SDDC to oversee Menlo contract
The U.S. Military Surface Deployment and Distribution Command on Friday assumed full oversight of the Defense Transportation Coordination Initiative contract from the U.S. Transportation Command.
Personnel, resources and management functions will be administered by SDDC’s Strategic Business Directorate.
The DTCI is a third-party logistics contract is responsible for managing the Defense Department's U.S. mainland second destination freight shipments. The contract was awarded to awarded to Menlo Worldwide Government Services by the Transportation Command in August 2007 and has a three-year base period and four one-year option periods.
“DTCI is a proven success and the program outcomes have exceeded our expectation,” said Mel Holland, SDDC's deputy chief of staff for strategic business, in a statement. “SDDC hopes to build on this initial success as we assume responsibility for the program’s functional execution.”
Under SDDC, the DTCI office will continue to provide oversight of the contract and continue to manage daily operational activities. This transfer of responsibility will be transparent to current DTCI sites, the Army agency said.
Menlo leverages commercial capabilities and best transportation practices of commercial shippers with a large volume of Defense freight to achieve efficiencies in distribution and associated cost savings. To date, DTCI has realized about $158 million in gross cost savings, SDDC said.