The Pentagon and the company that supplies U.S. troops in Afghanistan with food and water are locked in a billion-dollar billing dispute that illustrates the flawed management of contracts for battlefield support, according to documents released Thursday by a House oversight subcommittee investigating the arrangement.
The Defense Logistics Agency, which supervises the food supply contract, is demanding that Supreme Foodservice of Ziegelbrucke, Switzerland, return more than $750 million in overpayments made by the government. But the company has refused, claiming it is owed $1 billion more than the $5.5 billion it has already been paid. Despite the clash, Supreme is among the contenders for a new food-service contract in Afghanistan that will be worth upwards of $10 billion.
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