USDA awards $5.5M contract for canned beef chili and stew to AmeriQual Group, LLC

Contract Overview

Contract Amount: $5,531,697 ($5.5M)

Contractor: Ameriqual Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-03-31

Contract Duration: 110 days

Daily Burn Rate: $50.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011081/4100033399/BEEF CHILI W/BEANS PKG-12/15 OZ,BEEF STEW CAN-24/24 OZ

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47725

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.5 million to AMERIQUAL GROUP, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011081/4100033399/BEEF CHILI W/BEANS PKG-12/15 OZ,BEEF STEW CAN-24/24 OZ Key points: 1. Contract awarded to AmeriQual Group, LLC for canned beef chili and stew. 2. The contract is for food commodities intended for USG food donations. 3. The contract has a firm fixed price and a duration of 110 days. 4. This award falls under the Specialty Canning NAICS code 311422.

Value Assessment

Rating: good

The contract value of $5.5M for canned goods appears reasonable given the quantity and type of items. Benchmarking against similar government food procurement 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, suggesting a competitive bidding process. This method is expected to yield fair market prices for the commodities procured.

Taxpayer Impact: Taxpayer funds are being used to procure essential food items for donation programs, ensuring efficient allocation for humanitarian efforts.

Public Impact

Ensures availability of essential food items for USG donation programs. Supports domestic food supply chains and agricultural producers. Provides nutritional support to individuals and families in need. AmeriQual Group, LLC is a key supplier for government food contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition ensures best value.
Firm fixed price contract provides cost certainty.
Contract duration aligns with delivery needs.

Sector Analysis

This contract falls within the food manufacturing sector, specifically canned specialty foods. Government procurement of food commodities is a significant market, often characterized by large volume orders and strict quality standards.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in the subcontracting process.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Standard government oversight procedures for contract performance and quality assurance are expected to be in place.

Related Government Programs

Specialty Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 million to AMERIQUAL GROUP, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011081/4100033399/BEEF CHILI W/BEANS PKG-12/15 OZ,BEEF STEW CAN-24/24 OZ

Who is the contractor on this award?

The obligated recipient is AMERIQUAL GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-03-31.

What is the unit cost breakdown for the beef chili and stew?

The provided data does not include a detailed unit cost breakdown for the beef chili and stew. The total award amount is $5,531,696.84 for an unspecified quantity of 12/15 oz and 24/24 oz packages. Further inquiry with the contracting agency would be necessary to obtain this granular pricing information.

Are there any identified risks associated with the supplier or the product quality?

No specific risks related to AmeriQual Group, LLC or the product quality are explicitly mentioned in the provided data. However, standard government procurement processes include quality assurance checks and performance monitoring. Any potential risks would typically be managed through contract clauses and oversight.

How does this procurement align with the overall goals of USG food donation programs?

This procurement directly supports the USG food donation programs by ensuring the availability of essential, shelf-stable food items like beef chili and stew. These commodities are crucial for providing nutritional assistance to vulnerable populations domestically and internationally, aligning with the humanitarian objectives of these programs.

Industry Classification

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

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0058

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18200 HIGHWAY 41 N, EVANSVILLE, IN, 47725

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

Financial Breakdown

Contract Ceiling: $5,531,697

Exercised Options: $5,531,697

Current Obligation: $5,531,697

Actual Outlays: $2,437,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline