Up to $200M to SAIC to Manage Parts Supply for USN, USMC Aircraft
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Scientific Applications International Corp. (SAIC) in San Diego, CA received a maximum $200 million option on a previously awarded prime vendor contract (SPM500-04-D-BP13) for management of consumable parts at U.S. Navy and U.S. Marine Corps aircraft repair facilities.
Under the original Generation II (GEN II) Integrated Prime Vendor (IPV) contract awarded in 2004, SAIC serves as supply chain manager for parts to be used in the depot maintenance of Navy and Marine Corps aircraft, including the F/A-18, P-3, EA6B, C-130, CH-46, CH-53, AV-8, E-2, and S-3. In addition, SAIC is providing support for depot overhaul and maintenance of aircraft subassemblies, engines, ground support equipment, avionics equipment, and other major items.
DID has more on the GEN II IPV contract and the Defense Logistics Agency’s effort to privatize logistics support…
The GEN II IPV contract is part of the Defense Logitics Agency (DLA) effort to privatize logistics support to the U.S. military. “BRAC Leads to $6.2B Privatization Contract for DLA” has more on DLA’s effort.
Administered by the Defense Supply Center Philadelphia (DSCP), the 10-year, fixed-price GEN II IPV contract included a base term of 3 years valued at $150 million, and 3 additional 2-year option periods estimated at a total of $450 million. If all of the options are exercised, the total cumulative value of the contract is estimated at $600 million.
The GEN II IPV program is managed from the SAIC office in Springfield, VA. Using the SAIC-developed supply chain management system, SCOPTIMA Solutions, the team provides consumable parts managment to Naval Air Depot (NADEP) Cherry Point in Havelock, NC; NADEP North Island in San Diego, CA; and NADEP Jacksonville in Jacksonville, FL.
This current contract modification is for the second 2-year option period. “SAIC Picks Up $200M Year 1 Option for Benchstock Management” covers the first 2-year option period. The date of performance completion for the 2nd option is Sept 30/11.
