Here’s why investing in ILS during a Defence tender pays off

Integrated Logistic Support (ILS) governs how a system stays operational after delivery. In the tenders I see, ILS keeps coming back as a requirement.

Defence does not buy a product, but an operational capability that must stay operational for decades. Sustainment therefore weighs as heavily as the technology itself. The question behind every ILS requirement is: what does it cost to keep this system running for the coming decades?

Once 20% of life cycle costs have been spent, more than 80% of them are already locked in. This is shown by a statistical analysis of Department of Defense projects by the Defense Acquisition University. (Opens in new tab) The National Research Council cites that analysis in the report Examination of the U.S. Air Force's Aircraft Sustainment Needs in the Future and Its Strategy to Meet Those Needs (2011, chapter 3).

The figure comes from American defence projects. It is not about your investment, but about Defence's challenge of keeping a system operational after delivery. This is how I read it: that challenge weighs on every tender.

In my experience, few suppliers deliver a system with a fully developed support concept. Rarely because they don't want to deliver ILS. Mostly because they:

So they push it back. Another project, another tender, postponed again.

Defence cannot stop procuring because suppliers don't have ILS in place. The operational need doesn't wait, and the reasons behind ILS requirements remain. Tenders therefore continue, even when the ILS response falls short. I see no hard market correction forcing suppliers to get this right after all.

If you decide to bid, ask yourself what budget and lead time you need to meet the requirement as well as possible. If you don't know, you are working with wrong assumptions. Then it is easier to let the requirement go than to price yourself out of the market or submit an offer you can't fully stand behind.

You don't have to go from 0 to 100% at once. A small first effort shows that you understand what Defence needs after delivery. That is more than compliance: it shows you are thinking along.

Setting up a full ILS package during the tender feels expensive and slow. That very fear holds companies back. In my experience, two limited steps do fit within the period in which you prepare your offer.

Analysis of critical spare parts
Map which spare parts are critical, what their lead time is, and where a shortage brings the system to a halt.

Early maintainability check
Can you show in a few sentences how a failure is fixed, by whom, and with what resources? A short check answers that.

I see that most competitors struggle with the same questions. So it is not about checking one more box than the rest. Anyone who gets started with ILS, even with a small part at an early stage, stands out. And I expect this to also stand out to customers in the commercial sector who are looking for a supplier that understands their world.

This also applies to suppliers who have worked for Defence for years. They too often get stuck in the same minimal approach per project. Every tender is a chance to take Integrated Logistic Support to a higher level. In the long run, the edge builds up for those who do it a little better every time, no matter how long you have been at it.

Companies know ILS is required and want to deliver it. Yet they let it slide, because the first step feels unclear. That ILS makes a positive contribution is beyond doubt. The question is how to not let the unknown hold you back and take the first step.

From experience, I know that first step is usually smaller than expected. That is where you make the difference.

Want to know what a first ILS step looks like for your system? Contact me. I'm happy to help you get the most out of ILS for your business.