwide inventory management and asset visibility. The outcome will provide the MILDEPs with necessary data elements to accomplish demand planning, procuring and repairing spares. Justification: The RDT&E funds will be used to ensure the necessary data architecture is designed and implemented to automate data between the prime vendors and the Department’s business systems. The Deputy Chief Finance Officer (DCFO) requires a mandated milestone of October 2026 for Services to financially report on the program to ensure two years of clean data in support of an unmodified opinion two years later in October of 2028, as mandated by FY 2024 NDAA Section 1005. To accomplish this mandate, the design and production of the data architecture will be built early in 2026 for testing and validation. Follow on funding in FY 2027 and FY 2028 will drive incremental development of data pipelines to facilitate FY2022 NDAA Section 142 ICP transition to the MILDEPs (i.e. linking requisitions within industry systems to the MILDEPS so they can perform ICP functions). Note: The program will use both RDT&E and Procurement funding to accomplish the program requirements to meet FY 2022 NDAA Section 142 implementation schedules and NDAA Section 1005 mandates. Procurement funding will be used to support the program requirement for FY 2022 NDAA Section 142 implementation. The P-40 captures the programs procurement requirement needs to complete the full funding to complete both: FY2022 NDAA Section 142 implementation schedule and FY 2024 NDAA Section 1005 mandates. The Procurement dollars will fund the technical data needed to support the aforementioned Provisioning and Cataloging of the spares to enable the MILDEPs to perform their ICP functions of demand planning and procuring the parts, as well as create NSNs for ingestion into Department systems such as DLA’s WMS to provide inventory asset visibility.

Accomplishments & Planned Programs (1)