Korea Selects Boeing For F-15K, CH-47 Sustainment Contracts

The five-year contracts, issued from the Republic of Korea's Defense Acquisition Program Administration, aim to improve aircraft availability through the use of performance data to inform logistics and supply chain management, Boeing Korea said.

While Boeing has had PBL contracts for the F-15K fleet for more than a decade, the new agreement extends the contracts to the AEW&C and CH-47 fleets, according to a Boeing official in the region. 

"Our partnership with Korea is continuing to grow as we shift from transactional support approaches to customized models driven by agreed-to readiness outcomes," Thom Breckenridge, senior director of Far East Programs for Boeing International Government & Defence, said in a statement.

Boeing said that in executing the contracts, it intends to partner with local industry as well as deploy its integrated logistics model to coordinate supply chain forecasting, procurement, delivery, maintenance training and risk-management practices. Boeing Korea employees more than 200 people and has established relationships with more than 50 local industry partners, it said.

Boeing said it will also apply data analytics with an eye towards improving the effectiveness of the PBL approach.

"Through the data they generate, these platforms are already telling us how to extend the life of parts and components, when to defer or elevate maintenance activities and how to focus training on actions that are most imminent," Torbjorn Sjogren, vice president and general manager for Boeing International Government & Defence, said in a statement. "Applying data analytics to these PBLs is a very practical yet powerful way to maximize our customer's investment and support successful military operations in a critical region."  

News of the PBL contracts comes as Boeing announced Monday that it is expecting $70 billion in defense revenue opportunities in the Asia-Pacific region during the next five years, largely due to demand for intelligence, surveillance, and reconnaissance capabilities such as P-8 and autonomous systems, fighter and training aircraft, vertical lift and attack helicopters.

"We see nations seeking to enhance and build indigenous capability to grow their aerospace industry and contribute to their national defense,” Maria Laine, vice president, Business Development, said in a statement.