U.S. military awards $1.7 billion contract to Michelin
The Defense Supply Center – Columbus, Ohio (DSC-C) has awarded Michelin Americas Truck Tires the 10-year $1.7 billion contract to provide ground tires for every type of wheeled vehicle for all United States military branches (Army, Navy, Air Force, Marines) around the world. This contract is in addition to the recently awarded $700 million-plus contract for military aircraft tires.
Michelin is already the majority supplier of U.S. Army tactical tires. The company invested $16 million to increase military tire production in order to meet the surge in demand related to Operation Iraqi Freedom.
"Michelin has provided top-quality tires to the U.S. military for decades," says Luc Minguet, COO of Michelin Americas Truck Tires. "Now, we’ll add our expertise in logistics and supply chain management to streamline the timely supply of ground tire to U.S. troops at home and around the globe."
Michelin will work with Science Applications International Corp. (SAIC) to manage the wholesale supply, storage and distribution functions for all ground tires used by the U.S. military.
DSC-C will retain only the contracting functions for tires. Michelin will provide 100% of the military’s ground tire needs through its own and competitive tire sourcing, according to Michelin officials.
"This allows the U.S. Department of Defense to take advantage of the most recent technologies, expertise, and business practices of private industry to provide a more responsive supply/support program for its forces, whether they are on U.S. soil or deployed worldwide."