In a statement, Agility said the Defense Logistics Agency (DLA) had extended its contract for six months, starting March 1, to provide warehouse management services to support operations in the Middle East and Southwest Asia.

The DLA is part of the US Department of Defense and provides logistics support to military services and to several civilian agencies and foreign countries, its website says.

Agility has been embroiled in a legal dispute with the US government after a case was filed in November 2009 when prosecutors accused it of overcharging.

The claims related to about $8.5 billion in food contracts first signed at the start of the Gulf War in 2003.

Agility has long argued that it regards the entire case as a contract dispute that should be settled through negotiation. In January, it denied that a new civil case had been filed against the firm.