Oct. 28 (Bloomberg) -- Anham FCZO LLC said it’s started to fulfill a $2.2 billion contract to provide logistical support to U.S. troops in Iraq, Kuwait and Jordan and will take over fully from the current contractor by the end of the year.
The contract with the U.S. Defense Department, signed in April, is final, the company said. Kuwait & Gulf Link Transport Co., a cargo shipper, filed an objection to the contract on the ground that Anham’s bid failed to meet criteria.
Agility Public Warehousing Co., which has until now been the main supplier of American troops in Kuwait and Iraq, faces charges of overbilling the U.S. government.
Anham’s contract “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.”
He was speaking after Anham signed an agreement with Kipco Asset Management Co., an investment banking and financial advisory firm, to establish a closed Kuwaiti shareholding company to carry out the prime-vendor contract.
Kuwait & Gulf said in July that the U.S. Defense Logistics Agency decided to take “corrective measures” in response to its objection and will receive amended offers from bidders “to take new decisions for a new settlement.”
The protest process is “conducted in the normal course of U.S. government contracts,” Sukhtian said. In the meantime, Anham is executing the contract and expects to take over fully from Agility by the end of the year, he added.
Agility, the biggest storage and logistics company in the Middle East, has said it’s in talks to resolve legal issues with the U.S. Justice Department and there’s no guarantee a settlement will be reached.
The company said on Oct. 11 that a U.S. magistrate recommended the dismissal of an indictment against one of its units in connection with the supply contract.
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