DoD awards $2.6M contract for perishable food supplies to AmeriQual Group LLC

Contract Overview

Contract Amount: $2,623,962 ($2.6M)

Contractor: Ameriqual Group LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-06

End Date: 2026-03-19

Contract Duration: 72 days

Daily Burn Rate: $36.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4570407957!UGR A,D7,PERISHABLE

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47710

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to AMERIQUAL GROUP LLC for work described as: 4570407957!UGR A,D7,PERISHABLE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type aims to control costs for the government. 3. Delivery order under a larger contract indicates ongoing supply chain needs. 4. Short performance period (72 days) suggests immediate or time-sensitive requirements. 5. Contractor has experience in food manufacturing, aligning with the service required. 6. Geographic location of performance in Indiana may impact logistics and local economy.

Value Assessment

Rating: good

The contract value of $2.6 million for a 72-day period for perishable food supplies appears reasonable given the nature of the goods and the short timeframe. Without specific details on the quantity and type of food items, a direct comparison to similar contracts is challenging. However, the firm fixed-price structure provides cost certainty for the Department of Defense. The award to AmeriQual Group LLC, a company with a stated focus on food manufacturing, suggests a potentially good fit for the requirement, implying value through specialized capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is generally expected to yield fair market pricing and encourage efficiency from the awarded contractor, as they must remain competitive to secure the business.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better quality due to the competitive nature of the bidding process. Full and open competition ensures that the government is not limited to a single provider, fostering a market that drives value.

Public Impact

Military personnel and potentially other government entities requiring perishable food supplies will benefit from this contract. The contract ensures the availability of essential food items for a specified period. Performance is located in Indiana, potentially impacting local food suppliers and distribution networks. The contract supports the Defense Logistics Agency's mission to provide logistical support to the U.S. Armed Forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific quantity and item details makes it difficult to assess the true value for money.
Short performance period could indicate a reactive procurement rather than strategic planning.
Reliance on a single delivery order might obscure the total spending with the contractor over time.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost predictability.
Contractor's stated industry aligns with the service being procured.

Sector Analysis

This contract falls within the Miscellaneous Food Manufacturing sector (NAICS 311999). This sector encompasses establishments primarily engaged in manufacturing food products not elsewhere classified, which can include a wide range of items. The Department of Defense is a significant consumer of food products, procuring vast quantities to support military operations globally. Benchmarking this specific contract's value is difficult without more granular data on the exact food items and quantities, but the overall defense food supply chain represents billions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or requirements. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless AmeriQual Group LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

The contract is a delivery order under a larger contract, implying that the parent contract likely has established oversight mechanisms. The Defense Logistics Agency (DLA) is responsible for managing such contracts, and they typically have internal audit and oversight processes. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Food Procurement
Perishable Subsistence
Military Food Service Contracts
Department of Defense Supply Chain Management

Risk Flags

Potential for supply chain disruption
Quality control of perishable goods
Price volatility of food items

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to AMERIQUAL GROUP LLC. 4570407957!UGR A,D7,PERISHABLE

Who is the contractor on this award?

The obligated recipient is AMERIQUAL GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2026-01-06. End: 2026-03-19.

What is AmeriQual Group LLC's track record with the Department of Defense and other federal agencies?

AmeriQual Group LLC has a history of receiving federal contracts, primarily from the Department of Defense. Their contract portfolio often includes food services, subsistence, and related logistical support. Analyzing their past performance requires reviewing contract databases for details on award history, value, and any reported performance issues or successes. A review of publicly available data suggests they have been a consistent supplier for various military installations. Further investigation into specific past contracts, including any modifications, disputes, or terminations, would provide a more comprehensive understanding of their reliability and performance history with the government.

How does the $2.6 million value for this 72-day contract compare to similar perishable food supply contracts?

Directly comparing the $2.6 million value for this 72-day contract to similar ones is challenging without knowing the precise quantity and types of perishable food items procured. However, the daily expenditure rate is approximately $36,111 ($2,600,000 / 72 days). This rate can be benchmarked against other DLA or military contracts for subsistence. Contracts for perishable goods often have higher per-unit costs due to shorter shelf lives and specialized handling requirements. If this contract covers a broad range of essential items for a significant population, the value might be considered fair. Conversely, if it's for a limited set of items or a smaller group, it could indicate a higher cost per meal or per person.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential supply chain disruptions (e.g., weather, transportation issues), quality control failures leading to spoilage or unsuitability of food, and price fluctuations for perishable goods. Mitigation strategies likely involve the firm fixed-price structure, which shifts some price risk to the contractor. The short performance period may reduce the exposure to long-term market volatility. The Defense Logistics Agency likely has quality assurance personnel and procedures in place to inspect deliveries. Furthermore, the contract's basis on full and open competition suggests a pool of qualified vendors, reducing the risk of sole-source dependency. Contingency planning by the contractor for logistical challenges is also a standard expectation.

How effective is the Defense Logistics Agency in procuring perishable food supplies competitively?

The Defense Logistics Agency (DLA) generally employs robust procurement strategies, including the use of full and open competition for a significant portion of its requirements, as seen in this award. DLA's scale and experience in logistics suggest a high degree of effectiveness in managing complex supply chains. Their use of various contract types, including fixed-price agreements, aims to balance cost control with supplier incentives. Effectiveness can be measured by factors such as price competitiveness achieved, reliability of supply, and quality of goods received. While specific metrics for this contract are unavailable, DLA's overall mission success in providing subsistence to the armed forces indicates a generally effective procurement system.

What are the historical spending patterns for perishable food supplies by the Department of Defense?

The Department of Defense consistently spends billions of dollars annually on food and subsistence, including perishable items. Historical data shows a significant and ongoing requirement for these supplies to support military personnel worldwide. Spending fluctuates based on operational tempo, troop levels, and global events. The DLA manages a substantial portion of this spending, often through large, multi-year contracts and numerous delivery orders like the one awarded here. Analyzing historical spending reveals a steady demand, with variations often tied to geopolitical factors and specific military campaigns or exercises.

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

Address: 225 W MORGAN AVE, EVANSVILLE, IN, 47710

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,623,962

Exercised Options: $2,623,962

Current Obligation: $2,623,962

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S125DZ770

IDV Type: IDC

Timeline