8/17/2010 12:21:00 AM
NEWS BRIEFS
Fastenal Targets Supply Business To U.S. Troops in Combat
Contract signals deeper involvement with DoD
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A Mine Resistant Ambush Protected (MRAP) vehicle training at Camp Liberty in western Baghdad.
Fastenal Co. is targeting supply contracts for U.S. military vehicle parts in Iraq and Afghanistan, the Rochester Post-Bulletin reports.
“After about a year and a half of preparation, the Winona-based fastener maker recently won a $850,000 contract — $185,000 per year until 2015 — to supply 23 different washers, nuts, bolts and screws that are critical components for use on Mine Resistant Ambush Protected (MRAP) vehicles in combat,” writes Jeff Kiger of the Post-Bulletin.
While Fastenal has supplied the military for years,
military contracts account for just under 5% of Fastenal’s $2 billion in annual revenue. But the contract could signal deeper involvement with the U.S. Defense Department.
“We believe we’re at the beginning of something big,” stated Donnalee Papenfuss, Fastenal’s executive director government and diversity affairs. “You can’t just come to a contract like this and just win it. You have to prepare for it.”
Awarded in late July, the contract is with the Defense Logistics Agency’s Defense Supply Center, which supplies directly to troops in combat.
To win it, Fastenal had t o create a new process channel from its Minnesota headquarters to meet the packaging, RFID labeling and testing standards required for this area of the military, according to the Post-Bulletin.
Fastenal’s streamlined process worked in their favor, though the company reportedly had to add special equipment, such as 2D bar code printers and additional software.
But company officials say the payoff could be worth the effort.
“The federal government is the largest potential customer in the country,” stated John Soderberg, Fastenal vice president of government sales. ©2010 GlobalFastenerNews.com
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