GREENVILLE, S.C. (Jan. 8) — The materials procurement agency for the U.S. Department of Defense has awarded Michelin Aircraft Tire Co. L.L.C. a 10-year, $700 million-plus contract to handle aircraft tire logistics worldwide for all branches of the military.
The contract was awarded by the Defense Supply Center, based in Columbus, Ohio, under the Tire Privatization Initiative, according to Michelin North America Inc.
Under the terms of the contract, Norwood, N.C.-based Michelin Aircraft Tire will take over the wholesale supply, storage, and distribution functions for all aircraft tires used by the Department of Defense. The Defense Supply Center will continue to handle contracts for tires.
The move, according to Michelin, allows the Defense Department "to take advantage of the latest technologies, expertise, and business practices of private industry to provide a more responsive supply/support program for its forces, whether they are on home soil or deployed worldwide.
"This contract underscores the value that Michelin delivers to customers by providing not only the best quality tires in the world but also cost-saving services, such as the ´One Touch Supply´ tire program conceived by the military and implemented by Michelin," said Francois Corbin, president of Michelin's Aircraft Tire division.
Michelin, along with its logistics partner Lockheed Martin MS2 in Moorestown, N.J., will assume responsibility for managing the supply and delivery of all U.S. Air Force and U.S. Army military aircraft tires across the globe in addition to their existing contract with the U.S. Navy.
Under its current contract with the Navy, Michelin is required to deliver Navy aircraft tires anywhere in the continental U.S. in 48 hours or less and anywhere in the world, including deployed aircraft carriers, in 96 hours or less.
Michelin said it is exceeding the Navy's delivery requirements, averaging over 98 percent on-time delivery with zero backorders.