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04-04-2005: Arch Chemicals, Inc. has been awarded a 20-year contract by the United States Department of Defense for approximately $149 million for the production, storage, distribution and handling of hydrazine propellants for the U.S. government.
The Company's prior long-term propellant contract with the government expired on April 30, 2004. Shortly thereafter, the Company was notified by the U.S. Defense Energy Support Center (DESC) that it had decided to award the next long-term contract to a competing firm. Arch had a debriefing with the DESC and submitted a formal protest of the award. In July 2004, the U.S. Government Accountability Office (GAO) informed Arch and the DESC that it would sustain the Company's formal protest of the DESC's decision. As a result of the GAO's action, the DESC notified the Company that it had taken corrective action by re-opening the bidding process. The Company submitted its new bid on January 20, 2005.
On March 29, 2005, the Company was notified that it had been awarded the contract. The terms of the award call for an initial 10-year supply contract beginning in 2007, followed by two five-year renewal terms at the option of the government. Arch will utilize its existing hydrazine production facility in Lake Charles, Louisiana to provide products and services under this contract. For more than 50 years, Arch has served as the sole U.S. supplier of hydrazine propellants.
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