DoD spent $75.5M on canned fruits and vegetables, with Ameriqual Group LLC securing the contract

Contract Overview

Contract Amount: $75,548,175 ($75.5M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2010-10-28

End Date: 2012-01-31

Contract Duration: 460 days

Daily Burn Rate: $164.2K/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: TAS::97 4930::TAS

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47710

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $75.5 million to AMERIQUAL GROUP LLC for work described as: TAS::97 4930::TAS Key points: 1. Contract value of $75.5 million over its period of performance. 2. Ameriqual Group LLC was the primary contractor for this requirement. 3. The contract was awarded under full and open competition. 4. The contract was for canned fruits and vegetables, supporting military food services. 5. The contract duration was approximately 1 year and 4 months. 6. The contract was awarded in late 2010, concluding in early 2012.

Value Assessment

Rating: fair

The total contract value of $75.5 million for a period of roughly 16 months suggests a significant but not necessarily excessive annual spend for supplying canned goods to the Department of Defense. Without specific per-unit cost data or comparisons to similar contracts for the same period, a precise value-for-money assessment is challenging. However, the scale of the award indicates a substantial requirement for these food items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, specific sources may have been excluded based on prior performance or other criteria. The presence of 3 bids suggests a moderate level of competition for this requirement.

Taxpayer Impact: A competitive award generally benefits taxpayers by encouraging lower prices and better service, though the specific impact depends on the number and quality of bids received.

Public Impact

Military personnel and their families stationed domestically and potentially abroad benefit from the provision of these essential food supplies. The contract ensures the availability of canned fruits and vegetables for mess halls and commissaries. The geographic impact is primarily on military installations served by the Defense Logistics Agency. The contract supports jobs within the food processing and distribution sectors, particularly at Ameriqual Group LLC's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in agricultural commodities impacting long-term cost-effectiveness.
Dependence on a single primary contractor could pose supply chain risks if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a structured procurement process.
Contract was for essential food items, indicating a stable and predictable demand.
The contractor, Ameriqual Group LLC, has a history of performing government contracts.

Sector Analysis

The food processing and distribution sector is a critical component of the defense supply chain, ensuring that military personnel have access to necessary provisions. This contract falls within the broader category of subsistence support, which is a consistent area of federal spending. Benchmarking against other large-scale food supply contracts would provide further context on pricing and efficiency.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus was on securing the most competitive offer from any qualified vendor, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Logistics Agency (DLA) and potentially the Department of Defense's Inspector General. Mechanisms would include contract performance monitoring, quality assurance checks, and financial audits to ensure compliance with terms and conditions.

Related Government Programs

Defense Logistics Agency Subsistence Prime Vendor Program
Military Food Service Contracts
Department of Defense Food Procurement

Risk Flags

Potential for limited competition due to source exclusion.
Price volatility of raw agricultural commodities.
Logistical challenges associated with bulk food supply.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.5 million to AMERIQUAL GROUP LLC. TAS::97 4930::TAS

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 $75.5 million.

What is the period of performance?

Start: 2010-10-28. End: 2012-01-31.

What is the historical spending trend for canned fruits and vegetables by the Department of Defense?

Analyzing historical spending on canned fruits and vegetables by the Department of Defense requires access to detailed procurement data over multiple fiscal years. Generally, spending in this category can fluctuate based on operational tempo, deployment levels, and changes in dietary guidelines or food service strategies. Contracts like this one, awarded in 2010 for over $75 million, indicate significant, consistent demand. However, without a longitudinal analysis, it's difficult to pinpoint specific trends. Factors such as the increasing availability of fresh and frozen options, and shifts towards more varied menus, could influence the demand for canned goods over time. Comparing this $75.5M award to previous or subsequent contracts of similar scope would be necessary to identify any upward or downward trends in this specific procurement area.

How does the price per unit for canned goods in this contract compare to market rates or similar government contracts?

Determining the precise price per unit and comparing it to market rates or similar government contracts is challenging without the detailed line-item data from the original award. The total contract value of $75.5 million over approximately 16 months suggests a substantial volume of goods. To perform a robust comparison, one would need to know the exact quantities and types of canned fruits and vegetables procured, and then calculate the average price per unit. This average could then be benchmarked against commercial wholesale prices for similar items or against unit prices from other DLA contracts awarded around the same time. Factors such as packaging, delivery requirements, and specific product specifications (e.g., grade, origin) would also influence comparability. Given the 'firm fixed price' nature, the government aimed to lock in costs, but the initial pricing strategy remains opaque without further data.

What was the track record of Ameriqual Group LLC prior to and following this contract?

Ameriqual Group LLC has a significant history of contracting with the U.S. government, particularly for food products. Prior to this $75.5 million contract awarded in 2010, the company had likely secured numerous other awards, building its experience and capacity. Following the completion of this contract in 2012, Ameriqual has continued to receive government contracts, indicating a sustained relationship and satisfactory performance. A comprehensive review would involve examining their contract history for performance ratings, any past performance issues, and the types and values of contracts awarded. Their continued success in securing government business suggests a generally positive track record, though specific details on any challenges or exceptional successes would require deeper investigation into their contract portfolio.

What are the potential risks associated with relying on canned goods for military rations?

Relying heavily on canned goods for military rations presents several potential risks. Nutritional value can degrade over time compared to fresh or frozen alternatives, potentially impacting soldier health and performance, especially during prolonged deployments. Shelf-life, while long, is not infinite, and proper inventory management is crucial to avoid spoilage. Furthermore, the weight and bulk of canned goods can increase logistical burdens for transportation and storage. In terms of procurement, dependence on a specific type of preservation (canning) might limit flexibility if supply chains for raw ingredients or canning materials are disrupted. While canned goods offer durability and long shelf-life, modern military feeding concepts often emphasize variety and fresher options where feasible, suggesting a need to balance the benefits of canned goods with potential drawbacks.

How does the 'full and open competition after exclusion of sources' clause impact price discovery and taxpayer value?

The 'full and open competition after exclusion of sources' clause is a nuanced procurement method. It signifies that the initial solicitation was broadly advertised, allowing any responsible source to submit an offer. However, the 'exclusion of sources' part implies that certain potential bidders were disqualified or not considered, possibly due to past performance issues, security concerns, or specific technical requirements not met. While it aims for broad competition, the exclusion can limit the number of viable bidders. If only a few sources remain after exclusions, the competitive pressure might be reduced, potentially leading to higher prices than under truly unrestricted full and open competition. For taxpayers, this means that while competition was sought, the value realized depends heavily on the justification for excluding sources and the remaining pool of bidders' competitiveness.

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, EVANSVILLE, IN, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $75,548,175

Exercised Options: $75,548,175

Current Obligation: $75,548,175

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM3S106DZ103

IDV Type: IDC

Timeline