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WASHINGTON — The Defense Department is being forced to extend multimillion-dollar contracts for services in Iraq, including one with a firm under criminal indictment, because losing bidders have legally challenged the companies selected as replacements. For example, Agility, a Kuwaiti firm charged in November 2009 with overbilling food contracts worth $8.5 billion over four years, recently received a $26 million, six-month contract extension because another Kuwaiti concern challenged the April award of the food contract to Agility’s replacement.

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