US NAVY HANDS
PHALANX SUPPORT TO RAYTHEON TEAM
The US Navy has
issued its first contract under its Inventory Control Point Direct
Vendor Delivery (DVD) initiative, designed to throw the responsibility
for re-supply of parts and services on the private sector. Under the
five-year contract valued at $96.8 million, Raytheon, with United
Parcel Service's UPS Logistics Group, will provide Phalanx Close-In
Weapon System parts and services to the Navy.
Under this initiative,
the Raytheon-led team will serve as the government's commercial stock
point (CSP) for all Phalanx spares and repairables. As the CSP, Raytheon
will perform all inventory management functions for spare parts including
spares repair and new acquisition, receiving, shipping, tracking warehousing,
reporting and scheduling. The UPS Logistics Group will provide distribution
and inventory management services on Raytheon's behalf.
"This award
gives Raytheon and our initiative partner, UPS Logistics Group, the
opportunity to provide the Navy with a true Centre of Life-Cycle Agile
Support Services,'' said Louise L. Francesconi, Raytheon executive
vice president and general manager of the company's Missile Systems
unit. "We are both setting a precedent and a standard under this
agreement. The US Navy is putting its trust in us to provide the most
cost-effective and agile system for Phalanx life-cycle support. As
this system succeeds, we will be well positioned to provide the same
outstanding services for other Navy programmes. We look forward to
doing so.''
This is the first
DVD initiative to provide the full range of services envisioned by
the Navy when it first proposed the DVD concept to industry. The work
conducted under this contract will be performed at Raytheon's Missile
Systems facility and at the UPS Logistics and Technology Centre, both
in Louisville.
DEFENCE SYSTEMS
DAILY 12.04.00
