Overview of the Contract#
The U.S. Department of War has announced that US Foods Inc., a company listed on the New York Stock Exchange under the ticker USFD, has been awarded a significant contract worth up to $137,113,715. This contract is specifically for providing a range of food and beverage items to the military.
Details of the Agreement#
This contract is classified as a firm-fixed-price with economic-price-adjustment, which means the price is set but can be adjusted based on certain economic factors. It is an indefinite-delivery/indefinite-quantity contract, allowing the military to order supplies as needed over the contract's duration. The contract will last for 322 days, concluding on February 6, 2027, without any additional option periods for extension.
Purpose and Funding#
The contract will support the Army, Navy, Air Force, and Marine Corps, ensuring that these branches have access to essential food supplies. Funding for this contract will be sourced from defense working capital funds allocated for fiscal years 2026 and 2027.
Acquisition Process#
This contract was awarded through a sole-source acquisition, meaning US Foods was the only company considered for this contract. This decision was justified under a specific U.S. code, which allows for such procurement in certain circumstances. The Defense Logistics Agency Troop Support, located in Philadelphia, Pennsylvania, is responsible for issuing this contract, designated as SPE300-26-D-3013. Performance of the contract will take place in Arizona.