VA awards $43K contract for dairy and milk product delivery in Arizona

Contract Overview

Contract Amount: $43,150 ($43.2K)

Contractor: Lively Distributing Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $119/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAIRY AND MILK PRODUCT DELIVERY FOR BASE PLUS 4 OY - BASE YEAR

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85009

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $43,150.17 to LIVELY DISTRIBUTING INC for work described as: DAIRY AND MILK PRODUCT DELIVERY FOR BASE PLUS 4 OY - BASE YEAR Key points: 1. Contract awarded to Lively Distributing Inc. for milk delivery services. 2. The contract is a firm-fixed-price delivery order under the Simplified Acquisition Procedures. 3. Service period spans one year, from April 2026 to April 2027. 4. The contract is for dairy and milk product delivery for a VA base and four other locations. 5. The North American Industry Classification System (NAICS) code is 311511 for Fluid Milk Manufacturing. 6. The contract was competed under SAP, suggesting a focus on smaller value procurements.

Value Assessment

Rating: good

The contract value of $43,150.17 for a one-year milk delivery service appears reasonable for the scope. Without specific details on the quantity of milk and dairy products to be delivered, a direct per-unit cost comparison is difficult. However, for a single base and four additional locations, this price point suggests efficient logistics or a focused product offering. The firm-fixed-price structure provides cost certainty for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for contracts valued below a certain threshold. While the specific number of bidders is not provided, the use of SAP generally indicates an effort to achieve fair and reasonable pricing through competition. This method is designed to be efficient for smaller procurements.

Taxpayer Impact: Competing under SAP aims to ensure taxpayers receive good value by allowing multiple vendors to bid, driving down costs and improving service quality for this essential supply.

Public Impact

Veterans at the Department of Veterans Affairs (VA) base in Arizona will benefit from the consistent availability of dairy and milk products. The contract ensures the delivery of essential food items, contributing to the well-being and nutritional needs of personnel and visitors. The geographic impact is focused on Arizona, specifically the VA base and four other designated locations. This contract supports the food service sector within the VA's operational infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed product specifications makes it difficult to assess the full value proposition.
Limited information on the number of bidders under SAP could obscure potential cost savings.
Geographic concentration in Arizona might limit broader market participation for future contracts.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Competition under SAP suggests an effort to obtain competitive pricing.
Contract duration of one year allows for regular review and potential re-competition.

Sector Analysis

The dairy and milk product manufacturing and distribution sector is a vital part of the food supply chain. This contract falls under the broader food services and manufacturing industry. Spending in this area by government agencies is typically consistent, ensuring the availability of essential goods for facilities like military bases and healthcare centers. Comparable spending benchmarks would depend on the exact volume and variety of products required.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. Lively Distributing Inc.'s size status is not specified. If the company is a small business, this contract would directly benefit them. If not, the potential for subcontracting opportunities for small businesses is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a delivery order under SAP, it is expected to adhere to standard procurement regulations. Transparency is facilitated through contract award databases, though detailed performance metrics are not publicly available.

Related Government Programs

Food and Food Service Contracts
Dairy Product Procurement
Veterans Affairs Food Services
Base Support Services

Risk Flags

Potential supply chain disruptions for dairy products.
Limited visibility into specific product quality standards and monitoring.
Dependence on a single contractor for a year may limit flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $43,150.17 to LIVELY DISTRIBUTING INC. DAIRY AND MILK PRODUCT DELIVERY FOR BASE PLUS 4 OY - BASE YEAR

Who is the contractor on this award?

The obligated recipient is LIVELY DISTRIBUTING INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $43,150.17.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the historical spending pattern for dairy and milk product delivery at this specific VA facility or for similar services within the VA?

Analyzing historical spending for dairy and milk product delivery at this VA facility or similar VA locations would provide crucial context for the current $43,150.17 award. Without access to historical contract data for this specific base or comparable VA medical centers, it's challenging to determine if this award represents an increase, decrease, or stable spending trend. Generally, food service contracts are subject to fluctuations based on operational needs, inflation, and changes in vendor pricing. A trend analysis would reveal if Lively Distributing Inc.'s pricing is competitive compared to previous awards and if the VA has consistently used a similar procurement strategy (e.g., SAP) for these services. Understanding past spending can also highlight potential cost-saving opportunities or identify areas where prices have escalated significantly, warranting further investigation into market dynamics or contractor performance.

How does the pricing of Lively Distributing Inc. compare to other dairy suppliers serving federal facilities in Arizona or the surrounding region?

Benchmarking Lively Distributing Inc.'s pricing against other dairy suppliers serving federal facilities in Arizona or the surrounding region is essential for assessing value for money. This comparison would ideally involve analyzing contract awards for similar milk and dairy products to other government entities (e.g., military bases, other federal agencies) in the same geographic area. Factors such as delivery logistics, product variety, and volume are critical for a fair comparison. If Lively Distributing Inc.'s prices are significantly higher than market rates for comparable services, it could indicate a lack of sufficient competition or potential inefficiencies. Conversely, if prices are competitive or lower, it suggests effective price negotiation or strong market positioning. The absence of specific product details and quantities in the award notice complicates a precise per-unit cost comparison, making a broader market analysis more critical.

What are the specific performance metrics and quality standards required under this contract, and how is compliance monitored?

The specific performance metrics and quality standards for dairy and milk product delivery under this VA contract are not detailed in the award notice. Typically, such contracts would include requirements related to product freshness, delivery timeliness, temperature control during transit, and adherence to food safety regulations. Compliance monitoring is usually conducted by the VA's contracting officer's representative (COR) or a designated quality assurance specialist. They would likely conduct regular inspections of delivered products, review delivery logs, and address any discrepancies or quality issues promptly. The effectiveness of oversight depends on the rigor of these monitoring processes and the clarity of the contract's performance work statement (PWS). Without explicit details on these standards and monitoring protocols, it's difficult to fully assess the risk associated with contract performance.

What is the track record of Lively Distributing Inc. in fulfilling federal contracts, particularly for food or dairy products?

Assessing the track record of Lively Distributing Inc. in fulfilling federal contracts is crucial for understanding their reliability and performance history. Information on past performance, including any instances of contract disputes, late deliveries, or quality issues, would be available through sources like the Federal Awardee Performance and Integrity Information System (FAPIIS). A review of their history with the Department of Veterans Affairs or other federal agencies would indicate their capacity to meet contractual obligations. Positive performance indicators might include successful completion of previous similar contracts, positive past performance reviews, and a lack of significant performance-related issues. Conversely, a history of subpar performance could signal potential risks for this current contract, necessitating closer monitoring by the VA.

Are there any identified risks associated with this contract, such as supply chain vulnerabilities or potential for price increases?

Potential risks associated with this dairy and milk product delivery contract include supply chain vulnerabilities and the potential for price increases, although the firm-fixed-price structure mitigates the latter to some extent. Supply chain risks could arise from factors affecting milk production, processing, or transportation, such as weather events, disease outbreaks affecting livestock, or fuel price volatility impacting delivery costs. While the firm-fixed-price contract locks in the overall cost for the base year, unforeseen market shifts could impact the contractor's profitability and potentially their willingness or ability to perform in future periods if the contract is extended or re-competed. The geographic concentration in Arizona might also present localized risks if regional supply disruptions occur. The VA's risk mitigation strategy would likely involve monitoring market conditions and ensuring the contractor maintains robust contingency plans.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Fluid Milk Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2633 W CYPRESS ST, PHOENIX, AZ, 85009

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

Financial Breakdown

Contract Ceiling: $43,150

Exercised Options: $43,150

Current Obligation: $43,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26226D0078

IDV Type: IDC

Timeline