The UK Ministry of Defence (MoD) has selected Leidos as the preferred bidder for the logistics commodities and services (transformation) (LCS(T)) programme.
Expected to provide significant operational effectiveness by delivering improved responsiveness and agility, the LCS(T) programme aims to improve efficiency in warehousing procurement and stock control of food, clothing and general and medical supplies, as well as storage and distribution.
In addition, it is expected to generate savings of nearly £0.5bn over the next 13 years.
UK Defence Equipment, Support and Technology Minister Philip Dunne said: "Today's announcement is a key step in bringing defence logistics up to the standard of industry best practice.
"It will deliver state-of-the-art warehousing systems to improve availability of supplies and better management of inventory for the armedfForces."
UK MOD Chief of Materiel, (Land) lieutenant general Chris Deverell, said: "Our priority is to provide the best possible support to military operations and maintain levels of quality and service to our armed forces, as well as being able to meet their changing needs.
"LCS(T) will significantly increase our ability to do that, whilst at the same time saving money for defence."
Leidos chief executive Roger Krone said: "This contract represents an important milestone for Leidos and will enable us to bring decades of proven logistics performance to help transform the UK armed forces' storage, distribution and commodities procurement capabilities, all to ensure frontline troops can get what they need, when they need it."
Working alongside Kuehne + Nagel, TVS, Agility and Thales, the company will procure non-military essentials such as food and medical supplies and provide storage and distribution services for the armed forces at home and abroad.
According to the MoD, subject to contract signature, the preferred bidder will propose a defence fulfilment centre next to the existing MoD site at Donnington, Shropshire, UK.