Agility DGS Begins Work on Two UK MOD Contracts
The four-year awards include sales and disposal of platforms, military equipment, and spares
Agility Defense & Government Services (DGS) began work May 1 on two four-year contracts to deliver solutions for the Defence Equipment Sales Authority (DESA), a part of the UK Ministry of Defence (MOD).
The first contract is to sell and dispose of UK armed forces aviation platforms, equipment, and spares. It has a potential throughput of $17 million. DESA is the arm of MOD authorized to sell surplus military equipment and inventory.
Under terms of the first contract, DGS will handle the sale and disposal of aircraft, aircraft spares, training aids, and ground support equipment, along with other military equipment and spares such as communications systems. DGS performed similar work for DESA for five years as a subcontractor before selection as prime contractor under the new award.
Agility DGS will collect equipment and spares from the MOD in the UK. Sales will be made worldwide, subject to applicable export controls.
To fulfill the scope of work, Agility DGS will use a customised IT system to target buyers in aerospace businesses. It also has developed databases to sanitise, cross-reference, and manage the inventory. Collection, sales, and reporting activity is managed with the same database, which has been tailored to the requirements of the contract.
The second contract is to collect, demilitarise, and sell surplus military equipment and property. This includes disposal of surplus assets in operational and non-operational locations outside of the UK and has a potential throughput of $12.8 million over the four years.
This contract includes disposal of surplus assets in operational and non-operational locations outside of the UK. DESA handles the disposal of all materiel that can generate revenue within the UK and overseas, including aircraft, aircraft spares, ships, boats, river craft, and other marine vessels and spares, military, domestic vehicles, and hazardous waste removal with the exception of nuclear, domestic waste and infrastructure.
Agility DGS had held the DESA Middle East overseas disposal contract since 2012 and was initially focused on the draw-down of the UK armed forces in Afghanistan.
Under terms of the second contract, the global overseas sales and disposals agreement will be managed from Agility DGS’s Stoke-on-Trent facility in the UK, utilizing a customised Quantum ERP system to track inventory, manage the sales process and provide reporting.
Efficient disposal of the surplus inventory saves the MOD and UK taxpayers from the expense of shipping items back to the UK for disposal. Agility DGS will arrange for shipment of valuable items elsewhere if sales are not feasible in local markets.
“We are pleased to begin these two contracts with DESA and look forward to a fruitful continuing association with the UK MOD,” said Gareth Webberley, Vice President of Agility DGS Europe. “Our innovative solutions for sales, disposal, recycling, and reporting, coupled with Agility’s global footprint, will complement the vital work DESA and the wider MOD are doing on the global stage.”
ABOUT AGILITY: Agility is a global logistics company with $5.1 billion in annual revenue and 26,000+ employees in more than 100 countries. It is one of the world’s top freight forwarding and contract logistics providers, and a leader and investor in technology to enhance supply chain efficiency. Agility is a pioneer in emerging markets and one of the largest private owners and developers of warehousing and light industrial parks in the Middle East, Africa, and Asia. Agility’s subsidiary companies offer fuel logistics, airport services, commercial real estate and facilities management, customs digitization, and remote infrastructure services.