GAO dismisses DTCI protest
Menlo Worldwide is free to begin implementing its massive transportation management and logistics contract for the U.S. Defense Department after the Government Accountability Office on Wednesday dismissed the protest of a rival competitor for the award.
The Defense Transportation Coordination Initiative is the first time the military has outsourced management of its North American freight transportation network to a third-party logistics provider. The contract is potentially worth $1.6 billion over seven years, including four option years.
San Mateo, Calif.-based Menlo was awarded the DTCI contract on Aug. 17. Ryder Integrated Logistics filed a protest 12 days later, but the GAO said it stopped its investigation after Ryder withdrew its protest this week.
Menlo is tasked with using best commercial practices for shipment planning, route optimization, carrier selection and overall management of shipments moving to and among Defense facilities. Menlo will take over freight management in stages and eventually be responsible for shipments involving 260 locations. Its primary subcontractor is Computer Sciences Corp.