Department of Defense awards $1.31B contract for MREs, with Ameriqual Group LLC as primary supplier

Contract Overview

Contract Amount: $130,910,000 ($130.9M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-12

End Date: 2026-12-31

Contract Duration: 384 days

Daily Burn Rate: $340.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511811096!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 $130.9 million to AMERIQUAL GROUP LLC for work described as: 8511811096!MEAL, READY-TO-EAT, IND, Key points: 1. Contract focuses on sustained delivery of essential nutritional supplies. 2. Ameriqual Group LLC has a significant role in fulfilling this large-scale requirement. 3. The contract's duration suggests a long-term strategic need for these rations. 4. Fixed-price structure aims to control costs over the contract period. 5. Competition was conducted with an exclusion of sources, warranting further review. 6. Geographic focus on Indiana for production or distribution is noted.

Value Assessment

Rating: good

The contract value of $1.31 billion over approximately two years represents a substantial investment in military rations. Benchmarking this against historical spending on similar food service contracts is crucial. While specific per-unit cost data is not provided, the firm-fixed-price nature suggests an attempt to lock in costs. However, without detailed cost breakdowns or comparisons to commercial equivalents, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have been broad, specific sources were later excluded, leading to a limited competition. The exact reasons for exclusion are critical to understanding the competitive landscape and its potential impact on pricing and innovation. A limited competition can sometimes lead to higher prices if the pool of qualified bidders is significantly reduced.

Taxpayer Impact: The exclusion of sources in the competition process may limit the number of potential bidders, potentially impacting the government's ability to secure the most competitive pricing for taxpayers.

Public Impact

Service members deployed domestically and internationally will receive Ready-to-Eat meals. Ensures nutritional support for military personnel during operations and training. The contract supports jobs within the food manufacturing sector, particularly in Indiana. Contributes to the operational readiness and morale of the armed forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
Lack of detailed cost breakdowns makes independent value assessment difficult.
The exclusion of sources needs clear justification to ensure fairness and efficiency.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration indicates a stable and predictable demand.
Ameriqual Group LLC's established role suggests reliable supply chain management.

Sector Analysis

The defense logistics and food services sector is characterized by large-scale contracts to ensure the provision of essential goods and services to military personnel. This contract for Meal, Ready-to-Eat (MRE) falls within the food manufacturing and distribution sub-sector. The market involves specialized suppliers capable of meeting stringent military specifications for shelf life, nutritional content, and durability. Spending in this area is consistent and critical for maintaining operational readiness.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the large scale of this contract and the specialized nature of MRE production, it is possible that opportunities for small businesses may be limited unless specifically incorporated into subcontracting requirements. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms, quality standards, and financial accountability. The Department of Defense's Inspector General also has jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Military Food Service Contracts
Defense Logistics Agency Procurement
Ready-to-Eat Meal Supply Chains
Department of Defense Food Procurement

Risk Flags

Limited competition may impact price.
Lack of detailed cost transparency.
Potential for supply chain vulnerabilities.
Need for ongoing quality assurance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $130.9 million to AMERIQUAL GROUP LLC. 8511811096!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 $130.9 million.

What is the period of performance?

Start: 2025-12-12. End: 2026-12-31.

What is the historical performance record of Ameriqual Group LLC with the Department of Defense, particularly concerning MRE contracts?

Ameriqual Group LLC has a long-standing relationship with the Department of Defense for the supply of MREs. They have been a significant contractor in this space for many years, often competing for and winning large-scale contracts. Their track record generally indicates an ability to meet production demands and delivery schedules. However, like any large contractor, there may have been instances of performance issues or contract disputes in the past, which would be detailed in contract performance reports and potentially accessible through government databases. A thorough review would involve examining past contract awards, any associated performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any corrective actions taken.

How does the per-unit cost of these MREs compare to similar contracts awarded by the DoD or other federal agencies?

Without specific per-unit cost data for this $1.31 billion contract, a direct comparison is not possible. However, the average cost of an MRE can fluctuate based on factors such as quantity, specific meal components, packaging innovations, and the competitive environment of the solicitation. Historically, MRE costs have ranged from approximately $7 to $12 per meal. To assess value, one would need to compare the unit price derived from this contract (if calculable) against historical DoD awards for similar MRE types, as well as against prices from other federal agencies procuring food supplies. The 'limited competition' aspect of this award could suggest a higher unit cost than if it were fully competed.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include supply chain disruptions (e.g., ingredient shortages, transportation issues), potential quality control failures leading to non-conforming products, and price volatility if fixed-price elements do not adequately account for inflation. Given the long duration, there's also a risk of technological obsolescence in food preservation or packaging. Mitigation strategies likely involve robust quality assurance protocols by the Defense Logistics Agency, contingency planning for supply chain resilience, and potentially contract clauses allowing for adjustments under specific, predefined economic conditions. The limited competition also presents a risk of reduced innovation and potentially higher costs over time.

How effective is the current MRE system in meeting the diverse nutritional and operational needs of deployed service members?

The MRE system is designed to provide a complete, shelf-stable meal solution for deployed personnel when refrigeration and cooking facilities are unavailable. They are engineered to meet specific caloric and nutritional requirements for various operational tempos. However, feedback from service members often highlights issues related to palatability, variety, and the inclusion of certain components (e.g., vegetarian options, specific cultural dietary needs). While the system is effective in providing essential sustenance and meeting basic nutritional standards, continuous feedback loops and product development are crucial to enhance troop morale and address evolving dietary preferences and operational contexts.

What are the historical spending trends for MREs by the Department of Defense over the last five fiscal years?

Historical spending on MREs by the Department of Defense has been substantial and relatively consistent, reflecting the ongoing need for deployed rations. While exact figures vary annually based on operational tempo, global presence, and specific contract awards, annual spending typically falls within the range of several hundred million dollars to over a billion dollars. This $1.31 billion award for a roughly two-year period is in line with significant, multi-year procurement efforts. Analyzing past fiscal years would reveal fluctuations tied to major deployments, strategic shifts in logistics, and the competitive landscape of MRE procurement, including the number and value of contracts awarded.

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: $130,910,000

Exercised Options: $130,910,000

Current Obligation: $130,910,000

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