Supreme Foodservice GmbH

March 25, 2024Judge O'Connell

Sustained / Appellant PrevailedQuantum / DamagesAccord & Satisfaction / Release / Waiver

Supreme Foodservice GmbH appealed a decision regarding the recovery of performance-based distribution fees by the Defense Logistics Agency (DLA). The Board granted Supreme's motion for judgment on the pleadings, ruling that DLA had released its claims related to the fraud in a prior settlement agreement.

Material Facts

Supreme Foodservice GmbH has been involved in extensive litigation with DLA, including 47 appeals since December 2011.
The contract was awarded to Supreme on June 3, 2005, to furnish and deliver food in Afghanistan.
Supreme's performance-based distribution fees could be adjusted based on performance ratings.
Supreme received various ratings over the years, with significant increases in fees based on excellent performance ratings.
In September 2014, Supreme pleaded guilty to major fraud against the United States.
Supreme agreed to pay $250 million to the United States as part of the guilty plea agreement.
DLA issued a final decision on October 11, 2017, seeking to recoup $49,322,986 from Supreme based on the fraud allegations.

Parties

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

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