The UK Ministry of Defence (MoD) chose Leidos [LDOS] as the preferred bidder for the Logistics Commodities and Services (Transformation) (LCS(T)) program, both the company and the ministry said Feb. 19.
There are still several steps in the commercial process before the deal is concluded and a contract signed, the ministry said.
LCS(T) is designed to provide significant operational effectiveness by delivering improved responsiveness and agility, the MoD said. It will also improve efficiency in warehousing procurement and stock control of food, clothing, general, and medical supplies as well as storage and distribution.
The British government expects LCS(T) to deliver financial savings of about $770 million over 13 years.
“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,” Roger Krone, chief executive of Leidos, said in a statement.
“Today’s announcement is a key step in bringing defence logistics up to the standard of industry best practice,” Philip Dunne MP, Minister for Defence Equipment, Support and Technology said. “It will deliver state of the art warehousing systems to improve availability of supplies and better management of inventory for the Armed Forces.”
Leidos will work with defense and logistics specialist subcontractors including Thales, Kuehne + Nagel, TVS, and Agility.