On December 12, the Maritime Staff Office of the Japan Ministry of Defense (JMOD) announced plans to procure aircraft maintenance services starting in fiscal year 2027 and beyond. These plans involve adopting long-term Performance-Based Logistics (PBL) contracts [1] focused on maintenance and repair performance, aiming to enhance equipment availability and reduce long-term acquisition costs.
The Maritime Staff Office issued a Request For Information (RFI) from companies interested in performing maintenance through a PBL contract on three types of aircraft currently in service with the Japan Maritime Self-Defense Force (JMSDF):
1) MCH/CH-101: Helicopter derived from the EH101 utility helicopter, originally developed and manufactured by EH Industries Limited (now Leonardo UK Ltd,). The MCH-101 features a Japanese-developed minesweeping mission system, while the CH-101 is currently used for transport missions in Antarctic exploration. The JMSDF currently operates four MCH-101 helicopters and four CH-101 helicopters.
2) C-130R: Turboprop military transport aircraft featuring four Allison T56-A-16 engines. Based on the Lockheed Martin KC-130R tanker aircraft used by the United States Marine Corps but redesigned and stripped of refueling equipment. The JMSDF has been operating six of these C-130Rs since 2014.
3) TC/LC-90: Twin-turboprop aircraft modeled on the Beechcraft King Air, a civil utility aircraft first produced in 1964 by American company Beechcraft. The JMSDF operates five TC-90s for instrument flight training. Meanwhile, five LC-90s are used for transport of personnel, supplies and for communications [2].
Performance-Based Logistics guidelines were first established by JMOD in 2011. Since then, the ministry has been actively working to implement these long-term contracts, driven by evaluations highlighting the “positive outcomes” achieved when applied to the maintenance and servicing of equipment in Western countries.
PBL is a defense acquisition strategy particularly favored by the United States Department of Defense (DoD) in order to meet defense requirements while incentivizing product support providers to innovate and reduce costs long-term.
The primary objectives of PBL are to optimize customer support, enhance weapon system availability, and lower acquisition and ownership costs. In the U.S., the DoD implements a 12-Step “Product Support Strategy Process” designed to ensure cohesive product support packages with appropriate incentives and metrics.
Similar to the U.S. DoD, JMOD has emphasized the benefits of long-term PBL contracts. Japan’s PBL contracts focus on achieving service outcomes, such as shorter repair times and enhanced inventory availability, rather than relying on traditional case-by-case contracting approaches.
In fiscal 2017, JMOD began plans to adopt a long-term PBL contract for the C-130R aircraft. This initiative aimed to enhance operational availability and ensure a stable supply of parts over six fiscal years, projecting savings of approximately 2.4 billion yen (16.5%). In February 2021, JMOD included in its PBL strategy both the MCH/CH-101 helicopters and TC/LC-90 fixed-propeller aircraft, targeting full implementation starting fiscal 2023.
Currently, Japan’s Maritime Staff Office is once again inviting qualified companies with expertise in the repair, replenishment, maintenance, and technical support of these three aircraft, their engines, and associated equipment to submit applications to JMOD by January 29, 2025, 15:00 (Japan Standard Time).
Notes:
[1] Performance Based Logistics (PBL): A “contract method that involves payment of compensation according to the level of equipment performance achieved in terms of availability ratio and stable stock”. https://www.mod.go.jp/en/publ/w_paper/wp2020/pdf/R02040203.pdf
[2] In August 2024, Japan’s Acquisition, Technology & Logistics Agency (ATLA) also opened calls for private companies to provide information on potential next-generation successors to the TC-90 and LC-90, as well as instruments and ground training systems. https://nsbt-japan.com/u/admin01/j1ti2fnes5hpvk?sf_culture=en
Background Information:
https://www.mod.go.jp/msdf/supply/tech/20241212.pdf
https://global.kawasaki.com/en/mobility/air/helicopters/mch_101.html
https://www.seaforces.org/marint/Japan-Maritime-Self-Defense-Force/AIRCRAFT/Lockheed-C-130R.htm
https://dl.ndl.go.jp/pid/11341913 https://www.mod.go.jp/atla/soubiseisaku/soubiseisakukeiyakuseido/pbl_guideline_h30.pdf
https://www.dau.edu/acquipedia-article/performance-based-logistics-pbl-implementation
https://www.mod.go.jp/en/d_act/d_budget/pdf/290328.pdf
https://www.mod.go.jp/msdf/supply/tech/210208.pdf
This article was originally posted on NSBT Japan, the first defense and security industry network in Japan. The publication provides the latest information on security business trends both within Japan and overseas. Asian Military Review began exchanging articles with NSBT Japan in April 2024.
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