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Logistics Commodities and Services Transformation Programme

My right hon. Friend the Minister for Defence Equipment, Support and Technology (Mr Philip Dunne) has made the following Written Ministerial Statement.

In July 2012, my predecessor, the hon. Member for Mid Worcestershire (Sir Peter Luff), informed the House about a transformation programme within Logistic Commodities and Services (LCS), part of Defence Equipment and Support.

The primary role for LCS is to provide support to military operations by undertaking procurement and inventory management of commodity items (including food, clothing, packed fuel, general supplies and medical supplies), and the storage and distribution of these commodity items, together with other non-explosive stock across Defence.

LCS(T) will provide significant operational effectiveness by delivering improved responsiveness and agility. It will also improve efficiency in storage infrastructure; commodity procurement and logistic processes and rationalise inventory management and stock control for commodity products. It is also expected to deliver financial savings of around £0.5 billion over the next thirteen years ensuring that we continue to meet the needs of the Armed Forces of the future.

The programme has now completed a very comprehensive and detailed Assessment Phase and following a strong and rigorous competition I was pleased to announce last week that Leidos has been selected as the preferred bidder. While I would ordinarily have made such an announcement to the House first, in order to avoid delaying the commercial process it was necessary to do so during recess. I will make a further statement to the House with final details of the transaction next month once contract negotiations have concluded.