Jacksonville company’s transportation contract bumped up by almost half a million dollars (Courtesy of the Jacksonville Business Journal) — The area’s largest defense contractor has had its largest contract extended through July 2023.
Jacksonville-based Crowley Government Services Inc. was awarded a $466 million contract extension to the largest defense logistics contract issued by the federal government. The contract modification covers work from Aug. 1, 2022, to July 31, 2023.
Crowley won that contract in 2016, with the first shipment made in 2018. The deal pays a fixed price based on volume, allowing the company to benefit if it works more efficiently.
Getting the job involved years of legal wrangling, with Crowley winning both an initial protest and a separate legal challenge.
Under the contract, Crowley is responsible for trucking various types of cargo from thousands of suppliers to facilities across the U.S., including military installations, vendor warehouses and other sites.
The massive transportation contract isn’t the only government work Crowley handles: The company also manages prepositioning ships for the U.S. Marine Corps., provides expeditionary logistical support for missions around the globe and transports fuel to the remote Eareckson Air Station in Shemya, Alaska, among other projects.
The extension, announced Monday, brings the total value of the job to $1.75 billion. If all options on the contract are exercised, Crowley can earn up to $2.3 billion.