DoD's $26M Food Supply Contract with US Foods Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $26,004,853 ($26.0M)

Contractor: US Foods Inc

Awarding Agency: Department of Defense

Start Date: 2018-11-01

End Date: 2023-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SUBSISTENCE PRODUCTS (FOOD)

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to US FOODS INC for work described as: IGF::OT::IGF SUBSISTENCE PRODUCTS (FOOD) Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for food supplies. 3. Risk indicators are low given the nature of the service. 4. Performance context is a multi-year delivery order for essential subsistence. 5. Sector positioning is within the broad category of government procurement for goods.

Value Assessment

Rating: good

The contract value of $26 million over five years suggests a consistent demand for food supplies. Benchmarking against similar large-scale food service contracts for government agencies indicates that this pricing is likely competitive, especially given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Military personnel and their families stationed in Texas benefit from a reliable supply of food. Services delivered include the provision of various subsistence products. Geographic impact is primarily within Texas, where the contract is managed. Workforce implications are likely related to logistics and distribution within the food supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating broad market access.
Long-term contract provides stability for the supplier and consistent service for the agency.
Firm Fixed Price contract type offers cost certainty for the government.

Sector Analysis

This contract falls within the broader government procurement sector for food and subsistence supplies. The market for food distribution is highly competitive, with numerous large and small players vying for government contracts. The $26 million value is significant but not unusual for a multi-year federal food supply agreement.

Small Business Impact

While this contract was awarded to US Foods Inc., a large corporation, the analysis does not indicate specific small business set-aside provisions or subcontracting requirements. Further investigation would be needed to determine if small businesses were involved in the supply chain or if there were opportunities missed for subcontracting.

Oversight & Accountability

Oversight is provided by the Department of the Army, which is responsible for ensuring contract compliance and performance. Transparency is facilitated through federal procurement databases where contract awards are publicly listed. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Defense Logistics Agency (DLA) food programs
General Services Administration (GSA) food service contracts
Commissary and Exchange System food procurement

Risk Flags

Potential for price fluctuations in food commodities over the contract duration.
Dependence on a single large supplier for a critical need.
Need to ensure ongoing compliance with evolving food safety and quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to US FOODS INC. IGF::OT::IGF SUBSISTENCE PRODUCTS (FOOD)

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 $26.0 million.

What is the period of performance?

Start: 2018-11-01. End: 2023-10-31.

What is the historical spending pattern for food supplies by the Department of the Army in Texas?

Historical spending data for food supplies by the Department of the Army in Texas would require a detailed analysis of past contracts. This specific contract, valued at $26 million over five years (2018-2023), represents a significant but potentially consistent level of expenditure for subsistence products. To understand the pattern, one would need to examine prior contracts for similar goods and services awarded to various vendors in the region, looking at annual spending trends, average contract values, and the number of contracts awarded over time. This would help determine if this $26 million award is an increase, decrease, or continuation of previous spending levels.

How does the price per unit for common food items under this contract compare to market rates?

A precise per-unit cost comparison would necessitate access to the detailed price lists and delivery order specifics within the contract. However, given that the contract was awarded under full and open competition and is a Firm Fixed Price (FFP) type, it suggests that the pricing was deemed competitive at the time of award. Benchmarking against commercial wholesale food prices in Texas, adjusted for bulk purchasing and delivery logistics, would be the standard approach. Without the specific itemized pricing, a definitive comparison is not possible, but the competitive award process implies a reasonable value.

What is the track record of US Foods Inc. in fulfilling federal government contracts, particularly for subsistence supplies?

US Foods Inc. is a major food distributor with extensive experience serving various sectors, including government. Their track record in fulfilling federal contracts, especially for subsistence supplies, is generally robust. As a large entity, they likely have established logistics and supply chain management systems capable of meeting the demands of agencies like the Department of the Army. Performance reviews and past performance data, often available through federal procurement systems, would provide more granular insights into their reliability, quality of service, and adherence to contract terms on previous government engagements.

What are the potential risks associated with a multi-year contract for food supplies?

Potential risks for a multi-year food supply contract include price volatility of commodities, supply chain disruptions (e.g., due to weather, geopolitical events, or pandemics), changes in dietary requirements or food safety regulations, and potential for contractor performance degradation over time. For the government, risks also include being locked into a contract that may become less competitive over its term if market conditions change significantly. Mitigation strategies often involve price adjustment clauses (though this contract is FFP), robust supplier vetting, contingency planning for supply chain issues, and regular performance monitoring.

How does this contract align with the Department of Defense's overall procurement strategy for food and subsistence?

This contract aligns with the Department of Defense's (DoD) need for consistent and reliable food supplies to support its personnel. The DoD procures vast quantities of food through various mechanisms, including large-scale contracts like this one, to ensure operational readiness and morale. Awarding through full and open competition reflects a strategy to leverage market competition for cost efficiency. The focus on a specific geographic region (Texas) suggests a decentralized approach to supply chain management, potentially complementing larger, centralized logistics operations managed by entities like the Defense Logistics Agency.

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

Parent Company: USF Holding Corp.

Address: 9399 W HIGGINS RD STE 500, ROSEMONT, IL, 60018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,004,853

Exercised Options: $26,004,853

Current Obligation: $26,004,853

Actual Outlays: $3,347,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79719D0001

IDV Type: IDC

Timeline