VA awards $3.7M for canteen subsistence prime vendor services in Illinois for January 2026

Contract Overview

Contract Amount: $3,722,356 ($3.7M)

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: $124.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXPRESS REPORT: CANTEEN 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 $3.7 million to US FOODS INC for work described as: EXPRESS REPORT: CANTEEN SUBSISTENCE PRIME VENDOR (SPV)FY2026 JANUARY Key points: 1. The contract represents a single month of service, suggesting a potential need for ongoing, short-term support or a pilot program. 2. The firm-fixed-price contract type aims to provide cost certainty for the government. 3. Competition was full and open, indicating a broad market search for the best value. 4. The award is a delivery order against an existing contract, implying a pre-established relationship or framework. 5. The specific product/service code is not detailed, making direct benchmarking challenging. 6. The contract value is relatively small for a federal procurement, suggesting a focused scope.

Value Assessment

Rating: good

The contract value of $3.72 million for one month of canteen subsistence prime vendor services appears reasonable given the scope. Without specific details on the volume of goods or services provided, a direct comparison to similar contracts is difficult. However, the firm-fixed-price structure suggests the government has negotiated a set cost, which is a positive indicator for value. The benchmark of $124,079 for the base contract (likely an annual or multi-year estimate from which this delivery order is drawn) provides some context, but the delivery order value is significantly higher, indicating a substantial need for this specific month.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but the designation implies a robust competitive process was intended. Full and open competition generally leads to better price discovery and a wider range of potential solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services as contractors vie for the award.

Public Impact

Veterans and staff at VA facilities in Illinois will benefit from the availability of canteen subsistence services. The contract ensures the provision of food and related items for daily needs within VA facilities. The geographic impact is focused on Illinois, serving specific VA locations within the state. The contract supports the operational needs of VA healthcare facilities, indirectly impacting healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short duration (one month) raises questions about long-term planning and potential for recurring, unplanned procurements.
Lack of detailed product/service information hinders a comprehensive value assessment.

Positive Signals

The use of a firm-fixed-price contract provides cost predictability.
Awarding under full and open competition suggests a commitment to seeking competitive pricing.
The contract is a delivery order against an existing contract, indicating a potentially streamlined process.

Sector Analysis

The Canteen Subsistence Prime Vendor (SPV) program falls within the broader food services and logistics sector supporting government operations. This contract specifically addresses the need for reliable food supply chains within healthcare facilities. The market for food distribution and prime vendor services is competitive, with large national distributors often vying for these types of contracts. The value of this single delivery order is substantial for a one-month period, suggesting a significant volume of goods or a complex logistical requirement.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted for this contract. This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist through the prime vendor, US Foods Inc., but this is not explicitly detailed in the award information. The impact on the small business ecosystem is likely minimal unless US Foods Inc. actively engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a delivery order against an existing contract, the foundational oversight mechanisms are already in place. Transparency is facilitated by public contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Canteen Services
Federal Food Service Contracts
Government Prime Vendor Contracts
Healthcare Facility Support Services

Risk Flags

Short contract duration may indicate uncertainty or require frequent re-competition.
Lack of detailed service scope hinders comprehensive value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to US FOODS INC. EXPRESS REPORT: CANTEEN 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 $3.7 million.

What is the period of performance?

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

What is the historical spending pattern for canteen subsistence prime vendor services at this VA facility or within Illinois?

Analyzing historical spending for canteen subsistence prime vendor services at this specific VA facility or within Illinois requires access to past contract awards and delivery orders. Without this data, it's difficult to establish a trend. However, the current award of $3.72 million for a single month suggests a significant operational requirement. If similar monthly awards have been made historically, it indicates a consistent need for these services. Conversely, a large deviation from past spending could signal changes in demand, service scope, or pricing. Understanding the frequency and value of past awards would provide crucial context for assessing the current contract's value and necessity, and whether this represents a typical expenditure or an anomaly.

How does the pricing of this contract compare to similar canteen subsistence prime vendor contracts awarded by other federal agencies?

Comparing the pricing of this $3.72 million, one-month contract to similar federal procurements is challenging without detailed line-item data on the goods and services provided. However, the firm-fixed-price structure suggests a negotiated rate. Benchmarking would involve identifying contracts with comparable scope (e.g., food items, delivery logistics, facility size supported) and duration. Factors like geographic location, volume discounts, and specific product mix significantly influence pricing. If comparable contracts show lower per-unit costs or overall lower values for similar service levels, it might indicate this contract is priced at a premium. Conversely, if it aligns with or is lower than benchmarks, it suggests competitive pricing was achieved.

What are the specific performance metrics and quality standards required under this contract?

The provided data does not detail the specific performance metrics or quality standards for this canteen subsistence prime vendor contract. Typically, such contracts would include requirements related to on-time delivery, product freshness, order accuracy, inventory management, and customer service satisfaction. Performance would likely be monitored by the VA contracting officer's representative (COR). Failure to meet these standards could result in contractually defined remedies, such as penalties or termination. The absence of this information in the summary makes a thorough assessment of the contractor's accountability and the likelihood of successful service delivery difficult.

What is the track record of US Foods Inc. in fulfilling similar federal contracts, particularly with the Department of Veterans Affairs?

US Foods Inc. is a major national food distributor with extensive experience serving various sectors, including government and healthcare. Their track record in fulfilling federal contracts, particularly with the Department of Veterans Affairs, is likely substantial. A review of past performance information (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide specific insights into their reliability, quality of service, and adherence to contract terms on previous engagements. Generally, large distributors like US Foods have established processes and infrastructure to manage complex supply chains and meet demanding government requirements. However, specific performance on prior VA contracts would offer the most relevant assessment.

What is the potential risk associated with a one-month contract duration for essential canteen services?

The primary risk associated with a one-month contract duration for essential canteen services is the potential for service disruption if a follow-on contract is not secured promptly or if the current vendor is unable to continue services. This short timeframe increases the administrative burden for re-competition or extension. It could also indicate a lack of long-term planning or uncertainty about future needs. For essential services like canteen operations, continuity is crucial for morale and operational efficiency within the VA facility. A single month might be insufficient for a new vendor to fully onboard, or it could be a stop-gap measure, implying underlying issues with the program's stability or future funding.

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: $3,722,356

Exercised Options: $3,722,356

Current Obligation: $3,722,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79723D0001

IDV Type: IDC

Timeline