Monday, December 13, 2010
Public Warehousing Co. (aka Agility) ran afoul of the Department of Defense last year after it was caught overbilling the government for work stemming from its $8.5 billion contract to distribute food to American soldiers in Jordan, Iraq and Kuwait. The company was indicted for fraud, prompting the Pentagon to suspend Agility and more than 100 affiliates from doing new business with the government.
And yet, on November 30, the Defense Logistics Agency (DLA) decided to extend Agility’s warehouse support contract for six more months, even though the fraud case hasn’t been resolved in federal court. DLA claims that it had no choice but to extend the Agility contract because another branch of the government, the Government Accountability Agency, is still dealing with a challenge to the contract awarded to the company that is supposed to take over from Agility.
-Noel Brinkerhoff, David Wallechinsky
Pentagon Negotiates with Indicted Contractor, Despite Suspension (by Amy Biegelsen, Center for Public Integrity)
Defense Logistics Agency Relieves Key Commander (by Katherine McIntire Peters, Government Executive)
Pentagon Forced to Extend Iraq Contracts that are Under Appeal (by Walter Pincus, Washington Post)
Kuwaiti Company Indicted for Fraud in Supplying Food to U.S. Troops (by Noel Brinkerhoff, AllGov)
War is Wonderful…If You’re a Kuwaiti Contractor (by David Wallechinsky, AllGov)
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