The U.S. Army has awarded Lockheed Martin a Performance Based Logistics (PBL) follow-on contract to support the Target Acquisition Designation Sight/Pilot Night Vision Sensor (TADS/PNVS) and Modernized TADS/PNVS (M-TADS/PNVS) systems on the AH-64 Apache helicopter. The contract has a potential value of $76.6 million for 2008.

The original PBL contract, awarded in early 2007, established a system of continuous improvements supporting the AH-64 Apache TADS/PNVS and M-TADS/PNVS programs. The PBL contract provides complete post-production supply chain management, including spares planning, procurement, repairs, maintenance, modifications and inventory management of fielded systems. The value of the first year of the contract was $117.8 million.

"For Department of Defense contracting, PBL is a strategy for weapon system product support that employs an integrated, affordable performance package designed to optimize system readiness," said Dave Belvin, Apache TADS and Support Programs director at Lockheed Martin Missiles and Fire Control. "PBL is intended to save operating and support costs by having the prime contractor assume responsibility for total performance of a system. Our team is in position and is providing a cost-effective support solution that meets the needs of our Warfighters."

The PBL program shortens the length of the supply pipeline, enabling the U.S. Army to receive spare parts more quickly. More efficient supply management reduces operation and support cost burdens, providing funds for continuing system modernization and reliability improvements. To date, the Apache PBL program has been credited with improving fleet readiness, requisition fills, reducing the average flying-hour cost and the U.S. Army's long term inventory investment.

"This PBL program will reduce the length of the supply pipeline, enabling the U.S. Army to receive spare parts quicker," said Belvin. "More efficient supply management will reduce operation and support cost burdens, providing funds for continuing system modernization and reliability improvements."

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation reported 2007 sales of $41.9 billion.

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SOURCE: Lockheed Martin