Anham eyes more US military contracts
Dubai, April 29, 2010
Anham FZCO, which took over a $2.2 billion US military supply contract from Kuwait's Agility this month, is bidding for up to 30 contracts to provide food and supporting services to the US armed forces, its managing director said.
David Brauss said the Dubai-based conglomerate, made up of three companies in Jordan, the UAE and the United States, was focused on US contracts in the Middle East, North Africa and Afghanistan.
'We are bidding for 20 to 30 contracts with the US government,' he said in a telephone interview. 'We expect to win additional contracts there.'
He did not give a total value for the contracts under bidding by Anham, which contracts with local companies to structure ventures in emerging markets and is made up of Saudi Arabia's Astra, Virginia-based HII-Finance and Jordan's Munir Sukhtian Group.
Earlier this month, the US Defense Logistics Agency replaced Agility as the main supplier to the US military in the Gulf region amid fraud allegations.
The decision followed an indictment accusing Agility of fraud in $8.5 billion worth of contracts first signed in 2003 to supply the US Army in the Gulf.
The US government said it is close to a settlement with Agility, but the Kuwaiti firm on Wednesday said there could be no guarantee of a deal. A third firm, Kuwait's KGL, on Wednesday said it has filed an objection to the awarding of the contract to Anham.
Anham officials could not immediately be reached for comment on KGL's filing.
The contract, which will involve Anham providing food and support services to the US military in Kuwait, Iraq and Jordan, is estimated at $2.16 and could potentially reach $6.47 billion.
The win is Anham's largest so far in monetary value, Brauss said, but added the value includes the cost of food. 'The contract includes a substantial cost of food,' said Brauss. 'Even though it is a very large contract it is somewhat overstated ... and includes surges if more troops come in.'
Brauss told Reuters before the KGL news that the firm had been bidding for the $2.2 billion contract for years.
'There was a very long and detailed process that started two years ago, during which the US government evaluated the strengths and weaknesses of the proposals, as well as the cost which was a key factor,' he said.
Anham, an investment holding and services company, operates in the Middle East and North Africa (Mena), central Asia and Europe including Iraq, Afghanistan, Russia and Libya.
Brauss said the Mena region and Afghanistan were key growth areas for the company which provides support services including construction, logistics transportation, technology, food services and education. - Reuters