VA Awards $14.1M Subsistence Prime Vendor Contract to US Foods Inc. for December 2025

Contract Overview

Contract Amount: $14,127,414 ($14.1M)

Contractor: US Foods Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2025-12-31

Contract Duration: 30 days

Daily Burn Rate: $470.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2026 DECEMBER

Place of Performance

Location: ROSEMONT, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.1 million to US FOODS INC for work described as: EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2026 DECEMBER Key points: 1. Contract value of $14.1M for a 30-day period. 2. US Foods Inc. is the sole awardee. 3. Potential risk associated with a single vendor for essential supplies. 4. Spending falls under 'All Other Miscellaneous Food Manufacturing' NAICS code.

Value Assessment

Rating: good

The contract value of $14.1M for a 30-day period suggests a significant but potentially fair price for essential subsistence supplies, especially considering the scale of operations for the Department of Veterans Affairs. Benchmarking against similar large-scale 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 under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The award was a delivery order against an existing contract.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services, though the specific price discovery impact for this single delivery order requires further analysis.

Public Impact

Ensures continued provision of essential subsistence supplies to VA facilities. Supports the operational needs of veterans' healthcare and support services. Impacts food service providers and distributors within the relevant geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single delivery order for a critical need.
Short contract duration (30 days) may limit long-term price stability.
Dependence on a single vendor for essential supplies.

Positive Signals

Awarded through full and open competition.
Supports critical VA operations.
Firm fixed price contract type provides cost certainty.

Sector Analysis

This contract falls within the broader food services and distribution sector, which is crucial for supporting government operations, particularly in healthcare and institutional settings. Benchmarks for similar large-scale food procurement contracts would be necessary for a detailed comparison.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The award to US Foods Inc., a large corporation, suggests that small businesses may not have been primary participants in this specific procurement, though they could be subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure performance and accountability, especially given the critical nature of subsistence supplies.

Related Government Programs

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

Risk Flags

Potential for supply chain disruption with a single vendor.
Short contract duration may limit long-term cost savings.
Lack of explicit small business participation noted.
Dependence on one vendor for critical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.1 million to US FOODS INC. EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2026 DECEMBER

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 $14.1 million.

What is the period of performance?

Start: 2025-12-01. End: 2025-12-31.

What is the historical pricing trend for subsistence prime vendor contracts awarded by the VA?

Analyzing historical pricing data for similar VA subsistence prime vendor contracts is crucial for assessing the value of this $14.1M award. Understanding past price fluctuations, competitive bidding outcomes, and any adjustments made due to market conditions will provide context. This historical perspective helps determine if the current price is competitive and reflects fair market value for the goods and services provided over similar contract durations.

What are the risks associated with a single vendor receiving a delivery order for essential subsistence supplies?

A single vendor receiving a delivery order for essential subsistence supplies presents risks such as potential supply chain disruptions if the vendor faces operational issues, limited leverage for price negotiation on future needs, and a lack of backup options in emergencies. This concentration of supply can impact the VA's ability to maintain consistent service delivery and potentially lead to higher costs if competition is stifled in subsequent procurements.

How effectively does the 'full and open competition' method ensure cost-effectiveness for short-duration, high-value delivery orders like this one?

Full and open competition is designed to foster cost-effectiveness by allowing multiple bidders to vie for the contract, driving down prices. For short-duration, high-value delivery orders, this method can be effective if the solicitation is well-structured and attracts robust participation. However, the effectiveness is contingent on the market's responsiveness and the clarity of requirements, ensuring that the competitive pressure truly translates into optimal pricing for the specified period.

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: $14,127,414

Exercised Options: $14,127,414

Current Obligation: $14,127,414

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79723D0001

IDV Type: IDC

Timeline