Leidos (NYSE: LDOS), a national security, health and engineering solutions company, has been selected by the UK Ministry of Defence (MOD) as the preferred bidder to manage its defence logistic commodities and services. Known as Logistic Commodities Services Transformation (LCST), the 13-year contract involves procuring non-military essentials such as food and medical supplies, and providing storage and distribution services for the UK's armed forces at home and abroad.
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."
Date: Feb 19, 2015