Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

New contractor picked to supply coalition troops in Mideast

By Walter Pincus

at the Washington Post

A new contractor has been selected to supply billions of dollars worth of food and beverages to U.S. and other coalition troops in Iraq, Kuwait and Jordan in coming years, replacing a Kuwait-based firm that was indicted in November on charges of overbilling the government for those services.

Agility, a multibillion-dollar, worldwide government contractor, has been fighting the charges in federal district court in Atlanta. Agility and all its subsidiaries are barred from bidding on U.S. government contracts while the legal case is unresolved.

Anham, a six-year-old Dubai-based firm, was chosen over three other bidders for the new contract, which could be worth between $2 billion and $6 billion in the next six years, said Dennis J. Gauci, a spokesman for the Defense Logistics Agency. Anham is a collaboration of three multi-national firms.

Anham’s chairman and chief operating officer is Abul Huda Farouki, a Northern Virginia resident and well-known social figure in Washington. His HII-Finance Corp., based in Fairfax County, joined with two giant Middle East conglomerates to form Anham. One is Saudi-based Arab Supply and Trading, and the other is the Munir Sukhtian Group of Companies, a Jordanian investment and operating entity. Since 2004, Anham has “continually grown and expanded its business operations to over 20 countries,” according to its Web site.

Another Farouki enterprise, Nour USA, is listed on the Anham Web site as an affiliate. Nour USA is a service company “that provides Anham with a strong interface connection with the U.S. Government, and American non-governmental and business organizations,” according to the site. “Nour has proven itself to have the experience and knowledge required to help clients acquire, manage, and execute contracts and projects; especially entities with an international focus.”

There will be a roughly six-month transition from Agility to Anham “to allow the new prime vendor sufficient time to take over the contract and the current contractor to diminish current stocks in the supply chain,” Gauci said Thursday.

April 16, 2010 Posted by | Contract Awards, Contractor Corruption, Contractor Oversight, Wartime Contracting | , , , , , , | Leave a comment

Agility Lose Out on US Military Supply Shipments

US Defence Logistics Agency Change Shipping Contractors

KUWAIT – US – IRAQAgility, the Kuwait based company threatened with a major penalty for alleged impropriety over shipping supplies to the US military, report they have been replaced as the chosen logistics supplier by the US Defence Logistics Agency. The company report that they will continue to supply the Government forces for a further six months to ensure a smooth transition.

Agility, referred to in indictments as PWC or Public Warehousing Company, the name under which they formerly traded, stated on Monday that two sister companies, Agility DGS Holdings and Agility DGS Logistics, had been added to the prosecutions case file. The group stand accused of overcharging the US military by millions of dollars for their services and making false statements to disguise their activities.

The Agility Group stated in Monday’s release:

“PWC’s work on the food contract has been timely, reliable and cost effective. Its performance, under the most dangerous and demanding conditions, has been unparalleled. The prices it charges have been negotiated with, agreed to, and continually approved by the U.S. government, which has found PWC’s prices to be fair and reasonable.

“PWC has a strong, compelling legal case. The Company intends to defend itself vigorously if this matter properly goes to court. PWC and the Department of Justice continue to hold discussions aimed at a resolution.

“The decision by the U.S. Attorney’s office in Atlanta is regrettable. The indictment contains no new allegations, and simply adds two PWC affiliates as defendants. This move serves only to taint PWC subsidiaries that have a strong record of on-the-job performance and compliance with U.S. law and federal acquisition regulations.”

Requests to the US military by the Handy Shipping Guide for the identity of any new supplier remain unanswered but on Tuesday a Springfield, Virginia based group, Versar Incorporated, announced that they had been awarded two task order contract extensions totalling $7.5 million by the Gulf Region District of the U.S. Army Corps of Engineers. This is for their support works, including logistics, for their personal services contract to regenerate and reconstruct areas of Iraq. These works should be completed by October this year, just as Agility complete their foreshortened contract. Versar had already received a further $37 million worth of US military contract renewals in the preceding two weeks.

See full story with comments at Ms Sparky

April 15, 2010 Posted by | Contractor Corruption, Contractor Oversight, Uncategorized | , , , , , , | Leave a comment

New defendants in Kuwaiti military contractor indictment

By Bill Rankin

The Atlanta Journal-Constitution

Federal prosecutors have obtained a new indictment charging a Kuwaiti firm and two of its affiliates of defrauding the U.S. military on billion-dollar supply contracts.

The indictment, which remains under seal, was disclosed during a hearing Monday in U.S. District Court in Atlanta. Public Warehousing Co., now known as Agility, had previously been indicted on charges it gouged the Defense Department by overcharging food supplies being delivered to U.S. troops in Iraq, Kuwait and Jordan. The new indictment also names Agility DGS Logistics Services Co. KSCC and Agility DGS Holdings Inc.

Lawyers for the companies asked U.S. Magistrate Alan Baverman to keep the new indictment sealed for seven days, saying it might help settlement negotiations. Assistant U.S. Attorney Barbara Nelan disagreed, saying that unsealing the new charges “may be helpful” to the parties’ attempts to reach a settlement.

The Atlanta Journal-Constitution previously reported that parties in the case had been negotiating a possible settlement that could reach $750 million. Since the indictment, the Defense Logistics Agency, which provides supplies to U.S. armed forces worldwide, has barred Agility and 100 of its affiliates from receiving new contracts from the government pending the outcome of the Atlanta case.

Agility has long maintained federal prosecutors did not properly serve the company with the indictment. At Monday’s hearing, only a lawyer for Agility DGS Holdings entered a not guilty plea. Lawyers for Agility and Agility DGS Logistics Services declined, so Baverman entered not guilty pleas for them.

“The decision by the U.S. Attorney’s office in Atlanta is regrettable,” the company said in a statement issued after Monday’s hearing. “This move serves only to taint PWC subsidiaries that have a strong record of on-the-job performance and compliance with U.S. law and federal acquisition regulations.”

April 12, 2010 Posted by | Contractor Corruption, Wartime Contracting | , , , , , , , , | Leave a comment