Order Code RS22190
July 12, 2005
CRS Report for Congress
Received through the CRS Web
Department of Defense Food Procurement:
Background and Status
Valerie Bailey Grasso
Analyst in National Defense
Foreign Affairs, Defense, and Trade Division
Summary
Military food items, known also as subsistence items, are procured under the
general auspices of the Defense Logistics Agency (DLA), an agency of the Department
of Defense (DOD) which provides worldwide logistics support for the United States
(U.S.) military services. In FY2004, DLA had sales of $3.7 billion for food services,
operational rations, and fresh produce. In an effort to reduce costs, adopt commercial
practices, and gain technological advantages, the DOD Food Policy Council directed
the Defense Supply Center Philadelphia (DSCP) to establish a common food
management system. Under DLA, DSCP is the inventory control point for food,
clothing, textiles, medicines, medical equipment, general and industrial supplies and
services for the military, their eligible dependents, and other non-DOD customers
worldwide; under DSCP, the Subsistence Directorate serves as the operational manager
for all food operations. This report will describe the origin, authority, policy, and
military food acquisition process. This report will be updated as necessary.
Background
Prior to World War II, each U.S. military service organization procured and
distributed its own food. Right after World War II, Congress mandated that a commission
(ultimately called the Hoover Commission) study the logistical management of military
food and supplies, and recommended a more centralized management of perishable foods,
preferably in one organization. This effort resulted in the establishment of a joint Army-
Navy-Air Force Support Center; for the first time, all military services bought, stored,
and issued military items using a common system. In addition to food items, DOD and
the services defined other materiel that would be managed by this system as
“consumables,” or “commodities,” meaning supplies that are not repairable or are
consumed in normal use. Different consumable items were assigned to each military
service to manage for all the services.
In the mid 1950s, the structure for the procurement of food and consumable items
changed. Each military service acted as a single manager for various categories of
consumables issued by all four services; each single manager would buy items, store and
Congressional Research Service ˜ The Library of Congress

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issue supplies, manage inventories, and forecast future requirements. For example, the
United States Army would buy and manage all U.S. military food and clothing, while the
Navy managed all medical supplies, petroleum, and industrial parts, while the Air Force
managed all electronic items. The single manager system was able to reduce its costs by
centralizing wholesale stocks, simplifying the supply process, and persuading each
military service to adopt the same standard items. However, the single manager concept
was only partially successful because it did not provide uniform procedures among the
services.
In 1961, Secretary of Defense Robert McNamara ordered that the single-manager
agencies be consolidated into one agency, resulting in the establishment of the Defense
Supply Center1, the forerunner to DLA. In 1986, the Goldwater-Nichols Act identified
DLA as a combat support agency,2 and, as such, provides worldwide logistics support to
the military services, civilian agencies, and foreign countries.3
Currently, DSCP is responsible for nearly all of the food, clothing, and medical
supplies used by the military. Of the 4.6 million items in DLA’s inventory, over one
million items are managed through DSCP. DSCP is divided into the following areas: (1)
Clothing & Textiles; (2) Construction & Equipment; (3) Weapon Systems Detachments;
(4) Medical; (5) Subsistence; and (6) Customer Operations.
1 The Defense Supply Agency (DSA) was established on Oct. 1, 1961, and began operations on
January 1, 1962. Eight single manager agencies became DSA supply centers. In 1965, DOD
consolidated most of the contract administration activities of the military services to avoid
duplication of effort and provide uniform procedures in administering contracts. Officials
established the Defense Contract Administration Service (DCAS) within DSA to manage the
consolidated functions. The agency’s new contract administration mission gave it responsibility
for the performance of most defense contractors. The agency’s responsibilities extended overseas
when it assumed responsibility for defense overseas property disposal operations and worldwide
procurement, management, and distribution of coal and bulk petroleum products (1972), and
worldwide management of food items for troop feeding and in support of commissaries (1973).
In recognition of 16 years of growth and expanded responsibilities, on Jan. 1, 1977, officials
changed the name of the Defense Supply Agency to the Defense Logistics Agency (DLA). See
the History of the Defense Logistics Agency, at [http://www.dla.mil/history/storyboard.htm].
2 [http://www.dla.mil]. DLA operates three supply centers to meet the needs of military and
civilian customers: the Defense Supply Center Richmond (DSCR) in Virginia, which is the lead
center for aviation weapon systems and the primary source for approximately 930,000 repair
parts and operating systems; and the Defense Supply Center Columbus (DSCC) in Ohio, which
supplies weapon system and electronic spare parts; and DSCP in Pennsylvania, which supplies
subsistence items including food and clothing. As of FY2005, according to their website, DLA
employs 21,429 civilians, 528 active duty military, and 615 reservists; awards approximately
8,200 contracts daily with an inventory valued at $83.2 billion. In FY2003, DLA managed,
through three supply centers, an inventory of more than 4.6 million items and provided about $24
billion in military and other supplies.
3 DSCP operates a 24 hour a day, 7 day a week, Command and Control Center. DSCP employs
approximately 2,500 employees worldwide. In addition to the Philadelphia location, DSCP-
Europe maintains 13 offices in 6 countries, including Europe, Africa, and the Middle East, and
DSCP-Pacific Region has 12 offices, including Alaska, Japan, Okinawa, Korea, Guam and
Hawaii. DSCP also supports U.S. humanitarian and disaster relief efforts.

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Procurement Authority and Policy
Military food items are procured in accordance with the provisions of the Berry
Amendment and the Buy American Act (BAA).4 The Berry Amendment requires DOD
to give preference in procurement of domestically produced, manufactured, or home
grown products, notably food, clothing, fabrics, and specialty metals.5 The Berry
Amendment is now in statute as part of the United States Code, Title 10, Section 2533a.
Within DOD regulations, the Berry Amendment can be found in the Defense Federal
Acquisition Regulation Supplement (DFARS).6 DSCP operates as a Defense Working
Capital Fund (DWCF) activity; all operating costs must be charged back to the individual
customer on a break-even basis.7
Current Status of the Military Food Acquisition Process
The various stages of the process are described below:
! From the DSCP customer’s perspective, the acquisition process begins
with the generation of a product need or requirement. The DSCP
customer receives an introductory presentation about the Prime Vendor
Program8 and identifies their organization’s ongoing, new, or anticipated
4 The Buy American Act (41 U.S.C. 10a through 10d, as amended) is the principal domestic
preference statute governing most procurement by the federal government. It restricts foreign
access to U.S. government procurement by giving preference to domestically produced,
manufactured, or home grown products. For further discussion of the Buy American Act, refer
to CRS Report 97-765, The Buy American Act: Requiring Government Procurement to Come
from Domestic Sources, by John Luckey.
5 For further discussion of the Berry Amendment, refer to CRS Report RL31236, The Berry
Amendment: Requiring Defense Procurement to Come from Domestic Sources, by Valerie Bailey
Grasso. DOD has adopted a final rule which adds new exceptions to the Berry Amendment when
needed to support contingency operations or when the use of other than competitive procedures
is based on unusual and compelling urgency. U.S. Department of Defense, DFARS, Berry
Amendment Changes, DFARS Case 2003-D099, 69 Federal Register 180, Sept. 17, 2004.
6 DFARS, Part 225.7002. According to the DOD policy on Program Acquisition and
International Contracting (PAIC), “Unless a specific exception in law applies, the products,
components, or materials listed below must be grown, reprocessed, reused, or produced wholly
in the United States if they are purchased with funds made available (not necessarily
appropriated) to DOD. These rules apply to both prime contractors and subcontractors. The
items listed are food, clothing, tents, tarpaulins, covers, natural fibers or yarns, natural fiber
products, natural fabrics, synthetic fabrics, fabric blends, individual equipment (covered in
Federal Supply Class 8465) made from or containing fibers, yarns, fabrics, or materials
(including all fibers, yarns, fabrics, or materials therein), specialty metals (as defined in DFARS
252.225.7014), stainless steel flatware, hand tools, and measuring tools.”
[http://www.acq.osd.mil/dpap/paic/berryamendment.htm].
7 10 U.S.C. § 2208.
8 The Subsistence Prime Vendor Program is a new electronic order and receipt system used for
managing the food distribution system.

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requirements.9 DSCP gathers the data and develops a formal solicitation
package to meet the requirement.
! At the same time, a DSCP specialist prepares a formal solicitation which
incorporates federal laws, regulations, and guidelines for the acquisition
of subsistence items. The solicitation is prepared based on what
represents the best value to the federal government, and is amended and
modified as more information is received. A broad range of potential
vendors are invited to participate in an industry forum to learn more
about requirements and resolve or clarify questions about the solicitation.
! The solicitation is announced and remains open for bids for
approximately 50 days; meanwhile a pre-proposal conference is also
held. Prospective vendors may contact the DSCP specialist to raise
questions, offer suggestions, and to discuss and review all elements of the
solicitation; further charges to the solicitation may occur, based on the
feedback received from potential vendors. Based on the pre-proposal
conference findings, any additional amendments to the solicitation must
be issued to all prospective vendors on the mailing list.
! The evaluation phase begins; each technical proposal is received from
prospective vendors and individually evaluated to identify its strengths
and weaknesses. The evaluation is conducted by a team of subject matter
experts. Each technical proposal must demonstrate that the prospective
vendor can meet the requirements as set forth in the solicitation, in
accordance with “Best Value” selection criteria.10
! At the conclusion of the evaluation phase, the contract award decision is
made and a contract awardee is announced. The contract becomes
effective usually between 30 to 60 days after the award announcement.
The DOD regional manager arranges a post-award conference at the
selected vendor’s facility, typically within two weeks after the
announcement. During the post-award conference, which is jointly
conducted by the DSCP specialist and the vendor, all issues involving the
structure and execution of the contract are discussed.
9 DSCP’s customers include, but are not limited to, the following groups: the military services,
Defense Commissary Agency, Military Exchanges and Morale, Welfare and Recreation
Facilities, Job Corps Centers, Veterans Administration Hospitals, Federal prisons, as well as
schools and Indian reservations.
10 Each subject matter expert independently reviews the technical proposal and, in accordance
with solicitation guidelines “best value” selection criteria. Such criteria may include the
following factors: the distribution and delivery system, location, record of past performance,
corporate experience, electronic data interchange capability, socioeconomic considerations, and
others; the subject matter experts may make site visits to the prospective vendors warehouse or
operations site. The evaluation phase may take longer than 50 days. See Federal Acquisition
Regulation - Part 15, Contracting by Negotiation, for a discussion of the term “best value” as a
type of contract acquisition strategy.

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! At the conclusion of the post-award conference, the installation, vendor,
and DSCP specialist will develop a catalogue of the vendor’s product
line. This step ensures that all of the items required by the customer are
properly coded and contained in the catalogue.
The DSCP Subsistence Directorate
The Subsistence Directorate is divided into the following business units: Food
Services, Operational Rations, Produce, Product Services, Supplier Support, and the
Common Food Management System (CFMS).
Figure 1. Organizational Chart: Subsistence Directorate a
Subsistence
Directorate
Food
Operational
Produce
Product
Supplier
Common
Services
Rations
Unit
Services
Support
Food
Unit
Unit
Office
Office
Management
System
Prime
Vendor
Program
Note: a. [http://www.dscp.dla.mil/subs/].
Under the Food Services Unit (under Subsistence), the Prime Vendor Program has
replaced the former depot stock distribution system with an electronic order and receipt
system. Through the use of electronic data interchange (EDI)11, orders are transmitted and
received at the vendor’s plants within minutes, allowing for reduced local inventory
levels. EDI enhances the accuracy and timeliness of orders as well as the quality of the
products; as a result, both the inventory and associated overhead costs are reduced, and
the goal for the maximum turnaround time (from order to delivery) is 48 hours.
The Operational Rations Unit provides the managerial and logistical support for
supplying meals for the military, including individual rations, group rations, survival
rations, ultra high temperature milk, emergency and sterile drinking water, humanitarian
daily rations, and field feeding equipment. While the “Meal, Ready-to-Eat (MRE)”12 is
the core individual combat ration for the military, the military services also consider the
special dietary needs of the soldiers (including vegetarian and kosher needs).
11 [http://www.defenselink.mil/dfas/ecedi/].
12 [http://www.natick.army.mil/soldier/media/fact/food/mre.htm].

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The Produce Unit provides fresh fruits and vegetables to the military services, the
Defense Commissary Agency, Military Exchanges, Morale, Welfare and Recreation
facilities, Job Corps Centers, Veterans Administration hospitals, federal prisons, as well
as DOD schools and Indian reservations. Under the Produce Unit, the DOD Fresh
Program is a partnership between the U.S. Department of Agriculture’s Food and
Nutrition Service, and the DSCP Produce Division, whereby DSCP buys and distributes
fresh fruits and vegetables to schools using the USDA’s federal commodity entitlement
dollars. The Farm Security and Rural Investment Act of 2002 contained statutory
language that sets aside $50 million annually for DSCP to continue to support school
lunches. DSCP’s Produce Unit distributes over 300 different produce items to schools.13
The Product Services Office is responsible for food safety and quality assurance
policies for the services, DOD agencies, and components, in partnership with the U.S.
Army’s Research Development and Engineering Command, a division of the U.S. Army
Soldier Systems Center; the U.S. Army Veterinary Command, the Food and Drug
Administration, and the USDA.14
The Supplier Support Office provides a wide variety of administrative and logistical
support. The Office is divided into two areas: (1) Resource, Marketing, and
Administration, and (2) Logistical Operations and Analysis.15
The DOD Food Policy Council directed DLA to establish a common food
management system, modernize outdated technology, and develop a more state-of-the-art
way of conducting business.16 As a result, in March 2005 DLA announced a $48 million
contract award to Horizon Software International LL of Atlanta, GA, to provide software
to support the newly developed a Common Food Management System (CFMS).17 To
provide the CFMS integration and replace individual food management systems for each
service, DLA awarded IBM Business Consulting Services, Fairfax, VA, a $7.6 million
contract.18 At the present time, each of the services uses a different food management
system, and many of these systems need modernization and interoperability. With CFMS,
the objective is to have one food management system throughout the military in 2005.
13 For background and funding on the National School Lunch Program, see
[http://www.dscp.dla.mil/subs/produce/index.htm] and CRS Report RL31577, Child Nutrition
and WIC Programs: Background and Funding, by Joe Richardson.
14 [http://www.globalsecurity.org/military/agency/army/sbccom.htm].
15 [http://www.dscp.dla.mil/subs/support/].
16 [http://www.dscp.dla.mil/subs/news/cfms/2005/jun05.pdf].
17 Dawn S. Onley. and Doug Beizer, “Incoming,” Government Computer News, June 6, 2005.
18 “Contracts Awarded, Washington Technology,” Washington Post, Mar. 28, 2005, p. E4.

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