Alion Awarded Contract Valued at up to $77M for Repair Parts-on-Demand Technology and Services
Technology Solutions Provider to Support Sustainment and Refurbishment of Vehicles and Systems Used in Operation Iraqi Freedom
McLean, VA – November 24, 2008 – Alion Science and Technology, an employee-owned technology solutions company, today announced it has been awarded a contract worth up to $77 million to develop just-in-time solutions for military vehicle, aircraft and equipment parts and systems. The “Manufacturing Process Technologies for Military Equipment Replacement on Demand” contract was awarded by the US Army Aviation and Missile Command at Redstone Arsenal.
The contract focuses on the military’s urgent need for hard-to-acquire and problem parts and systems for the sustainment and refurbishment, or “reset,” of critical equipment, including vehicles, aircraft and other gear employed in Operation Iraqi Freedom and Operation Enduring Freedom. Alion will develop and deliver solutions to facilitate the return of the equipment to service, and may re-engineer essential parts to reduce costs and give the equipment a longer useful life. This effort is an outgrowth of the Mobile Parts Hospital (MPH), a transportable factory for parts fabrication, originally developed by Alion, three of which are currently deployed in Iraq, Kuwait and Afghanistan.
According to Chris Amos, Alion Senior Vice President and Manager of the Technology Solutions Group, Alion will draw on its long experience with the MPH as well as the company’s engineering and program management expertise. “Alion’s approach allows the military to rapidly find solutions to nagging problems of availability, to acquire items that are needed in small quantities, or get replacements for parts that are no longer available,” Amos explained. “Increased equipment availability and a responsive source for custom items and hard-to-acquire parts means greater effectiveness and better protection for America’s men and women in uniform.” He added that this approach can also cut costs by reducing both repair time and the need to pre-order and store large quantities of parts.
The contracting officer’s representative, Scott Hofacker of the US Army’s Aviation and Missile Research Development and Engineering Center (AMRDEC) said, “Our warfighters depend on their vehicles, aircraft and weapons systems; we need to provide solutions to keep them operating effectively. The ability to produce parts-on-demand should result in a huge improvement in turnaround time.” Hofacker added, “Alion’s experience with the Mobile Parts Hospital, as well as our ongoing Parts-on-Demand and Process Technologies for Replacement Parts Production efforts shows they can deliver rapid solutions that are practical and cost-effective.”
The period of performance began October 1, 2008 and runs through September 30, 2013. All military services may use this indefinite delivery/indefinite quantity (IDIQ) vehicle to address similar priorities. Five task orders under the contract, including solutions for the Army, Navy and Army National Guard have already been awarded with a total value of about $6 million.
This press release contains information about management’s view of Alion’s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of risk factors and uncertainties discussed in documents periodically filed by Alion with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.