US Defence Logistics Agency Change Shipping Contractors

KUWAIT – US – IRAQ – Agility, 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. (Click HERE for original article)

Other Related Posts From Ms Sparky

1. USA vs. Agility – Redux (Updated 01/09/2010)
2. Indictment drags Agility profits down 52%
3. Anham LLC to replace Agility as Prime Vendor (updated 4/17/2010)
4. Agility gets 6 month extension to ensure smooth transition to Anham LLC
5. Looks like Agility may buy their way out for $750M