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Thu 12 Aug 2010 11:08 AM

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US to extend Agility contract for 6 months - paper

US gov't has replaced Agility as the main supplier to its troops in Kuwait, Iraq and Jordan.

US to extend Agility contract for 6 months - paper
(Getty Images - for illustrative purposes only)

The US army has decided to extend Agility's prime vendor contract for six months starting in September, after the current contract ends, Kuwaiti daily al-Jarida said on Thursday.

Agility, formerly Public Warehousing Co (PWC) was dropped from supplying food to the US Army in Iraq, Kuwait and Jordan after being accused of overcharging the military. The company held contracts worth $8.5 billion spanning more than three years.

Officials at Agility could not be reached for comment.

The US government has replaced Agility as the main supplier to its troops in Kuwait, Iraq and Jordan with Dubai-based Anham FZCO LLC, awarding it a $2.2bn contract in April.

The Kuwaiti logistics firm said in April that it would continue to supply the U.S. military for six months "to guarantee continuity of supplies" to the army before Anham takes over.

OPEC-member Kuwait has become a major logistics base for the American military since the U.S. invasion of Iraq in 2003.

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