SAIC to Provide the U.S. Government Supply Chain Management Services for Chemicals, Packaged Petroleum, Oils, Lubricants

(San Diego, and McLean, Va., May 3, 2007) -- Science Applications International Corporation (NYSE: SAI) today announced it won a single-award contract from the Defense Supply Center - Richmond, Va., (DSCR) for privatization of chemicals and packaged petroleum, oils and lubricants (POLs).

The firm-fixed-price indefinite-delivery/indefinite-quantity contract has a five-year base term, one five-year option period and a ceiling value of $6.2 billion if the customer exercises all options.

Throughout the contract, SAIC will provide services previously covered by the Defense Logistics Agency including comprehensive management of chemicals and POLs to include demand forecasting, order processing, procurement, inventory management, quality control, environmental compliance, hazardous materials management, storage, packaging, worldwide distribution, obsolescence management, data management and customer support services.

The goal of this performance-based program is to improve overall product support by increasing the availability of chemicals and POLs to DLA customers at a lower cost of ownership.

Using its comprehensive suite of integrated logistics technologies and supply chain management expertise, SAIC has teamed with its subcontractor Haas TCM, Inc. of West Chester, Pa., a leader in chemical management services, to provide chemicals and POLs to the military and federal civilian agencies around the world.

"This contract is a strategic win for SAIC and further solidifies SAIC's position as a leader in integrated supply and logistics support services for the U.S. government and the Department of Defense," said Ken Dahlberg, SAIC chairman and CEO. "We are committed to making this program a success and to securing outstanding customer satisfaction."

Jim Cuff, SAIC senior vice president and general manager of the Logistics and Engineering Solutions Business Unit, added, "SAIC and DLA enjoy a longstanding and mutually rewarding relationship. We formalized this relationship when we signed a Supply Chain Alliance (SCA) charter in 2006. The objectives of the SCA are clear - provide increased value and support to DLA and the warfighter. This contract affirms our dedication to that mission."

Source : SAIC

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