Through-Life Contracts Definition
A through-life contract is a type of service contract that covers the entire life cycle of a product, from design and development to production, operation, maintenance, and disposal. The term ‘through-life’ refers to the fact that the contract spans the entire life of the product.
Through-life contracts are becoming increasingly common in industries such as aerospace and defense, where the products are complex and expensive, and the consequences of failure can be severe. In these industries, it is often more cost-effective to enter into a through-life contract with a single supplier than to manage a large number of individual contracts.
Under a through-life contract, the supplier is responsible for maintaining the product in accordance with specified performance levels. The supplier may also be required to provide training, support, and spare parts. These contracts typically have a long duration, often several years or more.
The benefits of through-life contracts include improved product reliability and availability, reduced lifecycle costs, and improved customer satisfaction. However, these contracts can be complex and difficult to manage effectively.
