VA awards $12.8M subsistence prime vendor contract to US Foods Inc. for January 2026

Contract Overview

Contract Amount: $12,798,257 ($12.8M)

Contractor: US Foods Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-01

End Date: 2026-01-31

Contract Duration: 30 days

Daily Burn Rate: $426.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: ROSEMONT, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.8 million to US FOODS INC for work described as: EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2026 JANUARY Key points: 1. Contract focuses on providing subsistence items, indicating a critical supply chain function. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm fixed-price contract type aims to control costs and provide budget certainty. 4. Short 30-day duration for this specific delivery order. 5. Geographic focus on Illinois for this particular award. 6. No small business set-aside noted, potentially limiting direct small business participation.

Value Assessment

Rating: good

The award of $12.8 million for a single month of subsistence prime vendor services appears to be within a reasonable range for such a critical support function. Benchmarking against similar large-scale food distribution contracts for federal agencies would provide a more precise value assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of this procurement method generally fosters price discovery and encourages competitive pricing. The VA's decision to use full and open competition suggests confidence in the market's ability to provide adequate solutions.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better value due to the competitive nature of the bidding process. This approach helps ensure that federal funds are used efficiently by selecting the most cost-effective offer.

Public Impact

Beneficiaries include military personnel and potentially other federal entities requiring subsistence supplies. Services delivered encompass the provision of a wide range of food and related items. Geographic impact is concentrated in Illinois for this specific delivery order. Workforce implications are primarily within the logistics and food distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Short contract duration may indicate a need for agile or responsive supply chain management.
Absence of small business set-aside information requires further investigation into subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust market engagement.
Award to a known entity like US Foods Inc. implies established supply chain capabilities.

Sector Analysis

The federal government is a significant consumer of food and subsistence products, relying on prime vendors to manage complex supply chains. This contract falls within the broader food services and distribution sector, which is characterized by large players capable of handling high-volume, geographically dispersed requirements. The market for federal food procurement is substantial, with agencies like the Department of Defense and Department of Veterans Affairs being major clients.

Small Business Impact

The data indicates that this contract was not set aside for small businesses. While US Foods Inc. is a large corporation, the absence of a specific small business set-aside does not preclude subcontracting opportunities. Further analysis would be needed to determine if small businesses are expected to participate as subcontractors under this award, which could still provide benefits to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and procurement offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Subsistence Prime Vendor Program
Department of Defense Food Procurement
Federal Food Distribution Contracts

Risk Flags

Supply Chain Vulnerability
Price Volatility Risk
Quality Assurance Challenges
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.8 million to US FOODS INC. EXPRESS REPORT: SUBSISTENCE PRIME VENDOR (SPV)FY2026 JANUARY

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 $12.8 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-31.

What is the historical spending pattern for subsistence prime vendor contracts by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has a long-standing reliance on Subsistence Prime Vendor (SPV) contracts to supply food and related items to its medical centers and other facilities. Historical spending data reveals a consistent and significant investment in this area, often awarded through full and open competition to large food service distributors. Annual spending can fluctuate based on the number of facilities served, specific dietary needs, and contract durations. For instance, previous years have seen multi-year SPV contracts valued in the hundreds of millions of dollars across various regions. The VA's strategy often involves regional or national contracts to leverage economies of scale, similar to the approach seen in this single-month delivery order, which likely represents a portion of a larger, ongoing requirement.

How does the pricing of this contract compare to similar federal food service contracts?

Directly comparing the pricing of this $12.8 million, 30-day delivery order to other federal food service contracts is challenging without knowing the specific items procured, quantities, and delivery locations. However, the firm fixed-price (FFP) nature of the contract suggests that the price is set and unlikely to change, providing cost certainty. Large-scale federal food contracts are typically awarded based on competitive bidding, where prices are benchmarked against market rates and historical data. The value of $12.8 million for a month's supply indicates a substantial volume, consistent with supporting a significant number of VA facilities or a large geographic area within Illinois. Without access to the bid proposals or detailed line-item pricing, a precise value-for-money assessment relative to market rates is difficult, but the FFP structure and full and open competition are positive indicators for achieving competitive pricing.

What are the potential risks associated with this subsistence prime vendor contract?

Potential risks for this subsistence prime vendor contract include supply chain disruptions, such as those caused by natural disasters, transportation issues, or labor shortages, which could impact the timely delivery of essential food items. Quality control is another risk; ensuring that the food products meet safety and nutritional standards consistently is crucial. Price volatility for certain commodities could also pose a risk, although the firm fixed-price contract is designed to mitigate this for the government. Furthermore, over-reliance on a single prime vendor, even one as large as US Foods Inc., could create a dependency that might be difficult to break if performance issues arise. Finally, ensuring adequate inventory management to prevent spoilage or stockouts requires diligent oversight from the VA.

What is the track record of US Foods Inc. as a federal contractor, particularly with the VA?

US Foods Inc. is a major food distribution company with a significant history of contracting with various federal agencies, including the Department of Veterans Affairs. They are frequently awarded contracts for subsistence prime vendor services, often through competitive bidding processes. Their track record generally reflects the ability to manage large-scale logistics and supply chains required for federal operations. While specific performance metrics for individual contracts are not always publicly detailed, their consistent presence as a large federal contractor suggests a capacity to meet the demanding requirements of agencies like the VA. Past performance reviews, if available through federal procurement databases, would offer more granular insights into their reliability, quality of service, and adherence to contract terms.

How does the geographic focus on Illinois for this delivery order impact the overall VA subsistence supply chain?

The focus on Illinois for this specific delivery order suggests that US Foods Inc. is responsible for supplying subsistence items to VA facilities located within that state for the month of January 2026. This localized approach is common in prime vendor contracts, where vendors are assigned specific geographic regions or a set of facilities. It allows for more efficient logistics, reduced transportation costs, and potentially faster delivery times within that area. For the VA's overall subsistence supply chain, this means that different regions or states may be served by different prime vendors or different delivery orders under a larger contract. This modularity allows the VA to manage its supply chain effectively across its network of facilities, tailoring vendor assignments to optimize delivery and cost.

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: $12,798,257

Exercised Options: $12,798,257

Current Obligation: $12,798,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79723D0001

IDV Type: IDC

Timeline