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America June 5, 2024 2 mins read

$8B Military Food Supply Contract Dispute Ends with Dismissal of Remaining Claims

America ı By Rochdi Rais

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Six,Military,Silhouettes,On,Sunset,Sky,Background

The Armed Services Board of Contract Appeals has tossed all remaining claims in a long-running dispute over Supreme Foodservice GmbH's roughly $8 billion contract to provide food to U.S. troops, after the company and the Defense Logistics Agency jointly agreed to end the case.

Administrative Judge Michael N. O'Connell granted the parties' joint motion to dismiss with prejudice the 21 remaining appeals that were still pending before the board, related to Supreme's alleged overcharging of the military under its massive subsistence prime vendor contract to provide fresh food and water for thousands of troops at U.S. bases in Afghanistan, according to the May 22 order, released on Tuesday.

The order did not specify the reason for the joint voluntary dismissal, and counsel for Supreme and representatives for Supreme and for the DLA did not immediately respond to questions regarding the dismissal late on Tuesday.

Logistics firm Supreme and the government have been locked in a dispute over the subsistence prime vendor contract for more than a decade, with dozens of related appeals filed at the board by both the company and the DLA, some of which have also been the subject of further appeals to the Federal Circuit.

The DLA had attempted to claw back hundreds of millions of dollars in alleged overpayments made to Supreme under the food supply contract, while Supreme had attempted to collect money withheld by the DLA to offset those alleged overpayments, and to get paid hundreds of millions of dollars more it said it was still owed by the government.

The company was paid around $8 billion under the subsistence prime contract, according to a related December 2022 Federal Circuit decision, and the DLA across the course of its dispute with Supreme had variously sought both the return of specific alleged overcharges and to have the entire subsistence prime contract declared void due to fraud.

Supreme had agreed in December 2014 to pay more than $389 million in criminal and civil penalties after pleading guilty to overcharging the military, placing hefty markups on food and water it had obtained from local vendors.

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Rochdi Rais

Rochdi Rais is the Fractional Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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