Interior's $250K Specialty Produce Contract Awarded to US Foods Inc. for Alaska Region
Contract Overview
Contract Amount: $250,000 ($250.0K)
Contractor: US Foods Inc
Awarding Agency: Department of the Interior
Start Date: 2026-04-07
End Date: 2027-04-30
Contract Duration: 388 days
Daily Burn Rate: $644/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SPECIALTY PRODUCE; FRESH PRODUCE AFS/GAL
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of the Interior obligated $250,000 to US FOODS INC for work described as: SPECIALTY PRODUCE; FRESH PRODUCE AFS/GAL Key points: 1. Contract awarded to a single large business, US Foods Inc. 2. Limited competition noted under Simplified Acquisition Procedures (SAP). 3. Firm Fixed Price contract type aims to control costs. 4. Potential for higher pricing due to limited competition and remote location.
Value Assessment
Rating: fair
The contract value of $250,000 over approximately 13 months appears reasonable for specialty produce in a remote location like Alaska. However, without specific per-unit data, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting limited competition. This method, while efficient for smaller procurements, may not yield the best price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are used for this procurement. While the value is relatively small, ensuring competitive pricing is crucial for responsible spending.
Public Impact
Ensures availability of fresh specialty produce for federal employees or operations in Alaska. Supports a large national food distributor, US Foods Inc. Potential impact on local Alaskan businesses if they were not involved in the bidding process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for higher costs due to location
- No small business participation noted
Positive Signals
- Firm Fixed Price contract
- Clear contract duration
Sector Analysis
This procurement falls under general supplies and services, specifically perishable goods. Spending benchmarks for such items can vary widely based on location, type of produce, and delivery requirements. Alaska's logistical challenges often lead to higher costs.
Small Business Impact
The data indicates that this contract was not awarded to a small business, nor does it appear to have specific set-asides for small business participation. Further investigation may be needed to confirm if opportunities were missed.
Oversight & Accountability
The Bureau of Land Management is responsible for this award. Oversight would involve ensuring contract terms are met, quality standards are maintained, and pricing remains within reasonable expectations given the contract type and competition.
Related Government Programs
- Perishable Prepared Food Manufacturing
- Department of the Interior Contracting
- Bureau of Land Management Programs
Risk Flags
- Limited competition
- Potential for price inflation due to remote location
- Lack of small business participation
- Reliance on a single vendor
Tags
perishable-prepared-food-manufacturing, department-of-the-interior, ak, bpa-call, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $250,000 to US FOODS INC. SPECIALTY PRODUCE; FRESH PRODUCE AFS/GAL
Who is the contractor on this award?
The obligated recipient is US FOODS INC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Land Management).
What is the total obligated amount?
The obligated amount is $250,000.
What is the period of performance?
Start: 2026-04-07. End: 2027-04-30.
What is the typical cost range for specialty produce in remote Alaskan locations to benchmark this contract's value?
Benchmarking specialty produce costs in remote Alaskan locations is challenging due to significant logistical premiums. Typical costs can be 30-70% higher than in the continental US, depending on the specific item, transportation methods (air vs. sea freight), and vendor volume. Without detailed line-item pricing, it's difficult to definitively assess if this $250,000 contract is optimized.
How does the use of SAP impact the risk of overpaying for these perishable goods?
Using Simplified Acquisition Procedures (SAP) for this $250,000 contract increases the risk of overpaying. SAP is designed for efficiency in smaller procurements and often involves less rigorous competition and price analysis than larger contracts. While intended to streamline the process, it can limit opportunities for vendors to compete aggressively, potentially leading to higher unit costs for the government.
What are the potential effectiveness implications of awarding this contract to a single large supplier in Alaska?
Awarding this contract to a single large supplier like US Foods Inc. in Alaska ensures a consistent supply chain for specialty produce, which is effective for meeting demand. However, it raises concerns about long-term price competitiveness and responsiveness to evolving needs. Over-reliance on one vendor, especially in a market with limited logistical options, could reduce pressure to innovate or offer the most cost-effective solutions.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 140L0226Q0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: US Foods Holding Corp.
Address: 9399 W HIGGINS RD, 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: $250,000
Exercised Options: $250,000
Current Obligation: $250,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 140L0226A0008
IDV Type: BPA
Timeline
Start Date: 2026-04-07
Current End Date: 2027-04-30
Potential End Date: 2031-04-30 00:00:00
Last Modified: 2026-04-07
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