Boe­ing re­ceives $2 bil­lion C-17 air­craft sus­tain­ment con­tract


Boe­ing will con­tinue as­sur­ing the world­wide avail­abil­ity of C-17 air­craft, which pro­vide vi­tal mil­i­tary and hu­man­i­tar­ian air­lift ca­pa­bil­ity, through a $2 bil­lion fol­low-on con­tract it re­cently re­ceived from the US De­part­ment of De­fense. The C-17 Globe­mas­ter III in­te­grated sus­tain­ment pro­gramme (GISP) pro­vides sup­port ser­vices such as fore­cast­ing, pur­chas­ing and ma­te­rial man­age­ment for the C-17 and all C-17 unique sup­port. This per­for­mance-based lo­gis­tics (PBL) pro­gramme, which started in 1998 with 42 air­craft, now cov­ers 246 world­wide. It pro­vides lower costs through economies of scale from sup­port­ing the en­tire global fleet. The lat­est con­tract cov­ers fis­cal years 2013 through 2017.

Un­der a PBL ar­range­ment, a cus­tomer re­ceives an agreed-to level of sys­tem readi­ness, as op­posed to a tra­di­tional con­tract for spe­cific spare parts and sup­port ser­vices. This in­te­grated lo­gis­tics ap­proach — in which Boe­ing man­ages US as­sets as a des­ig­nated in­ven­tory con­trol point — has al­lowed Boe­ing to ap­ply in­no­va­tive spares fore­cast­ing and mod­el­ing tools to max­imise air­craft avail­abil­ity while low­er­ing costs. In many cases, Boe­ing has pro­vided readi­ness lev­els be­yond those spelled out in the agree­ments.

The De­part­ment of De­fense re­cently recog­nised the US Air Force-Boe­ing GISP team with the 2012 Sec­re­tary of De­fense “sys­tem-level” PBL Award.

“This con­tract award and the recog­ni­tion from the Sec­re­tary of De­fense are tes­ta­ments to the long-stand­ing part­ner­ship be­tween the US Air Force and Boe­ing,” said Gus Urzua, Boe­ing Vice Pres­i­dent and GISP Pro­gram Man­ager.

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