Treasury's $3.875M Food Service Contract Awarded to US Foods Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $3,875,000 ($3.9M)

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: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AFRH DC FOOD SERVICE

Place of Performance

Location: ROSEMONT, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.9 million to US FOODS INC for work described as: AFRH DC FOOD SERVICE Key points: 1. Contract value of $3.875 million over approximately 3 years. 2. US Foods Inc. secured the contract through full and open competition. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. This award falls under the 'All Other Miscellaneous Food Manufacturing' NAICS code.

Value Assessment

Rating: good

The $3.875 million award for food services appears reasonable given the 3-year duration. Benchmarking against similar federal food service 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 using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.

Public Impact

Ensures essential food services for a federal agency. Supports a large food service provider, potentially impacting jobs. The fixed-price nature protects the government from cost overruns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent delivery orders if not managed.
Dependence on a single vendor for critical food services.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the general services sector, specifically related to food supply and distribution. Federal spending on food services is consistent across agencies to support personnel and operations.

Small Business Impact

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

Oversight & Accountability

The Bureau of the Fiscal Service, under the Department of the Treasury, is responsible for this award. Standard procurement oversight processes should apply to ensure compliance and performance.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions affecting vendor performance.
Risk of price escalation in future delivery orders if not contractually controlled.
Dependence on a single vendor for essential services.
Need for robust performance monitoring to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.9 million to US FOODS INC. AFRH DC 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 $3.9 million.

What is the period of performance?

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

What is the expected quality and variety of food services provided under this contract?

The contract details do not specify the exact quality standards or variety of food services. Typically, federal food service contracts outline specific requirements for nutritional content, food safety, and service levels. The agency awarding the contract would have performance metrics to ensure these standards are met.

Are there any identified risks associated with US Foods Inc. as the sole awardee?

While awarded through full and open competition, the primary risk is vendor dependency. If US Foods Inc. faces operational issues, supply chain disruptions, or performance failures, it could impact the agency's food service continuity. Mitigation strategies might include performance monitoring and contingency planning.

How does the $3.875 million value compare to similar federal food service contracts?

Without specific details on the scope of services (e.g., number of meals, type of facility), a direct comparison is difficult. However, $3.875 million over three years suggests a significant operation, potentially serving a large population or complex facility. Benchmarking against contracts with similar scale and service requirements is necessary for a definitive assessment.

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: $7,900,000

Exercised Options: $5,832,729

Current Obligation: $3,875,000

Actual Outlays: $3,438,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79723D0001

IDV Type: IDC

Timeline