NATO AACP-2 VOL 6 PDF

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.