The extension comes in the wake of an unsuccessful indictment levied by the U.S. Justice Department against Agility for alleged fraud on a food supply contract due to expire this month.
That case was dropped in October on a technicality, as the fraud charges were filed with Agility's U.S. subsidiary instead of with the parent company, PWC Logistics, in Kuwait.
In the meantime, the U.S. Defense Logistics Agency (DLA) had awarded a food supply contract to troops in Iraq, Kuwait and Jordan to another Middle East-based logistics company, Dubai-based Anham FCZO.
However, the contract awarded to Anham has been disputed by two other firms, forcing the DLA to award a six-month, $26 million extension to Agility to ensure no disruption in food supply to U.S. troops.
The Government Accountability Office is settling the protest of Kuwait & Gulf Link Transport, another bidder for the U.S. defense logistics contract, the report said. ' Eric Johnson
