Anham Says Logistics Contract With U.S. Department of Defense is Final

Anham FCZO LLC said its logistics contract with the U.S. Department of Defense is final and that it has started to implement it with a view to fully taking over the order by the end of this year.

“It has been final for a while,” Managing Director Mogheith Sukhtian told reporters today in Kuwait City. “We have a signed contract with the U.S. government.”

Dubai-based Anham said April 16 it was awarded a $2.2 billion contract by the U.S. Defense Department to provide logistical support to U.S. troops in Iraq, Kuwait and Jordan.

Kuwait & Gulf Link Transport Co., a cargo shipper, said April 28 that it filed an objection to the awarding of the contract to Anham, which it said failed to meet criteria. The U.S. Defense Logistics Agency decided to take “corrective measures” regarding the objection and will receive amended offers from bidders “to take new decisions for a new settlement,” Kuwait & Gulf Link said in July.

“The protest process is a part of the U.S. government contracting process and it’s conducted in the normal course of U.S government contracts,” Sukhtian said. “So we’re undergoing the process but in the meantime, what we can say, is that the contract is being executed. We anticipate the transition between the incumbent and us to be completed by the end of the year,” Sukhtian added.

The incumbent contractor, Agility Public Warehousing Co., is the Middle East’s largest storage and logistics company and faces charges of overbilling the U.S government on a multibillion dollar contract to supply food for troops in Kuwait and Iraq. Agility had said it was in talks to resolve legal cases with the U.S. Department of Justice and there was no guarantee a settlement would be agreed.

A U.S. magistrate recommended the dismissal of an indictment against Agility’s unit, Agility DGS Holdings Inc., in connection with the company’s contract to feed U.S. troops in Iraq and Kuwait, Agility said Oct. 11.

To contact the reporters on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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