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Release No: 062-99
February 12, 1999


At a Pentagon press conference today, the Air Force announced the results of the public-private competition for the San Antonio Air Logistics Center Propulsion Business Area workload.

Darleen Druyun, principal deputy assistant secretary of the Air Force (acquisition & management), who was the source selection authority, announced Oklahoma City Air Logistics Center at Tinker Air Force Base, Okla., as the winner of the competition.

The 1995 Defense Base Closure and Realignment Commission recommended that Kelly Air Force Base, Texas, and the collocated San Antonio Air Logistics Center be realigned. Further, the commission recommended consolidation of the Air Logistics Center workloads to other Department of Defense depots or to private sector commercial activities. To achieve the commission's recommendation, the Air Force conducted a competition and received offers from Oklahoma City Air Logistics Center and Pratt and Whitney San Antonio Engine Services.

This competition represents the largest single competitively awarded repair and overhaul effort in Air Force history. The Propulsion Business Area workload consists of repair and overhaul of TF39, T56, and F100 non-core engines, modules and associated fuel accessories, together with two-level maintenance of the TF39 and T56 engines. Today the majority of Propulsion Business Area workload is performed at San Antonio Air Logistics Center, Kelly Air Force Base, Texas.

Oklahoma City Air Logistics Center will do the F100 and fuel accessories work at Tinker Air Force Base with the majority of remaining workload being performed by its principle subcontractor, Lockheed Martin Kelly Aircraft Co., at Greater Kelly Development Corp. facilities in San Antonio. Lockheed Martin's major subcontractors are: Woodward Governor, Rockford, Ill.; Standard Aero Limited, Winnipeg, Canada; and Chromalloy Gas Turbine Corp., Midwest City, Okla. Oklahoma City Air Logistics Center's offer identified a personnel requirement of approximately 2,900 employees drawn from qualified San Antonio personnel and other sources.

This award will result in savings of approximately $1.8 billion over fifteen years -- roughly 14.5 percent lower than the baseline cost estimate. According to Druyun, these savings will provide badly needed funds for modernization efforts, critical to Air Force long-term readiness. The contract value for the potential 15 years of performance is $10.1 billion.

For more information contact Gloria Cales, Air Force Public Affairs, at 703-693-9086 or 703-695-0640

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