DoD's $38M MRE Contract Awarded to AmeriQual Group LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $38,175,263 ($38.2M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2018-03-27

End Date: 2019-01-09

Contract Duration: 288 days

Daily Burn Rate: $132.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8505339971!MEAL, READY-TO-EAT, IND,

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47710

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to AMERIQUAL GROUP LLC for work described as: 8505339971!MEAL, READY-TO-EAT, IND, Key points: 1. The Department of Defense awarded a significant contract for MREs, highlighting the need for sustained food supply. 2. AmeriQual Group LLC secured the contract through full and open competition, indicating a competitive market for these essential supplies. 3. The contract's fixed-price nature suggests a focus on cost control and predictability for taxpayer funds. 4. This award falls within the broader Defense Logistics Agency's mission to provide critical support to military operations.

Value Assessment

Rating: good

The contract value of $38.2 million for MREs appears reasonable given the duration and nature of the supplies. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment, but the fixed-price structure suggests a degree of cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while multiple sources were considered, specific exclusions were made. This method aims for competitive pricing but the exclusions warrant further scrutiny to ensure no viable sources were unfairly omitted.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering competitive bidding, which should lead to more favorable pricing. The fixed-price contract further enhances predictability of costs.

Public Impact

Ensures readiness and morale for deployed military personnel through consistent access to essential rations. Supports the Defense Logistics Agency's critical role in the military supply chain, impacting operational capabilities. The procurement process, involving competition, reflects standard government practices for acquiring goods and services. Potential economic impact on the food manufacturing sector, particularly for companies involved in ration production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition needs clarification.
Contract duration and delivery schedule could be optimized.
Potential for supply chain disruptions if AmeriQual Group LLC faces issues.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract provides cost certainty.
Addresses a critical need for military rations.

Sector Analysis

This contract falls under the food manufacturing and logistics sector, specifically supporting military operational needs. Defense spending on rations is a consistent requirement, benchmarked by the volume and type of rations procured annually by agencies like the DLA.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, which has established oversight mechanisms. The 'Delivery Order' nature suggests it might be part of a larger indefinite-delivery contract, requiring ongoing monitoring.

Related Government Programs

Fruit and Vegetable Canning
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for supply chain disruption.
Limited visibility into specific source exclusions.
Dependence on a single contractor for critical supplies.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to AMERIQUAL GROUP LLC. 8505339971!MEAL, READY-TO-EAT, IND,

Who is the contractor on this award?

The obligated recipient is AMERIQUAL GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $38.2 million.

What is the period of performance?

Start: 2018-03-27. End: 2019-01-09.

What was the rationale behind excluding specific sources in the 'full and open competition after exclusion of sources' process?

The rationale for excluding specific sources, even within a full and open competition framework, typically relates to pre-existing contract vehicles, specific technical capabilities, past performance issues, or national security considerations. Understanding these exclusions is crucial to ensure that the competition was truly fair and that the government secured the best possible value without undue limitations on potential bidders.

How does the unit cost of these MREs compare to historical procurements or industry benchmarks for similar products?

Without specific unit cost data or access to historical procurement records for identical MRE configurations, a direct comparison is challenging. However, the firm fixed-price nature of this $38.2 million contract suggests the Department of Defense aimed for cost predictability. A detailed analysis would involve comparing the per-meal cost against other DLA contracts for MREs or commercially available ration packs of comparable nutritional value and shelf-life.

What are the potential risks associated with relying on a single vendor, AmeriQual Group LLC, for such a substantial quantity of MREs?

Relying on a single vendor, even one selected through competition, introduces risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues, or company-specific problems), potential price increases in future contract renewals if competition diminishes, and reduced leverage for the government in negotiations. Contingency planning and robust vendor performance monitoring are essential to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameriqual Group Holdings LLC (UEI: 080315108)

Address: 225 W MORGAN AVE STE C, EVANSVILLE, IN, 47710

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,175,263

Exercised Options: $38,175,263

Current Obligation: $38,175,263

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S117DZ113

IDV Type: IDC

Timeline