Agility DGS wins $5m Army and Air Force Exchange Service contract

This Atlanta-to-Iraq lane of the Air Freight to Iraq Tender contract, which started on Mar.10, is worth over $5m annually. Under the tender, Agility will be responsible for clearing and transporting store merchandise destined for AAFES customers at U.S. military installations in Western Iraq sites via Jordan from Atlanta, Ga.

AAFES is a joint-service military organization within the Department of Defense that sells brand-name merchandise to active and retired service members and their families. AAFES operates 143 retail stores and 2,200 restaurants, along with specialty shops and movie theaters, in more than 30 countries and 49 states. With more than $9bn in annual revenue, it is one of the world's 40 largest retailers.

"With our global logistics network, we're able to generate savings that AAFES can use to improve the quality of life for soldiers, sailors, airmen and Marines across the globe," said Dan Mongeon, president and CEO of Agility DGS. "Agility brings a depth of experience, having worked with both defense customers and commercial retailers."

AAFES recently recognized Agility with its Logistics Exceptional Service Award for its work moving goods to exchange stores in Iraq. Agility cut transit times for AAFES goods by an average of eight to 14 days and reduced overall transportation costs. The increased efficiency resulted in more than $13m in savings, money that can now be spent on morale, welfare and recreation programs for U.S. service members.

The Global Airfreight Tender win follows other recent contract wins for Agility DGS. The Alexandria-based company recently won the right to supply and deliver repair parts at the Tobyhanna Army Depot as part of a contract worth up to $932m over eight years. DGS also was awarded contracts to manage bulk fuel facilities at seven U.S. Air Force installations in Europe and Asia, and to manage inventory of personal gear at all U.S. Marine bases around the world.