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Supreme Foodservice GmbH

November 8, 2023Judge O'Connell

Partially SustainedQuantum / Damages

Supreme Foodservice GmbH appealed multiple claims against the Defense Logistics Agency (DLA) regarding a subsistence prime vendor contract, primarily contesting the application of the prior material breach doctrine. The Board granted DLA's motion for summary judgment on most claims while allowing one claim related to a separate Panama contract.

Material Facts

Supreme Foodservice GmbH was awarded a subsistence prime vendor contract to deliver food and related items in Afghanistan.
DLA moved for summary judgment on 38 appeals based on the doctrine of prior material breach due to Supreme's guilty plea to fraud.
The Board found that DLA had overpaid POT costs to Supreme by $397,854,788.45 and that DLA had withheld $540,832,442.70.
The Board determined that Supreme was entitled to the difference of $142,977,654.25.
The Federal Circuit affirmed the Board's decision regarding the prior material breach defense.

Parties

Appellant: Supreme Foodservice GmbH
Respondent Agency: Defense Logistics Agency
Contract Number: SPM300-05-D-3130

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