DoD's $40.6M MRE Contract Awarded to AmeriQual Group LLC Amidst Full and Open Competition
Contract Overview
Contract Amount: $40,575,185 ($40.6M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2020-06-29
End Date: 2020-12-31
Contract Duration: 185 days
Daily Burn Rate: $219.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507498464!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 $40.6 million to AMERIQUAL GROUP LLC for work described as: 8507498464!MEAL, READY-TO-EAT, IND, Key points: 1. The Department of Defense awarded a significant contract for MREs, highlighting the importance of sustained food supply. 2. AmeriQual Group LLC secured the contract through full and open competition, indicating a competitive bidding process. 3. The contract's value suggests a substantial need for these rations within the defense sector. 4. The firm fixed price structure aims to control costs for the taxpayer.
Value Assessment
Rating: good
The contract value of $40.6 million for MREs appears reasonable given the quantity and duration. Benchmarking against similar large-scale food supply contracts would provide a more precise assessment, but the competitive nature suggests a fair price was achieved.
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 broad participation while potentially focusing on specialized capabilities, which can influence price discovery.
Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for the government.
Public Impact
Ensures readiness and morale for deployed service members through consistent access to essential rations. Supports the Defense Logistics Agency's mission to provide logistical support to the U.S. Armed Forces. Contributes to the food manufacturing sector by providing a large contract for specialized food production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Ensuring consistent quality and nutritional value across all MRE units.
- Monitoring contractor performance to ensure adherence to contract terms.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract helps manage budget predictability.
- Supports critical military operational needs.
Sector Analysis
The defense sector relies heavily on robust supply chains for essential goods like MREs. Spending in this area is critical for operational readiness and troop welfare. Benchmarks for similar ration contracts would typically be assessed against volume, duration, and specific nutritional requirements.
Small Business Impact
While this specific contract was awarded to AmeriQual Group LLC, the 'full and open competition' clause suggests that small businesses may have had opportunities to participate as subcontractors or in future solicitations if they meet the required capabilities.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract. Oversight mechanisms would include monitoring delivery schedules, quality control, and financial expenditures to ensure compliance with the contract terms and taxpayer value.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Supply chain vulnerability
- Contractor performance risk
- Potential for price escalation in future contracts
- Dependence on specific manufacturing capabilities
Tags
fruit-and-vegetable-canning, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.6 million to AMERIQUAL GROUP LLC. 8507498464!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 $40.6 million.
What is the period of performance?
Start: 2020-06-29. End: 2020-12-31.
What is the historical cost trend for MREs awarded through similar competitive processes?
Analyzing historical data for MRE contracts awarded under full and open competition would reveal cost trends. Factors such as inflation, raw material costs, and changes in nutritional requirements can influence these trends. Understanding this history helps assess if the current $40.6 million award represents a fair market price or if there are opportunities for cost savings in future procurements.
What are the specific risks associated with relying on a single primary contractor for such a critical supply item?
Relying on a single primary contractor, even one selected through competition, carries risks such as potential supply chain disruptions due to unforeseen events (natural disasters, labor issues) or contractor performance failures. It could also limit future competitive opportunities if the contractor's capacity becomes a bottleneck. Mitigation strategies include maintaining adequate inventory levels and having contingency plans for alternative sourcing.
How effectively does the current contract structure ensure long-term cost-effectiveness and adaptability to changing military needs?
The firm fixed price structure provides immediate cost certainty for this contract period. However, long-term cost-effectiveness depends on the contractor's efficiency and the government's ability to negotiate future contracts that reflect market conditions and evolving requirements. Adaptability might be addressed through contract clauses allowing for modifications or future solicitations that incorporate updated specifications.
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: $40,575,185
Exercised Options: $40,575,185
Current Obligation: $40,575,185
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: 2020-06-29
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2021-03-09
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