DoD's $84.1M MRE Contract Awarded to AmeriQual Group LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $84,152,874 ($84.2M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2019-10-23

End Date: 2020-12-31

Contract Duration: 435 days

Daily Burn Rate: $193.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8506929109!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 $84.2 million to AMERIQUAL GROUP LLC for work described as: 8506929109!MEAL, READY-TO-EAT, IND, Key points: 1. The Department of Defense awarded a significant contract for MREs, highlighting the need for sustained operational readiness. 2. AmeriQual Group LLC secured the contract through a competitive process, indicating a healthy market for these essential supplies. 3. The contract's duration and value suggest a substantial commitment to ensuring troops have adequate rations. 4. The specific nature of the contract (MREs) points to ongoing logistical support requirements for military personnel.

Value Assessment

Rating: good

The contract value of $84.1 million for MREs appears reasonable given the quantity and duration. Benchmarking against similar large-scale ration procurements would provide a more precise assessment, but the competitive award suggests fair pricing.

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 a robust competitive process that aimed to secure the best value. This method typically leads to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of this award is expected to yield cost savings for taxpayers by ensuring fair market pricing for essential military rations.

Public Impact

Ensures continued provision of essential food supplies to military personnel, supporting operational readiness. Supports the food manufacturing and logistics sectors involved in producing and distributing MREs. Highlights the government's commitment to maintaining a well-supplied military force. The competitive award process demonstrates efficient use of taxpayer funds for defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Fluctuations in raw material costs could affect long-term pricing stability.

Positive Signals

Successful competitive award process.
Ensures critical supply chain for military rations.
Supports domestic manufacturing base.

Sector Analysis

The procurement falls within the broader defense logistics and food services sector. Spending benchmarks for similar large-scale food supply contracts for military use would typically range in the tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

While AmeriQual Group LLC is the prime contractor, the scale of this contract may involve numerous subcontracts with small businesses in the food production, packaging, and logistics industries, contributing to broader economic impact.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a structured procurement process. Further oversight would involve monitoring contract performance, delivery schedules, and quality control to ensure accountability.

Related Government Programs

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

Risk Flags

Potential for supply chain vulnerabilities.
Dependence on specific raw material availability.
Risk of price escalation for components.
Ensuring consistent quality across large volume production.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.2 million to AMERIQUAL GROUP LLC. 8506929109!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 $84.2 million.

What is the period of performance?

Start: 2019-10-23. End: 2020-12-31.

What is the projected cost per meal unit, and how does it compare to industry standards for similar MREs?

The provided data does not include the specific number of meals or the unit cost. To determine the cost per meal, the total award amount ($84,152,873.79) would need to be divided by the total number of MRE units procured. A comparison to industry standards would then require access to market data for comparable MRE pricing, which is not readily available in this dataset.

What specific criteria were used to exclude other sources, and were these exclusions justified to ensure fair competition?

The data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, certain sources were initially excluded. The justification for these exclusions would typically be documented in the solicitation and award documents, often related to specific technical capabilities, past performance, or unique requirements that only certain vendors could meet. A review of those justifications is necessary to assess fairness.

How will the performance and quality of the MREs be monitored throughout the contract period to ensure effectiveness and value for money?

Contract performance and quality are typically monitored through various mechanisms, including regular inspections, acceptance testing of delivered goods, contractor performance reports, and feedback from end-users (military personnel). The Defense Contract Management Agency (DCMA) often plays a role in overseeing contractor performance and ensuring compliance with contract specifications and quality standards.

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: $84,152,874

Exercised Options: $84,152,874

Current Obligation: $84,152,874

Actual Outlays: $26,045,792

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S117DZ113

IDV Type: IDC

Timeline