The UK Ministry of Defence (MOD) has opted to outsource its defence logistic commodities and services to health and engineering solutions company Leidos. The contract, spanning 13 years, involves procuring non-military essentials (such as food and medical supplies), and providing storage and distribution services for troops both at home and abroad.
The news was first broken on 10th February 2015. Seeing as this is the first time that the Ministry of Defence has undergone a tender of this scale with its logistics functions, this move could signify a larger change in business tactics for the MOD long-term.
Leidos's Chief Executive Roger A. Krone said '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.'
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