GAO dismisses protest of DTCI contract award to Menlo Worldwide

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Menlo Worldwide, the third-party logistics services provider of Con-way Inc., announced Wednesday, Oct. 31, that the U.S. Government Accountability Office has dismissed an earlier-filed protest of the contract award to Menlo Worldwide Government Services for the $1.6 billion Defense Transportation Coordination Initiative.

On Aug. 17, Menlo was selected as prime contractor for DTCI, a strategic logistics program directed by the Department of Defense U.S. Transportation Command to improve efficiency and performance for the domestic transportation and distribution network supporting warfighters at all four branches of the U.S. military.

“We are pleased to see the conclusion of this important government process which sustains the award of this contract to Menlo,” says Robert L. Bianco Jr., president of San Mateo, Calif.-based Menlo Worldwide. “We are honored to have been selected as prime contractor for this milestone program. We’re ready to move ahead with implementation, working in partnership with the DTCI Program Management Office to fulfill the goals and objectives of this landmark military logistics improvement initiative.”

As prime contractor for DTCI, Menlo is responsible for deploying and operating an integrated logistics solution for shipment planning, optimization, shipment execution and overall transportation resource management governing Department of Defense materiel shipments moving into and among DOD facilities in the 48 contiguous United States. The initiative is expected to eventually encompass up to 260 independent shipping sites and hundreds of transportation service providers.

Benefits of the new program are expected to include increased operational efficiencies and cost savings, as well as better visibility of freight movements. The improved visibility will enable predictability that will enhance planning of other modes of transportation so DOD can better meet end-customer (warfighter) expectations of delivery.

The company expects to resume work on the project effective early November. Menlo is the prime contractor for DTCI in partnership with its principal subcontractors, which include:

  • Computer Sciences Corp., which will provide IT infrastructure hosting, network management and integration services;
  • One Network Enterprises Inc., which will provide the transportation management software for shipment planning, optimization and execution, and;
  • Olgoonik Logistics LLC, which will provide professional services supporting the participation of minority-owned and small business firms as service contractors for DTCI.
  • The original protest was filed on Aug. 29 by Ryder Integrated Logistics, which alleged that One Network’s freight management technology was untested and was released six days after the contract was awarded. Ryder argued the optimization capability software should have been tested by customers before the contract was awarded.

    GAO dismissed the action on Oct. 30 after Ryder informed GAO that it was withdrawing its protest. To view GAO’s decision, go to www.gao.gov/decision/docket, select “Department of Defense” and click on the “search” button.