DoD awards $3.1M for perishable food, highlighting potential risks in supply chain management
Contract Overview
Contract Amount: $3,142,387 ($3.1M)
Contractor: Ameriqual Group LLC
Awarding Agency: Department of Defense
Start Date: 2026-01-08
End Date: 2026-03-19
Contract Duration: 70 days
Daily Burn Rate: $44.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 4570435541!UGR A,D7,PERISHABLE
Place of Performance
Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47710
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $3.1 million to AMERIQUAL GROUP LLC for work described as: 4570435541!UGR A,D7,PERISHABLE Key points: 1. Contract awarded to AMERIQUAL GROUP LLC for $3.14M. 2. Focus on perishable food items suggests potential for spoilage and waste. 3. Full and open competition was utilized, indicating a competitive bidding process. 4. The contract is a delivery order under a larger agreement, suggesting ongoing needs. 5. The sector is Miscellaneous Food Manufacturing, a niche but essential area.
Value Assessment
Rating: fair
The contract value of $3.14M for a 70-day period seems reasonable for perishable food supplies. Benchmarking against similar DoD contracts for MREs or specialized rations would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically leads to better price discovery and potentially lower costs for the government. The award to a single entity suggests they offered the best value under the competition.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Ensures availability of essential food supplies for military personnel. Potential for food waste if demand fluctuates or logistics are delayed. Supports the food manufacturing sector and associated supply chains. Delivery orders indicate a need for ongoing, potentially time-sensitive, food provisions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Perishable nature of goods increases risk of spoilage and waste.
- Short contract duration (70 days) may limit long-term planning and efficiency.
- Reliance on a single vendor for a critical need could pose supply chain risks.
Positive Signals
- Full and open competition promotes fair pricing.
- Delivery order structure allows flexibility for the DoD.
- Contract supports a specific, potentially critical, logistical need.
Sector Analysis
This contract falls within the 'All Other Miscellaneous Food Manufacturing' sector, specifically for perishable items. Spending in this area is crucial for operational readiness but can be subject to price volatility and logistical challenges.
Small Business Impact
No information is provided regarding the participation of small businesses in this contract. Further analysis would be needed to determine if small businesses were involved or had opportunities to compete.
Oversight & Accountability
The contract is a delivery order, implying it falls under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. Oversight would focus on the performance of the awarded vendor and adherence to the terms of the delivery order.
Related Government Programs
- All Other Miscellaneous Food Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Perishability increases risk of waste and spoilage.
- Short contract duration may lead to inefficiencies.
- Potential for supply chain disruptions impacting availability.
- Reliance on a single vendor for critical items.
- Lack of specific product details hinders detailed risk assessment.
Tags
all-other-miscellaneous-food-manufacturi, department-of-defense, in, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.1 million to AMERIQUAL GROUP LLC. 4570435541!UGR A,D7,PERISHABLE
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 $3.1 million.
What is the period of performance?
Start: 2026-01-08. End: 2026-03-19.
What is the specific type of perishable food being procured, and how does its shelf life impact logistical planning and potential waste?
The data indicates 'All Other Miscellaneous Food Manufacturing' and 'PERISHABLE' items. Without specific product details, it's difficult to assess shelf life precisely. However, perishable goods inherently require rapid distribution and consumption to minimize spoilage. This necessitates robust logistical planning, including temperature-controlled transport and storage, and accurate demand forecasting to prevent waste and ensure availability.
Given the short duration (70 days) and perishable nature, what are the primary risks associated with this contract's execution and potential impact on military readiness?
The primary risks include spoilage due to inadequate storage or transport, supply chain disruptions leading to shortages, and potential price fluctuations for rapidly needed perishable goods. If these risks materialize, it could directly impact military readiness by affecting troop morale and operational capabilities due to lack of essential food supplies.
How does the $3.14M award for a 70-day period compare to industry benchmarks for similar perishable food provisions, and does it represent effective use of taxpayer funds?
Benchmarking requires specific product data. However, $3.14M for 70 days suggests a significant daily expenditure. While full and open competition is a positive indicator, the effectiveness hinges on the unit cost and the criticality of the specific food items. A detailed cost-per-unit analysis against comparable contracts is needed to definitively assess value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 225 W MORGAN AVE, 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: $3,142,387
Exercised Options: $3,142,387
Current Obligation: $3,142,387
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S125DZ770
IDV Type: IDC
Timeline
Start Date: 2026-01-08
Current End Date: 2026-03-19
Potential End Date: 2026-03-19 00:00:00
Last Modified: 2026-03-20
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