SAIC keeps $900M DLA tire recompete

Science Applications International Corp. has won the potential $990.3 million recompete of its contract to act as lead supply chain manager and integrator for a Defense Logistics Agency tire delivery program.

The Global Tire Program supports all U.S. military service branches, the Coast Guard and foreign military sales customers. SAIC beat out one other proposal to keep this program, the Defense Department said in its Friday awards digest.

DLA supports both aircraft and ground vehicles through the Global Tires Program.

This is one of SAIC’s largest programs at around $125 million in annual revenue, according to a June research note from equity analysts at Vertical Research Partners. Work will take place initially over a five-year base period followed by a pair of two-year option periods and then another pair of two-month option periods.

SAIC was first involved in the program in 2006 as a subcontractor for DLA's Tire Privatization Initiative to seek additional industry help in managing the aircraft and ground tire supply chain. Then in 2011, SAIC won the next iteration called Tires Successor Initiative.

Global Tires Program is the the successor to TSI, against which SAIC says it has delivered approximately 1.5 million tires. The U.S. military uses approximately 400 different types of tires on ground and air vehicles.