Pentagon Recovers Some Disputed Foodservice Contractor Funds

The Pentagon and Supreme Foodservice remain in dispute over $757 million in overcharges from a military feeding contract in Afghanistan.

The Pentagon has recovered about a third of the $757 million it claims it overpaid Swiss-based contract company Supreme Foodservice to provide food and water to troops in Afghanistan, reports [2] Bloomberg Businessweek. The recovery was made by withholding $21.8 million a month for the past year from payments to Supreme, which remains under contract with the Defense Dept. Supreme has disputed the allegation, claiming that the discrepancy lies in the interpretation of the terms as cost-plus rather and fixed-price.

The appeal is scheduled to be heard next April by the US Armed Services Board of Contract Appeals.