Stock Markets March 20, 2026

US Foods Secures $137.1 Million Defense Supply Contract

Firm-fixed-price ID/IQ award covers full-line food and beverage items for U.S. military services with delivery obligations through early 2027

By Derek Hwang USFD
US Foods Secures $137.1 Million Defense Supply Contract
USFD

The Defense Logistics Agency has granted US Foods Inc. (NYSE: USFD) a maximum $137,113,715 contract to supply full-line food and beverage items to U.S. military services. The firm-fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity agreement was awarded to US Foods - Los Angeles, based in La Mirada, California, and includes a 322-day performance window with an ordering period ending Feb. 6, 2027. Work will be performed in Arizona and funded from fiscal 2026 through 2027 defense working capital funds.

Key Points

  • US Foods Inc. (NYSE: USFD) received a maximum $137,113,715 firm-fixed-price, economic-price-adjustment ID/IQ contract for full-line food and beverage items.
  • The contract was awarded to US Foods - Los Angeles of La Mirada, California, runs for 322 days with an ordering period ending Feb. 6, 2027, and performance will occur in Arizona.
  • The award will support the Army, Navy, Air Force, and Marine Corps and is funded from fiscal 2026 through 2027 defense working capital funds; the contract was issued by Defense Logistics Agency Troop Support in Philadelphia under SPE300-26-D-3013.

The Department of Defense has awarded US Foods Inc. (NYSE: USFD) a contract with a maximum value of $137,113,715 to provide full-line food and beverage items to U.S. military components.

The award is structured as a firm-fixed-price contract with an economic-price-adjustment provision and is designated as an indefinite-delivery/indefinite-quantity (ID/IQ) agreement. The contract was issued to US Foods - Los Angeles, which is based in La Mirada, California.

Contract execution is scheduled over a 322-day period, and there are no option periods included in the award. The ordering period for the contract ends on Feb. 6, 2027.

The acquisition was made as a sole-source purchase under the statutory authority cited as 10 U.S. Code 3204 (a)(1) and with reference to Federal Acquisition Regulation 6.302-1. According to the award notice, the physical performance of the contract will take place in Arizona.

The agreement is intended to serve multiple components of the U.S. military - specifically the Army, Navy, Air Force, and Marine Corps - with funding provided from defense working capital funds covering fiscal 2026 through 2027.

The Defense Logistics Agency Troop Support office in Philadelphia, Pennsylvania, issued the contract. The award is cataloged under contract number SPE300-26-D-3013.

Details released with the award identify the contract type, the awardee location, the single-source justification and applicable procurement regulation, the geographic location for performance, the covered military services, the fiscal years from which funding will be drawn, and the issuing Defense Logistics Agency office and contract designation.


Contextual note: The reporting above is limited to the information provided in the contract announcement. No additional contractual terms, delivery schedules, or company operational plans beyond those stated in the award notice are included here.

Risks

  • The contract is limited to a 322-day performance period with no option periods - this short duration could affect longer-term revenue visibility for suppliers and impacts companies in the defense supply and food distribution sectors.
  • The award was made as a sole-source acquisition under 10 U.S. Code 3204 (a)(1) and FAR 6.302-1 - sole-source justification represents a procurement concentration that may limit competitive bidding dynamics in defense logistics and procurement markets.
  • Performance is confined to Arizona and funding is tied to fiscal 2026 through 2027 defense working capital funds - geographic concentration and fiscal-year funding constraints may create execution or funding-timing uncertainties for logistics and regional supply-chain participants.

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