Pentagon Keeps Rewarding Company Suspended for Fraud

[The Straight Story]

Pentagon Keeps Rewarding Company Suspended for Fraud

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 the Defense Logistics Agency (DLA) decided recently to renew Agility’s contract for six more months at a cost of $26 million, 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.

Agility is also fighting its indictment in federal court by claiming that it can only be tried in Kuwait, and the company closed down its U.S. offices even though they continue to employ retired U.S. Army generals.

http://www.allgov.com/Controversies/ViewNews/Pentagon_Keeps_Rewarding_Company_Suspended_for_Fraud_101213