US Foods Holding Corp. (NYSE:USFD) has been awarded a maximum $198.26 million firm-fixed-price contract by the Defense Logistics Agency, as reported by TheFly on January 8, 2026. The indefinite-delivery, indefinite-quantity contract covers a full line of food and beverage products.
The contract was awarded as a sole-source purchase under 10 U.S. Code 3204 and FAR 6.302-1. It has no option periods and is set up as a 465-day bridge contract. The ordering period closes on April 17, 2027, and performance will take place in Virginia.
Military services including the Army, Navy, Air Force, Marine Corps, and Coast Guard will use the products. Defense working capital funds for fiscal years 2026 through 2027 will provide funding. Defense Logistics Agency Troop Support is the contracted activity.
Separately, Citi analyst Karen Holthouse reduced US Foods Holding Corp.'s price objective from $99 to $90 on January 7, 2026, while retaining a Buy rating. The modification reflects changes made to Citi's 2026 prognosis for the food distributors group as a whole.
According to Citi, distributors are in a better position than the restaurant industry as a whole. US Foods Holding Corp. is a food service distributor in the United States that supplies food and non-food items to government buildings, supermarkets, restaurants, healthcare facilities, and educational institutions.