Since the 1960s, Pemco and its predecessor, Hayes International Corporation, have contracted to perform high-level maintenance of C-130 aircraft for the United States Air Force (Air Force). Pemco's contracted performance included assembling new model wings and replacing older model wings on C-130s. As a result of their contract, Pemco had on its premises both older and newer model wings.
Pemco had a contract to perform maintenance on C-130 aircraft, during which it received various parts as Government Furnished Property (GFP). As GFP became excess to contract requirements, Pemco was required by the contract to identify the excess and dispose of it in accordance with Government instructions. One means of disposition was for Pemco to purchase the excess as scrap. During the contract, Pemco advised the Government that certain aircraft wings were excess. The inventory sheets used by Pemco listed a part number for an older model wing, and offered to buy the wings for scrap value. The Air Force accepted this offer, and Pemco bought the wings. In fact, the wings were misidentified by Pemco, and were newer model wings with substantial value, which Pemco resold at a very large profit (without disclosing the mistake to the Government). The Government filed an action under the False Claims Act. The District Court dismissed, holding that the incorrect inventory sheets were not claims (nor were they "reverse claims" under the statute's provisions concerning false claims to avoid paying money or returning property). The Circuit Court affirmed. (NOTE: On 6 July 1999, the 11th Circuit vacated the decision and agreed to hear the case en banc.)
McClellan Air Force Base passed a milestone on the road to closure on 18 August 2000, when a departing KC-135 Stratotanker marked the departure of the last Air Force aircraft from the base. With more than 30,000 hours of labor invested in it, this jet, unpainted but airworthy, left for the hangars of Pemco Aeroplex, Inc., in Birmingham, AL, where it would undergo the remaining maintenance work necessary to put it back in service as an aerial refueler. For the mechanics and members of the aircraft management team, working on the last aircraft on base presented unique challenges. As McClellan's Aircraft Management Division downsized, fewer people and fewer resources were available to complete the project. Once manned with about 700 personnel, aircraft management was down to about 20 when the tanker rolled down the runway. McClellan AFB closed July 13, 2001.
With allied support playing an important role in the war on terrorism, Tinker's C/KC-135 System Program Office enriched their relationship with Turkey by establishing the first programmed depot maintenance cycle for that country's KC-135R aircraft. SPO expert's efforts followed the aircraft acquisition through the Foreign Military Sales program in 1995. The contract was awarded 10 December 2001 and the first Turkish -135R entered PDM 04 Febru8ary 2002 in Birmingham, AL. The Oklahoma City Air Logistics Center will manage the contract, with Boeing serving as the main contractor and PEMCO as the subcontractor. The plan was to have the training and maintenance performed in Turkey by December 2002, making it the first KC-135R PDM depot established outside the United States.
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