VA Awards $13.8M Subsistence Prime Vendor Contract to US Foods Inc. for September 2025

Contract Overview

Contract Amount: $13,867,967 ($13.9M)

Contractor: US Foods Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-01

End Date: 2025-09-30

Contract Duration: 29 days

Daily Burn Rate: $478.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2025 SEPTEMBER

Place of Performance

Location: ROSEMONT, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.9 million to US FOODS INC for work described as: EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2025 SEPTEMBER Key points: 1. Contract value of $13.8M for a single month of subsistence supply. 2. US Foods Inc. is a major player in food distribution, indicating significant market presence. 3. Risk of price escalation due to firm fixed price contract over a short duration. 4. Spending falls under 'All Other Miscellaneous Food Manufacturing' sector.

Value Assessment

Rating: fair

The contract value of $13.8M for a single month appears high for subsistence supplies. Benchmarking against similar multi-year prime vendor contracts would be necessary to assess true value.

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. However, the short 29-day duration might limit the number of bidders and the depth of price discovery.

Taxpayer Impact: The competitive award process aims to secure fair pricing, but the short term may not fully leverage market competition for optimal taxpayer savings.

Public Impact

Ensures critical food supplies for veterans are available. Supports a large food distribution company, potentially impacting regional food supply chains. Potential for price fluctuations in subsequent, longer-term contracts if this short-term award is a precursor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (29 days) may not reflect true market value.
High monthly spend for subsistence.
Lack of detailed performance metrics in provided data.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty for the period.

Sector Analysis

This contract falls under miscellaneous food manufacturing, which is a broad category. Benchmarking against similar food service contracts for government agencies is crucial to understand if the $13.8M monthly spend is competitive.

Small Business Impact

The award to US Foods Inc., a large corporation, suggests limited direct benefit to small businesses in this specific contract. Subcontracting opportunities for small businesses are not detailed here.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The short duration and single delivery order suggest a need for monitoring to ensure timely delivery and quality, and to assess the need for longer-term, more competitive arrangements.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High monthly expenditure.
Short contract duration may limit competitive pricing.
Lack of detailed performance metrics.
Potential for price increases in future contract periods if not benchmarked effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.9 million to US FOODS INC. EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2025 SEPTEMBER

Who is the contractor on this award?

The obligated recipient is US FOODS INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2025-09-01. End: 2025-09-30.

What is the typical monthly spend for subsistence prime vendor contracts of similar scope and duration across federal agencies?

Typical monthly spend for subsistence prime vendor contracts can vary significantly based on the number of beneficiaries, geographic location, and specific food requirements. However, a $13.8M monthly spend for a single 29-day period is substantial and warrants comparison with established benchmarks for similar federal installations or healthcare systems to ensure cost-effectiveness.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure quality and timely delivery?

The provided data does not detail specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs). Effective oversight would require clearly defined metrics for food quality, delivery timeliness, order accuracy, and responsiveness to issues, alongside mechanisms for performance evaluation and potential penalties for non-compliance.

How does the firm fixed price structure impact the government's ability to benefit from potential market price decreases during the contract period?

A firm fixed price (FFP) contract locks in the price regardless of market fluctuations. While this provides cost certainty for the government, it means the agency will not benefit if market prices for subsistence goods decrease during the 29-day contract period. Conversely, the vendor bears the risk of price increases.

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: $13,867,967

Exercised Options: $13,867,967

Current Obligation: $13,867,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79723D0001

IDV Type: IDC

Timeline