Defense Health Agency Awards $1.68M for Medical Facility Food Supplies to US Foods Inc
Contract Overview
Contract Amount: $16,834,880 ($16.8M)
Contractor: US Foods Inc
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $46.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUBSISTENCE ITEMS, NON-SUBSISTENCE ITEMS AND SUPPLEMENTS FOR VARIOUS DEFENSE HEALTH AGENCY MEDICAL TREATMENT FACILITIES.
Place of Performance
Location: ROSEMONT, COOK County, ILLINOIS, 60018
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to US FOODS INC for work described as: SUBSISTENCE ITEMS, NON-SUBSISTENCE ITEMS AND SUPPLEMENTS FOR VARIOUS DEFENSE HEALTH AGENCY MEDICAL TREATMENT FACILITIES. Key points: 1. Contract awarded to a single vendor, US Foods Inc., for a variety of food items. 2. The contract spans 364 days, indicating a short-term need for these supplies. 3. The award is for miscellaneous food manufacturing, suggesting a broad range of subsistence and non-subsistence items. 4. This contract falls under the Defense Health Agency's purview, supporting medical treatment facilities.
Value Assessment
Rating: fair
The contract is a firm-fixed-price delivery order. Without specific itemized pricing or comparison data, it's difficult to definitively assess value. However, the total award amount of $1.68M for a year's supply of diverse food items to multiple facilities suggests a moderate expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, it is a delivery order against a potential larger contract vehicle, and the specific competition for this order is not detailed.
Taxpayer Impact: Taxpayer funds are being used to procure essential food supplies for military medical facilities, ensuring operational readiness and support for service members and their families.
Public Impact
Ensures critical food supplies are available for military medical personnel and patients. Supports the operational readiness of Defense Health Agency facilities. Provides a consistent source of subsistence and non-subsistence items for healthcare settings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing breakdown makes value assessment challenging.
- Potential for price fluctuations in food commodities over the contract period.
- Reliance on a single vendor for diverse food needs.
Positive Signals
- Awarded through full and open competition.
- Supports critical healthcare operations.
- Firm-fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the broader food manufacturing and distribution sector, specifically serving government entities. Benchmarks for similar contracts would depend on the exact mix of goods and quantities, but the award amount is substantial for a single vendor over one year.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Given the nature of the award and the vendor, it is unlikely that small businesses were primary awardees, though they may be subcontractors.
Oversight & Accountability
The contract is managed by the Defense Health Agency, which is responsible for overseeing healthcare services for the U.S. military. Oversight would focus on delivery timeliness, quality of goods, and adherence to contract terms.
Related Government Programs
- All Other Miscellaneous Food Manufacturing
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for price increases due to market volatility in food commodities.
- Dependence on a single vendor could lead to supply chain disruptions.
- Lack of detailed cost breakdown hinders precise value analysis.
- Effectiveness relies heavily on quality control and delivery performance.
Tags
all-other-miscellaneous-food-manufacturi, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to US FOODS INC. SUBSISTENCE ITEMS, NON-SUBSISTENCE ITEMS AND SUPPLEMENTS FOR VARIOUS DEFENSE HEALTH AGENCY MEDICAL TREATMENT FACILITIES.
Who is the contractor on this award?
The obligated recipient is US FOODS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific breakdown of subsistence versus non-subsistence items and their respective costs within this award?
The provided data does not detail the specific breakdown of subsistence versus non-subsistence items or their individual costs. This information is crucial for a granular assessment of value and to understand the precise nature of the supplies procured. Further analysis would require access to the detailed contract line item numbers (CLINs) and their associated pricing.
What were the competitive bids received, and how does the awarded price compare to market rates for these food items?
While the contract states 'full and open competition,' the specific details of competing bids and a direct market rate comparison are not available in this summary. Understanding the number of bids and their values would allow for a more robust assessment of whether the awarded price represents a fair market value and if the competition effectively drove down costs.
How will the quality and freshness of the delivered food items be monitored and ensured for the medical facilities?
The contract's effectiveness hinges on the quality and freshness of the food supplied. The Defense Health Agency will likely have quality assurance personnel and procedures in place to monitor deliveries, inspect goods for spoilage or damage, and ensure compliance with food safety regulations. Performance metrics and inspection reports would be key indicators of success.
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: $33,707,265
Exercised Options: $33,707,265
Current Obligation: $16,834,880
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36W79723D0001
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-12
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