The UK Ministry of Defence (MoD) is set to sign a contract with Leidos as part of a transformation of the logistics commodities and services (LCS(T)) programme.
In February, the company was selected as the preferred bidder for the 13-year logistics programme contract, which aims to provide more efficient and effective processes across the supply chain and enhance the quality of support provided to UK Armed Forces.
Under the contract, the company will run and improve efficiencies in warehousing procurement and stock control of food, clothing, general and medical supplies as well as storage and distribution.
UK MoD chief of materiel (land) lieutenant general Sir Chris Deverell said: "This contract meets the changing military requirements of our armed forces whilst also maintaining levels of quality and service.
"By working with Leidos, we will introduce modernise our commodity procurement, warehousing, and distribution and secure a supply chain that will be responsive to the needs of the military, whilst at the same time saving money for defence."
UK Defence Equipment, Support and Technology Minister Philip Dunne said: "This will generate significant savings of around £0.5bn 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."
Working alongside Kuehne + Nagel, TVS, Agility and Thales, the company aims to provide logistics services in line with industry best practice while ensuring best value for money for the UK taxpayer.
The LCS(T) programme will witness significant investment in new facilities, including £90m in the construction of a defence fulfilment centre near the existing LCS site at Donnington in Shropshire, and £40m in new IT systems to provide the modern and efficient logistics services sought by the UK soldiers.