US Courts uphold Supreme Group’s challenge to DLA decision

February 14, 2013: Supreme Group has received confirmation that its challenge to the Defense Logistics Agency’s (DLA) decision to allow mobilization to another Subsistence Prime Vendor (SPV) Afghanistan service provider has been upheld by the US Courts.

This effectively prevents the commencement of transition arrangements to a new service provider until the outcome of Supreme’s earlier protest to the re-award of the SPV Afghanistan contract is decided by the US Government Accountability Office (GAO).

Supreme Group was awarded the SPV Afghanistan contract by the U.S. Department of Defense (DoD) in 2005 for the provision of all food service and food supply logistics to US troops in Afghanistan. Since that time, we have delivered food, water and other supplies to around 250 locations within Afghanistan for up to 130,000 troops. We are proud of the outstanding performance record our client has commended us for over the years, including the receipt of two of the DLA’s esteemed awards for our services.

In June 2012, the DLA Troop Support awarded the new SPV Afghanistan contract to another service provider.  This award was appealed by Supreme Group and the GAO upheld the protest. The contract remains the subject of a second appeal lodged by Supreme when the DLA confirmed their initial decision of award to the new service provider. 

It is usual for a 100-day “stay of activities” to be implemented, preventing the commencement of transition arrangements to a new service provider when a contract award is under protest. However on this occasion the DLA lifted the stay and allowed mobilization for the new contract to commence; a decision which Supreme Group challenged in the US Courts.

As of February 14, we were informed that the US Courts upheld our objection, confirming that transition arrangements to a potential new service provider cannot commence while the GAO protest is ongoing.

We are encouraged by this decision, but remain focused on serving the current SPV Afghanistan contract with distinction. Attached to this release is a copy of the official US Courts judgement.

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