Toll Group, a provider of integrated logistics services concluded negotiations for the supplying of relocation services to the Australian Department of Defence. While final contractual issues are currently being resolved, the signing of the contract is expected to take place in the near future.
Toll Group Managing Director Paul Little announced that Toll Transitions was awarded the contract with the Department of Defence towards providing Removal Services (RS) and Relocation Administration Services (RAS). Toll Transitions is Toll Group’s specialist in relocations business. Little said the contract comprised of an initial five-year period, which would be followed by four one-year extensions, which of course would be at the discretion of the Department of Defence.
Removal Services (RS) is the movement of personal and household effects of Defence members, while Relocation Administration Services (RAS) deals with the coordination of Defence members’ relocations, which could include flights, temporary accommodation, allowances, reimbursements, etc.
Little added, “The initial five-year period is expected to generate revenues of more than $1 billion, and if the extensions are granted total revenue of around $2 billion would be expected. For the past 10 years Toll has provided Removal Services to the Australian Department of Defence. The inclusion of Relocation Administration Services into the contract is a significant addition and a further testament to the professionalism of the Toll Transitions team. Defence require over 22,000 removals and 23,000 relocations to be managed each year under this contract which is the largest of its type in Australia. The Tender win will entail substantial growth and opportunities for Toll Transitions with over 100 additional staff being recruited and a number of new offices being established around the country.”