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Boeing given C-17 sustainment contract

Oct. 11, 2011 at 10:29 AM
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ST. LOUIS, Oct. 11 (UPI) -- The U.S. Defense Department has awarded Boeing a performance-based logistics contract for the C-17 Globemaster III Integrated Sustainment Program.

Under the terms of the 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 2012-21.

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.

"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."

C-17 GISP has headquarters 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.

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