NATO AACP-2 VOL 6

AVAILABLE ELECTRONIC ONLY

Contracts for logistic support will cover a multitude of
activities. These may range from relatively straightforward work
such as the supply of spare parts, modification kits and ground
support equipment, through work of a small scale design and
development nature under Post-Design Services contracts once
equipment is in service, to complex work early on in programme life
in connection with Integrated Logistic Support (ILS).

It is not the intention of this document to repeat the guidance
available to contract drafters in earlier AC/313 publications which
address contractual terms for Feasibility Study contracts, Design
and Development contracts and Production contracts
(AC/313-D/32(Final) dated 28th August 1987; AC/313D/50(Final) dated
4th March 1993 and AC/313-D/58 dated 27th May 1994
respectively).

Straightforward production contracts for the supply of spare
parts etc. and Post Design Services contracts which require the
inclusion of clauses governing, for example, ownership and use of
Intellectual Property, should draw on the existing guidance to the
extent appropriate. Similarly, guidance on putting the ILS concept
into contractual form is separately available (AC/313-D/65(Final)
refers).

Where major weapon system acquisition is taking place, it may be
prudent to identify categories of support activities for Phased
Logistic Support, which should provide, for an initial period after
delivery, industrial support for specified weapons system equipment
until a service capability can be introduced in a planned, low risk
manner. Phased Logistic Support may also be appropriate for
application to equipment where there is design instability at the
time of the delivery of the first production units to the service
user. Thus the industrial expertise and facilities, available via
the development and production investment phases, may be utilised
and the risks associated with supporting design-unstable items
reduced. Adoption of some form of incentive price arrangements in
contracts for Phased Logistic Support will serve to contain the
customer's financial risk during the interim period concerned
before a full service support capability is available. Where the
system procured has a stable design or ILS principles have been
applied, Phased Logistic Support should not be necessary.