* Contract extends logistics support through 2017
* Covers 246 C-17 transport planes
* Boeing says contract lowers costs
(Adds details throughout)
WASHINGTON, Oct 10 (Reuters) - Boeing Co said onWednesday that it had received a $2 billion contract to continueproviding logistics support for the U.S. military's fleet ofC-17 transport planes through 2017.
The contract includes support for the aircraft, forecasting,purchasing and material management under a Performance-BasedLogistics program that began in 1988.
Boeing said the sustainment program, which has expanded to246 aircraft from 42, helps lower costs through economies ofscale.
Under performance-based logistics contracts, customersreceive an agreed level of system readiness instead of payingfor a specified number of spare parts.
(Reporting by Andrea Shalal-Esa and Bangalore newsroom)
Keywords: BOEING TRANSPORT/