Stock Markets February 12, 2026

US Foods-Lexington Wins $603.075 Million DLA Award to Supply Military Food and Beverage Items

Five-year fixed-price IDIQ contract will provision Army, Air Force, Marine Corps and Air National Guard through February 2031

By Ajmal Hussain
US Foods-Lexington Wins $603.075 Million DLA Award to Supply Military Food and Beverage Items

US Foods Inc., operating as US Foods-Lexington in South Carolina, has been awarded a $603,075,000 indefinite-delivery/indefinite-quantity contract by the Defense Logistics Agency Troop Support in Philadelphia to supply full-line food and beverage items to U.S. military services. The fixed-price agreement includes economic-price-adjustment provisions, was awarded following a competitive process that received three bids, and runs through February 8, 2031 with funding drawn from defense working capital funds for fiscal years 2026 through 2031.

Key Points

  • US Foods-Lexington won a $603,075,000 IDIQ contract to supply full-line food and beverage items to U.S. military services.
  • The fixed-price contract includes economic-price-adjustment provisions, was awarded after a competitive process that received three bids, and runs through February 8, 2031.
  • Funding will be provided from defense working capital funds for fiscal years 2026 through 2031; the contract serves the Army, Air Force, Marine Corps and Air National Guard.

US Foods Inc., operating under the US Foods-Lexington name in South Carolina, has secured a government contract totaling $603,075,000 to supply full-line food and beverage items to U.S. military services, according to a Department of War announcement.

The Defense Logistics Agency Troop Support in Philadelphia awarded the contract as an indefinite-delivery/indefinite-quantity (IDIQ) agreement. It is a fixed-price contract that contains economic-price-adjustment provisions. The award followed a competitive procurement that recorded three bids.

The IDIQ contract spans five years and contains no option periods. It is scheduled to remain in effect through February 8, 2031. The agreement names the Army, Air Force, Marine Corps and Air National Guard as the customers that will receive supplies under the contract.

Funding for performance under the agreement will be provided from defense working capital funds for fiscal years 2026 through 2031, the Department of War notice stated. The announcement did not include additional details beyond the contract value, period of performance, procurement structure and funding source.


Contract structure and procurement details

  • The contract is an IDIQ arrangement, which allows the government to place multiple orders against a single agreement for the defined goods.
  • It is fixed-price with economic-price-adjustment provisions, reflecting contractual terms that permit adjustments to pricing under specified conditions.
  • The award resulted from a competitive process that received three bids.

Scope and customers

  • The agreement covers full-line food and beverage items intended to serve multiple branches of the U.S. military.
  • Identified customers include the Army, Air Force, Marine Corps and Air National Guard.

The Department of War notice provides the essential contract facts: awardee, contract value, procurement mechanism, term and funding source. The announcement does not expand on delivery schedules, order quantities, or the specific mechanics of the economic-price-adjustment clauses.

Risks

  • The contract is funded from defense working capital funds for fiscal years 2026 through 2031, creating dependence on those appropriations for the contract period.
  • The agreement contains economic-price-adjustment provisions, which mean pricing under the contract may change under specified conditions.
  • The five-year award contains no option periods, so continuation beyond February 8, 2031 is not provided for in the current contract.

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