Prime Grocers

The Massachusetts GRO38 Prime Grocers statewide contract provides a comprehensive procurement solution for grocery products across various institutional settings, including state agencies, municipalities, schools, and non-profit organizations. The vehicle covers an extensive range of food categories, including canned goods, cereals, meats, frozen foods, pasta, specialty foods, and produce, with options for both standard and specialty dietary requirements such as kosher and halal products. Vendors are required to offer transparent pricing based on manufacturer's cost plus a fixed percentage markup, and must provide comprehensive market basket listings that include organic, locally sourced, and environmentally preferable product options.

The contract is managed by the Massachusetts Operational Services Division (OSD) and features six prime contractors: US Foods, Performance Food Group, B&B Trading, Global Foods, National Food Group, and New England Food. The current contract period runs from January 1, 2024, to December 31, 2028, with potential for a five-year extension, and covers the entire Commonwealth of Massachusetts. The total estimated contract value is $99 million, with vendors required to maintain a minimum 99% monthly order fill rate and offering markup percentages ranging from 9.5% to 9.7%. Additional contract features include volume discounts, prompt payment discounts, and a 1% contract administration fee applied to all purchases, with a strong emphasis on supplier diversity and compliance with state procurement guidelines.