Crowley overcomes legal challenge to $2b DoD logistics contract

Crowley Logistics has been awarded a multi-year, $2.3 billion contract to provide transportation and related services supporting U.S. Department of Defense activities in the U.S. and Canada.

   A subsidiary of Crowley Maritime Corp. has been awarded one of the largest transport contracts awarded by the U.S. government after overcoming a legal challenge by rival third-party provider XPO Logistics.
   On July 26, Crowley Logistics confirmed that it has been awarded a multi-year contract to provide transportation and related services supporting U.S. Department of Defense activities in the U.S. and Canada by the U.S. Transportation Command (TRANSCOM), a command of the DoD.
   The confirmation came two days after a Court of Federal Claims decision was made public regarding competing arguments from Crowley and XPO regarding the contract.
   Crowley was first awarded the DFTS contract in November 2016. However, XPO Logistics, which 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 were submitted over two years ago.
   The disputed deal, covering transportation freight services and worth over $2 billion, had originally been awarded by TRANSCOM to GENCO Infrastructure Solutions in December 2015, before a protest by Crowley to the Government Accountability Office resulted in TRANSCOM reopening bidding. GENCO then withdrew from the competition, leaving Crowley and XPO as the only competitors.
   After the re-evaluation, Crowley was awarded the deal, with TRANSCOM declaring Crowley’s offer having the best value.
   The Department of Defense Freight Transportation Services contract has a period of performance base of two years, followed by five option years for a total value of about $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.
   “This confirmation of the contract award hopefully ends the legal contest,” said Crowley’s senior vice president and general manager, logistics and commercial services, Frank Larkin. “We are eager to get started.”