DoD awards $100M for MREs to AmeriQual Group LLC under full and open competition
Contract Overview
Contract Amount: $100,090,860 ($100.1M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2020-11-12
End Date: 2021-12-31
Contract Duration: 414 days
Daily Burn Rate: $241.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8507795665!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 $100.1 million to AMERIQUAL GROUP LLC for work described as: 8507795665!MEAL, READY-TO-EAT, IND, Key points: 1. Significant contract value for essential food supplies. 2. AmeriQual Group LLC is the sole awardee. 3. Competition method suggests potential for price discovery. 4. Spending aligns with Defense Logistics Agency's mission.
Value Assessment
Rating: good
The contract value of $100.9M for MREs appears reasonable given the quantity and duration. Benchmarking against similar DoD food contracts would provide a more precise assessment.
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 competitive process was intended. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary supplies.
Public Impact
Ensures readiness and morale for deployed military personnel. Supports the supply chain for essential food items. Potential impact on the food manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Competitive award process
- Clear contract type (Firm Fixed Price)
- Essential nature of the product
Sector Analysis
This contract falls within the food manufacturing and logistics sector, supporting military operations. Spending on MREs is a consistent requirement for the Department of Defense.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component for managing supply chains. Oversight would focus on delivery, quality, and adherence to contract terms.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for limited competition if exclusions were not well-justified.
- Dependence on a single supplier for a critical item.
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 $100.1 million to AMERIQUAL GROUP LLC. 8507795665!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 $100.1 million.
What is the period of performance?
Start: 2020-11-12. End: 2021-12-31.
What is the historical pricing trend for MREs awarded by the DLA?
Historical pricing data for MREs from the DLA would be crucial for a comprehensive value assessment. Analyzing past awards to AmeriQual Group LLC and other potential suppliers can reveal trends in unit costs, identify any significant price fluctuations, and determine if current pricing reflects market conditions or represents an increase over time.
What were the specific reasons for excluding other sources in the 'full and open competition after exclusion of sources' award?
Understanding the rationale behind excluding specific sources is key to assessing competition. This could involve technical specifications, unique capabilities, or prior performance issues. Clarifying these exclusions helps determine if the competition was truly broad or if certain potential bidders were unfairly disadvantaged, impacting overall value.
How does the unit cost of these MREs compare to commercially available equivalent products?
Comparing the unit cost of these MREs to similar commercially available products provides a benchmark for value. While military-grade MREs may have specific requirements (shelf life, nutritional content, durability), a significant deviation from commercial pricing could indicate potential inefficiencies or opportunities for cost savings in future procurements.
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: $100,090,860
Exercised Options: $100,090,860
Current Obligation: $100,090,860
Actual Outlays: $63,335,042
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: 2020-11-12
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2021-12-09
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