Sustainment Transition Capabilities

The Sustainment Transition Capabilities program, as outlined in Program Element (PE) 0606829D8Z, is managed by the Office of the Secretary of Defense and represents a new start for FY 2026. The primary goal of this program is to facilitate the transition of sustainment functions for the F-35 program from the Joint Program Office (JPO) to the Military Departments (MILDEPs), specifically the Air Force and Navy, in accordance with Section 142 of the FY 2022 National Defense Authorization Act (NDAA). This transition is mandated to be completed by the end of 2027, with Initial Operating Capability (IOC) for the MILDEPs as Inventory Control Points (ICPs) by that time, and Full Operating Capability (FOC) by the end of 2029.

A key objective of the Sustainment Transition Capabilities program is the development and implementation of a Logistics Information Technology (LogIT) network. This network will enable secure and standardized data exchange between Department of Defense (DoD) systems and F-35 prime vendor systems, using Defense Logistics Management Standard (DLMS) transactions. The LogIT network is essential for providing full asset visibility, enabling financial transactions, and supporting ICP accountability operations.

The program will deliver the necessary data architecture to allow the MILDEPs to assume full ICP responsibilities, which includes demand planning, procurement, and repair of F-35 spares.

The program addresses a significant challenge: F-35 spares are currently managed in prime vendor databases that do not conform to established DoD supply and inventory control processes. This lack of standardization has prevented the DoD from capitalizing parts and assuming ICP responsibilities. The Sustainment Transition Capabilities initiative will establish data exchange mechanisms to transition the spares inventory into MILDEP-managed ICPs for lifecycle management.

This will involve provisioning and cataloging the spares, converting them to National Stock Numbers (NSNs), and integrating them into the Defense Logistics Agency's (DLA) Warehouse Management System (WMS) for global inventory management.

Another critical objective is compliance with Section 1005 of the FY 2024 NDAA, which requires the DoD to achieve an unmodified audit opinion by the end of 2028. To meet this requirement, the program will design and implement data architecture that supports automated data transfer between prime vendors and DoD business systems. The Deputy Chief Finance Officer (DCFO) has set a milestone for October 2026 for financial reporting, requiring two years of clean data to support the audit mandate.

Early development, testing, and validation of the data architecture are planned for 2026, with incremental enhancements in FY 2027 and FY 2028 to support the full transition.

The program specifically focuses on validating required data elements from prime vendors to support DLMS transactions and audit data delivery. Proposals will be solicited and contracts awarded early in FY 2026 to ensure timely data delivery. Collaboration with DLA, JPO, and MILDEPs will be central to designing and prototyping the data architecture, with implementation and testing scheduled for mid-FY 2026.

The program will also coordinate necessary changes within MILDEP business systems to accommodate the new architecture and support the transition to ICP functions.

The acquisition strategy for Sustainment Transition Capabilities includes the use of Other Transactional Authority (OTA) agreements to prototype and define the data architecture. Technical Interchange Meetings (TIMs) with industry partners will validate data delivery requirements, cost, and schedule expectations. Program Increment Planning sessions will further refine the use of DAAS (Defense Automated Addressing System) as a data broker and translator, ensuring that both audit and sustainment transition requirements are met.

Follow-on investments in FY 2027 and FY 2028 will address any additional work needed within DLA or the MILDEPs to complete the architecture and enable full operational capability.