DoD awards $13.19M for subsistence to US Foods Inc. under full and open competition

Contract Overview

Contract Amount: $13,186,434 ($13.2M)

Contractor: US Foods Inc

Awarding Agency: Department of Defense

Start Date: 2007-04-01

End Date: 2011-09-30

Contract Duration: 1,643 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBSISTENCE

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85044

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to US FOODS INC for work described as: SUBSISTENCE Key points: 1. Contract awarded to a single vendor, US Foods Inc., for general line grocery wholesale. 2. The contract spans over four years, indicating a significant duration for subsistence supply. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract value is substantial at over $13 million for food supplies.

Value Assessment

Rating: good

The contract value of $13.19 million over 1643 days suggests a per-diem cost of approximately $8.03. This appears reasonable for bulk subsistence procurement, though specific comparable contracts are needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders. This method is expected to drive competitive pricing and ensure fair market value.

Taxpayer Impact: The use of full and open competition aims to secure the best possible prices for taxpayers by leveraging market forces.

Public Impact

Ensures availability of essential food supplies for military personnel. Supports the logistics and operational readiness of the Department of Defense. Provides economic activity for the awarded vendor and potentially their supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Positive Signals

Full and open competition utilized
Clear contract duration and value
Specific vendor identified

Sector Analysis

This contract falls under the 'Other' sector, specifically focusing on wholesale food distribution for government agencies. Spending benchmarks for subsistence procurement vary widely based on location and specific needs, but this value is significant for a single contract.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee is US Foods Inc., a large corporation, suggesting limited direct impact on small businesses unless they are subcontractors.

Oversight & Accountability

The contract was awarded under full and open competition, implying a structured procurement process. Further oversight would involve monitoring contract performance, delivery, and adherence to terms.

Related Government Programs

General Line Grocery Merchant Wholesalers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for price increases over the 4-year duration.
Dependence on a single large supplier.
Lack of specific detail on quality assurance measures.
Limited visibility into subcontractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to US FOODS INC. SUBSISTENCE

Who is the contractor on this award?

The obligated recipient is US FOODS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2007-04-01. End: 2011-09-30.

What was the specific nature of the subsistence goods procured, and how did the pricing compare to market rates at the time of award?

The contract specifies 'General Line Grocery Merchant Wholesalers,' indicating a broad range of food items. A detailed price comparison against contemporary market rates for these specific goods would require access to historical pricing data and market analysis reports from 2007. Without this, a precise value assessment is difficult, though the competitive award method suggests reasonable pricing.

What were the key performance indicators and quality assurance measures in place for this subsistence contract?

While the provided data doesn't detail specific KPIs or QA measures, typical subsistence contracts include requirements for food safety, timely delivery, product quality, and adherence to specifications. The Department of Defense likely had established protocols to monitor these aspects, ensuring the troops received adequate and safe provisions throughout the contract period.

How did the vendor's past performance and capabilities influence the selection process under full and open competition?

Under full and open competition, the vendor's past performance, technical capabilities, and price are critical evaluation factors. US Foods Inc. was likely assessed on its ability to consistently supply the required volume and variety of subsistence goods, meet delivery schedules, and maintain quality standards. A strong past performance record would have been a significant advantage in securing this contract.

Industry Classification

NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery Merchant Wholesalers

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: USF Holding Corp. (UEI: 803900237)

Address: 9755 PATUXENT WOODS DR, COLUMBIA, MD, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,287,499

Exercised Options: $13,287,499

Current Obligation: $13,186,434

Parent Contract

Parent Award PIID: VA101049A3P0154

IDV Type: IDC

Timeline