By Staff Writer | November 1, 2007
The U.S. Army has awarded Boeing’s Integrated Defense Systems unit a $173-million contract to provide "performance-based logistics" for its AH-64D Apache attack helicopters over the next three years.
A performance-based logistics contract makes the contractor rather than its customer responsible for managing the supply chain, monitoring parts obsolescence, and eliminating inefficient or inadequate design elements.
The contract covers a wide variety of Apache subsystems, such as radar components, the air conditioning system that cools avionics, and other items unique to the AH-64D. It does not cover the airframe.
In effect, the contract makes Boeing responsible with the Army for the AH-64D’s readiness rate, said Peri Widener, the Boeing executive in charge of the program. "In the old days, you might have just bought parts from Boeing."
The Army’s Apaches, like other U.S. military helicopters, have logged far more hours and suffered far more damage in Iraq than is typical of peacetime, creating record maintenance and repair backlogs. The new contract is aimed at easing that problem for the AH-64D. It requires Boeing to have parts on hand at least 85 percent of the time.