DoD's $112.7M MRE Contract Awarded to AmeriQual Group LLC Amidst Full and Open Competition
Contract Overview
Contract Amount: $112,728,000 ($112.7M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2021-12-08
End Date: 2023-01-03
Contract Duration: 391 days
Daily Burn Rate: $288.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 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 $112.7 million to AMERIQUAL GROUP LLC for work described as: MEAL, READY-TO-EAT, IND, Key points: 1. AmeriQual Group LLC secured a significant contract for MREs, highlighting their role in military food supply. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed price structure aims to control costs for the Department of Defense. 4. The duration of the contract spans over a year, indicating a sustained need for these supplies.
Value Assessment
Rating: good
The contract value of $112.7M appears reasonable for a large-scale, multi-year supply of MREs. Benchmarking against similar large defense food contracts would provide a more precise assessment, but the scale suggests competitive pricing was likely 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 might have been applied. This method generally promotes price discovery and competition.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the funds expended on these essential military rations.
Public Impact
Ensures readiness by providing essential sustenance to military personnel. Supports the Defense Logistics Agency's mission to supply troops efficiently. Contributes to the food manufacturing sector, particularly in Indiana. The firm fixed price contract provides budget certainty for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Dependence on a single awardee for a critical supply item.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports domestic manufacturing and logistics.
Sector Analysis
This contract falls within the broader defense logistics and food services sector. Spending benchmarks for similar large-scale ration contracts are typically in the tens to hundreds of millions of dollars, depending on quantity and duration.
Small Business Impact
While AmeriQual Group LLC is the primary awardee, the contract's scale suggests potential subcontracting opportunities for smaller businesses in food production, packaging, or logistics, though this is not explicitly detailed.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract, ensuring timely delivery and adherence to specifications. Standard DoD oversight mechanisms are expected to be in place.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price increases in future contract renewals.
- Dependence on a single contractor for a critical supply.
- Risk of supply chain disruptions affecting delivery.
- Limited transparency on specific source exclusions.
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 $112.7 million to AMERIQUAL GROUP LLC. 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 $112.7 million.
What is the period of performance?
Start: 2021-12-08. End: 2023-01-03.
What is the specific unit cost of an MRE under this contract, and how does it compare to historical averages or industry benchmarks?
The provided data does not include the specific unit cost per MRE. To determine this, the total contract value ($112,728,000) would need to be divided by the total number of MRE units procured. A comparison to historical averages or industry benchmarks would require access to that specific data, which is not available here.
What were the specific reasons for excluding other potential sources, if any, during the 'Full and Open Competition After Exclusion of Sources' process?
The data indicates 'Full and Open Competition After Exclusion of Sources,' suggesting that while the competition was open, certain sources may have been excluded based on specific criteria, such as technical capabilities, past performance, or unique requirements. The exact reasons for exclusion are not detailed in the provided information and would typically be found in the contract award justification documents.
How does the duration and value of this contract align with the projected needs and strategic goals of the Department of Defense for MRE provisioning?
The contract's duration of 391 days (approximately 13 months) and value of $112.7M suggest a significant, but not indefinite, commitment. This aligns with the DoD's need for consistent, high-quality rations to maintain operational readiness. The specific strategic alignment would depend on current deployment levels and future operational plans.
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: $112,728,000
Exercised Options: $112,728,000
Current Obligation: $112,728,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S122DZ145
IDV Type: IDC
Timeline
Start Date: 2021-12-08
Current End Date: 2023-01-03
Potential End Date: 2023-01-03 00:00:00
Last Modified: 2022-01-18
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