Prime Vendor Food Contract

The Prime Vendor Food Contract, administered by the Wisconsin Department of Health Services, provides a comprehensive food distribution solution for multiple state agencies, including the Departments of Health Services, Corrections, Veterans Affairs, Public Instruction, and Military Affairs. The contract enables these agencies to procure food products through a state-wide vehicle with standardized delivery mechanisms, including online ordering platforms, specific delivery schedules, and performance protocols. The vehicle includes provisions for order placement, holiday scheduling, and quality control reporting, ensuring consistent and reliable food service across various state institutions.

The contract is currently held by IndianHead Foodservice Distributor, Inc., located in Eau Claire, Wisconsin, with an initial award date of July 1, 2017. The vehicle includes a unique fuel adjustment mechanism that allows for per-case price modifications based on diesel fuel price fluctuations, using the U.S. Energy Information Administration's Midwest regional pricing as a benchmark. The contract operates on a mutual agreement basis, with pricing adjustments triggered when diesel fuel prices exceed $3.17 per gallon or fall below $2.34 per gallon, applying incremental fees or credits to invoices. While the specific total contract value is not disclosed, the contract demonstrates flexibility through multiple renewal options and a comprehensive fuel cost management strategy that protects both the state and the vendor from significant transportation cost volatility.