Lockheed Martin has transitioned additional F-35 suppliers to longer-term Performance Based Logistics contracts and Master Repair Agreements to enhance supply availability and reduce sustainment costs.
Previously under annual contracts, the new multi-year PBLs allow each company to make longer term investments and actions to reduce costs and improve efficiencies. In addition to PBL contracts, Lockheed Martin has established 12 Master Repair Agreements (MRAs) with key suppliers to enhance repair capacity and speed.
The PBLs cover several contracts with BAE Systems, Northrop Grumman and Collins Elbit Vision Systems (CEVS); and the MRAs cover contracts with 12 separate suppliers including Honeywell, GE and Eaton.
The initial multi-year contracts are already delivering benefits. A 2017 PBL contract awarded to BAE Systems for the Electronic Warfare subsystem is helping deliver a 25% improvement in the system’s availability throughout global operations.
Greg Ulmer, Lockheed Martin Vice President and General Manager of the F-35 program, said: “As the F-35 fleet expands, we are partnering with our customers and taking aggressive actions to enhance F-35 readiness and reduce sustainment costs.
“The F-35 global supply chain is a key enabler to success, and we’re restructuring and streamlining several contracts with key industry partners to provide the long-term stability that will allow them to make investments, improve efficiencies and optimize their performance. This is one of several actions we’re taking across the supply chain to improve capacity, reduce costs and enhance supply availability.”
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