Boeing secures $313 M deal to service Canada’s Chinook Helicopters
Contract covers full system logistics, engineering support, supply chain, data analytics and training services.0
The Canadian government has agreed to amend and extend its existing performance-based logistics (PBL) contract with Boeing.
With the $313 million fixed-price amendment, Boeing will continue to be responsible for providing 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.
The CH-147F Chinook is an advanced, multi-mission, medium to heavy-lift helicopter. The RCAF uses the Chinook to transport equipment and personnel during domestic or deployed operations as well as for humanitarian aid missions.
Since 2013, the RCAF has been operating under a 20-year performance-based sustainment and training contract and 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.
Sjogren adds that performance-based logistics have a proven track record of increasing system availability, decreasing maintenance cycles through the use of predictive maintenance tools, and reducing overall ownership costs.
The PBL agreement is unlike traditional contracts where payment is made for specific parts and services. Under this 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.
Currently, Boeing works with nearly 560 Canadian suppliers, and the company employs approximately 2,000 highly skilled workers throughout the country. This contract will only expand Boeing’s reach and relationship with Canadian companies. Through this contract, Boeing will support the country’s Industrial and Regional Benefits Policy, which supports long-term opportunities for the Canadian aerospace industry and workforce.