SAIC Picks Up $200M Year 1 Option for Benchstock Management

In May 2007, “BRAC Leads to $6.2B Privatization Contract for DLA” discussed SAIC’s major win to manage key inventory stocks on behalf of the US Defense Logistics Agency, and the growth of SAIC’s partnership with that body. That contract was really the culmination of a relationship that has been ongoing for some time; for instance, SAIC has been providing consumable parts management services since 1998 to major U.S. military maintenance depots and the mechanics that maintain front-line aircraft, ranging from bench stock to aircraft subassemblies, engine and landing gear components. This work has helped SAIC develop its own “sense and respond” system using adaptive agents (software programs) that review sensor data, compare it with data from command and control systems and other sources, and decide what supplies should be ordered and when. These kinds of systems are in use within the corporate sector, but SAIC’s development of a system for defense use has helped position them as a key outsourcer for certain kinds of logistics services.

The Defense Supply Center Philadelphia (DSCP) in Philadelphia, PA recently exercised a $200 million 1st option year on a fixed price with economic price adjustment, integrated prime vendor contract for the material and material management of benchstock items. Performance by SAIC will take place in San Diego, CA, North Carolina and Florida, on behalf of the US Navy. There were 12 proposals originally solicited, with 4 responses. Date of performance completion is July 22, 2009 (SPM500-04-D-BP13).