Crowley Logistics Sees $2.3 Billion Contract With Department of Defense

by Jake Tully - Published: 7/27/2017

Crowley Logistics, a United States-based maritime and intermodal transportation company reports that it has confirmed a contract with the U.S. Department of Defense in the amount of $2.3 billion dollars.

The contract will see Crowley Logistics providing transportation-related services to support the activities of the U.S. Transportation Command (TRANSCOM) of the Department of Defense (DOD) in the United States and Canada.

Crowley Logistics reports that the contract is one of the largest logistics contracts that the U.S. government has awarded and will see Crowley moving various cargo from thousands of material suppliers across the United States.

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Tom Crowley, company chairman and CEO of Crowley Logistics reports that the company plans to initially provide transportation services to particular agencies within the Defense Department, then expecting that additional customers related to the DOD and outside agencies may also utilize Crowley’s services. 

“We appreciate TRANSCOM’s continued confidence in our company to meet their transportation needs going forward,” said Crowley. “We look forward to providing solutions that enhance the efficiency and reduce the cost of critically important services required by our military.” 

According to Crowley, the program associated with the contract will involve several forms of transportation by truck, including expedited service, refrigerated runs and full truckload, among other services.

Crowley Logistics reports that it was initially awarded the Defense Freight Transportation Services contract in November of last year, but faced a legal challenge by another company who was currently providing services covered by the contract.

This legal challenge was reportedly cleared by a court ruling in June that confirmed the original award to Crowley. 

“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,” said Crowley.