The U.S. Department of Defense (DOD) expects to save hundreds of millions of dollars annually under performance-based logistics (PBL) contracts, where aerospace and defense contractors are paid to deliver operational readiness of weapons platforms rather than spare parts.
Recently, the Pentagon recognized Boeing, GE-Aviation, Raytheon, and their military branch partners with the Third Annual Secretary of Defense PBL Awards, jointly developed by the DOD and the Aerospace Industries Association.
Boeing won the System Level Award, along with the U.S. Navy, for the F/A-18 Integrated Readiness Supply Teaming program, which provides support equipment, training, maintenance planning, technical data, and other services to Navy fighter crews. It enabled Super Hornet mission-capable rates to increase from 57% in May 2000 to 73% in May 2007.
Raytheon and the U.S. Army won the Sub-System Level Award for logistics support for the Improved Target Acquisition System (ITAS), which is used to guide TOW (tube-launched, optically tracked, wire-guided) missiles. The program uses existing infrastructure to maximize Army depot support of items common to ITAS and the M220 Ground TOW 2 missile system. Raytheon’s performance exceeded all contract requirements, including over 99% average operational readiness and predicted costs savings of $300 million.
GE-Aviation and the U.S. Navy were recognized with the Component Level Award for the T700 aircraft engine, which powers the H-60 Seahawk and the AH-1W SuperCobra helicopters. GE-Aviation’s contract provides complete repair and replacement support for the four components making up the engine core. The PBL program delivered an average of 99% first-pass material availability, up from 64%, plus zero back-ordered parts and a 3.4% price reduction. The program netted the Navy an additional $18.7 million in cost avoidance.