Agility Defence and Government Services said yesterday that the Defense Logistics Agency (DLA) had awarded it a contract for warehouse and distribution services at the defense distribution centre, Kuwait/Southwest Asia (DDKS).
Under the one-year award, Agility DGS, a leading global provider of supply chain solutions, will use its extensive facilities in Kuwait to provide DLA with a complete warehouse management system to support operations in the Middle East.
DLA originally awarded Agility DGS a one-year DDKS contract in 2005. Each year since, Agility DGS has won the right to handle the work. The potential value of the DDKS awards is $180 million (Dh661m) over five years, or about $36m a year. "We are very proud of both our outstanding performance and the confidence that we have earned with DLA," said Dan Mongeon, President and CEO of Agility DGS.
"Our advanced logistics experience, capabilities and facilities are unsurpassed in Kuwait. We are uniquely suited to continue helping the DDKS provide outstanding support to the US military," he said.
The DDKS contract extends Agility's record of successful performance for the DLA, which includes recent awards of major long-term contracts for heavy equipment and transport services in Iraq and Kuwait, along with supply and distribution of food and other products for the US military in Iraq.
Agility DGS also announced its Taos Industries subsidiary has won a contract to store, distribute and maintain equipment for the Marine Corps at 15 bases within the US and five others around the world.
The one-year contract includes six one-year renewal options and is potentially worth up to $140m. The contract, known as the Marine Corps consolidated storage programme, was awarded by the Marine Corps Logistics Command.
Agility Defense and Government Services, headquartered in Alexandria, Va., is the public sector arm of Agility. It provides complete supply chain management, logistics services and commodity services to meet the needs of defense and government customers.
Agility is a publicly traded company, with more than $6bn in annual revenue and has more than 32,000 employees, and more than 550 offices in 100 countries, supported by a comprehensive network of warehousing facilities, transportation and freight management services.
Agility expects its overall revenue to grow more than 10 per cent this year as the firm shifts its focus away from big acquisitions due to the higher premium on borrowing from banks that the company is facing since the financial crisis has tightened up access to credit.
The company is also trying to reduce its reliance on US military contracts in Iraq and has recently invested in logistics firms in Abu Dhabi.