DOD Contract Could be Worth $1.6 Billion

The contract, which involves freight movements in the continental United States seeks to increase effectiveness and efficiency of the DOD freight movements in the US.

"Menlo Worldwide Government Services will utilize best commercial practices to enable load consolidation and optimization, use of more efficient intermodal means of transportation, and tailored scheduling to meet the customer requirements," said General Norton A. Schwartz, commander of the US Transportation Command. "These improvements will increase the precision and reliability of freight movments, leading to increased customer confidence, cost savings, and increased efficiency in our [continental US] shipping operations," he added.

The first phase includes Defense Logistics Agency defense distribution centers (DDC) and will be completed within 22 months.

Phase 2 will begin before Phase 1 is completed and will incorporate activities within close proximity of the DDCs and may require the implementation of an additional 50 sites per year up to 260.
Phase 3 will start before the end of Phase 2 and covers all other scheduled DOD activities.

The full scope of the contract is designed to deliver benefits including increases in efficiencies and cost savings, as well as better visibility of freight payments.