New DLA-Derco Agreement Ensures Spare Parts Availability for C-130 Hercules Fleet

Derco, a Lockheed Martin Company, has secured the C-130 Aviation Consumables Performance Based Logistics (ACPBL) contract from the Defense Logistics Agency (DLA). This award represents a major milestone in Derco’s more than four decades of providing sustainment services to the aerospace and defense sectors, reinforcing its role in accelerating mission readiness. It also establishes the first outcome-driven program between DLA and Lockheed Martin under this initiative.

C-130 Hercules. Credit: Lockheed Martin

The Defense Logistics Agency serves as the Department of Defense’s central combat logistics support organization, overseeing the global supply chain for U.S. military services, combatant commands, and allied forces. Its responsibilities extend from procurement and storage to distribution and disposal, covering critical items such as repair parts, medical supplies, fuel, food, and uniforms. By ensuring material availability across diverse domains, the agency plays a pivotal role in sustaining warfighter readiness worldwide.

The C-130 Hercules, a four-engine turboprop transport aircraft, remains one of the most versatile platforms in military aviation. Designed for tactical airlift, it can operate from austere, unimproved runways and deliver troops, vehicles, and oversized cargo through its rear loading ramp. Its mission set ranges from troop and cargo transport to specialized roles including aerial refueling, gunship operations, weather reconnaissance, firefighting, medical evacuation, and search and rescue. The modern C-130J Super Hercules enhances these capabilities with greater payload, extended range, and improved speed compared to legacy H-models.

Under the ACPBL contract, Derco will provide comprehensive sustainment support to the C-130 program. This includes demand forecasting, inventory management, warehousing, engineering assistance, and deployment of field service representatives. The arrangement is structured to guarantee the availability of spare parts and maintain high readiness levels for the fleet, aligning with performance-based logistics principles that emphasize measurable outcomes rather than transactional supply.

The United States military operates a substantial fleet of C-130 aircraft across multiple branches. The Air Force maintains approximately 460 units, the Marine Corps fields around 74—primarily KC-130J aerial refueling variants—the Navy operates about 35, and the Coast Guard employs roughly 25 HC-130J aircraft. Collectively, this amounts to more than 600 active Hercules aircraft performing transport, refueling, and specialized missions across global theaters.

Kathy Medalle, president and general manager of Derco, emphasized the importance of the partnership with DLA, noting that the collaboration reflects a shared commitment to sustaining high material availability and enhancing mission capability rates. She described the contract as evidence of the strong working relationship between DLA and Lockheed Martin, underscoring their joint dedication to innovation and operational excellence.

This agreement strengthens the sustainment framework for one of the most critical airlift platforms in U.S. military service. By combining DLA’s logistics infrastructure with Derco’s technical expertise and Lockheed Martin’s manufacturing heritage, the ACPBL program is expected to deliver improved efficiency, reduced downtime, and enhanced mission readiness for the C-130 fleet. The outcome-based nature of the contract highlights a shift toward performance accountability in defense logistics, ensuring that operational capability remains the central measure of success.


Written by Henry Wan

Henry Wan is an independent defense journalist with over 14 years of experience reporting on military affairs and security issues. He has covered defense strategies, military technology, and geopolitical developments with a consistent focus on accuracy, independence, and a comprehensive understanding of global security matters.