Under the terms of its contract with the US Defence Logistics Agency (DLA), PWC will procure fresh and dry goods from the US and local markets, and supply the provisions to armed forces based in Kuwait, Iraq, Bahrain and Qatar. The contract, which starts in December, is a continuation of an 11-month prime vendor contract, worth $3,200 million, awarded to PWC in February (MEED 25:2:05).

The contract is divided into four time periods, an initial 18-month commitment followed by two back-to-back 12-month and one final 18-month extension option. For each 12-month period, the contract value may reach up to $2,800 million, with the actual value for each time period determined by the volume of services required.

PWC has grown dramatically over the past three years to become the largest company in Kuwait in terms of market capitalisation. It has embarked on an ambitious expansion programme, which over the past 12 months has seen it acquire various international logistics and transport firms as well as branch out into the GCC and the region through joint venture agreements with other companies (MEED 11:6:04).

PWC is also the main shareholder in Kuwait's Global Clearinghouse Systems (GCS), the joint venture set up to implement the estimated $1,000 million, 25-year build-operate-transfer (BOT) concession to modernise and operate the state's customs operations (MEED 11:2:05).

In a separate deal with the DLA, Bahrain Maritime & Mercantile International (BMMI) has also won a subsistence prime vendor contract, worth up to $175 million, for the provision of supplies. Under the terms of its five-year contract, BMMI will supply provisions to US forces in Saudi Arabia, Bahrain and Qatar (MEED 6:6:03).

www.meed.com/transport