US Foods Inc.'s Livermore, California operation, US Foods - San Francisco, has been awarded a contract valued at $298.5 million by the U.S. Department of War to provide food and beverage items to U.S. military services. The award is structured as a fixed-price contract that includes economic-price-adjustment provisions.
The procurement was granted after a competitive process that produced three responses. The resulting agreement is an indefinite-delivery/indefinite-quantity (IDIQ) contract set to run for five years without any option periods, with a firm end date of February 8, 2031.
Under the terms specified in the contract, US Foods will supply full-line food and beverage items to the Army, Air Force, Marine Corps and Coast Guard. Funding for the award will be drawn from defense working capital funds covering fiscal years 2026 through 2031.
The Defense Logistics Agency Troop Support, based in Philadelphia, Pennsylvania, will manage the contract. The award has been assigned the identifying number SPE300-26-D-3005.
Context and scope
The contract is a multi-year IDIQ arrangement intended to provide an ongoing supply of food and beverage products to multiple military services. It is explicitly fixed-price but contains economic-price-adjustment provisions, which are meant to account for price changes over the contract term. The award followed a solicitation that received three responses, and it carries a specified end date rather than an open-ended schedule of option periods.
Funding and administration
Payments under the contract will be sourced from defense working capital funds earmarked for fiscal years 2026 through 2031. Administrative oversight and contract management responsibilities reside with the Defense Logistics Agency Troop Support in Philadelphia, and the contract is cataloged under SPE300-26-D-3005.
Key points
- US Foods - San Francisco received a $298.5 million fixed-price contract with economic-price-adjustment provisions from the U.S. Department of War.
- The IDIQ agreement covers full-line food and beverage items for the Army, Air Force, Marine Corps and Coast Guard and runs through February 8, 2031.
- The Defense Logistics Agency Troop Support in Philadelphia will manage the contract, which will be funded by defense working capital funds for fiscal years 2026-2031.
Risks and uncertainties
- The agreement has a defined five-year term with no option periods and is scheduled to end on February 8, 2031, creating a known contract horizon for the supplies specified.
- Funding is tied to defense working capital funds for fiscal years 2026 through 2031; continuation beyond those years would depend on future funding decisions.
- The contract was awarded after a competitive process that received three responses, indicating competition was a factor in the award process.
These details present the explicit contractual structure, funding sources and management responsibilities as provided in the award announcement. The award documentation identifies the contract by number, SPE300-26-D-3005, and names US Foods - San Francisco as the contracting party.