Michelin wins $170 million / year contract with US military

Columbus, Ohio - The US Defense Logistics Agency has signed a five-year deal with Michelin North America Tire Company for the supply of land vehicle tyres. The contract is worth $852 million (€660 million) over the five year term. There is an option for both sides to extend the deal for a further five years. making the total deal worth up to $1700 million to Michelin.

Earlier this month, the same Agency announced a similar deal with Michelin for the supply of aircraft tyres to the US military. That deal was worth up to $700 million over 10 years.

Each branch of the US military previously bought its own tyres, but under new rules, the DLA is contracted to supply all tyres to the US military.

With the signing of these first-ever commodity management privatisation contracts, Michelin will supply aviation and land vehicle tyres to all the military services with oversight by DLA. The contract is the largest in monetary value ever signed by Defense Supply Center

Columbus, which has been designated the official supply chain manager for these deals..

"Michelin will now be accomplishing all the tasks related to supply, storage and distribution of tyres," said Matt Geary, DSCC project manager for DSCC's CMP contracting efforts. "DSCC will have oversight of the contracts, but Michelin will be doing everything else," he added.

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Press release from DLA