Parts Life, Inc. Prototype Integration Facility – PIF: Opportunity for Growth
The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty – Winston Churchill
These are challenging times for our nation and our region. Budgets not only monopolize our conversations at home, but also dominate discussion in our Government. The DoD faces continued budget constraints. Parts Life, Inc sees these constraints as an opportunity to provide the DoD with real solutions that will enable it to continue to support our warfighter while serving as a good steward of the taxpayer dollars.
This paper explores how the creation of a Parts Life, Inc. Prototype Integration Facility (PIF) in NJ will not only benefit our country but also our workers and our region.
While the PIF is not a new concept in our industry, the Parts Life, Inc. PIF model is unique in that it will be supported by a consortium of small defense contractors rather than by one large OEM. As the prime contractor, Parts Life, Inc. will coordinate and leverage the teams’ broad resources into one consortium, capable of collectively accomplishing much larger, challenging projects as opposed to single efforts.
The diversity provided by the consortium will save money for the DoD, increase the facility’s core capabilities, expand the scope of work the team can pursue, and bring more opportunities to our various organizations in the defense industry and region.
Establishment of a strong industrial base: PIF
Parts Life, Inc. was founded in 2007 based on a distinctive business model that increases the life of expensive, mission-critical assets by keeping equipment mission-ready well past its originally intended life expectancy, even when parts are obsolete.
Strategically located in Southern, New Jersey, the company is currently working on establishing a Prototype Integration Facility - PIF in Camden, New Jersey. The Initiative to create the PIF will be based on the development of strategic partnerships with military agencies, other industry leaders, higher educational institutions, and state and local governments.
The PIF will bring together a consortium of small businesses with diverse industry capabilities. The combined capabilities and experience represented by the consortium will enable the PIF to provide a full spectrum of capabilities and unprecedented responsiveness to the US Military Services and Government Agencies it will serve.
In addition, being located in southern New Jersey will enable the repurposing of the Joint Base JDML (Joint Base Dix, McGuire, Lakehurst) by providing support to many DoD platforms and missions. New Jersey’s industrial base will be solidified and strengthened by the establishment of a PIF.
Parts Life, Inc. and its team of local defense contractors provide diverse capabilities, including:
- Advanced reverse engineering and testing
- Flexible, short-run engineering and manufacturing jobs
- Repair parts lifecycle management systems
- Quick scale-up capacity
- Low-cost overhead structure
- Ability to leverage the local labor market and provide in-house training
- ISO 9100 and AS9100 certification
- Working business model with excellent customer and supplier relationships
Benefits of the PIF approach
The PIF is a win-win-win proposition. Not only will the DoD and US Military achieve reduced budgets while maintaining preparedness, but New Jersey families and businesses will also benefit.
Benefits to the DoD and US Military
The US Department of Defense is being asked to reduce its average defense spending for Fiscal Year (FY) 2014 by more than $50 billion dollars. Difficult choices must be made concerning protecting America’s security interests and its role as a global power. Several key agencies are presently experiencing great pain from unfulfilled parts supply:
- Defense Logistics Agencies
- Joint Base Dix McGuire Lakehurst
- NJ and other regional National Guard Facilities
- Other military installations
- Original equipment manufacturers
The $166.8 billion designated for the development and purchase of new weapon systems has come under fire with sequestration. Significant budget cuts are inevitable.
In light of the coming cuts and limited resources, the DoD must reprioritize its investment in new systems and platforms. The need to develop an initiative that allows the DoD to extend the life of the mission-critical assets is more significant now than ever.
The PIF will:
- Decrease the need to for the DoD to procure new equipment and assets by extending the life of expensive, mission-critical assets. It is less expensive to maintain equipment than to acquire new equipment.
- Provide program management with a cradle to the grave overview of each asset.
- Provide the ability to extract additional value from assets.
- Enable the US to maintain assets in a mission-readiness state.
- Establish new missions through our partnership with the Joint Base McGuire-Dix- Lakehurst, which will protect JBMDL from BRAC.
- Shorten the reset cycle when new conflicts arise, accelerating the deployment process.
- Provide integrated logistics support and life cycle support services.
- Promote free and open competition to purchase equipment from more than one OEM. The PIF will provide the DoD with technical data and drawing packages where previously none were available.
- Deliver a rapid response directly to the warfighter by fostering collaboration between experienced veterans, US Government employees and contractors. This real-time exchange of information enables the military to meet critical demands, improve productivity, maintain mission-essential equipment, sustain mission readiness, and preserve institutional expertise.
Ultimately, the benefits of the real time exchange of information allow the DoD to focus on its core warfighter competencies, and to create a smaller, more lethal, and more flexible military force during this time of decreased funding.
Serving customers from the DoD to the DLA, this initiative will provide effective ways to implement budget cuts without jeopardizing military readiness.
Benefits to New Jersey workers and families
The PIF will:
- Protect existing jobs by ensuring that JBMDL is not shut down by BRAC.
- Create jobs for returning veterans.
While the rate of unemployment among veterans in 2012 dropped to 9.9% from 12.1% in 2011, this unemployment rate is still well above the national annual rate of 7.8% in 2012. According to the Department of Veterans Affairs, the unemployment rate for recently discharged veterans is nearly three times the national rate.
- Create jobs for unemployed blue collar workers.
Beyond veterans, the majority of positions in companies that participate in the PIF will go to blue collar workers. These are the people who have been impacted the most by the nation’s high unemployment rate. Many of these workers are already skilled in the trades. A job at one of the businesses that is part of the PIF provides an unemployed worker the opportunity to get back into the workforce.
- Create jobs for inexperienced young workers and those reentering the workforce.
The same opportunities that are available for veterans and blue collar workers can allow inexperienced and returning workers to learn a trade or the skill required to begin working in a position with long-term possibilities.
Benefits to New Jersey’s economy
The PIF will:
- Generate economic opportunities for both public and private sectors.
- Implement more efficient business processes.
- Integrate private and government workforces, fostering an interchange of knowledge.
- Offer sustainment engineering services and recapitalization.
Making the PIF a reality
Parts Life, Inc. is ready to move ahead with the establishment of a PIF in Camden, NJ. To do so, the company needs:
- A military sponsor to serve as its primary customer. The Joint Base MDL is the ideal candidate for this relationship.
- A directed source contract to establish a local PIF.
- A long-term contract vehicle to significantly grow the capacity to take on major projects.
- Low-cost, light-manufacturing space in the Camden area.
As sequestration begins to reduce military budgets and potentially put military missions at risk, legislators are seeking ways to provide taxpayer relief, while the military is being asked to extend the life cycle of high-value assets and subsequently purchase less new equipment. The establishment of a PIF in New Jersey managed by Parts Life, Inc. can begin to solve many of the problems and reap the advantages presented in this paper.
For more information, contact Parts Life, Inc.
President, Sam Thevanayagam: 856-786-8675, firstname.lastname@example.org or
Director of Business Development, Sheila Harris Adams: 856-786-8675, email@example.com.