Collaboration in Civic Spheres

Washington firm wins $66 million military food supply contract

by Matt Rosenberg May 23rd, 2011

SUMMARY: Numerous Washington state companies other than Boeing continue to win sizable U.S. defense contracts, which can be tracked through a Department of Defense Web page which is updated Monday through Friday, and a related database of announcements. Last week, a Mount Vernon company won a $66 million contract for military food distribution. Among others, in March, Seattle firms won a $30 million contract for infrastructure work at Northwest military facilities, and $6.7 million contract for inflatable mattresses. Other military contracts worth more than $5 million were awarded in the last six months to Washington state firms for aviation fuel, helicopter refurbishment, additional food distribution work, and wirelesss services and devices.

BACKGROUND: According to a September, 2010 white paper for the Washington Economic Development Commission, “Washington State’s Defense Economy: Measuring and Growing Its Impact,” defense agencies obligated $5.2 billion in contracts to Washington state companies in fiscal year 2009. The Navy awarded almost half that total and more than double any other military branch. Firms located in King County won almost half the military contract dollars obligated in the state in fiscal 2009, more than four times the next closest county, Pierce. Factoring in indirect and induced effects, the total jobs and labor income from defense spending were 7 and 8 percent respectively of state totals.

KEY LINK: U.S. Department of Defense, daily contract award summaries

KEY FINDINGS:

  • The Mount Vernon, Wash. company Food Service Inc. last week was awarded a $66 million three-year contract by the Defense Logistics Agency for full line food distribution to the Army, Navy, Air Force, and Marines. The contract is for a firm fixed price, and covers service through May 20, 2013. (DoD Notice, May 19, 2011).
  • Notkin Mechanical Engineers of Seattle, Wash. won a $30 million architecture and engineering contract from the Naval Facilities Engineering Command in Silverdale, Wash. for the design, construction and maintenance of physical infrastructure. The work will include plumbing, lighting, electrical and drainage systems; heating, ventilation, and air conditioning; soil grading, roads, parking lots, security, fire protection and hazardous materials disposal. The contract runs through March, 2016 with 95 percent of the work to be performed at Navy, Marine Corps and other military facilities in Washington state. (DoD Notice, March 10, 2011).
  • The outdoor equipment company Cascade Designs of Seattle, Wash. won a $6.7 million contract from the Defense Logistics Agency to manufacture self-inflating sleeping mats for the Army, Navy and Air Force. Full delivery is to be by February 24, 2012. All the work is to be performed Seattle. (DoD Notice, March 1, 2011).
  • Boeing Co., Seattle, Wash. won a $1.5 billion modification converting an earlier low-rate initial production contract to a firm, fixed price incentive contract to deliver by January 2013 six P-8A MMA aircraft to the Naval Air System Command. The aircraft are based on a 737 fuselage and will be used for anti-submarine warfare and electronic intelligence. Three-quarters of the work will be done in Seattle. (DoD Notice, January 21, 2011).
  • Sysco Seattle, Inc. of Kent, Wash. won a $39 million contract for full line food service distribution to the Navy, and another contract for $13.1 million for the same service services to the Army, Navy, Marine Corps and Air Force. Both contracts expire Nov. 6, 2011 and are with the Defense Logistics Agency. All the work is to be done out of the company’s Kent facility. (DoD notice, January 10, 2011).
  • Pacific Propellor, Inc. of Kent, Wash. won a $10 million contract from the Naval Air System Command for overhaul, repair and refurbishment of propellor assemblies for helicopters to be sold to the Taiwan Navy by the U.S. government, under the Foreign Military Sales Program. The work is to be completed by August, 2014, and will be performed in Kent. (DoD Notice, December 22, 2010).
  • T-Mobile USA of Bellevue, Wash. was one of four contractors selected to supply the Navy with up to $96 million in wireless services and devices through June 2012. On specific task orders, the company will compete with the three other selected contractors; AT&T Mobility (Hanover, Md.), Sprint-Nextel (Reston, Va.), and Verizon Wireless (Laurel, Md.). The contracting agency is the Fleet and Industrial Supply Center. (DoD Notice, December 17, 2010).
  • U.S. Oil Trading LLC of Tacoma, Wash. won a maximum $73 million contract to supply aviation fuel to the Defense Logistics Agency through October 30, 2011. The contract has an economic price adjustment clause. the proposal was Web-solicited and drew 20 responses. (DoD Notice, December 17, 2010).

Military contracts by agency and Washington county, fiscal year 2009/Washington State Economic Development Commission, Sept. 2010

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