Dubai-based contracting company Anham has replaced Kuwait-based logistics firm Agility as the supplier of food and services to the US military in the Gulf.

The US Department of Defense awarded the multi-billion dollar contract, valued between $2bn and $6.5bn, to Anham due to Agility’s ongoing legal dispute with the US government.

Anham will now provide food and non-food distribution and support to troops in Kuwait, Iraq and Jordan.

Agility is paying the US government $600m to settle fraud charges after it was indicted in November 2009 on allegations of overcharging the US army on the contract to supply food for troops in Kuwait and Iraq (MEED 14:4:10).

Agility, formerly known as Public Warehousing Company, will pay the money over three years.

However, a spokesman at Agility tells MEED that the company is still in talks with the US government.

“The company continues its discussions with the US government with the view to resolving the current legal cases with the US Department of Justice. However, there is no guarantee that the parties can reach a mutually agreeable settlement,” says the spokesman.

On 11 April, the company reported its revenues had declined by 7 per cent compared to 2008, mainly on account of the economic downturn, which led to a fall in freight volumes.