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
“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
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
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