ASRC Federal is bolstering its supply chain management and logistics solutions portfolio through a $350 million acquisition.
The government services subsidiary to Arctic Slope Regional Corporation Federal Holding Company signed an agreement to acquire Science Applications International Corporation’s logistics and supply chain management business, according to a March 23 release.
Under the acquisition, ASRC Federal “will become a leading provider of secure, technology-enabled supply chain management and logistics solutions for the Defense Logistics Agency which provides services to Department of Defense agencies, including the U.S. Army, U.S. Air Force and U.S. Navy on a global scale,” per the release.
As part of the end-to-end global defense supply chain, the DLA manages everything from raw materials to end user disposition for all five military services, as well as other federal, state and local agencies, according to its website.
As such, the acquisition seemed like a “natural fit” for the ASRC Federal’s existing operations which support procurement, logistics and warehousing services capabilities at military locations throughout the U.S., according to the release.
The agreement will also enable SAIC to focus on its growth areas like Enterprise IT and Systems Integration and Delivery, among others, according to the company’s announcement. SAIC’s portfolio includes technology services across the defense, space, civilian and intelligence markets.
The deal will add roughly 240 employees to the ASRC Federal team and is expected to close in spring 2023, according to the release.
The deal comes as interest in military supply chain contracts grows. Last year, the Pentagon awarded several contracts aimed at easing supply chain vulnerabilities, including raw materials and chemical shortages to vital suppliers.
As for manufacturing, Canoo and Lucid Motors were awarded contracts to standardize battery modules for the DoD. In November 2022, the DoD asked manufacturers to submit proposals to support hypersonic development.
