Defense Logistics Agency to Partner with Boeing for Another Decade of Supply Chain Support
NEW DELHI: The Defense Logistics Agency (DLA) and Boeing recently agreed to a follow-on contract for future sustainment support of military services across multiple Boeing platforms, enabling Boeing and DLA to continue support through the extension of existing programs up to a ceiling value of $15 billion over 10 years. Boeing will continue to provide an inventory of parts and logistics support and services to maintain nearly every Boeing military platform, including the KC-46 Tanker, AH-64 Apache, F-15, and F/A-18.
This is the second contract under the Boeing Captains of Industry (BCOI) program, which was stood up in support of DLA’s initiative to create a more efficient defense supply chain. Rather than having thousands of contracts for individual parts, Boeing and DLA collaborate to forecast the need for common parts and components across platforms, which are then pooled under a single contract.
“This contract will help us to serve our customers more efficiently, and supports the health and readiness of our supply chain for the next decade,” said Dan Gillian, vice president of U.S. Government Services for Boeing. “Moving forward, we aspire to further enable our supply chain processes by connecting Boeing’s analytics capabilities with customer data to better predict where and when parts will be needed.”
Boeing has a large and diverse global supply chain network supporting both proprietary parts and common consumables for a wide variety of Boeing and non-Boeing platforms and products. Boeing is also utilizing its digital capabilities to provide enhanced supply chain solutions. Additionally, Boeing leverages its global distribution business to expand its offerings across commercial and government markets, which requires experience with Federal Aviation Agency rules and procedures – particularly for commercial derivative aircraft like the KC-46.
Since the first BCOI contract was awarded in 2014, the U.S. Government has awarded Boeing more than $6 billion in supply chain support contracts.
