The Ministry of Defence has announced that Leidos has been chosen as the preferred bidder for the Logistics Commodities and Services (Transformation) (LCS(T)) programme.

In July 2012 the Government announced the start of an LCS(T) Assessment Phase with the aim of ensuring that MOD is able to continue to deliver the logistics and commodities services the Armed Forces require in a way that provides value for money to the UK taxpayer.

LCS(T) will provide significant operational effectiveness by delivering improved responsiveness and agility. It will also improve efficiency in warehousing, procurement and stock control of food, clothing, general and medical supplies as well as storage and distribution. It is also expected to deliver financial savings of around £500 million over the next 13 years.

There are still a number of steps in the commercial process before the deal is concluded and a contract signed. The MOD has confirmed that, subject to contract signature, the preferred bidder proposes to construct a defence fulfilment centre next to the existing MOD site at Donnington in Shropshire.

Minister for Defence Equipment, Support and Technology, Philip Dunne MP, said: “This announcement is a key step in bringing defence logistics up to the standard of industry best practice. It will deliver state-of-the-art warehousing systems to improve availability of supplies and better management of inventory for the Armed Forces. Further details on the programme will be released once contract negotiations have concluded.”