Derco, a Lockheed Martin company, has been awarded a critical Performance Based Logistics (PBL) contract by the Defense Logistics Agency (DLA) for C-130 Hercules aviation consumables. This milestone agreement represents the first outcome-based sustainment program of its kind between DLA and Lockheed Martin, focusing on maximizing aircraft readiness.
The C-130 Aviation Consumables PBL contract is designed to ensure high material availability and enhance mission capability rates for the legendary Hercules fleet. Under this performance-driven model, Derco will manage a comprehensive supply chain solution for new spare parts. This includes advanced demand forecasting, strategic inventory management, dedicated warehousing, engineering support, and the deployment of field service representatives.
“We are thrilled to partner with the DLA in support of the C-130 and share in their mission of driving warfighter readiness,” said Kathy Medalle, Derco president and general manager. “This award is a testament to our strong working relationship and joint commitment to innovation and excellence in sustainment.”
This contract builds upon Derco’s 45-year legacy in aerospace sustainment and underscores a shared focus on operational results rather than traditional transactional supply. By aligning incentives with readiness outcomes, the partnership aims to deliver more efficient and effective support to C-130 operators worldwide.
The Lockheed Martin C-130 Hercules, a tactical airlift mainstay for over 70 years, performs essential roles from cargo transport and humanitarian aid to special operations. Reliable sustainment is paramount to its continued global mission success.
Through this strategic partnership, Derco reaffirms its dedication to delivering innovative logistics solutions, supporting small business growth within the supply chain, and ultimately contributing to national security by keeping the C-130 fleet mission-ready.

