MTMC AWARDS EGL CONTRACT TO MANAGE FREIGHT IN U.S. SOUTHEAST
The U.S. Military Traffic Management Command, the surface transportation logistics unit of the armed forces, has awarded a $33-million contract to Eagle Global Logistics to manage its freight transportation in the U.S. Southeast.
The contract, which runs from July 1 to June 30, 2002 with two one-year renewal options, will allow MTMC to test the benefits of using commercial logistics firms to manage military cargoes. Explosives, liquid bulk and confidential materials are currently exempt from the contract.
“With emphasis on customer service at the lowest overall cost, it was determined to test use of a third-party logistics provider for the movement of domestic freight shipments,” said Frank Galluzzo, director of MTMC’s Distribution Analysis Center in Alexandria, Va.
Twelve firms bid for contract. “It was extremely competitive,” Galluzzo said. “The award was made on a best value basis — considering price and trade off of quality of services.”
The test region encompasses 28 military installations scattered throughout Georgia, Florida and Alabama. The contract covers Army, Air Force, Navy and Marine Corps bases. It also includes four large Defense Logistics Agency depots. These installations move about 50,000 shipments a year.
“It’s a big deal for Eagle,” said Mike Reusche, director of government sales for Eagle Global Logistics, which is headquartered in Houston. “We’re enthusiastic about being on the ground floor of this contract.”