Aspire Defence, which supplies the British Army with transport services, has awarded a £90 million 10-year deal to Lex Defence.
The deal, which is set to run from the second half of 2004, will see Lex providing a fleet and asset management service for the armed forces.
Dave Roberts, director Ministry of Defence (MoD) Managed Services for Lex Defence, said: 'This provides the opportunity to build on our proven track record and excellent relationship with the MoD. 'We look forward to working with Aspire to deliver the same high levels of service support throughout the expanded area of the new contract.'
Lex will provide all support services including maintenance and repair, breakdown recovery, incident management, accident repair, driver provision and vehicle rentals.
Coinciding with the Lex deal, Ryder Logistics & Transport has secured an £80 million contract to supply the MoD with a six-year pan- European contract hire and fleet management package.
The contract, which is set to start in April 2004, will replace the existing deal held between Ryder and the MoD since 1995, and will involve the servicing of more than 2,000 essential support vehicles.