MoD Donnington set to be UK's main defence logistics hub

The Ministry of Defence has announced that Leidos has been chosen as the preferred bidder for the Logistics Commodities and Services (Transformation) programme.

There are still a number of steps in the commercial process before the deal is concluded and a contract signed but the MoD has confirmed that, subject to contract signature, Leidos wants to build the defence fulfilment centre next to the MoD Donnington site.

Wrekin MP Mark Pritchard:

Shropshire Star Business Editor Thom Kennedy:

The move safeguards up to 1,000 jobs in Telford and means 450 new posts could be created.

It is thought the deal could be worth £60 million a year to the Shropshire economy.

Wrekin MP Mark Pritchard said: "This is excellent news for local jobs and the future of MoD Donnington, which will now become the UK's main defence logistics hub.

"This will help safeguard existing defence jobs and create new jobs. This is a victory for the county and region as a whole and very welcome news after a very long campaign to get the jobs here.

"I am delighted and look forward to working with our new American and British partners for the good of the whole community."

Telford MP David Wright said: "This is great news for Telford. I have been working hard with the council and the trade unions to ensure that Telford had a credible and competitive offer on the table for the MoD to consider.

"The council has invested heavily in this project and the decision to do so has been vindicated. It is massive news for Telford.

"It is really important we have a long tradition of supporting our forces in Telford and this decision ensures our future involvement in that work.

"We have got a jobs creation agenda here and this enhances our regional and national profile."

Telford & Wrekin Council leader Councillor Kuldip Sahota, said: "This is a massive decision for the whole of Telford and Wrekin and absolutely fantastic news.

"We've always said the key priority was safeguarding the existing jobs at MoD Donnington but the news that we will get this investment, creating more jobs and growth and approximately £60m a year for the economy is just wonderful.

"This decision is testament to the hard work carried out by the council's team over a significant period of time."

Ludlow MP Philip Dunne, minister for defence equipment, support and technology, said: "Today's announcement is a key step in bringing defence logistics up to the standard of industry best practice. It will deliver state of the art warehousing systems to improve availability of supplies and better management of inventory for the Armed Forces.

"Further details on the programme will be released once contract negotiations have concluded."

Lieutenant general Chris Deverell, MoD chief of materiel (land), said: "Our priority is to provide the best possible support to military operations and maintain levels of quality and service to our Armed Forces as well as being able to meet their changing needs.

"The programme will significantly increase our ability to do that, whilst at the same time saving money for defence."

Leidos, formerly known as Science Applications International Corporation, has 20 years of integration and logistic experience providing end to end solutions in defence, health and engineering programmes.

In July, 2012, the Government announced the start of the programme with the aim of ensuring that the MoD is able to continue to deliver logistics and commodities services the armed forces require in a way that provides value for money to the UK taxpayer.

The MoD says the hub will provide significant operational effectiveness by delivering improved responsiveness and agility. It will also improve efficiency in warehousing procurement and stock control of food, clothing, general and medical supplies as well as storage and distribution. It is also expected to deliver financial savings to the MoD of about £0.5 billion over the next 13 years.

• See Friday's Shropshire Star for reactions and analysis