The United States Transportation Command (USTRANSCOM) has awarded a contract to FedEx and its teama contract worth an estimated $1.37 billion, with a minimum guarantee of $150.7 million.
The contract, announced earlier this month, is for international airlift services, whichincludes the short and long-range transport of Department of Defense passengers and cargo. TheFederal Express Team is a consortium that also includes Air Transport, Atlas Air, NorthwestAirlines, Omni Air International, Polar Air Cargo Worldwide, and Tradewinds Airlines.
According to the USTRANSCOM Office of Legislative Affairs, the work under this agreement willbe undertaken at FedEx hubs and the hubs of team members around the world, and is expected to becompleted by September 2009. FedEx competed among 30 proposals for this contract.
“I am very pleased to announce this huge contract for FedEx from USTRANSCOM,” saidCongressman Steve Cohen. “FedEx is second to none when it comes to providing global shipping,transport and logistics needs, so it is no surprise that the Department of Defense awarded themthis contract. This contract will strengthen FedEx, and that is good for Memphis.”
The mission of USTRANSCOM is to provide air, land and sea transportation for the Departmentof Defense. Located at Scott Air Force Base in Illinois, it was established in 1987. As the singlemanager of America’s global defense transportation system, USTRANSCOM is tasked with thecoordination of people and transportation assets to allow the US to project and sustain forces,whenever, wherever, and for as long as they are needed.
