Bright future for MoD Donnington after rollercoaster ride

The base in Telford has been named as the preferred site for a new logistics hub to provide food, clothing and medical supplies to the Armed Forces. Should American consortium Leidos be awarded a 13-year contract to run the site, it will secure the future of 1,000 jobs and see up to 700 more created.

It represents a significant turnaround for the base, which as recently as 2012 was facing potential closure of a review of operations by the Ministry of Defence.

Yesterday's announcement by defence minister and Shropshire MP Philip Dunne is expected to net the local economy £60 million a year.

Mr Dunne, Defence Minister, added: "This secures the site as a key logistics centre for the whole of defence for decades."

Leidos will overhaul the MoD's procurement practices, inventory management and stock control, rationalising current stock holdings and storage infrastructure and refining logistics processes.

Contracts still need to be signed but the announcement brings welcome stability following an uncertain 12 months for those working at the military base.

It has been locked in a two-way battle with MoD Bicester to fight for the right to host the military base. Before yesterday's decision, the operations were split across both sites.

Both sides were equally confident they would get the nod from the Government.

Telford & Wrekin Council, which pushed strongly throughout, planned to borrow £120 million from Whitehall to buy up land that could accommodate the expansion in Donnington so bosses could say it was all systems go if they got the nod.

It was a nod that was a long time coming. Leaders on both sides were initially promised a decision before Christmas last year, but that was put off until early January, and then delayed again and again until yesterday's announcement.

The Bicester centre formed part of a wider planning application – the council was also buying land from the MoD for up to 1,900 self-build homes at Graven Hill.

Barry Wood, leader of the area's Cherwell District Council, publicly spoke of his confidence that Bicester would be the chosen one.

But Councillor Bill McClements, finance chief for Telford & Wrekin Council, said he was always quietly confident their bid would come out on top.

Councillor McClements said: "It is true to say that we've turned heads. The MoD was initially sceptical but we have always believed in ourselves and believed that Telford is the best place for the defence fulfilment centre.

"We have worked positively over the last two years and are really excited about working with them to take the scheme forward as well as welcoming this major and high-profile inward investment to the borough.

"We know they have some challenging timescales to meet with regards to the build but we know that our 'business supporting, business winning' approach will ensure that these are met.

"We've got good value land, we've got the space, we've got historic military links, we've got the existing site at Donnington, we've got the transport links and a skilled workforce on the doorstep.

"We can't wait now to move forward and deliver on our promises to the MoD. The talking is done and now the building can start."

Council leader Kuldip Sahota said: "This is a massive decision for the whole of Telford & 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 £60 million 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."

Union leaders met the news with a cautious welcome, saying they were thrilled with the news about jobs but wanted to know more about Leidos's plans for the site. They also praised Telford & Wrekin Council members for steering the ship when MoD Donnington looked doomed in 2012.

Chris Cadman, Unite executive council member for the Ministry of Defence, said: "We are very pleased to hear the announcement. We cautiously welcome it, we would like to know a little bit more about the plans on the table but we know the fulfilment centre and logistics hub will be built at Donnington in the future. It is really good news but we cautiously welcome because we would like to know more about it.

"The real group that deserves credit in this is Telford & Wrekin Council because they picked this up in 2012 where the future for Donnington was looking very bleak but it was through hard work and tenacity and instinctiveness and finding a solution that put Donnington back into the game and that has been a success.

"I cannot speak highly enough of the councillors and officers deserve a great deal of credit.

"Telford & Wrekin has gone out of its way to do everything they can to support this work, their attitude of not wanting to lose this has been a game changer.

"At the moment they have just announced the preferred bidder. We would just like a bit more detail and there is a transfer involved here, staff would transfer to the new site and there are a lot of issues to be dealt with there but we are thrilled that Donnington has been chosen as the centre of logistics. It can only secure jobs.

"We will be keen to speak to the new employers. The Leidos group is a consortium and we understand the logistics staff would work for Kuehne and Nager, which is one of the biggest logistics firms in the world."

Leidos chief executive Roger Krone said: "Leidos is delighted to have been selected by the Ministry of Defence as the preferred bidder to manage the United Kingdom's defence logistic commodities and services transformation.

"This contract represents an important milestone for Leidos and will enable us to bring decades of proven logistics performance to help transform the UK armed forces' storage, distribution and commodities procurement capabilities – all to ensure front-line troops can get what they need, when they need it. Leidos has been operating in the UK for a number of years under our former name, SAIC, and this contract further underlines our commitment to the UK.

"This is a new and significant external contract for the Ministry of Defence, whose team should be commended for its well-structured and managed procurement process throughout the last two years."

Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said the announcement was "very important for Telford and Wrekin and the county as a whole".

He said such a significant investment was bound to have a big knock-on effect in terms of jobs and wealth creation in the economy.

He said: "It's a fantastic thing that has been achieved, and it's a credit to everybody that has been involved in the lobbying that has made it happen. We can expect a broad brush approach, and the impact will be felt right across the business community.

"Whenever you get a significant change in infrastructure, there's a lot of work that goes on, and hopefully that work can be won by local companies, and they will be well-placed to capitalise on the opportunities. From the ground work to the building, and everything that goes with the hub's presence in Telford, this is an opportunity for local businesses."

And that feeling was replicated by business owners near to the Donnington site.

Speaking to the Shropshire Star, Nicola Casey, manager of neighbouring Casey's Cordingley Hall events and function venue, said it was good news that more people and jobs would be brought to the town.

She said: "I think everyone here in Donnington knows someone who works within the MoD, I can only think having such a large hub and creating jobs is a good thing.

"There has been a lot of apprehension with regards to job safety and security and if this does go ahead it would be a big relief for everyone."