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.
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.
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.