Leidos (NYSE: LDOS) has been selected to run the U.K. defense ministry’s logistics commodities and services program for 13 years.
The company will perform warehousing procurement services and stock control of food, clothing, general and medical supplies, storage and distribution, the British government said Thursday.
The ministry will conclude the deal once requirements in the transaction’s commercial process are completed.
Leidos has also proposed to construct a defense fulfillment center adjacent to the ministry’s facility in Donnington, Shropshire.
The British government kicked off the assessment phase of the program in July 2012 to identify new ways to deliver logistics and commodities services to the country’s armed forces.
(UPDATE: 12:26 p.m.): A subsequent release from Leidos said Kuehne + Nagel, TVS, Agility and Thales, will serve as subcontractors for the Logistic Commodities and Services Transformation program.
Roger Krone, Leidos CEO, said the company will work with the British government in an effort “to help transform the UK armed forces’ storage, distribution and commodities procurement capabilities – all to ensure front-line troops can get what they need.”
“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, ” added Krone, an inductee into Executive Mosaic’s Wash100 list for 2014-15.