Department of Defense Food Procurement:
Background and Status
Valerie Bailey Grasso
Specialist in Defense Acquisition
September 24, 2009
Congressional Research Service
7-5700
www.crs.gov
RS22190
CRS Report for Congress
P
repared for Members and Committees of Congress
Department of Defense Food Procurement: Background and Status
Summary
Military food items, also known as subsistence items, are generally procured under the auspices
of the Defense Logistics Agency (DLA), an agency of the Department of Defense (DOD) which
provides worldwide logistics support for the U.S. military services. Under DLA, the Defense
Supply Center Philadelphia (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. In 2008, DSCP had over $13.4
billion in sales. Under DSCP, the Subsistence Directorate serves as the operational manager for
all food operations. These items are procured in accordance with the provisions of the Berry
Amendment and the Buy American Act (BAA). The Berry Amendment requires DOD to give
preference to the procurement of domestically produced, manufactured, or home grown products,
notably food, clothing, and fabrics. This report will describe the origin, authority, and policy in
the procurement of food for the military.
Congressional Research Service
Department of Defense Food Procurement: Background and Status
Contents
Background ................................................................................................................................ 1
Procurement Authority and Policy............................................................................................... 2
Current Status of the Military Food Acquisition Process .............................................................. 2
The DSCP Subsistence Directorate.............................................................................................. 4
Contacts
Author Contact Information ........................................................................................................ 5
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Department of Defense Food Procurement: Background and Status
Background
Prior to World War II, each United States (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 military 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.
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 issue supplies, manage inventories,
and forecast future requirements. For example, the U.S. Army bought and managed all military
food and clothing; the Navy managed all medical supplies, petroleum, and industrial parts; and
the Air Force managed all electronic items. The single manager system reduced costs by
centralizing wholesale stocks, simplifying the supply chain, 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, then Secretary of Defense Robert McNamara ordered that the single-manager agencies
be consolidated into one agency, resulting in the establishment of the Defense Supply Agency,1
the forerunner to DLA. In 1986, the Goldwater-Nichols Act identified DLA as a combat support
agency.2 Today DLA provides worldwide logistics support to the military services, civilian
agencies, and foreign countries.3
1 The Defense Supply Agency (DSA), the forerunner to the Defense Logistics Agency, was established on October 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 January 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 is a global logistics combat support operation which oversees 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 is the troop support center, supplying subsistence items including food,
clothing, medical, and industrial support. According to DLA’s website, DLA employs 23,000 civilian and military
employees worldwide working in 48 states and 28 foreign countries.
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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Department of Defense Food Procurement: Background and Status
Under DLA, DSCP is responsible for nearly all of the food, clothing, and medical supplies used
by the military. DSCP is comprised of the following business areas: (1) Clothing & Textiles; (2)
Construction & Equipment; (3) Weapon Systems Detachments; (4) Medical; (5) Subsistence; and
(6) Customer Operations. Under Subsistence, DSCP has developed a new approach to industrial
base preparedness, through the development of an “Industrial Base Preparedness Toolbox.”4
DSCP operates as a Defense Working Capital Fund activity; all operating costs must be charged
back to the individual customer on a break-even basis.5
Procurement Authority and Policy
Military food items are procured in accordance with the provisions of the Berry Amendment and
the Buy American Act (BAA).6 The Berry Amendment [Title 10, United States Code (U.S.C.),
Section 2533a] requires DOD to give preference to the procurement of domestically produced,
manufactured, or home grown products, notably food, clothing and fabrics.7 The Berry
Amendment is referenced in the Defense Federal Acquisition Regulation Supplement (DFARS),
Part 225.7002, as described below.
Unless a specific exception in law applies, the products, components, or materials listed
below must be grown, reprocessed, reused, or produced in the United States if they are
purchased with funds made available (not necessarily appropriated) to DoD. Except for
manufactured or processed food, and chemical warfare protection clothing as explained in
DFARS 225.7002-2 “Exceptions,” this applies to prime contractors and subcontractors at
any tier.8
Current Status of the Military Food Acquisition
Process
The various stages of the military food acquisition 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 Program9 and identifies their
4 http://www.dscp.dla.mil/subs/rations/ibp/ibpbrief_files/frame.htm
5 Title 10, United States Code (U.S.C.) § 2208.
6 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 CRS Report 97-765, The Buy American Act: Requiring Government Procurements to Come from
Domestic Sources, by John R. Luckey.
7 The Berry Amendment can found be found in 10 U.S.C. 2533a 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.
8 Restrictions on DoD Purchases from Non-U.S. Sources Imposed by 10 U.S.C. 2533a.
9 The Subsistence Prime Vendor Program is an electronic order and receipt system used for managing the food
distribution system.
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Department of Defense Food Procurement: Background and Status
organization’s ongoing, new, or anticipated requirements.10 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.11
• At the conclusion of the evaluation phase, the contract award decision is made
and a contract award decision 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.
• 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.
10 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.
11 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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Department of Defense Food Procurement: Background and Status
The DSCP Subsistence Directorate
The Subsistence Directorate is divided into the following business units: Food Services,
Operational Rations, Produce, Food Safety Office, Supplier Support, and the Common Food
Management System (CFMS).12 A description of the work of each business unit follows.
Under Food Services (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) 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)”13 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).
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.14
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.15
The Supplier Support Division supports the supplier operations within the subsistence supply
chain by providing a wide variety of administrative and logistical support.16
12 http://www.dscp.dla.mil/subs.
13 http://www.natick.army.mil/soldier/media/fact/food/mre.htm. One MRE provides an average of 1,250 calories
composed of 13% protein, 36% fat, and 51% carbohydrates. DSCP does not sell rations to individuals; DOD
regulations and DSCP policy permit the sale of rations to certain U.S. military and federal government organizations.
The prices for the various Operational Rations can be found at http://www.dscp.dla.mil/subs/rations/prices.pdf.
14 For background and funding on the National School Lunch Program, see http://www.dscp.dla.mil/subs/produce/
index.htm and CRS Report R40397, Child Nutrition and WIC Programs: A Brief Overview, by Joe Richardson.
15 http://www.globalsecurity.org/military/agency/army/sbccom.htm.
16 http://www.dscp.dla.mil/subs/support/index/asp.
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Department of Defense Food Procurement: Background and Status
The DOD Food Policy Council directed DLA to establish a common food management system
(CFMS), modernize outdated technology, and develop more state-of-the-art business practices. As
described on the website, CFMS is a new food management system developed from a commercial
off the shelf (COTS) software product that will replace current food management systems. CFMS
provides a capability for wholesale to retail distribution for subsistence (food) supplies, linking
warfighter demand to sources of supply.17
Author Contact Information
Valerie Bailey Grasso
Specialist in Defense Acquisition
vgrasso@crs.loc.gov, 7-7617
17 http://www.dscp.dla.mil/subs/cfms/index.asp.
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