Lockheed Martin has teamed with Michelin Aircraft Tire Company to manage logistics and warehousing for all Air Force and Army aircraft tires, per a company release. Michelin picked up a Defense Logistics Agency contract valued at $368 million (or $700 million over 10 years) to privatize tire production and logistics. Lockheed’s share is 15 percent.
The emphasis on speed in the Pentagon’s newly unveiled slate of acquisition reforms may come with increased near-term cost increases, analysts say. But according to U.S. defense officials, the new weapons-buying construct provides the military with enough flexibility to prevent runaway budget overruns in major programs.
