C-17 program sets standard for public-private partnership

ARLINGTON, Va., June 3 (UPI) -- One successful Performance-Based Assessment is the Boeing C-17 Globemaster III Sustainment Partnership.

This program encompasses a wide range of logistics activities including field support, depot-level maintenance, supply-chain management, and aircraft modifications and upgrades. Under the Globemaster III Sustainment Partnership Performance-Based Agreement, Boeing is responsible for providing consistent sustainment support at continuously raised benchmarked levels.

Product support is thus managed through a long-term performance-based partnership between Boeing and the customers for its C-17 Globemaster III heavy air-lifter, or military air transport, which now include the U.S. Air Force, the British Royal Air Force, the Royal Australian Air Force, the Canadian Forces, and the U.S.-led and Brussels-based North Atlantic Treaty Organization.

When the C-17 Globemaster III Sustainment Partnership contract was awarded to Boeing in 1998, that company became the first contractor to operate as a U.S. Air Force depot with the establishment of an inventory control point. Boeing took over the responsibility of forecasting, purchasing and material management for the C-17 Globemaster, its F117 engine and all C-17-unique support. This enabled the Boeing team to achieve economies of scale through the purchase of supplies for the worldwide C-17 fleet.

The GSP is a public-private partnership, also known as a PPP. Boeing has direct-sales partnership agreements with each of the three Air Logistics Centers at Warner-Robins Air Force Base in Georgia; Hill Air Force Base in Utah; and Tinker Air Force Base in Oklahoma.

The ALCs perform a variety of C-17 airframe and individual component repair actions. The arrangement allows Boeing to request an Air Logistics Center to perform specific workloads as part of the public-private partnership arrangement.

Boeing has invested corporate funds in Warner-Robins to improve the Air Logistics Center's ability to conduct work under the Globemaster III Sustainment Partnership. Boeing has spent more than $60 million on improvements to facilities at Warner-Robins in support of the C-17 Globemaster III Sustainment Partnership. These investments included remodeling of the primary hangar used for C-17 Globemaster maintenance, auxiliary power unit generators, landing gear repair equipment and wing maintenance stands.

The Globemaster III Sustainment Partnership is not limited to maintenance and repair of the C-17 fleet. Under the Material Improvement Project program, Boeing and the Air Logistics Centers are responsible for many upgrades and retrofits to older C-17 Globemasters. The Globemaster III Sustainment Partnership program permits Boeing to create a seamless flow between new models of C-17 Globemasters coming off the production line and the upgrades to the older aircraft. The public-private partnership with the Air Logistics Centers also ensures that the organic base is skilled in the maintenance of all models of the aircraft.

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Part 8: Applying the Performance-Based Logistics model on a larger scale

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(Daniel Goure is vice president of the Lexington Institute, an independent think tank in Arlington, Va.)

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(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)