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Haas Picked for Lube Privatization

Article from LUBE REPORT
By George Gill

Haas TCM will serve as primary subcontractor and handle logistics for a $6.25 billion, five-year contract SAIC won in May from the U.S. Defense Logistics Agency for privatization of storage, warehousing and distribution of packaged petroleum, oils and lubricants as well as certain chemicals.

Under the privatization contract, tasks once performed by the Defense Logistics Agency will now be performed by SAIC and its subcontractors. Customers include the U.S. Army, Navy, Air Force, Marine Corps and civilian federal agencies. According to the Defense Supply Center in Richmond, Va., commodities to be privatized include chemicals such as insecticides, pesticides, disinfectants and repellants. It also includes lubricating oils and automotive grease.

Thaddeus Fortin, Haas TCM chief executive officer, said as SAIC’s subcontractor the company will be responsible for a significant portion of the logistics involved, through hubs operated by Haas TCM employees.

“We presently have nine facilities throughout the U.S. right now, and we’ll be adding two more,” Fortin told Lube Report. “So the materials will be coming into our hub, and we’ll be storing it there, relabeling it, checking it for quality, conducting quality assurance, and then releasing it to the bases.”

Fortin said the company will also be responsible for sourcing – that is, conducting purchasing necessary for the contract – for a minimum of 40 percent of SAIC’s total contract dollar value.

According to Fortin, the privatization program is scheduled to begin in either late third quarter or early fourth quarter of this year. The subcontract has a five-year base term and one five-year option period, consistent with SAIC’s prime contract.

“This original phase one is for the U.S.,” he said. “The program does have a potential piece for OCONUS – which is ‘outside continental U.S.’ – somewhere after a number of years.”

Services to be provided include forecasting, storage, warehousing and distribution to customers of the packaged petroleum and lubricants.

Haas TCM provides chemical management services to more than 250 customer locations in the United States, Canada, Mexico, Argentina, Brazil, Turkey, Israel and China. Its customers are in the automotive, aerospace, electronic, semiconductor, defense, transportation, industrial manufacturing, food and beverage, process and energy sectors. Chemical management services is a business model in which a customer engages with a service provider in a long-term contract to supply and manage chemicals and related services.

Published by LNG Publishing Co., Inc. Copyright © 2007 LNG Publishing Co., Inc. All rights reserved.

George Gill, Editor. Lube Report (ISSN 1547-3392), Lubes'n'Greases Magazine and Lubricants Industry Sourcebook are published by LNG Publishing Co., Inc., 6105-G Arlington Blvd., Falls Church, Virginia 22044 USA. Phone: (703) 536-0800. Fax: (703) 536-0803. Website: www.LNGpublishing.com. Email: info@LNGpublishing.com. For sponsor information contact Gloria Steinberg Briskin at (800) 474-8654 or (703) 536-7676 or gloria@LNGpublishing.com.

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