Boeing, DLA Exercise $223 Million Combat Logistics Support Agreement
Total five-year contract value reaches $516 million
ST. LOUIS, Feb. 3, 2015 – 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.
A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world’s largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $31 billion business with 53,000 employees worldwide. Follow us on Twitter: @BoeingDefense.
Source: Boeing Defense, Space & Security