SAIC Awarded Defense Logistics Agency Integrated Prime Vendor GEN II Contract
(SAN DIEGO) Aug 3, 2004 – Science Applications International Corporation (SAIC) has been awarded a contract from the Defense Logistics Agency (DLA) to function as the Generation II (GEN II) Integrated Prime Vendor (IPV) for supply chain management of Pre-Expended Bins (PEB) to the Naval Air Depots.
Under this contract, SAIC will serve as the supply chain manager for parts to be used in the depot maintenance of Navy and Marine Corps aircraft such as the F/A-18, P-3, EA6B, C-130, CH-46, CH-53, AV-8, E-2, and S-3. In addition, PEB support will be provided for depot overhaul and maintenance of aircraft subassemblies, engines, ground support equipment, avionics equipment, and other major items.
The GEN II IPV initiative is part of a DLA strategy for integrated logistics support that uses innovative methods and best commercial practices to provide on time supply management and parts availability to assure weapon system readiness. Administered by Defense Supply Center Philadelphia (DSCP), this ten-year, fixed price contract includes a base term of three years valued at $150 million, and three additional 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.
“Through this Prime Vendor contract, the SAIC team will bring increased supply chain visibility to allow for faster response time to requirements while lowering procurement and inventory cost to our customer,” said George Fox, SAIC operations manager. “We look forward to working with the NADEPs and DSCP to furnish cost efficient, integrated supply chain management of consumable spare parts for the maintenance, overhaul, and repair of weapon systems to meet the warfighter's needs.”
The program will be managed from the SAIC office in Springfield, Va. Using the SAIC-developed supply chain management system, SCOPTIMA Solutions®, the team will provide consumable parts support to NADEP Cherry Point, Havelock, N.C.; NADEP North Island, San Diego, Calif.; and NADEP Jacksonville, Jacksonville, Fla. SAIC currently provides Prime Vendor support to the U.S. Air Force at Warner Robins Air Logistics Center, Ga.; Oklahoma City Air Logistics Center, Okla.; and Ogden Air Logistics Center, Utah.
SAIC is the largest employee-owned research and engineering company in the United States, providing information technology, systems integration and eSolutions to commercial and government customers. From science to solutions, SAIC engineers and scientists work to solve complex technical problems in national and homeland security, energy, the environment, space, telecommunications, health care and logistics. More information about SAIC can be found at www.saic.com.
Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be very different from the results, performance or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in the Company's Annual Report on Form 10-K for the period ended January 31, 2004, and such other filings that the Company makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.
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