U.S. Defense Department Confirms Award to Crowley of $2.3 Billion Transportation Contract
Following a series of protests and subsequent legal challenges, the U.S. Transportation Command (TRANSCOM), a command of the U.S. Department of Defense (DOD), this week confirmed a large, multi-year contract award to Crowley Logistics, Inc., to provide transportation and related services supporting DOD activities in the U.S. and Canada.
The Department of Defense Freight Transportation Services (DFTS) contract is one of the largest logistics contracts awarded by the U.S. government. The period of performance is two base years followed by five option years for a total value of approximately $2.3 billion.
The contract requires Crowley to move various types of cargo from thousands of material suppliers through 41 major depots around the continental U.S. The program encompasses all forms of truck transportation, including less than truckload, full truckload, expedited and refrigerated services. Delivery locations include vendor facilities, Defense Department warehouses or depots, and U.S. military installations. Under the contract, Crowley would initially provide services to select Defense 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 Monday to confirm the original award to Crowley. Initial bids in this procurement were submitted more than two years ago.
“This confirmation of the contract award hopefully ends the legal contest,” said Frank Larkin, Crowley senior vice president and general manager, logistics and commercial services. “We are eager to get started, and will be bringing best commercial practices to our government customers – providing transportation solutions that increase the velocity of the DOD’s supply chain, reduce their overall landed costs and help our military fulfill their missions.”
Crowley Logistics is a subsidiary of Crowley Maritime Corp., a 125-year-old, privately held family and employee-owned company. The corporation provides project solutions, energy and logistics services in domestic and international markets by means of six operating lines of business: Puerto Rico Liner Services, International Liner Services, Logistics Services, Petroleum Services, Marine Services and Technical Services. Offered within these operating lines of business are: liner container shipping, logistics, contract towing and transportation; ship assist and escort; energy support; salvage and emergency response through its 50 percent ownership in Ardent Global; vessel management; vessel construction and naval architecture through its Jensen Maritime subsidiary; government services, and petroleum and chemical transportation, distribution and sales. Additional information about Crowley, its subsidiaries and business units may be found at crowley.com.