PTC Announces Servigistics Expansion with the U.S. Air Force

Rhea-AI Summary

PTC (NASDAQ: PTC) has secured a five-year contract with the United States Air Force (USAF) to expand its Servigistics Service Parts Management SaaS solution. This expansion is potentially worth up to $95 million if all options are exercised, supporting the USAF's ESCAPE supply chain program. The contract aims to enhance asset availability and optimize the service parts supply chain valued at $76 billion. PTC's solution is expected to improve readiness and reduce legacy system reliance.

Positive

• Contract worth up to $95 million enhances long-term revenue prospects.
• Supports a $76 billion service parts supply chain, boosting operational efficiency.
• Continues PTC's successful collaboration with the USAF, enhancing credibility.

Negative

• None.

BOSTON, Jan. 18, 2022 /PRNewswire/ -- PTC (NASDAQ: PTC) today announced that the United States Air Force (USAF) is expanding its use of PTC's Servigistics^® Service Parts Management SaaS solution for its supply chain modernization program, ESCAPE. The expansion is a five-year definitive contract consisting of a one-year base period and four one-year options that are worth up to $95 million if all options are exercised.

U.S. Air Force expands use of PTC's Servigistics Service Parts Management SaaS solution.

The USAF's Sustainment Center's 448^th Supply Chain Management Wing is responsible for the ESCAPE – Enterprise Supply Chain Analysis, Planning, and Execution – program and is made up of 3,000 personnel supporting the USAF's global readiness.

The USAF is leveraging Servigistics as the sole-source provider to plan and optimize its $76 billion service parts supply chain tuned to asset availability. This expansion builds on the success of prior years' Servigistics deployments and enables the USAF to adopt additional functionality, phase out legacy systems, consolidate IT costs, and further improve readiness.

"Our principal objective is maximizing the readiness of assets and equipment," said Abigail Strobell, Program Manager with the Air Force Materiel Command at the Department of Defense. "It is an immense and complex challenge. PTC's Servigistics solution gives us confidence from a proven track record of success and powerful capabilities that will enable us to optimize our service parts supply chain."

Servigistics supports ESCAPE's effort to modernize planning and forecasting, increase aircraft availability and improve mission support functions while investing taxpayer funding in optimal parts inventory. The ESCAPE effort supports business process and systems re-engineering efforts with fully deployed future state environment functionality and capability.

"The U.S. Air Force has one of the most sophisticated and complex service parts supply chain operations in the world," said Leslie Paulson, General Manager, Servigistics Business Unit, PTC. "By embracing digital solutions like Servigistics, the USAF is transforming its service parts supply chain to optimize planning and logistics with its OEM network and strengthening the digital thread."

Added PTC President and CEO Jim Heppelmann: "PTC is proud to continue supporting the USAF's digital transformation and modernization efforts to better ensure the readiness of assets and equipment."

For federal, aerospace, and defense organizations, Servigistics surpasses the most stringent standards and rigorous vetting processes and is deployed within the USAF, Coast Guard, and with OEMs, including Boeing, Lockheed Martin, Northrop Grumman, and others.

Additional Resources:

• IDC MarketScape for Worldwide Manufacturing Service Parts Management Applications 2021-2022
• Boeing Global Services Optimizes Immense Service Parts Network with Innovative Technology
• Digital Transformation Crossroads: The DoD, Technology, and Readiness
• Why is Demand Planning So Crucial for Military Aviation?

About PTC (NASDAQ: PTC)

PTC enables global manufacturers to realize double-digit impact with software solutions that enable them to accelerate product and service innovation, improve operational efficiency, and increase workforce productivity. In combination with an extensive partner network, PTC provides customers flexibility in how its technology can be deployed to drive digital transformation – on premises, in the cloud, or via its pure SaaS platform. At PTC, we don't just imagine a better world, we enable it.

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Media Contacts
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Gabrielle Farrell
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PTC, Servigistics, and the PTC logo are trademarks or registered trademarks of PTC Inc. or its subsidiaries in the United States and other countries.

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SOURCE PTC Inc.

FAQ

What is the value of the contract PTC has with the US Air Force?

The contract with the US Air Force is potentially worth up to $95 million if all options are exercised.

How does the Servigistics solution benefit the US Air Force?

The Servigistics solution helps optimize the service parts supply chain, improving asset availability and operational readiness.

What is the ESCAPE program associated with the US Air Force and PTC?

The ESCAPE program is the USAF's supply chain modernization initiative, focusing on analysis, planning, and execution.

What is the duration of the contract between PTC and the US Air Force?

The contract between PTC and the US Air Force spans five years, including one base year and four optional years.

How has PTC's Servigistics solution performed historically with the USAF?

PTC's Servigistics has seen successful deployments in prior years, leading to this expansion in usage.