The US Defense Logistics Agency (DLA) has awarded a Performance Based Logistics (PBL) contract to Boeing to support several weapons systems platforms.
The contract is worth $477m and will be carried out under a fixed-price, master services agreement.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It covers the provision of supplies, complete supply chain management and logistics services.
This is expected to guarantee the various weapon systems continue to receive affordable sustainment over the long-term.
As per operational performance needs, Boeing will offer support to specific contracts.
Under the first phase, valued at $39m, the company be responsible for the delivery and supply chain management of Honeywell parts that are licensed to Boeing.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBoeing Global Integrated Services Support director John Guasto said: “Boeing’s supply chain management and distribution capabilities will help ensure parts are accessible whenever and wherever they are needed based on their use, while reducing inventory and logistics lifecycle costs.”
The company will also ensure that the ‘individually priced consumables’ are available at troop locations to meet their day-to-day requirements.
Work is expected to be completed over a period of five years with another five-year option.
The contract follows a three-year, $149.5m delivery order placed by DLA to supply consumable parts for the US Air Force’s KC-46 Pegasus tanker aircraft.
In July, Boeing signed direct commercial sale (DCS) agreement with Mitsubishi Heavy Industries (MHI) for the upgrade of Japan Air Self-Defense Force’s (JASDF) ageing fleet of Mitsubishi F-15J.
Under the DCS, up to 98 aircraft will receive the latest electronic warfare and weapons. Work under the programme is scheduled to commence in 2022.
