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Bahrain Maritime and Mercantile International (BMMI) won a $2.8 billion contract to supply food and other products to US troops in three Middle Eastern countries, the Pentagon revealed.
The contract which was a continuation of one agreed in 2005, will see BMMI continue to supply and distribute food to the US Army, Navy, Air Force and Marine Corps in Bahrain, Qatar and Saudi Arabia.
"Our relationship with the US military started in 1999, supporting the ships coming into Bahrain," said BMMI's chief operating officer Logistics and Supply Chain, Robert Smith.
"We became a prime vendor in 2001 and the current contract referred to commenced in 2005."
The contract will run through March 2009, the US Defence Department said in its daily list of contracts.
BMMI, a wholesaler and retailer of packaged food, toiletries, beverages, cosmetics, tobacco and household products, beat off stiff international competition.
The Defence Supply Centre in Philadelphia chose BMMI after receiving a total of five responses to a notice seeking bids, the Pentagon said.
"Their decision to continue to work with us is based on performance and a there is a formal assessment process," said Mr Smith.
He added that quoted figure of $2.8 billion was the upper threshold, which would be reached in the case of a surge or mobilisation. Currently BMMI sends food to tens of thousands of US troops.
While the majority of food is transported to Bahrain and Qatar from the US using a complex supply chain, at least 30 per cent came from local producers, said Mr Smith.
"It's good for the local market. We use locally produced fresh vegetables, fruit and bakery products," he said.
He also said that the burden of rising food prices does not impact the company's operation as extra costs are carried by clients.
The company has another military contract, supplying food supplies to the French military operating out of the East African republic of Djibouti.
BMMI also has a contract with the United States Agency for International Development, USAID, shipping aid cargo to East Africa.
