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SAIC Gets New Pentagon Contract Print
S.D. firm's $6.2 billion deal privatizes key supply line

By Bruce V. Bigelow - San Diego Union-Tribune - May 3, 2007
In a move that privatizes a key military supply chain, the Pentagon's logistics agency awarded a contract for as much as $6.2 billion yesterday to SAIC, the San Diego defense contractor.
In awarding the contract, the Department of Defense is abolishing the wholesale supply, storage and distribution of packaged lubricants, petroleum and other chemicals handled by a defense supply center in Richmond, Va.

On Monday, the supply center awarded a privatization contract for as much as $2 billion for compressed gases and cylinders to Haas TCM of West Chester, Pa.

The 600-acre facility will retain only the supply contracting function for the commodities, according to the supply center's Web site.

A spokeswoman for the facility, officially known as the Defense Supply Center Richmond, did not return a call for comment late yesterday. Ron Zollars, a spokesman for the company, also known as Science Applications International Corp., said the company had no further information.

The privatization effort fulfills a 2005 recommendation from the Base Realignment and Closure process.
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