DoD Awards $125.9M for MREs to AmeriQual Group LLC, Extending Contract Through December 2025
Contract Overview
Contract Amount: $125,890,319 ($125.9M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-15
End Date: 2025-12-31
Contract Duration: 442 days
Daily Burn Rate: $284.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8510952476!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 $125.9 million to AMERIQUAL GROUP LLC for work described as: 8510952476!MEAL, READY-TO-EAT, IND, Key points: 1. Contract value of $125.9M for MREs. 2. AmeriQual Group LLC is the sole awardee. 3. Contract duration extends to late 2025. 4. Focus on canned fruits and vegetables within MREs.
Value Assessment
Rating: good
The contract value of $125.9M appears reasonable for a multi-year supply of MREs. Benchmarking against similar food service contracts would provide a more precise assessment, but the scale suggests a competitive pricing structure was likely sought.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific reason for excluding other potential bidders. This method might limit price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential military rations. The pricing and competition method will determine the overall value for money.
Public Impact
Ensures continued supply of essential MREs for military personnel. Supports a specific contractor, AmeriQual Group LLC. Impacts food service and logistics within the Department of Defense. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about optimal price discovery.
- Specific exclusion of sources needs further justification for transparency.
Positive Signals
- Ensures a critical supply chain for military operations.
- Contract duration provides stability for planning and execution.
Sector Analysis
This contract falls under the food services sector, specifically focusing on preserved meals for military use. Spending benchmarks for similar defense logistics contracts are typically high due to scale and specialized requirements.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Defense Logistics Agency, a key component of DoD oversight for supply chains. Monitoring performance and adherence to terms will be crucial for accountability.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition may impact price optimization.
- Lack of transparency on source exclusion justification.
- Potential for price increases over the contract duration.
- 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 $125.9 million to AMERIQUAL GROUP LLC. 8510952476!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 $125.9 million.
What is the period of performance?
Start: 2024-10-15. End: 2025-12-31.
What was the specific justification for excluding other sources in this 'full and open competition after exclusion of sources' award?
The justification for excluding other sources is critical for understanding the competitive landscape. Typically, such exclusions are based on factors like unique capabilities, existing infrastructure, or specific technical requirements that only a limited number of vendors can meet. Without this specific justification, it's difficult to assess if the exclusion was necessary and if it potentially led to a higher price than a truly open competition might have achieved.
How does the per-unit cost of these MREs compare to historical data or industry benchmarks for similar ration types?
A detailed per-unit cost analysis is essential for evaluating value for money. Comparing this contract's unit pricing against previous procurements of similar MREs, as well as against commercial or other government agency benchmarks for preserved food items, would reveal potential cost savings or overspending. This comparison is key to determining if the $125.9M award represents an efficient use of taxpayer funds.
What performance metrics are in place to ensure the quality and timely delivery of these MREs throughout the contract period?
Robust performance metrics are vital for ensuring the effectiveness of this contract. Key performance indicators (KPIs) related to food safety, nutritional content, shelf-life, packaging integrity, and on-time delivery are necessary. The Defense Logistics Agency should have clear mechanisms for tracking these metrics and addressing any deficiencies to ensure service members receive high-quality rations as intended.
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
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: $125,890,319
Exercised Options: $125,890,319
Current Obligation: $125,890,319
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S122DZ145
IDV Type: IDC
Timeline
Start Date: 2024-10-15
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-22
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