DoD's $65.9M MRE Contract with AmeriQual Group LLC: Full and Open Competition

Contract Overview

Contract Amount: $65,934,046 ($65.9M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2016-10-21

End Date: 2017-12-29

Contract Duration: 434 days

Daily Burn Rate: $151.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MEAL,READY TO EAT

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47725

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $65.9 million to AMERIQUAL GROUP LLC for work described as: MEAL,READY TO EAT Key points: 1. Contract awarded to AmeriQual Group LLC for $65.9M. 2. Utilized full and open competition after exclusion of sources. 3. Delivery order issued under a larger contract. 4. Focus on MREs, a critical component of military logistics. 5. Duration of the delivery order was 434 days.

Value Assessment

Rating: good

The contract's value of $65.9M for MREs appears reasonable given the quantity and duration. Benchmarking against similar large-scale food service contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process was initiated. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The competitive bidding process likely ensured taxpayers received fair value for the MREs procured.

Public Impact

Ensures readiness and morale for deployed military personnel. Supports logistical needs for various operational environments. Provides a stable supply of essential rations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in food commodities.
Dependence on a single supplier for this delivery order.
Logistical challenges in distribution to remote locations.

Positive Signals

Ensures availability of critical food supplies.
Competitive bidding process for contract award.
Supports domestic food production and employment.

Sector Analysis

The Department of Defense's procurement of MREs falls under the broader defense logistics and food services sector. Spending benchmarks for similar ration contracts are typically high due to scale and specialized requirements.

Small Business Impact

While the prime contractor is AmeriQual Group LLC, the contract details do not specify subcontracting opportunities for small businesses. Further analysis would be needed to determine SMB participation.

Oversight & Accountability

The contract was awarded as a delivery order, suggesting it falls under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance, quality, and timely delivery as per the terms.

Related Government Programs

Fruit and Vegetable Canning
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Supply chain vulnerability
Potential for price increases in future orders
Quality control risks
Dependence on specific food commodity markets

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.9 million to AMERIQUAL GROUP LLC. MEAL,READY TO EAT

Who is the contractor on this award?

The obligated recipient is AMERIQUAL GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $65.9 million.

What is the period of performance?

Start: 2016-10-21. End: 2017-12-29.

What is the typical cost per MRE unit in similar DoD contracts?

The average cost per MRE unit can vary significantly based on factors like menu variety, shelf life, packaging, and specific operational requirements. While precise benchmarks are often proprietary, historical data suggests costs can range from $5 to $15 per meal, depending on these variables and the scale of the procurement.

What are the primary risks associated with relying on a single supplier for MREs in this contract?

The primary risks include supply chain disruptions due to unforeseen events (natural disasters, pandemics, geopolitical issues), potential for price gouging if competition is limited in subsequent orders, and quality control issues if the supplier faces production challenges. This reliance necessitates robust monitoring and contingency planning.

How effectively does this contract contribute to overall military readiness and troop morale?

This contract is crucial for maintaining troop readiness and morale by ensuring a consistent supply of nutritious and palatable meals in diverse operational settings. The availability of reliable MREs directly impacts soldier well-being and operational effectiveness, especially in environments where traditional food services are unavailable.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameriqual Group, LLC (UEI: 099771198)

Address: 225 W MORGAN AVE STE C, EVANSVILLE, IN, 47710

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,934,046

Exercised Options: $65,934,046

Current Obligation: $65,934,046

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S117DZ113

IDV Type: IDC

Timeline