Stock Markets June 11, 2026 05:13 PM

U.S. Foods Secures $166.97M Navy Supply Contract Through May 2027

Firm-fixed-price award to U.S. Foods' Los Angeles division covers full-line food and beverage deliveries for naval operations

By Leila Farooq
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U.S. Foods Inc. has been awarded a $166,967,289 firm-fixed-price contract with economic-price-adjustment by the U.S. Department of War to supply food and beverage items to the U.S. Navy. The contract, managed by the Defense Logistics Agency Troop Support in Philadelphia, is an indefinite-delivery/indefinite-quantity award with an ordering period that runs through May 8, 2027 and includes no option periods for extension.

U.S. Foods Secures $166.97M Navy Supply Contract Through May 2027
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Key Points

  • U.S. Foods received a $166,967,289 firm-fixed-price contract to supply full-line food and beverage items to the U.S. Navy.
  • The award is an indefinite-delivery/indefinite-quantity contract covering a 329-day period with an ordering window through May 8, 2027 and contains no option periods for extension.
  • The contract was issued as a sole-source acquisition under 10 U.S. Code 3204(a)(1), with contracting activity listed as Defense Logistics Agency Troop Support in Philadelphia; funding is from fiscal 2026-2027 defense working capital funds.

U.S. Foods Inc. (NYSE:USFD) has been granted a $166,967,289 contract to provide food and beverage items to the U.S. Navy, the Defense Logistics Agency announced Thursday on behalf of the U.S. Department of War.

The award is a firm-fixed-price contract with an economic-price-adjustment provision and covers full-line food and beverage items intended for naval operations. The contract was issued to the companys Los Angeles division, which operates out of La Mirada, California.

Structurally, the agreement is an indefinite-delivery/indefinite-quantity contract spanning 329 days. The ordering period extends through May 8, 2027. The award does not include any option periods for extension.

According to the announcement, the contract was procured as a sole-source acquisition under 10 U.S. Code 3204(a)(1), as reflected in Federal Acquisition Regulation 6.302-1. The contracting activity listed on the award is Defense Logistics Agency Troop Support in Philadelphia, Pennsylvania.

Funding for performance under the contract will be drawn from defense working capital funds for fiscal 2026 through fiscal 2027. The contract has been assigned the number SPE300-26-D-3020.

The award provides a defined procurement vehicle for U.S. Foods to supply the Navy with a full range of food and beverage items over the ordering period. As an indefinite-delivery/indefinite-quantity arrangement, the contract sets maximum and minimum ordering parameters for the specified 329-day period ending May 8, 2027.

Because the procurement was awarded on a sole-source basis under the cited statutory and regulatory authority, the award did not proceed through a competitive bidding process. The Defense Logistics Agency Troop Support in Philadelphia is identified as the contracting office responsible for administering the agreement.

The contract number SPE300-26-D-3020 and the stated funding source - fiscal 2026 through 2027 defense working capital funds - are included in the official announcement.


Contact and administrative details

  • Contracting agency: Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania
  • Awardee: U.S. Foods Inc., Los Angeles division (La Mirada, California)
  • Contract type: Firm-fixed-price with economic-price-adjustment
  • Contract number: SPE300-26-D-3020
  • Ordering period end date: May 8, 2027

Risks

  • The contract has no option periods for extension, limiting its duration to the stated ordering period which ends May 8, 2027 - this affects short-term revenue visibility for the supplied goods.
  • The award was made as a sole-source acquisition under the specified statutory authority and FAR 6.302-1, meaning the procurement did not proceed through a competitive bid process and could be subject to different administrative or protest dynamics than competitive awards.
  • Funding is designated from fiscal 2026 through 2027 defense working capital funds, tying contract performance to those specific fiscal funding sources.

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