Agility, a global logistics leader, was awarded a tender by the Army and Air Force Exchange Service (AAFES) - a government agency within the Department of Defense. aafes operates retail stores, restaurants, movie theaters, gas stations, and other businesses on military installations around the globe. The competitive commercial services business will open a new supply chain route through Jordan to service AAFES retail centers in Western Iraq.

Agility will provide an integrated supply chain solution for the clearance and transportation of general department store merchandise destined for AAFES customers in Iraq by utilizing its operations in Jordan. Headquartered in Dallas, Texas, AAFES is a joint-service military organization serving soldiers and sailors that offers brand-name retail merchandise to active and retired military personnel and their families. With more than $9 billion in annual revenues, AAFES operates as one of the world's top 40 largest retail companies.

In order to help AAFES find operational efficiencies while ensuring the highest levels of service quality, Agility will integrate best practices from its award-winning Retail Center of Excellence and Defense & Government Services (DGS) operations. AAFES will have the benefit of Agility's experience in supporting world-class commercial retailers, optimized for use in a military environment.

AAFES retail operations in Iraq are currently being serviced by a distribution operation in Germany. This has historically left the retail sites in Western Iraq with minimal accessibility and the hardest challenges for re-supply. By partnering with Agility to open a new supply route through Jordan, these Western Iraq sites will realize major improvements in re-supply for the first time.

Agility's role in helping AAFES save operational costs directly benefits U.S. service members, as AAFES returns the overwhelming majority of its earnings-more than $240 million in 2005-to funding the military's Morale, Welfare and Recreation (MWR) programs.

The AAFES contract award follows other significant wins by the Agility Retail Center of Excellence and DGS. The two business units have secured recent contracts with key retail and defense market customers including Timex, Daimler Chrysler, and the U.S. Air Force.