SAIC to manage DOD chemical facility

Science Applications International Corp. has taken over management of the Defense Department's chemicals storage facility in Richmond, Va., under a single-source contract that has a potential value of $6.2 billion.

The indefinite-delivery, indefinite-quantity contract has a five-year base period and one five-year option period.

Under the contract, SAIC will take over the supply chain management of the Defense Supply Center, including comprehensive oversight of its stored chemicals and packaged petroleum, oils and lubricants. The facility had been managed by the Defense Logistics Agency.

The award covers demand forecasting, order processing, procurement, inventory management and quality control. It also entails environmental compliance, hazardous materials management, storage, packaging, worldwide distribution, obsolescence management, data management and customer support services.

DOD originally awarded the contract to SAIC on May 2, but the award was held up by a protest from PWC Logistics Services Inc., a Kuwait-based global logistics and supply chain company. PWC recently changed its name to Agility.

The Government Accountability Office denied the protest on Aug. 15, and gave SAIC the green light to proceed with the work.

SAIC of San Diego ranks No. 5 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors.