Boeing Awarded Contract for C-17 from US DoD

Boeing has received a performance based logistics (PBL) contract from the U.S. Department of Defense for the C-17 Globemaster III Integrated Sustainment Program (GISP). In performance-based contracting, the customer pays for an agreed-to level of readiness and cost versus a traditional transactional spares-and-support contract for individual parts or services. Under the terms of the new GISP contract, Boeing will be responsible for C-17 sustainment activities including material management and depot maintenance support. Materials and labor have been negotiated and funded at $1.4 billion for fiscal year 2012. The $11.7 billion ceiling price period of performance is 2012 to 2021. C-17 GISP is based at a U.S. Air Force and Boeing combined program office at Robins Air Force Base, Ga. The partnership capitalizes on Boeing's experience working with Air Force depots to ensure readiness levels that consistently meet or exceed the warfighter's needs. "C-17 GISP is a proven successful system-level PBL program. Since 1998, in partnership with the Air Force, Boeing has provided the highest mission-capable rate in Air Force airlift -- over 85 percent -- and one of the lowest costs per flying hour," said Gus Urzua, Boeing vice president and C-17 GISP program manager. "This award marks the beginning of the Air Force's 10-year sole source sustainment strategy, and the program remains committed to continuing to deliver the best-value sustainment solution for our U.S. Air Force and international customers." Boeing became the first contractor to operate as an Air Force depot with the establishment of an inventory control point under the initial C-17 PBL contract award in 1998. The company took over the responsibility of forecasting, purchasing and material management for the C-17, as well as all C-17-unique support.