DoD's $59M MRE Contract Awarded to AmeriQual Group LLC Amidst Full and Open Competition
Contract Overview
Contract Amount: $59,274,643 ($59.3M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2012-11-30
End Date: 2013-12-30
Contract Duration: 395 days
Daily Burn Rate: $150.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 4523066920!MEAL, READY-TO-EAT, IND,
Place of Performance
Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47710
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $59.3 million to AMERIQUAL GROUP LLC for work described as: 4523066920!MEAL, READY-TO-EAT, IND, Key points: 1. The Department of Defense awarded a significant contract for MREs, highlighting the importance of food supply chains. 2. AmeriQual Group LLC secured the contract, indicating their competitive standing in the defense food service sector. 3. The contract's full and open competition after exclusion of sources suggests a robust price discovery process. 4. The sector focus on food provision is critical for military readiness and operational support.
Value Assessment
Rating: good
The contract value of $59.3 million for MREs appears reasonable given the quantity and duration. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment.
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 that while sources were initially excluded, the final award was made through open competition. This method aims to ensure competitive pricing.
Taxpayer Impact: The competitive bidding process is designed to secure the best value for taxpayer dollars by fostering price reduction among qualified bidders.
Public Impact
Ensures a consistent supply of essential rations for military personnel. Supports the operational readiness of the armed forces by providing necessary sustenance. Contributes to the economic activity within the food manufacturing and logistics sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions affecting delivery timelines.
- Fluctuations in raw material costs could impact long-term affordability.
- Dependence on a single contractor for a critical supply item.
Positive Signals
- Demonstrates robust competition in the defense food supply sector.
- Ensures provision of essential goods for military operations.
- Contract structure aims for cost-effectiveness through competitive bidding.
Sector Analysis
This contract falls within the food and beverage manufacturing sector, specifically catering to the unique demands of military rations. Spending benchmarks in this area are often tied to troop deployment levels and operational tempo.
Small Business Impact
The contract was awarded to AmeriQual Group LLC, a single entity. Analysis of subcontracting opportunities for small businesses within this large award is not detailed in the provided data.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component of the DoD responsible for supply chain management. Oversight would involve monitoring delivery schedules, quality control, and adherence to contract terms.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain vulnerabilities.
- Dependence on a single contractor.
- Risk of price escalation due to raw material volatility.
- Ensuring consistent quality and nutritional value over contract duration.
Tags
fruit-and-vegetable-canning, department-of-defense, in, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.3 million to AMERIQUAL GROUP LLC. 4523066920!MEAL, READY-TO-EAT, IND,
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 $59.3 million.
What is the period of performance?
Start: 2012-11-30. End: 2013-12-30.
What is the historical performance of AmeriQual Group LLC in fulfilling similar defense contracts?
Information on AmeriQual Group LLC's historical performance is not provided in this data snippet. A thorough review would require accessing past performance evaluations, contract completion records, and any documented issues or commendations related to previous DoD contracts to assess their reliability and capability in delivering MREs.
How does the per-unit cost of these MREs compare to commercially available equivalent products or other government procurements?
The provided data does not include a per-unit cost breakdown or commercial benchmarks. A comparison would necessitate obtaining the unit price from the contract details and contrasting it with similar products in the commercial market or other government contracts to determine cost-effectiveness and potential savings.
What are the contingency plans in place should AmeriQual Group LLC face production or delivery challenges?
The provided data does not specify contingency plans for production or delivery challenges. Effective oversight would typically involve the Defense Logistics Agency having pre-defined backup strategies, such as identifying alternative suppliers or having surge capacity options, to mitigate risks to the military's food supply.
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, 08
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $59,274,643
Exercised Options: $59,274,643
Current Obligation: $59,274,643
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM3S112DZ107
IDV Type: IDC
Timeline
Start Date: 2012-11-30
Current End Date: 2013-12-30
Potential End Date: 2013-12-30 00:00:00
Last Modified: 2013-02-14
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