Leidos Selected as Preferred Bidder to Manage the UK's Defence Logistic Commodities and Services Transformation

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Feb 19, 2015, 10:00 ET

RESTON, Va., Feb. 19, 2015 /PRNewswire/ -- 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."

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About Team Leidos

Leidos

Leidos is a FORTUNE 500® science and technology solutions leader working to address some of the world's toughest challenges in national security, health and engineering. The Company's 20,000 employees support vital missions for government and the commercial sector, develop innovative solutions to drive better outcomes and defend digital and physical infrastructure from 'new world' threats. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $5.77 billion for its fiscal year ended January 31, 2014 after giving effect to the spin-off of the company's technical services and information technology business. For more information, visit www.Leidos.com.

Kuehne+Nagel

Kuehne + Nagel, Ltd. (KN) is Team Leidos' Storage and Distribution team member. With approximately 63,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world's leading logistics companies. KN's strong market position lies in the sea freight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics services. In the UK, KN is the market leader in sea freight and hold the number two position in both airfreight and overland. In contract logistics, they provide logistics solutions for many of the UK's largest consumer, retail, technology, food, drinks and ecommerce businesses with a combined UK workforce of c10,000 employees.

TVS

TVS Supply Chain Solutions, Ltd. (TVS) is providing the Procurement Service for Team Leidos on the LCST contract. TVS Supply Chain Solutions is a UK-based company within TVS Logistics; an $800m group operating across Europe, Asia and the USA. They have a 100 year history in the UK dating back to their beginnings as Leyland Motors and growing into one of the UK's leading service providers in world class, end-to-end supply chain management for the Defence, Automotive, Beverage, Industrial and Utility markets. Working direct with the UK Ministry of Defence as well as original equipment manufacturers and service providers, TVS supports military equipment in the maritime, land and air environments; as well as supporting commercial, public sector and private vehicles, beverage dispense equipment, industrial engines, power generating equipment and infrastructure, both in-service and in manufacturing environments. TVS has extensive experience in development and implementation of a range of logistics-based IT systems including the integration between its own platform and MoD IT systems. This knowledge and expertise supports the Team Leidos planned IT capability development during the LCST contract.

Agility

Agility Defense & Government Services, Inc. UK (Agility) is Team Leidos' Removals and specialist movements team member. Agility has a global footprint of 550 offices in 100 countries, providing services such as removals, transportation, food, and fuel. Agility is already delivering real benefit to LCS with two current contracts, first as the disposals contractor in Afghanistan and secondly, with Global Removals (GRMS).

Thales UK

Thales UK provides Team Leidos with Business Continuity and Disaster Recovery Planning Services. Thales is a global technology and services leader in the Aerospace, Transportation and Defence & Security markets. With 65,000 employees in 56 countries, including 25,000 engineers and researchers, Thales has a unique capability to design, develop and deploy equipment, systems and services that meet the most complex security requirements. Thales has an exceptional international footprint, with operations around the world working with customers and local partners. Thales UK employs 7,500 staff based at 35 locations.

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