Treasury's Fiscal Service Awards $5.2M Food Service Contract to US Foods Inc

Contract Overview

Contract Amount: $5,215,996 ($5.2M)

Contractor: US Foods Inc

Awarding Agency: Department of the Treasury

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AFRH GULFPORT FOOD SERVICE

Place of Performance

Location: ROSEMONT, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.2 million to US FOODS INC for work described as: AFRH GULFPORT FOOD SERVICE Key points: 1. Contract value of $5.2M over 3 years. 2. US Foods Inc. secured the contract through full and open competition. 3. Potential risk in reliance on a single vendor for essential services. 4. Spending falls under 'All Other Miscellaneous Food Manufacturing' sector.

Value Assessment

Rating: good

The contract value of $5.2M for a 3-year delivery order appears reasonable for large-scale food service operations. Benchmarking against similar government food service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The use of a delivery order indicates it's part of a larger contract vehicle.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value for the government's food service needs.

Public Impact

Ensures consistent food service for government facilities. Supports a major food supplier, potentially impacting regional employment. Taxpayer funds are allocated for essential operational support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years.
Dependence on a single supplier for critical needs.

Positive Signals

Awarded through full and open competition.
Clear contract duration and delivery order structure.

Sector Analysis

This contract falls under the 'All Other Miscellaneous Food Manufacturing' NAICS code. Spending in this category can vary widely based on specific needs, but this award represents a significant allocation for food services.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Bureau of the Fiscal Service within the Department of the Treasury. Standard oversight mechanisms for delivery orders should apply.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Potential for price escalation not captured in fixed price.
Limited vendor options if performance issues arise.
Dependence on a single supplier for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.2 million to US FOODS INC. AFRH GULFPORT FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is US FOODS INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the specific scope of 'food service' covered by this contract?

The contract likely covers the provision of food supplies, potentially including preparation and delivery services for personnel within Treasury facilities. The exact scope would be detailed in the full contract documentation, specifying types of food, service levels, and delivery schedules required by the Bureau of the Fiscal Service.

What are the risks associated with a firm fixed-price contract for food services?

A firm fixed-price contract protects the government from cost overruns if the contractor's expenses increase. However, it places the risk on the contractor; if their costs rise significantly beyond projections, they may face reduced profit margins or potential financial strain, which could indirectly impact service quality or future bidding.

How does this contract contribute to the overall mission effectiveness of the Bureau of the Fiscal Service?

By ensuring reliable and cost-effective food services, this contract supports the daily operations and morale of personnel within the Bureau of the Fiscal Service. This allows staff to focus on their core financial management and service delivery missions without disruption, contributing indirectly to the agency's overall effectiveness.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: US Foods Holding Corp.

Address: 9399 W HIGGINS RD, ROSEMONT, IL, 60018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,212,663

Exercised Options: $8,065,345

Current Obligation: $5,215,996

Actual Outlays: $4,171,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79723D0001

IDV Type: IDC

Timeline