Crowley awarded $2.3bn US Defence Department transport contract

The US Transportation Command (Transcom), a command of the US Department of Defence [DOD], has confirmed a large, multi-year contract award to Crowley Logistics, to provide transportation and related services supporting DOD activities in the US and Canada. 

The Department of Defence Freight Transportation Services (DFTS) contract is one of the largest logistics contracts awarded by the US government. The period of performance is two base years followed by five option years for a total value of approximately $2.3bn.

The contract requires Crowley Logistics to move various types of cargo from thousands of material suppliers through 41 major depots around the continental US The programme encompasses all forms of truck transportation, including less than truckload, full truckload, expedited and refrigerated services. Delivery locations include vendor facilities, Defence Department warehouses or depots, and US military installations. Under the contract, Crowley would initially provide services to select Defence Department agencies, with the expectation that other DOD customers and agencies outside DOD would soon join.

“We appreciate Transcom’s continued confidence in our company to meet their transportation needs going forward,” said Tom Crowley, company chairman and ceo. “We look forward to providing solutions that enhance the efficiency and reduce the cost of critically important services required by our military.”

Crowley was first awarded the DFTS contract in November 2016. However, another company that is currently providing some of the services covered by the contract launched a legal challenge to the award. A court ruling in June cleared the way for the decision last Monday to confirm the original award to Crowley. Initial bids in this procurement were submitted more than two years ago. 

Posted 28 July 2017

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Michele Labrut

Americas Correspondent, Seatrade Maritime News

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