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Develop Life Cycle Support Plan

Typically, life cycle support plans are used when the Postal Service purchases products, not services, with the life cycle spanning the time from product conception to product retirement, with more than 80 percent of the total cost of ownership being in the postpurchase phases. The life cycle support plan is a component of the purchase plan, and is a dynamic document that guides the project throughout its entire duration and is revised as more detailed information becomes available. The Purchase/SCM Team determines which products call for the development of a life cycle support plan. It is essential to note that a life cycle support plan is not appropriate to all purchases, but should be developed for products of considerable nature, scope, and complexity (e.g., for high value and high complex products). Whether such a product is purchased from a supplier or made by the Postal Service, during its life cycle development, quality, cost, schedule, and user requirements must be considered at all phases. What follows is a comprehensive view of a life cycle support plan, but the plan developed by the Purchase/SCM Team should reflect the complexity of the particular purchase being considered.

A life cycle support plan clarifies the project lifespan of the product. An effective life cycle support plan enables the Postal Service to reduce complexity and decrease life cycle costs and allows for the focusing of all efforts toward providing best value to the Client. The plan is instrumental in the development of the statement of objectives (SOO), statement of work (SOW), specification, or product description, and, if applicable, the Decision Analysis Report (DAR). The life cycle support plan serves as a guide to the future and a record of the past.

At this stage in the Develop Sourcing Strategy task of Process Step 2: Evaluate Sources, the Client's strategy, and how best to meet this strategy, are nearly defined. The elements to support the product are defined; the organizations that participate in the life cycle process is identified; and the life cycle phases of the specific product or service are known and in the process of being defined.

The three critical components needed to develop the life cycle support plan are:

Component categories and supporting elements

Life Cycle Management Team

Life cycle phases

The life cycle support plan developed by the Purchase/SCM Team will be implemented in the Implement Life Cycle Support Team topic of the Manage Demand task of Process Step 5: Measure and Manage Supply.

Component Categories and Supporting Elements

The component categories and their supporting elements make up a product's life cycle, and they must be defined to develop a support plan. This includes identifying:

The component services and information that the user needs to maintain the product, beyond the hardware and software itself

Operator skills required to use and service the product

The combination of skills, tools, documentation, test equipment, and repair parts to maintain the product

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Life Cycle Management Team

The Life Cycle Management Team is a cross-functional team (comprising members of the Purchase/SCM Team and members of the areas appropriate to the product) that supports the development of the life cycle support plan. The Life Cycle Management Team must be identified in all phases to support the effort and development of the support plan. The team consists of the Client and about 5-10 members and typically includes:

Market Analysts

Pricing Analysts

Item Managers

Individuals from Quality Assurance, Finance, Sales, Supply Management, and Engineering (whose functions include hardware/software design, configuration management, maintenance, acceptance and performance testing, and process development)

Degrees of management and responsibility for the plan will transfer to these different members, depending upon the phase of the process.

Life Cycle Phases

The life of a product can comprise various life cycle phases. To develop a life cycle support plan, the phases pertaining to the product and each phase's composite must be determined.

The life cycle plan will be revised throughout the product life cycle, as more detailed information becomes available. When developing a life cycle support plan, the following phased structure and composition will be used:

Concept Development (the life cycle plan is initiated during this phase)

Planning and Specification

Purchase

Production and Deployment

Operations (Use) and Support

Relocation and Disposal

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Concept Development Phase

During the Concept Development phase:

An idea is analyzed for economic and technical feasibility

Planning is initiated if the idea is determined to be feasible

Management structure is established to provide program controls and direction

Existing products and technology are explored to determine whether any meet the framework of the idea and could be implemented in the Postal Service environment

A plan of actions and milestones is developed

The life cycle support plan at this phase should contain the following information:

Statement of need

System description

Milestones

Roles and responsibilities of activities and organizations

Strategy to achieve objectives and implement training requirements (including risk mitigation and purchase alternatives)

Planning and budgeting

Program interdependencies

Opportunities for standardization

Logistics support

Investment recovery

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Planning and Specification Phase

During the Planning and Specification phase, evaluations are made to see whether the product is available for purchase. The evaluations compare the products against the requirement to determine whether they meet the required performance parameters. The results are used to refine the requirements, and (if applicable) develop a Decision Analysis Report (DAR).

All technical information obtained during the planning and specification phase should be evaluated in terms of the life cycle support plan. Updates include adjustments to the schedules, historical information, and status of the plan. During the planning phase, the life cycle support plan will be updated to reflect the purchase plan and DAR.

At this point in the development of the life cycle support plan, the information included in the following sections of the plan should be updated:

Statement of need

System description

Milestones

Roles and responsibilities of activities and organizations

Strategy to achieve objectives and implement training requirements

Planning and budgeting

Program interdependencies

Opportunities for standardization

Logistics support

Purchase plan (new information that is added during this phase)

Investment recovery

DAR (new information that is added during this phase)

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Purchase Phase

During the Purchase phase:

Requirements for the product are determined

The final request for proposals (RFP) is prepared and issued to the potential suppliers

The Proposal Evaluation Team is assembled

Proposals are received, processed, evaluated, and ranked

Final negotiations are completed

Contract is awarded

Following contract award, the life cycle support plan is updated to reflect the finalized project information. All members of the team developing the life cycle support plan participate in this effort to update their various parts of the plan.

Production and Deployment Phase

Activities in this phase are directed toward achieving an integrated, well-planned deployment of the product that can be economically and efficiently supported throughout its life cycle. During this phase, the plan is revised to reflect actual operational experience.

Detailed maintenance support plans are prepared during the production and deployment phase. As information becomes available from the testing and operation of the product, the life cycle plan is validated and revised to reflect the most effective operation and support. All members of the team developing the life cycle support plan participate in this effort to ensure an integrated approach to issue resolution.

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Operations (Use) and Support Phase

The Operations (Use) and Support Phase consists of the collection of data on the asset's performance; improvements are suggested, made, and managed; and new operational data are collected. This phase continues until a decision is made to redeploy or dispose of the product. If the product is modified or overhauled, life cycle support planning reenters the planning cycle in the Concept and Development phase, and the plan is updated to include overhaul or modification schedules. If there are plans to retire or relocate the asset, the asset's life cycle enters the Relocation and Disposal Planning phase.

Information gained during the deployment of an asset or from a modification is analyzed, and required changes are made to the existing plan, specifically information relating to maintenance, reliability, parts provisioning, and training. Actual performance data are used to assist in the process and planning of future purchases. These data are compiled and included to modify the appropriate sections of the life cycle plan.

Relocation and Disposal Phase

Relocation

As technology changes, a decision is made regarding the disposition of products at the end of the life cycle. This decision is made based on economic and operational considerations.

When an asset is replaced by a more cost-effective asset, it may be determined that it still has operational value and continues to provide a benefit for service use. In this case, the asset may be relocated to other sites or be used as a backup; the original support plan will also have to be considered.

If the decision is made to relocate or continue operation of the asset, the plan will be revised to reflect any variances in support strategies. Repositioning or the purchase of spare parts must be considered, as well as additional training to support operation and maintenance of the relocated product.

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Disposal

Disposal is the final phase of the life cycle and can pose significant economic and social risk to the Postal Service. Assets, especially physical assets, can still offer value from resale, selling back to the supplier, or even donation to social organizations or international postal partners.

The risk arises from several sources, among which are:

Many assets contain materials that are considered hazardous and require special steps for approved disposal. The Postal Service, as the original asset owner, can be sued for improper disposal of these assets.

Computer-based assets can contain either information that is of proprietary value to the Postal Service or privacy information on Postal Service employees, Clients, and customers. These assets require special processing to preclude incidental release of this information.

Assets seen by the public have the Postal Service name or logo on them. These symbols must be removed to prevent misuse or misrepresentation of the Postal Service brand.

A number of assets now contain devices designed to provide integrity or security of the mail, Postal Service employees, and customers. These devices must be removed before disposal.

Mail processing and other equipment have licensed software systems that must be removed at the time of disposal.

The Life Cycle Management Team will meet to develop a disposal plan that will be added to the overarching life cycle plan. There are a number of ways for the Postal Service to dispose of assets, which are summarized in the Develop Preliminary Investment Recovery Plan topic of the Develop Sourcing Strategy task of Process Step 2: Evaluate Sources. When the Purchase/SCM Team determines when the supplier will manage the investment recovery, solicitations must include Provision 2-8: Investment Recovery, under which the supplier must provide, within its response to the request for proposals (RFP), an investment recovery plan to reuse the equipment or to eliminate or reduce final disposal costs. Final disposition must be environmentally responsible; eliminate or reduce landfill; and comply with all Federal, state, and local laws and regulations. Proposals must address the complete life cycle, including the final disposition of the items being purchased. Disposition alternatives include take-back, repair, refurbishment, and disposal. The supplier is required to design and describe additional innovative, value-added, end-of-life disposition opportunities for the items being purchased.

The Postal Service environmental policy, as stated in Handbook AS-550, Recycling Guide, and Handbook AS-552, Pollution Prevention Guide, must be incorporated into the life cycle support plan and any other procedures governing material redistribution, recycling, and disposal.

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Other Topics Considered

Start Request for Proposals (RFP) Development topic, Prepare Project task, Process Step 2: Evaluate Sources

Develop Preliminary Investment Recovery Plan topic, Develop Sourcing Strategy task, Process Step 2: Evaluate Sources

Clauses & Provisions

Provision 2-8: Investment Recovery

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