Anham LLC to replace Agility as Prime Vendor (updated 4/17/2010)
Anham Wins Six Year $2 Billion Contract
US – IRAQ – KUWAIT – After discarding the services of Kuwait based freight forwarder Agility following the controversial accusations of corruption running into millions of dollars, the US Defense Logistics Agency (DLA) confirmed today to the Handy Shipping Guide that they had indeed chosen another appointee to take over the shipping of food and beverages to support US forces in the Middle East.
Anham LLC of Dubai have been awarded the 18 month base period contract ahead of three other groups who bid for the works. The contract has four further option periods, option periods one, two and three are for one year each, while option period four is for eighteen months making the overall contract period a total of six years. It’s an IDIQ contract and the maximum potential value of the contract is about $6.4 billion ($6,469,092,827) if all options are exercised. However, a DLA spokesman told us he anticipates that the actual dollar value over the life of the contract, assuming all options are exercised, will be about $2.1 billion.
There will be a transition between the current contractor (Agility) and Anham to allow the incoming contractor sufficient time to take over the contract and the current contractor to diminish current stocks in the supply chain. The contract with the present Agility expires in December 2010.
A copy of the DLA solicitation can be viewed here. (click HERE for the original article)
UPDATED 4/16/2010 @ 1021 PST: The Below statement is from the Anham site under NEWS.
ANHAM FZCO, LLC Awarded Multi-Billion Dollar U.S. Department of Defense Contract to Support Troops in Kuwait, Iraq and Jordan
Washington, DC – Today, the United States Defense Logistics Agency (DLA) announced that it has awarded a contract with estimated worth between $2.16 and $6.47 billion, including options enclosed for the contract term, to ANHAM FZCO, LLC to provide full-line food and non-food distribution and support to Department of Defense customers in Kuwait, Iraq and Jordan.
ANHAM has issued the following statement:
“It is with great gratitude and a compelling sense of duty that all at ANHAM welcome the award to expand our support for those serving in the Middle East. We have a long track record of meeting and exceeding the contract requirements and expectations of our clients, the United States Government, and all stakeholders. Our capable team will continue to build upon its legacy of delivering the best services at the best value to American taxpayers and the United States Government. We look forward to a continued partnership with The Department of Defense.”
Contact
Trish Wexler
twexler@voxglobal.com
ANHAM, LLC ( www.anham.com ) is a leading contracting firm working throughout the Middle East and North Africa (“MENA”), Central Asia, and Europe. With a century’s worth of experience between its principal founding companies, ANHAM is able to efficiently, effectively, and affordably deliver products and services throughout the world. Headquartered in Dubai, UAE, ANHAM has international offices that specialize in providing local support and services to its initiatives, projects, and investments across diverse regions of the globe.
UPDATED 4/17/2010 @ 1731 pst
DEFENSE LOGISTICS AGENCY
Anham, LLC, Dubai, United Arab Emirates, is being awarded a maximum $6,469,092,827 fixed-price with economic price adjustment contract for full-line food and beverage support to authorized ordering facilities in Iraq, Kuwait, and Jordan. The original proposal was a full and open solicitation with four responses. This contract provides for one 18-month option and three one-year periods. The date of performance completion is 18 months post first delivery order. The Defense Supply Center Philadelphia, Philadelphia, Pa., is the contracting activity (SPM300-10-D-3373). (Click HERE original page)
Other Related Posts From Ms Sparky
- Anham LLC accused of outrageous overbilling in Iraq (Updated 7/31/2011)
- USA vs. Agility – Redux (Updated 01/09/2010)
- Anham Says Logistics Contract With U.S. Department of Defense is Final
- KGL files protest for Prime Vendor contract award to Anham
- Agility gets 6 month extension to ensure smooth transition to Anham LLC
Thursday, April 15th 2010 at 5:43 pm |
This post updated 4/15/2010 1643 PST
Friday, April 16th 2010 at 4:08 am |
Here’s an interesting note for you to check out….and perhaps verify what I know…DLA has returned to the table in the negotiations for a settlement in the Agility investigation…quite puzzling giving recent events..
Friday, April 16th 2010 at 12:49 pm |
Philip
I don’t find this puzzling at all. The Government is determined to recover at least some of this money – if for no other reason that to prove that they have done something to a big bad contractor.
It will save the Government tons of money if they can get Agility to agree to pay without having to go to trial and draw this out even further.
Additionally, after reviewing the financial web sites it appears that about 60% of Agilities income was from the US Government in one way or another. If they are banned from that business even for the three years of a debarment – it will cost Agility big bucks.
Agility is probably going to have to start from scratch in the Government arena – but at least they would be back in the ballgame.
Take a look a Yuksel Insaat – a Turkish company that was temporarily debarred based on a SIGIR investigation – ended up finally coming to a settlement and they are now back stronger than ever and have more US Government contracts than they did before.
Saturday, April 17th 2010 at 6:09 am |
Not sure how Anham plans to run efficient operations out of the RISCO warehouses at Shuwaikh port. The warehouses are not only dilapidated (oldest in Kuwait), they have insufficient staging areas for 100+ trucks daily and the surrounding infrastructure is awful. Anyone who has ever attempted to enter the port can attest to the lack of access during normal working hours; traffic backs up 10-50 vehicles deep and the roads are too narrow. I think the USG got caught up on ‘lowest price’ and overlooked ‘best value’. Much like the PCO warehouse debacle in Iraq, I have a strong incline that this contract may be recompeted after 1-2 years, as CRAZY as that sounds. Oh well, I guess the USG will receive what they paid for…..lowest price.
Sunday, April 18th 2010 at 5:30 am |
Other sources claim that Anham is using Logistica for frozen warehouses. I guess time will paint a clearer picture of this non-asset based company. In addition, where will Anham find 500+ reefers? Maybe they should call Agility. I bet they could get a good deal there.
Tuesday, April 20th 2010 at 12:45 pm |
How do we know that Anham will use Risco? DLA would have never passed that facility.
Saturday, April 17th 2010 at 4:38 pm |
I added a link to the Defense Logistics Agency (DLA) announcement above.
Monday, April 19th 2010 at 5:53 am |
You are right, Anham will be using Logistica Warehousing as primary and Jassim al wazzan warehousing as Backup facility as per the DLA award but I’m not sure how they will perform , Logistica is owned by AlShaya Family (owner of Starbucks coffee and other stores in the Middle East) and I have worked with AlShaya family for over 5 years and I know that they are very conservative and reputable family in the region and do not allow the selling or storing of PORK products in their facility. This is a fact , they have starbucks stores in countries that allow the sale of PORK but AlShaya family refuses to sell it or store it. Same story for Jassim Al wazzan , he is the owner of khazzan meat which is Halal as per the Islamic rules and they don’t allow storing PORK at their facility. I guess the troops will not be getting their breakfast bacon anymore if ANHAM can’t store it.
Monday, April 19th 2010 at 10:44 am |
I would have to think that since they bid on the catalog of items which includes bacon etc they realize they have to make some other storage accommodations and any issue should or must have been disclosed within their proposal. Maybe they are buying access to some of Agility’s facilities which will be available; I hope but dont automatically accept that there was not a preplanned and arranged relationship with Agility spanning too many areas and issues.
Monday, April 19th 2010 at 2:52 pm |
Well, I believe that Alshayaa family wont mind storing pork in Logistica warehouse if it is paid well. After all they dont mind that tenants of one of their commercial real estate in Beirut sell pork and even wine
As far as Al Wazzan, I heard that they will be launching their pork food line of product for the US troops. Would the kuwaiti know that the chcken they are buying was stored on the same shelve with pork items? I really doubt.
Monday, April 19th 2010 at 10:46 pm |
I don’t know about Al Wazzan family but I heard the same story that they are launching Pork food line for the US troops, I’m not sure how their customers would feel if they know that they are making and storing Pork and beef at the same place. who knows if it is Beef or Pork anymore in Al khazzan meat products.
As for Al Shaya family , you might be right , money talks but I still think that they will not risk their family name, reputation and principles for ANHAM or anyone else especially that one of their partners in Logistica is the largest Islamic bank in Kuwait and they will definitely not allow Pork storage.
Tuesday, April 20th 2010 at 3:58 am |
I guess that Starbucks Middle East will start soon selling ham sandwiches like in they do in the US. I am boycotting.
Tuesday, April 20th 2010 at 2:20 pm |
Salam,
Could you pls. refrain from mixing pork with the business and Islam to come up with a confusion to do business globally?
Amir
Tuesday, April 20th 2010 at 10:47 pm |
Anham is planning to visit Agility in the coming month, who can guess why?
Wednesday, April 21st 2010 at 3:30 am |
Sadness,
How reliable is your information?
FAR won’t allow Anham to directly subcontract any of Agility’s facilities due to their suspension. Agility can’t sell the real estate either due to the Kuwaitis. Not sure how Anham intends to use the Logistica site near the Avenues as the roads are narrow and congested and the staging area around the facility is nearly nonexistent. Obviously the USG site visit didn’t include key operational staff that would have noticed the ENORMOUS inadequacies. Lowest price, but not best value.
Sunday, May 9th 2010 at 6:44 pm |
For God’s sake, has anyone of you visited the Avenues on a weekend? It takes you over one hour to cross 1 km to the parking. Logistica is positioned right on the corner where all the traffic is conjested. I guess they have to suspend work for the US Army on weekends!!!!
Why didn’t Logistics think of building warehouses away from the city and its action? similar to Agility and KGL?
Wednesday, April 21st 2010 at 8:02 am |
Actually, companies can Lease warehouse space from Agility under a commercial real estate lease. These are not subject to the FAR as defined in Part 2 as they are not considered subcontracts.
Agility can not operate the warehouses – but they can lease the actual space.
Wednesday, April 21st 2010 at 9:48 pm |
FAR clearly states that a prime contractor cannot subcontract directly to (lease from) a suspended business entity. If Anham leased warehousing from Agility, USG monies would be indirectly sent to Agility. This is the same reason ITT and DynCorp dropped Agility as a subcontractor from KBOSS and LOGCAP respectively.
A contact mentioned that Ahnam will be visiting KGL facilities next week. Is there any truth to Anham using KGL facilities in Mina Abdullah?
Thursday, April 22nd 2010 at 12:27 am |
Anham will probably use KGL facilities…..and all the existing tenants will be given notices to vacate…Imagine if Companies that store confidential records like MENAFILE who use the KGL facility are asked to leave!! Moral of the story…never use rented warehouses for such businesses especially in Kuwait!!!
Thursday, April 22nd 2010 at 9:18 am |
Actually the FAR states
(1) Any item, other than real property,
Further per the FAR a lease for real property is not considered a contract action.
“Contract action does not include grants, cooperative agreements, other transactions, real property leases, requisitions from Federal stock, training authorizations, or other non-FAR based transactions.”
Further the GAO has reaffirmed that commercial real estate leases are non-FAR based transactions.
The other’s were Services Subcontracts where the company would have been performing work. As long as the agreement is strictly for the space ‘real property’ with no additional services it is
Thursday, April 22nd 2010 at 11:22 am |
I believe you may be right. However, would it make sense for Anham to have ties with Agility or KGL? I hear those guys are a tight group of very hadrworking, think outside the box “kinda” guys. It will be interesting to watch all of this unfold in the Kuwait Logistics and warehousing arena
Friday, May 14th 2010 at 7:33 pm |
I think with Agility leasing space is out of question as mentioned above, but then KGL is the second big player after Agility. I think they are also smart not to lease space to Anham.
If so, what will ANHAM do?
Sunday, May 9th 2010 at 2:40 am |
As I mentioned, Anham already visited Agility facilities, and took lot of pictures, is this clue?
Agility Employees received the yearly bonus, another clue in different direction.
Now the situation is calm down, waiting mid June 2010, Big news is flashing, I hope I can hold it till then.
Saturday, May 15th 2010 at 9:46 pm |
I had two sources inform me this weekend that Anham intends to sublease Agility’s facilities to operate the PV contract. Will the USG allow that? Would Tarek Sultan be willing to let a competitor use Agility resources?
Back on 28APR the USG released statements saying they expected resolution regarding the court case (read settlement) within a week. Two-and-a-half weeks later…….NOTHING! What gives? Does anyone have any insight as to the latest with the Agility indictments? Is this settlement ever going to happen? It could sure affect some upcoming contracts in the Middle East.
Sunday, May 16th 2010 at 5:28 am |
Business Week is reporting that Agility’s profits dropped 52% in the 1st quarter.
http://www.businessweek.com/news/2010-05-16/agility-reports-first-quarter-net-dropped-52-to-61-million.html
Wednesday, May 26th 2010 at 5:12 am |
Deal has fallen apart….USAG intends to move forward with its actions pending a last minute “hail mary”….
Tuesday, June 1st 2010 at 10:40 pm |
Agility is holding its General Assembly 10JUN. Rumors indicate that their will be a shareholder vote on a USG settlement. Does anyone know if Agility publishes an official agenda for the General Assembly? If they are actually voting on a settlement amount, that tells me Agility may still be seriously considering paying a fine to access the USG honey pot in the near future. I want/need details! Any current Agility employees/shareholders willing to provide us with details? Don’t be shy.
Wednesday, June 2nd 2010 at 2:30 pm |
Give me details damn it!!!
I have a saying…Always ask for what you want, sometimes you get it! Oh…but you already knew that!
Wednesday, June 2nd 2010 at 7:35 pm |
This is Kuwait damn it! Details are difficult to come by.
A company publishing an agenda for its shareholders? How dare you think progressively in the Middle East. LOL. Let me ask around and see if I can find any of my contacts that posssess said document. You’ll be the first I pass it to Ms Sparky. All of these scenarios drive me nuts! Just the facts Ma’am! Let’s monitor the KSE and see if there’s a heavy volume of purchasing of Agility stock. Might be insiders preparing for the news and or a vote.
One week from today we’ll find out.
Wednesday, June 2nd 2010 at 7:41 pm |
Thank you. If you get it I’ll publish it!
Wednesday, June 2nd 2010 at 7:55 pm |
Hey Simzer! You’re an Agility stockholder. Can you send us a copy of anything Agility provides prior to or at the General Assembly 10JUN? I’ll keep asking around too.
Sunday, June 6th 2010 at 1:39 am |
Your wish .. is my command ..
http://www.agilitylogistics.com/InvestorRelations/Documents/Agility_General_Assembly_10-June-2010.pdf
sorry for the delay guys .. i wasn’t subscribed to this thread..
Sunday, June 6th 2010 at 5:27 am |
Interesting. Nothing truly stands out as a potential settlement vote, but there can always be items added to the agenda as needed. Whether the shareholders actually end up voting or not, I’m confident there will be plenty of discussions pertaining to the USG, present and future contracts, and how this absolute mess has been handled.
I have my pitch fork readied at the front door! Beware Tarek Sultan.
Wednesday, May 26th 2010 at 5:10 am |
What is amazing here – again – is the consideration of the US “funnel” for this product. I won’t name names – those involved play dirty and believe in the old term – “the ends justify the means” – but it is fascinating that DSCP has now engaged in a contract with an entity whose US supply side has enough questionable practices tied into the Agility indictment that one would think they’d stay clear…..at least the word from those that know the business is, “what the f…?”….what are they thinking?….I am – amazed….and when the dots are connected – look at the BDFAs for Guam and tell me why it has one of the highest costs in the world related to food cost….then look deeper….
Wednesday, May 26th 2010 at 11:03 pm |
I’ve seen the facilities at the Wazzan location and they are in no way compliant with force protection regulations. I guess Anham expects to gain several waivers to use these facilities. Also, anyone that has attempted to navigate the roads near The Avenues, especially during peak times ( 8 hours a day), clearly knows what a nightmare the traffic and the traffic circles are to drive. How in the world will these narrow streets and circles accommodate 5-20 trucks (40-foot reefers) during most of the day for the PV contract to access Logistica? It will be interesting to see what GAO has to say.
Haven’t heard anything additional about Anham attempting to use Agility or KGL facilities. Doubtful either will/can provide them to a competitor. Anham bid the PV contract at cost and now will attempt to make a go at it. Hey Anham, how did that work for you in Iraq operating the PCO warehouses? Oh, that’s right, the USG T4C’d your ass after one year due to your poor performance.
The USG NEVER learns. They simply want lowest cost.
Wednesday, May 26th 2010 at 11:56 pm |
Interesting John. I think the USG will regret awarding the PV contract to Anham within the first 6-12 months of contract. That’s if Anham doesn’t lose the protest. Anham just doesn’t have the required assets to make this happen now. Their bid made several assumptions that waivers would be afforded from the USG, which is a failure from the onset. I had an Anham recruiter call me last week frantically looking for US expats with transportation and terminal experience., preferrably with USG contracts. They are willing to shell out CRAZY money to fill these positions! I mean CRAZY money!
Tuesday, June 1st 2010 at 10:33 pm |
With the USG lifting the STOP WORK order in early May, I think that shows a clear indication that the KGL protest will be dismissed by GAO. I guess Anham will have the opportunity to make a go of this at cost.
Look how well that turned out for DynCorp and Flour on LOGCAP IV. They bid and won it a super low margins, now they are both struggling to find qualified people to fill the key operational positions in Afghanistan, Kuwait, and Iraq. They plugged in low-ball salaries for their expat personnel and very few qualified expats are willing to put up with the hassle and BS of the transition and not getting paid. The USG will receive what it pays for.
Tuesday, June 8th 2010 at 4:16 pm |
This just out!
ANHAM get’s the GREEN light. Apparently KGL lost their protest. HERE
Wednesday, August 18th 2010 at 2:34 am |
ANHAM’s Progress ‘On Target’ for Prime Vendor TransitionWASHINGTON, Aug. 17 /PRNewswire/ — ANHAM FZCO, LLC announced today that it is on target with its transition to subsistence prime vendor for the U.S. Government in Kuwait and Iraq, and will assume full responsibility this fall, as initially planned. This announcement comes in the wake of a visit on August 9 by Defense Logistics Agency Director Navy Vice Admiral Alan Thompson, who met with the senior leadership of ANHAM.
Wednesday, August 18th 2010 at 11:33 pm |
My Grandfather told me once, at Zero hour 180 changes happen.
ANHAM on the target, good news, But not logic news. and I will not state the reasons here and now, because only who have close eyes can see.
I am watching till the zero hour, as it become very exciting.