DoD's $82.7M MRE Contract Awarded to AmeriQual Group LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $82,757,063 ($82.8M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-19

End Date: 2025-12-31

Contract Duration: 377 days

Daily Burn Rate: $219.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511090126!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 $82.8 million to AMERIQUAL GROUP LLC for work described as: 8511090126!MEAL, READY-TO-EAT, IND, Key points: 1. The Department of Defense is spending $82.7 million on MREs, a critical component of soldier readiness. 2. AmeriQual Group LLC secured the contract through full and open competition, indicating a competitive market. 3. The contract's duration of 377 days suggests a steady supply chain requirement. 4. The sector is Defense Logistics, a high-priority area for government spending.

Value Assessment

Rating: good

The contract value of $82.7 million for MREs appears reasonable given the scale and duration. Benchmarking against similar large-scale food service contracts 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,' which implies a robust bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award is expected to yield cost savings for taxpayers by ensuring the government receives the best possible price for these essential supplies.

Public Impact

Ensures soldiers have access to nutritious and ready-to-eat meals in various operational environments. Supports the Defense Logistics Agency's mission to provide essential supplies to the armed forces. The contract contributes to the economic activity within the food manufacturing sector, specifically for canned goods.

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 affordability.
Ensuring consistent quality and nutritional value across all MRE units.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Supports critical military operational readiness.
Long-term contract provides supply chain stability.

Sector Analysis

This contract falls within the Defense Logistics sector, specifically for subsistence supplies. Spending benchmarks for military rations are often tied to troop levels and operational tempo, with significant annual outlays to ensure readiness.

Small Business Impact

While AmeriQual Group LLC is the primary contractor, the contract's execution may involve numerous small businesses in the supply chain for ingredients, packaging, and transportation, contributing indirectly to small business growth.

Oversight & Accountability

The Defense Logistics Agency is responsible for overseeing this contract. Standard oversight mechanisms, including performance reviews and quality assurance checks, are expected to be in place to ensure compliance and accountability.

Related Government Programs

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

Risk Flags

Supply chain vulnerability
Raw material price volatility
Quality control and assurance
Potential for limited competition despite 'full and open' designation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.8 million to AMERIQUAL GROUP LLC. 8511090126!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 $82.8 million.

What is the period of performance?

Start: 2024-12-19. End: 2025-12-31.

What is the historical cost trend for MREs awarded under similar competitive conditions?

Analyzing historical data for MRE contracts awarded through full and open competition would reveal cost trends over time. This analysis should consider inflation, changes in ingredient costs, and any technological advancements in food preservation or packaging. Understanding these trends is crucial for assessing the current contract's value and predicting future budgetary needs.

What are the specific risks associated with the 'exclusion of sources' clause in the competition method?

The 'exclusion of sources' clause, while still part of a full and open competition, warrants scrutiny. It suggests that certain potential bidders were initially excluded, possibly due to specific technical requirements or past performance issues. Understanding the rationale behind this exclusion is vital to ensure it did not unduly limit competition or lead to a suboptimal price outcome for the government.

How does the nutritional content and variety of these MREs align with current military health and performance standards?

Ensuring the MREs meet evolving military health and performance standards is paramount for soldier effectiveness. This involves assessing the nutritional balance, caloric density, and variety offered to prevent dietary fatigue and maintain optimal physical and cognitive function. Regular reviews of the MRE specifications against current scientific recommendations and soldier feedback are essential for continuous improvement.

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: $82,757,063

Exercised Options: $82,757,063

Current Obligation: $82,757,063

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