LOUISVILLE, Ky., April 11 /PRNewswire/ -- Under a five-year contract
valued at $96.8 million, Raytheon Company (NYSE: RTNA, RTNB), with United
Parcel Service's (NYSE: UPS) UPS Logistics Group, will provide Phalanx Close-
In Weapon System parts and services to the U.S. Navy under the Navy's
Inventory Control Point Direct Vendor Delivery (DVD) initiative.
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 Center, both in
Louisville.
Under this initiative, the Raytheon-lead 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 Center 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 U.S. 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 programs.
We look forward to doing so."
"We appreciate the opportunity to utilize our commercial management
practices in support of this direct vendor delivery initiative," said Dan
DiMaggio, UPS Logistics Group's Chief Executive Officer. "This contract will
showcase our logistics systems and physical distribution capabilities."
UPS Logistics Group is a wholly owned subsidiary of United Parcel Service.
The company provides global supply chain solutions.
Raytheon Company, based in Lexington, Mass., is a global technology leader
that provides products and services in the areas of commercial and defense
electronics, engineering and construction, and business and special mission
aircraft. Raytheon has operations throughout the United States and serves
customers in more than 80 countries.
Contact: John Eagles
502.364.6768
http://www.raytheon.com
SOURCE Raytheon Company
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