MoD announces preferred bidder to run military logistics programme
In July 2012 this Government announced the start of an LCS(T) Assessment Phase with the aim of ensuring that the MoD is able to continue to deliver logistics and commodities services our Armed Forces require in a way that provides value for money to the UK taxpayer.
LCS(T) will provide significant operational effectiveness by delivering improved responsiveness and agility. It will also improve efficiency in warehousing procurement and stock control of food, clothing, general and medical supplies as well as storage and distribution. It is also expected to deliver financial savings of around £0.5 billion over the next 13 years.
There are still a number of steps in the commercial process before the deal is concluded and a contract signed. The MOD can confirm that, subject to contract signature, the preferred bidder proposes to construct a defence fulfilment centre next to the existing MoD site at Donnington in Shropshire.
Minister for Defence Equipment, Support and Technology, Philip Dunne MP said: "Today’s announcement is a key step in bringing Defence logistics up to the standard of industry best practice. It will deliver state of the art warehousing systems to improve availability of supplies and better management of inventory for the Armed Forces.
"Further details on the programme will be released once contract negotiations have concluded."
MoD Chief of Materiel, (Land), Lieutenant General Chris Deverell, said: "Our priority is to provide the best possible support to military operations and maintain levels of quality and service to our Armed Forces as well as being able to meet their changing needs.
"LCS(T) will significantly increase our ability to do that, whilst at the same time saving money for Defence."
Leidos, formerly known as Science Applications International Corporation, has 20 years of integration and logistic experience providing end to end solutions in defence, health and engineering programmes.
It is the first time the MoD has attempted a tender of this scale for its logistics functions, and represents a step change in the way it stores and distributes military equipment and supplies, and procures and manages the inventory of common commodities such as food, clothing, packed fuel and medical supplies.
The programme will be delivered by Leidos and a team of defence and logistics specialist subcontractors including Kuehne + Nagel, TVS, Agility and Thales.
Roger A. Krone, Chief Executive, Leidos said: "Leidos is delighted to have been selected by the Ministry of Defence as the preferred bidder to manage the UK's defence Logistic Commodities and Services Transformation. This contract represents an important milestone for Leidos and will enable us to bring decades of proven logistics performance to help transform the UK armed forces' storage, distribution and commodities procurement capabilities – all to ensure front-line troops can get what they need, when they need it.
"This is a new and significant external contract for the Ministry of Defence, whose team should be commended for its well-structured and managed procurement process throughout the last two years."
"Leidos has been operating in the UK for a number of years under our former name SAIC, and this contract further underlines our commitment to the UK."
