Boeing Determined to Maintain Texas-Based Defense Business

MILPLEX

A Boeing KC-135 aircraft.

by Staff Writers
St Louis MO (SPX) Aug 25, 2006
Boeing has announced that it will compete aggressively for the continuation of significant U.S. Air Force support programs in Texas when it submits proposals for maintenance, repair, overhaul and logistics program contracts for KC-135 and KC-10 aircraft later this year.

The work, currently performed by Boeing in San Antonio, would continue under the KC-135 Programmed Depot Maintenance (PDM) and the KC-10 Contractor Logistics Support (CLS) contracts that are both being re-competed this year. Although Boeing is the incumbent and performing very well on both programs, the company is taking nothing for granted.

"Boeing is dedicated to continuing our maintenance, modifications and support business in the state of Texas," said Pat Finneran, president, Boeing Support Systems. "Our performance is outstanding on these two programs, and our proposals are very competitive. As we have implemented employee involvement and more efficient lean processes throughout our operations in San Antonio, I think history will show from the perspective of cost, schedule and quality, the warfighter has never received a finer product.

"Our team is doing a great job and is increasingly performing ahead of schedule and under cost," Finneran continued. "We believe we have the best offering on both programs for the Air Force in terms of cost savings and quality with planes being away from the fleet for fewer days."

Loss of either the KC-135 or the KC-10 work in San Antonio would have a significant economic impact on Texas. In 2005, Boeing spent nearly $1.5 billion with suppliers based in 161 communities across the state. Its earnings in the state topped $381 million with Houston, San Antonio, Richardson and Dallas benefiting the most. More than 40 communities in the state benefited from Boeing's corporate giving campaigns and its employees' generosity.

Following base re-alignment and closure of Kelly Air Force Base, Boeing partnered with the local community and the state to establish its San Antonio facility as a world-class maintenance, repair and overhaul operation for military aircraft. Texas provided job training and incentives to expand the facilities at Kelly to accommodate aircraft maintenance and new paint operations.

Employing approximately 1,700 people, the San Antonio facility's current and projected U.S. Air Force programs include the KC-135 PDM, KC-135 Global Air Traffic Management, the KC-10 CLS, C-130 Avionics Modernization Program (AMP) installations and the C-17 Globemaster III Sustainment Partnerships. Competitions for the KC-135 PDM, KC-10 CLS and C-130 AMP installation contracts are expected to occur between 2006 and 2010.

MILPLEX

Saudi Arabia And Britain Complete 10 Billion Pound Defence Deal

London (AFP) Aug 18, 2006
Britain has signed an agreement with Saudi Arabia to provide it with 72 Eurofighter Typhoon jets, the Financial Times reported on Friday. The deal is worth 10 billion pounds (18.8 billion dollars, 14.7 billion euros), and could more than double in value over the next 25 years if BAE Systems, Britain's biggest defence manufacturer, maintains and upgrades the jets.

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