DoD awards $113M for MREs to AmeriQual Group LLC, a sole-source contract
Contract Overview
Contract Amount: $113,146,745 ($113.1M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2018-10-19
End Date: 2019-12-31
Contract Duration: 438 days
Daily Burn Rate: $258.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8505985830!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 $113.1 million to AMERIQUAL GROUP LLC for work described as: 8505985830!MEAL, READY-TO-EAT, IND, Key points: 1. Significant contract value for a single vendor. 2. Sole-source nature raises questions about competition. 3. Focus on food supplies for military operations. 4. Potential for price variations due to limited competition.
Value Assessment
Rating: fair
The contract value of $113M for MREs appears substantial. Benchmarking against similar food supply contracts would be necessary to assess if the pricing is competitive, especially given the limited competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates a sole-source award. This method limits price discovery and may lead to higher costs compared to open competition.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less efficient use of resources.
Public Impact
Ensures availability of essential rations for military personnel. Supports a specific contractor, potentially impacting market dynamics. Highlights reliance on specialized food production for defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing due to limited competition.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Ensures critical food supply for the military.
- Contract awarded to a known entity with experience.
Sector Analysis
The defense sector heavily relies on specialized food services like MREs to sustain operations. Spending benchmarks for similar food contracts are difficult to ascertain without more specific data on product type and quantity.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses within this contract. The sole-source nature might preclude small businesses from participating.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Defense Logistics Agency's role in managing this contract requires diligent monitoring of performance and costs.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency in cost justification
Tags
fruit-and-vegetable-canning, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.1 million to AMERIQUAL GROUP LLC. 8505985830!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 $113.1 million.
What is the period of performance?
Start: 2018-10-19. End: 2019-12-31.
What was the justification for excluding other sources and awarding this contract solely to AmeriQual Group LLC?
The justification for excluding other sources and awarding this contract solely to AmeriQual Group LLC is not provided in the data. Typically, such decisions are based on factors like unique capabilities, urgent needs, or prior successful performance. A thorough review of the contract's justification documentation would be required to understand the rationale.
How does the unit cost of these MREs compare to industry benchmarks for similar products, considering the sole-source nature of the award?
Without specific unit cost data and detailed product specifications, a direct comparison to industry benchmarks is challenging. However, sole-source contracts generally carry a higher risk of inflated pricing due to the absence of competitive pressure. Further analysis would require access to the contract's pricing details and comparable market data.
What mechanisms are in place to ensure the quality and timely delivery of MREs under this sole-source contract, and how is performance monitored?
Mechanisms for ensuring quality and timely delivery typically involve contract clauses, inspection protocols, and performance metrics. The Defense Logistics Agency would be responsible for monitoring AmeriQual Group LLC's performance against these requirements. Regular reporting, site visits, and quality assurance checks are standard practices to maintain accountability.
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: $113,146,745
Exercised Options: $113,146,745
Current Obligation: $113,146,745
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S117DZ113
IDV Type: IDC
Timeline
Start Date: 2018-10-19
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2019-10-01
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