SAIC wins billion dollar Defense contract
The U.S. Defense Department awarded San Diego-based Science Applications International Corp. a contract to manage its Richmond, Va. chemicals storage facility.
The contract has a potential value of $6.2 billion. It also includes a five-year base period and one five-year option period, but is open-ended to allow additional time and/or costs to the contract.
Under the terms of the deal, SAIC will assume logistics control at the Virginia Defense Supply Center, including the facility's stored and packaged chemicals and petroleum products. SAIC will take over from the Defense Logistics Agency.
The contract covers demand forecasting, inventory management, order processing, procurement, and quality control. Other provisions of the SAIC contract cover customer support services, data management, environmental compliance, hazardous materials management, obsolescence management, packaging, storage, and worldwide distribution.
SAIC was originally named the contract winner on May 2, but the DOD award was delayed by protest from Kuwait-based logistics firm Agility, formerly known as PWC Logistics Services. The U.S. Government Accountability Office denied Agility's award protest on Aug. 15, giving SAIC the contract.