DE&S upgrade contract to deliver £272M savings to Defence

A £6.7Bn contract awarded to transform the supply chain supporting UK Defence activities has undergone a comprehensive mid-life refresh.

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Placed in 2015, the 13-year Logistics Commodities and Services Transformation (LCST) programme contract covers procurement of over 70,000 commodities including medical supplies, ration packs and clothing, as well as the storage and distribution of millions of Defence items to over 600 locations around the globe. The contract is held with Team Leidos which consists of the prime Leidos Europe Limited, and their key sub-contractors of Kuhne+Nagel, TVS Supply Chain Solutions and Agility Logistics.

It was under the LCST programme that more than 10,000 items of critical medical equipment were despatched to the NHS frontline in the first three months of the Covid-19 pandemic.

The new contract amendment to the LCST programme includes a contractual agreement to deliver a minimum of £272 million savings to Defence, enhanced performance metrics to drive improved customer outcomes, a greenhouse gas reduction target and a commitment to a Net Zero plan,

Brigadier Anna Luedicke, Head of the Commissioning and Managing Organisation at DE&S, said:

“I am incredibly proud that my dedicated team were able to deliver this ambitious contract enhancement without any compromise to ongoing worldwide operational delivery.

“This enhanced contract will ensure value for money for Defence and improved support to the UK Armed Forces.”

Adrian Baguley, Deputy CEO DE&S, said:

“The commitment made by Team Leidos to a contractually binding greenhouse gas reduction target is an exciting step forward. LCST is one of the first major Defence contracts to have such a commitment”

The LCST contract is due to run until 2028.

By |2022-10-11T12:32:14+01:00February 10th, 2022|
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