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Boeing to Provide Logistics Support for CH-47

by: Matthew Potter
October 18, 2012

Category: Boeing, Business Line, Companies, Contract Awards, Events, logistics, Military Aviation, Services, U.S. Army | RSS 2.0

The U.S. Army has invested billions in rotary wing aviation over the last ten years. The UH-60, AH-64, CH-47 and OH-58D have flown millions of hours in support of fighting in Afghanistan and Iraq. At the same time they have developed and put into operation new versions of the aircraft such as the UH-60M and CH-47F. These aircraft have required intensive maintenance, support and modification due to the demands of the last decade.

Boeing (BA) as the manufacturer of the CH-47 also has benefited through these demands by providing logistic support to the aircraft. It recently received a contract for Performance Based Logistics (PBL) for the main rotor blades of the CH-47. The contract is for 5 years and worth almost $200 million. Rotor blades need to be repaired and rebuilt due to the harsh environments in Iraq and Afghanistan that often cause erosion and wear.

PBL is a current trend in U.S. military logistics support where the government is buying a level of support measured through metrics. This is supposed to be more efficient and cost effective as it minimizes buying too much support and reduces stockpiling of parts. Logistic contracts like this are a boon to the OEM for systems as they often for the first several years a system is in use get most of the support work. Depending on how much of the technical data owned by the Pentagon it may be they are the only ones who can do it and make billions over the life cycle of the system.

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