Hopes MOD Donnington deal will give economy £60m lift

The claim was made after it was announced the 13-year logistics programme contract with Leidos would be signed next month.

It will include a three-year transition period, with workers moving to the site at MoD Donnington in Telford.

It is hoped the deal will bring 700 jobs to the town and could be worth up to £60 million to Shropshire's economy, but it is unknown at the moment where the jobs will come from.

The new contract forms part of a transformation of the Ministry of Defence's commodities and services, to provide supplies to the Armed Forces more effectively.

Councillor Bill McClements, Telford & Wrekin Council's cabinet member for finance and enterprise, said: "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."

Philip Dunne MP, Minister for Defence Equipment, Support and Technology, said: "I am pleased we are able to confirm this transaction with Leidos, which will bring the military's logistics, commodities and support services up to the standard of industry best practice, deliver more efficient and effective processes across the supply chain and enhance the quality of support provided to our Armed Forces.

"This will generate significant savings of around half a billion over the life of the contract, representing good value for money for the taxpayer and, in due course, will deliver state-of-the-art fulfilment to our inventory management processes and systems.

"The transaction will involve the TUPE transfer of some 1,250 staff."

Chris Cadman, Unite executive council member for the Ministry of Defence, said last night's announcement was a big step forward, but was keen to talk to Leidos about the transfer of employees and where the mooted 700 jobs would come from.

He said: "As of yet we have not met the potential new employer because until a contract has been signed we cannot enter into formal negotiations with them, but once it has we will enter into a 90-day consultation.

"As of yet we have had no contact with Leidos or any of their other partners, but once that contact has been signed in the middle of April, we will open formal negotiations with them.

"On August 1 everyone will be transferred over to the new company and we will talking to the new employers. It is expected they will be transferred to Kuehne+Nagel.

"Before that happens all that has been announced up until now was what the minister said that Leidos was the preferred bidder.

"Some are talking about another 700 jobs. I am keen to understand how that is going to be arrived at. There is a three-year transition programme then a 10-year contract to run it and we are just a little bit in the dark still.

"I am sure there will be a recruitment drive but not in the immediate future because I do not know how long it will take to build the new facility and it is only when they have built that they can consolidate services into Donnington.

"I would not be surprised if it was another nine to 12 months before we recruit anybody. But it is an important step forward today and it is even more amazing when you consider the turnaround from two years ago where this work was leaving Donnington and we would be having a very different conversation about when will they close Donnington."

Wrekin MP Mark Pritchard said it was great news for Shropshire. "This will be a major investment and safeguard existing jobs and help create hundreds of jobs," he said. "This has been a long campaign to get the National Fulfilment Centre in Donnington, but it is a campaign we have won."

Lieutenant General Sir Chris Deverell, MoD Chief of Materiel (Land), said the contract meant changing military requirements of the Armed Forces while maintaining levels of quality and service. "By working with Leidos, we will modernise our commodity procurement, warehousing and distribution and secure a supply chain that will be responsive to the needs of the military, while at the same time saving money for defence," he said.