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Sunday, Oct 23, 2016

Boeing, DLA Exercise $223 M Combat Logistics Support Agreement

  • Total Five-Year Contract Value Reaches $516 Million

Boeing [NYSE: BA] and the U.S. Defense Logistics Agency (DLA) signed the second phase of a performance-based contract that reduces combat logistics support costs while enhancing warfighter readiness.

Under terms of the contract Boeing will provide support for 11 different aircraft including the F/A-18 Super Hornet; AH-64 Apache; AV-8B Harrier; B-52 Stratofortress; C-17 Globemaster III and associated ground support equipment. Work will be administered from St. Louis.

"Warfighters executing their missions rely on their systems being ready when they need them,” said Julie Praiss, Boeing vice president, Tactical Aircraft & Weapons Support. “In addition, our customers have said they need greater value in their logistics support. Providing improved performance at lower cost is what Boeing is all about."

The contract, worth $223 million, is the second of two awards under a five-year agreement signed in Sept. 2014. The total contract value is $516 million. DLA has a follow-on option for an additional five years.

This long-term partnership resulted from a 2012 DLA industry challenge to reduce costs by 20 percent and improve overall supply performance. Boeing and the DLA continue collaborating on new ways to streamline processes, enhance performance and improve affordability.

Source : The Boeing Company (NYSE: BA) - view original press release

Published on ASDNews: Feb 3, 2015


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