Boeing Wins $2 Billion USAF C-17 Sustainment Contract

Boeing has won a $2 billion follow-on contract from the U.S Department of Defense for the C-17 Globemaster III Integrated Sustainment Program (GISP). The program 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) program, 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 U.S. assets as a designated Inventory Control Point – has allowed Boeing to apply innovative spares forecasting and modeling tools to maximize aircraft availability while lowering costs. “This contract award and the recognition from the secretary of defense are testaments to the long-standing partnership between the U.S. Air Force and Boeing,” said Gus Urzua, Boeing vice president and GISP program manager.