Michelin Aircraft Tire Co, Receives $368.4M from US Military (updated)

Oh, yeah!(click to learn about Bib) Michelin Aircraft Tire Company LLC in Greenville, SC received a minimum $368.4 million fixed price with economic price adjustment contract for tires supplied to the US Army, Air Force, and Marine Corps. Locations of performance are Moorestown, NJ; Hebron, CT; Akron, OH; Nashville, TN; and Lawrence, NY. There were 23 proposals solicited and 2 responded. Date of performance completion is December 28, 2011. Contracting activity is the Defense Supply Center Columbus (DSCC) in Columbus, OH (SPM7L10-07-D-7001). This contract will actually privatize the production and logistics for aircraft tires, and is valued at up to $700 million over 10 years if all options are exercised. See the US DLA’s January 10, 2007 release “First tire contracts to save taxpayers more than $172 million” for some descriptions of how the DLA/DSSC and the various military services reached this point. Michelin will not be the only major player in this effort. Lockheed Martin will act as a subcontractor to Michelin to manage the logistics and warehousing for all tires used. This work is valued at approximately 15% of the contract value (calculates to $55.2 million now, up to $105 million over 10 years), and includes demand forecasting, […]