US – IRAQ – KUWAIT – After discarding the services of Kuwait based freight forwarder Agility following the controversial accusations of corruption running into millions of dollars, the US Defense Logistics Agency (DLA) confirmed today to the Handy Shipping Guide that they had indeed chosen another appointee to take over the shipping of food and beverages to support US forces in the Middle East.
Anham LLC of Dubai have been awarded the 18 month base period contract ahead of three other groups who bid for the works. The contract has four further option periods, option periods one, two and three are for one year each, while option period four is for eighteen months making the overall contract period a total of six years. It's an IDIQ contract and the maximum potential value of the contract is about $6.4 billion ($6,469,092,827) if all options are exercised. However, a DLA spokesman told us he anticipates that the actual dollar value over the life of the contract, assuming all options are exercised, will be about $2.1 billion.
There will be a transition between the current contractor (Agility) and Anham to allow the incoming contractor sufficient time to take over the contract and the current contractor to diminish current stocks in the supply chain. The contract with the present Agility expires in December 2010.
A copy of the DLA solicitation can be viewed here.
Photo:- Courtesy US Army. By Sgt. Ryan Twist of Sgt. Jackie D. Womack Non Com Officer at a Trailer Transfer Point, Iraq.
