procuring and delivering food supplies to troops in Iraq and Kuwait until Dec. 4, 2010, following a "compelling reasons determination" made by the U.S. Defense Logistics Agency (DLA).
Agility had been scheduled to transition the work to another company, Anham, which won the follow-on to Agility's Prime Vendor II contract on April 14.
The award to Anham was protested by other bidders, delaying the transition.
DLA made its compelling needs determination in May, but Agility did not receive a written copy of the DLA memorandum until last week.
Vice Admiral Alan S. Thompson, director of DLA, made the determination in a memo to the Defense Supply Center Philadelphia (DSCP), the branch of DLA responsible for the Prime Vendor II contract. "Continued performance by (Agility) through the end of its contract is critical to continuity of support," Thompson wrote.
The memorandum said Thompson made his determination at the request of a DSCP contracting officer.
Agility has held the Prime Vendor contracts since 2003. Its work on the Prime Vendor I and II contracts has set the standard for performance-based logistics in a wartime environment. The Company has more than seven years of exceptional execution on the largest-ever U.S. military subsistence procurement contract, providing unparalleled service to troops and exceptional value for taxpayers. The Company received some of the highest audit scores ever given to a DLA contractor and has repeatedly been recognized for service excellence by its customer and others.
Agility has been the target of Justice Department allegations of fraud and overcharging on the Prime Vendor contracts. Agility views the case as a civil contract dispute rather than a criminal matter. The Company's prices, choice of suppliers and business practices were established in consultation with DLA, which approved them.