SAIC: new contract could be worth as much as $6.25B.

SAIC Gets Possible $6 Billion Contract: The number sounds staggering, but officials at SAIC Inc., a defense-focused research and engineering firm based here, say the actual dollar value of the 10-year contract it just won is difficult to pin down. But assuming the agreement extends to its full term and at maximum usage, the ceiling price is $6.25 billion.

Awarded to SAIC on May 2 as part of the federal government's military base realignment process, the contract calls for the company to assume the purchase, storage and distribution of a range of basic chemicals and lubricants needed by every arm of the U.S. military, all federal installations, and allies of the United States, said Mike McGovern, vice president of business development for the company also known as Science Applications International Corp.

"The single award, indefinite-delivery/ indefinite quantity is one of the largest contracts ever awarded to SAIC," McGovern said. "It's a major win for our company and strategic win as it relates to a key area of growth for us, the logistics and product support business."

SAIC beat out two other defense contractors to win the contract, which has a five-year base term and one five-year option period.

SAIC teamed up with Haas TCM Inc. of Pennsylvania to garner the lucrative agreement that assumes services previously done by the Defense Logistics Agency, an arm of the Department of Defense, at the Defense Supply Center in Richmond, Va.

Assuming that maximum ceiling, the contract could generate an annual average of $600 million to SAIC's already prodigious revenue stream.

Last year, the firm generated $8.3 billion in revenue, making it the second-largest local corporation in that category behind Sempra Energy. It has more than 44,000 employees, including 4,600 in San Diego.

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