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Government Accountability Office Dismisses Protest, Sustains Award of Defense Transportation Coordination Initiative (DTCI) Contract to Menlo Worldwide

Government Accountability Office Dismisses Protest, Sustains Award of Defense Transportation Coordination Initiative (DTCI) Contract to Menlo Worldwide

SAN MATEO, Calif. - October 31, 2007

Menlo Worldwide Logistics, LLC, the third-party logistics services provider of Con-way Inc. (NYSE: CNW), announced today that the U.S. Government Accountability Office (GAO) has dismissed an earlier filed protest of the contract award to Menlo Worldwide Government Services, LLC (“Menlo”) for the $1.6 billion Defense Transportation Coordination Initiative (DTCI).

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

The original protest was filed on August 29 by Ryder Integrated Logistics, Inc. The GAO dismissed the action on October 30 after Ryder informed the GAO that it was withdrawing its protest.

“We are pleased to see the conclusion of this important government process which sustains the award of this contract to Menlo,” said Robert L. Bianco, Jr., president, Menlo Worldwide Logistics. “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 (DOD) material 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 Corporation (CSC), 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.

To view the GAO’s decision on the Web, go to: http://www.gao.gov/decision/docket/, select Dept. of Defense, and click the Search button.

About Menlo Worldwide Logistics
Menlo Worldwide Logistics, LLC, is a global provider of logistics, transportation management and supply chain services with operations in North America and on five continents. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide Logistics’ services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain re-engineering and other value-added services, including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 17 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide Logistics, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.7 billion freight transportation and logistics company and FORTUNE magazine’s “Most Admired Company” in transportation and logistics for 2007. For more information, visit us on the Web at www.menloworldwide.com.

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