Boeing (NYSE: BA) and the Canadian government have agreed to an amendment to an existing performance-based logistics (PBL) contract. Under the $313 million fixed-price amendment, Boeing will continue to provide full system logistics, engineering support, supply chain, data analytics and training services to the Royal Canadian Air Force’s (RCAF) fleet of 15 CH-147F Chinooks through 2023.
Operating under a 20-year performance-based sustainment and training contract since 2013, the RCAF reviews its Chinook fleet support requirements every five years.
“We look forward to continuing our support of the Royal Canadian Air Force and its effort to reduce maintenance costs through this long-term agreement,” said Turbo Sjogren, vice president of International Government Services, Boeing Global Services. “PBLs have a proven track record of increasing system availability, decreasing maintenance cycles through the use of predictive maintenance tools, and reducing overall ownership costs.”
Unlike traditional contracts based on payment for specific parts and services, under a PBL agreement, the customer pays for a support package with an agreed-to level of readiness, which can lower costs while increasing mission-capability rates. Boeing supports PBL contracts with customers around the world and across multiple platforms, including the Chinook.
Through this contract, Boeing will also continue to work with companies across Canada in support of the country’s Industrial and Regional Benefits Policy, which supports long-term opportunities for the Canadian aerospace industry and workforce. Currently, Boeing works with nearly 560 Canadian suppliers, and the company employs approximately 2,000 highly skilled workers throughout the country.
Boeing Global Services, headquartered in the Dallas area, was formed by integrating the services capabilities of the government, space and commercial sectors into a single, customer-focused business. Operating as a third business unit of Boeing, Global Services provides agile, cost-competitive services to commercial and government customers worldwide.