VA Awards $2.6M Contract for Prepared Foods to Fresh Grill, LLC

Contract Overview

Contract Amount: $259,964 ($260.0K)

Contractor: Fresh Grill, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-15

End Date: 2027-04-14

Contract Duration: 364 days

Daily Burn Rate: $714/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VA LONG BEACH SANDWICHES DO

Place of Performance

Location: SANTA ANA, ORANGE County, CALIFORNIA, 92707

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $259,964 to FRESH GRILL, LLC for work described as: VA LONG BEACH SANDWICHES DO Key points: 1. Contract awarded to Fresh Grill, LLC for perishable prepared foods. 2. The contract has a duration of 364 days. 3. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 4. The sector is Perishable Prepared Food Manufacturing, a niche but essential service for the VA.

Value Assessment

Rating: fair

The contract value of $2.6M for a year of perishable food services appears reasonable given the specialized nature of the product and the target demographic (VA patients). Benchmarking against similar food service contracts for institutional settings would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential food services. The efficiency of the SAP procurement method will influence the overall value for money.

Public Impact

Ensures a supply of prepared meals for veterans at the VA Long Beach. Supports a small business in the food manufacturing sector. Potential for recurring need for such services across VA facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for price increases in subsequent years
Dependence on a single supplier for critical food services

Positive Signals

Supports a small business
Provides essential services to veterans
Firm fixed price contract provides cost certainty

Sector Analysis

The Perishable Prepared Food Manufacturing sector involves specialized logistics and quality control. Spending benchmarks for institutional food services vary widely based on location, type of food, and service level, but $2.6M for a year of operation is within a plausible range for a facility of this nature.

Small Business Impact

The award to Fresh Grill, LLC, a small business, aligns with federal goals to support small business participation in government contracting. Further analysis would be needed to confirm their capacity and performance history.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs. The firm fixed price contract and defined delivery period provide clear accountability metrics.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for sole-source if contract is extended
Dependence on small business capacity
Food safety and quality control oversight required

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $259,964 to FRESH GRILL, LLC. VA LONG BEACH SANDWICHES DO

Who is the contractor on this award?

The obligated recipient is FRESH GRILL, LLC.

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 $259,964.

What is the period of performance?

Start: 2026-04-15. End: 2027-04-14.

What is the typical cost per meal for this type of service, and how does it compare to industry averages?

Without specific meal count data, a precise per-meal cost is difficult to ascertain. However, for institutional food services, per-meal costs can range significantly, from $5-$15 or more, depending on dietary restrictions, preparation complexity, and service level. Benchmarking this contract's implied per-meal cost against similar VA or other government facility contracts would be crucial for assessing value.

What are the risks associated with relying on a single small business for a critical service like food provision?

Key risks include potential supply chain disruptions, quality control issues, or the business's inability to scale if demand increases. The VA should have contingency plans in place, such as identifying alternative suppliers or having robust quality assurance measures, to mitigate these risks and ensure uninterrupted service delivery to veterans.

How effective is the SAP procurement method in ensuring competitive pricing for perishable food services?

SAP is designed for efficiency and speed in acquiring goods and services below certain dollar thresholds. While it can be effective for routine purchases, it may limit the pool of potential bidders compared to full and open competition. For perishable food services, where quality and reliability are paramount, the effectiveness hinges on the specific market conditions and the agency's ability to solicit adequate offers within the SAP framework.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 111 E GARRY AVE, SANTA ANA, CA, 92707

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $259,964

Exercised Options: $259,964

Current Obligation: $259,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26226D0085

IDV Type: IDC

Timeline