Agility aims to reenter U.S. logistics contracts

With Agility’s agreement to a misdemeanor in connection to a single $551 invoice and no criminal fine, the Kuwait-based third-party logistics services provider is another step closer to resuming its pursuit of new U.S. government contracts.

   With Agility’s agreement to a misdemeanor in connection to a single $551 invoice and no criminal fine, the Kuwait-based third party logistics services provider is another step closer to resuming its pursuit of new U.S. government contracts.
   The Justice Department began investigating Agility in 2007 and subsequently indicted the company in 2009 pursuant to allegations that it submitted inflated bills and false claims to the U.S. government related to food distribution contracts for military personnel.
   In addition, the department alleged that Agility was pocketing discounts from vendors, who were encouraged to inflate the price of supplies, rather than pass those savings onto the Defense Department. The initial indictment charged Agility with overcharging the government on three contracts worth $8.6 billion.
   Agility managed these contracts between 2003 and 2010, and has denied any wrongdoing.
   The agreement to settle the criminal portion of the case is conditional upon Agility signing a separate agreement with the Justice Department to resolve the pending civil case, United States of America, ex rel, et al. v. the Public Warehousing Company, et al., Case No. 1:05-cv-02968-TWT. Any agreements will be subject to final District Court approval, Agility said in a statement.
   “A settlement, once finalized, will resolve all outstanding criminal issues with the U.S. government in connection with the prime vendor contracts for Agility, its affiliates, employees, directors, and officers,” the company said.
   The civil proceedings with the Justice Department in connection with the prime vendor contracts remain pending.
   Separately, Agility also entered into settlement agreements with the Defense Logistics Agency resolving all pending and potential administrative claims between Agility and DLA involving the Armed Services Board of Contract Appeals, and resolving Agility’s suspension from federal government contracting, the company said.