DoD's $17.86M Fruit & Vegetable Canning Contract Awarded to AmeriQual Group LLC
Contract Overview
Contract Amount: $17,864,000 ($17.9M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2009-02-27
Contract Duration: 151 days
Daily Burn Rate: $118.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIXED PRICE
Sector: Defense
Official Description: 4508768535!MEAL, REA
Place of Performance
Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47708
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $17.9 million to AMERIQUAL GROUP LLC for work described as: 4508768535!MEAL, REA Key points: 1. Contract value of $17.86M for canned fruits and vegetables. 2. AmeriQual Group LLC secured the award. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract falls under the 'Defense' sector, specifically food supplies. 5. Potential risks include supply chain disruptions for perishable goods.
Value Assessment
Rating: fair
The contract value of $17.86M for canned goods appears reasonable given the quantity and duration. Benchmarking against similar DoD food supply contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the 'after exclusion of sources' clause warrants further investigation to understand its impact on price discovery.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, but the exclusion clause could have limited the breadth of competition.
Public Impact
Ensures a supply of essential food items for military personnel. Supports the food processing industry and associated jobs. Potential for food waste if demand fluctuates unexpectedly. Contributes to the logistical readiness of the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases due to market volatility in agricultural products.
- Dependence on a single supplier for a critical need.
- Logistical challenges in delivery and storage of perishable goods.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Fixed-price contract type helps control costs.
- Clear delivery and performance periods.
Sector Analysis
This contract falls within the Defense sector, specifically for food and subsistence supplies. Spending benchmarks for similar food procurement contracts vary widely based on item type, quantity, and duration, but $17.86M for canned goods over 151 days is a significant procurement.
Small Business Impact
Analysis of small business participation is not directly available from the provided data. The contract was awarded to AmeriQual Group LLC, and further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component of DoD oversight for supply chain management. Standard oversight procedures for fixed-price contracts would apply, focusing on delivery and quality compliance.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price volatility in agricultural commodities.
- Dependence on a single contractor for a critical supply.
- Limited transparency on the 'exclusion of sources' rationale.
- Logistical challenges with perishable goods delivery and storage.
Tags
fruit-and-vegetable-canning, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.9 million to AMERIQUAL GROUP LLC. 4508768535!MEAL, REA
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 $17.9 million.
What is the period of performance?
Start: 2008-09-29. End: 2009-02-27.
What was the specific rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and did this exclusion limit the competitive landscape?
The rationale for excluding sources in this procurement method is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, past performance issues, or national security concerns. Understanding the exact reasons is crucial to assess whether the exclusion unduly limited competition and potentially impacted the final price paid by taxpayers.
How does the per-unit cost of these canned goods compare to commercially available equivalents or other government contracts for similar items?
A direct per-unit cost comparison is not feasible without detailed product specifications and quantities. However, government contracts often benefit from bulk purchasing power, potentially leading to lower per-unit costs than retail. A thorough analysis would involve comparing the contract's unit prices against market rates and other federal food procurements to ensure cost-effectiveness.
What measures are in place to ensure the quality and safety of the canned fruits and vegetables, especially given the short delivery window?
The Department of Defense typically enforces stringent quality assurance and safety protocols for all food procurements. This includes adherence to FDA regulations, specific military specifications for food products, and inspection processes during and after delivery. The short delivery window necessitates efficient logistical planning and robust quality control checks by the Defense Logistics Agency.
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: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ameriqual Group, LLC (UEI: 099771198)
Address: 225 W MORGAN AVE, EVANSVILLE, IN, 47710
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,864,000
Exercised Options: $17,864,000
Current Obligation: $17,864,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM3S106DZ103
IDV Type: IDC
Timeline
Start Date: 2008-09-29
Current End Date: 2009-02-27
Potential End Date: 2009-02-27 00:00:00
Last Modified: 2019-09-10
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