Telford Army logistics base use could be expanded

Barbara Doornink, the boss of Leidos's UK arm, established to run the defence logistics contract based at MoD Donnington, was speaking for the first time since the massive contract was won for the town in February.

A new European arm has been established by the multi-billion dollar US giant in the UK to run the big-money contract being delivered at Donnington.

In total it is estimated to be worth between £7 billion and £8 billion over the next 13 years – but that figure could rise to £13 billion if the MoD expands the range of products handled under the so-called Logistic Commodities and Services Transformation programme.

"We as a company began to look at working with the MoD on projects like this several years ago, and worked hard to understand what problems they had, so when they began to look at an outsourcing model we were ready," Ms Doornink said.

"If this does continue to find efficiencies, then there's every opportunity for other parts of Government to use the contract as well.

"Our first focus is and always will be the front line. It's an important contract, because our view is that strong performance is our best indicator of future opportunities."

She added that work on the £60 million-plus fulfilment centre would begin shortly after the transfer of operations to the private operator on August 1.

The move will see around 1,200 staff from across the UK transferred into the operation.

Shortly afterwards, Leidos will perform a ground-breaking ceremony ahead of the construction of a new logistics centre between MoD Donnington and the Hortonwood Industrial Estate in Telford that will become the hub of the operation in the years to come.

With a total value of more than £60 million, it will present huge opportunities for local contractors during the course of the build – and will rival the impact of the building of the new Jaguar Land Rover factory further down the M54.

Leidos was named the preferred bidder for a multi-billion pound contract to deliver logistics services for the British Army in February.

It has established a new UK company to deliver the contract, with the company's senior vice president Barbara Doornink installed as its managing director during the three-year handover period.

Speaking for the first time since the announcement was made, Ms Doornink said the building of the base would create substantial opportunities for local businesses.

Ms Doornink has experience in the field. The Washington State-born 63-year-old previously ran 26 logistics centres on behalf of the US government's defence department.

"The fulfilment centre should take about a year before it's fully operational," she said. "Once it's there, that's when you should begin to see some obvious change.

"As we are building the fulfilment centre, there's a group of suppliers who should enjoy the benefits. It's in the £60 millions – it's substantial.

"The first year should be relatively quiet, with the exception of the fulfilment centre being built. We are slow and steady, to make sure that our emphasis is on change but not in any way that impedes front-line support."

She added: "What's really great about this workforce is their commitment to serving the forces, it's just amazing. We were conscious of that coming in, but as we have spent time here we have become even more impressed.

"The sentiment has been broadly positive. Some of these folks have great ideas about what changes should take place.

"There are an awful lot of things coming out because there hasn't been major investment in the facilities."

She said it was too early to say what kind of future job prospects would be created by growth at the site, and that the company was currently looking at efficiencies at Donnington.

While jobs are secure, she added, a number of workers would see their roles change during the course of the transition period.

Ms Doornink praised Telford & Wrekin Council's part in the development, laying the groundwork for the building of the centre should the contract be won for the borough.

The building of the new centre will be funded in instalments by the MoD – meaning the council's plans to take a huge loan for the building of the site are no longer necessary.

"They did a lot of pre-work which made it easier as we were modelling this to understand the realms of possibilities," she added.

"We were also impressed by the opportunity here for growth. Telford, because it is a relatively new community, has substantial infrastructure in terms of just the basics – the power grid and the water.

"People will argue that Bicester is to the south, closer to the ports and to RAF Brize Norton, and that's why it's an important part of this. For us it was never Donnington or Bicester, it was Donnington and Bicester."

While the site will experience an increase in its usage, however, local people should not expect more traffic, while the road leading to the centre will be upgraded.

Leidos may also make use of the nearby rail freight terminal, bringing into fresh use an asset which has long been underused.