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CPI Aerostructures to provide wing components and logistical support to global F-16 fighter jets fleet.


| 2014
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World Defense & Security Industry News - CPI Aerostructures

 
 
CPI Aerostructures to provide wing components and logistical support to global F-16 fighter jets fleet
 
CPI Aerostructures, Inc. announced on Monday, November 17, that it has received a U.S. Government prime contract from the Defense Logistics Agency (DLA) to provide structural wing components and logistical support for global F-16 aircraft maintenance, repair and overhaul operations. DLA Aviation, Richmond, VA is the contracting activity. CPI Aero will support wing MRO efforts for both the U.S. fleet of more than 1,000 F-16 aircraft as well as the nearly 1,900 F-16s flown by air forces around the world.
     
CPI Aerostructures, Inc. announced on Monday, November 17, that it has received a U.S. Government prime contract from the Defense Logistics Agency (DLA) to provide structural wing components and logistical support for global F-16 aircraft maintenance, repair and overhaul operations. DLA Aviation, Richmond, VA is the contracting activity. CPI Aero will support wing MRO efforts for both the U.S. fleet of more than 1,000 F-16 aircraft as well as the nearly 1,900 F-16s flown by air forces around the world. CPI Aero will be the single supplier of 439 structural wing parts used to maintain, repair and overhaul the F-16 aircraft
     
The term of the contract is for a period of 5 years, with a single option for an additional 3-year period. The Company estimates the value of the contract, including options, to be approximately $53.5 million.

Under this Firm Fixed Price, Indefinite Delivery Indefinite Quantity contract, CPI Aero will be the single supplier of 439 structural wing parts used to maintain, repair and overhaul the F-16 aircraft. This is an integrated support contract that includes parts acquisition, stocking, and order fulfillment, as well as technical data management, configuration control, supply chain management, forecasting and inventory management. CPI Aero will also provide engineering support services for obsolescence management and diminishing manufacturing source challenges.

CPI Aero will establish and manage an inventory distribution site within the F-16 Wing Shop at the Ogden Air Logistics Center in Ogden, UT where it will maintain stock and fulfill requirements for the MRO operations of the U.S. fleet of F-16s. CPI Aero will stock the inventory needed to support the world wide F-16 fleet requirements at its Edgewood, NY location. CPI Aero will subcontract Lockheed Martin, the Original Equipment Manufacturer (OEM) of the F-16 aircraft, for program technical support. This new contract is expected to improve parts availability, decrease wing repair leadtime, and increase F-16 mission readiness.

Douglas McCrosson, President and CEO of CPI Aero, stated, "This is the largest contract we have received from the U.S. Government in more than a decade and re-establishes CPI Aero as one of the nation's leading small business prime contractors of military aircraft structure. With this award, we have gained a footprint on a new platform for us, the F-16, one of the world's most popular military aircraft, with approximately 2,900 aircraft flying in the air forces of 28 nations."

Mr. McCrosson continued, "We have strategically invested in developing world class, OEM/Tier 1 caliber engineering and global supply chain management capabilities to support our growing manufacturing and assembly operations. It is gratifying to know that this demonstrated ability raised CPI Aero above a very capable field of competitors. This new contract, along with our recently announced $86 million contract for E-2D wing panel kits, validates our strategy to pursue large scale integrated supply chain services programs that capitalize on our investments."

 
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