Fuzzy logic application in performance-based contracting process

Abstract For the purpose of lowering the overall cost of defense equipment acquisitions, both the United States Government and the Australian Commonwealth Government mandate Performance-Based Contracting (PBC) methods upon acquisition and through life support contracts. Demanding military aerospace acquisition and sustainment requirements however, present the defense industry with a significant challenge; that every military contract being unique. Consequently this is inherent in the design of defense PBC through the combination of desired outcomes and Key Performance Indicators (KPI). Attempts to manage multiple PBC across multiple platforms become inefficient, as the analysis of data is sourced from a multitude of systems. Additionally, the ability to predict and understand the potential impact a PBC may have during a contract negotiation becomes equally difficult. Encapsulating an existing framework such as the Aerospace System Division Performance Based Contract framework within a Data Warehouse System, coupled with a Simulation System utilizing rule-based Fuzzy Inference, could provide prime contractors with a powerful Decision Support platform which may be utilized to manage such complexities incurred with the management of performance-based strategies.