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Raytheon Company has signed its first commercial performance based logistics contract with RUAG Switzerland Ltd., a five-year agreement to service the ALR-67(V)3, an advanced digital radar warning receiver, for the Swiss government. The ALR-67(V)3 warns F-18 pilots of potentially hostile activities, offering real-time situational awareness.
"A PBL is like a service contract you'd buy with a car that recognizes extended use requires maintenance and periodic fixes," said Michael Baladjanian, director at Raytheon Space and Airborne Systems. "In this case, we will leverage our know-how and experience sustaining the 67(V)3 to enable a nearly 100-percent-supply availability of the system."
A recognized PBL Gold Standard awardee with the U.S. Department of Defense, Raytheon has successfully maintained the U.S. Navy ALR-67(V)3 PBL contract for 17 years. Under the Navy PBL, Raytheon's ability to sustain systems drastically improved the mean flight hours between issues by more than 50 percent.
The commercial PBL represents the first of its kind for Switzerland, providing access to the experience and success from Raytheon's existing Navy PBL while maintaining control of their systems.
"Instead of defining rigid program requirements, PBLs define performance metric outcomes," said Baladjanian. "It focuses on support versus design and development. Our two key metrics for this PBL are availability and reliability."
Raytheon Company, with 2015 sales of $23 billion and 61,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 94 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects, and mission support for customers in more than 80 countries.