The Joint Services Prime Vendor Program (JSPVP)
What is it? The Joint Services Prime Vendor Program (JSPVP) is a series of contracts between various private-sector vendors and the U.S. military. The vendors agree to sell their food and food-related items at a set margin/mark-up above cost. The military participants of the program then strive to purchase the majority of their food requirements from the prime vendor.
The U.S. Army's Family and Morale, Welfare and Recreation Command (FMWRC) manages the JSPVP for the Army, Navy, Marines, Coast Guard, and other government non-appropriated fund (NAF) food service and recreation activities. The program was established over 15 years ago to increase the quality of food services and to reduce the costs associated with food and food-related items, in addition to reducing the overhead associated with food procurement.
What has the Army done? The JSPVP initiative takes advantage of the combined purchasing power of NAF and military MWR foodservice activities by partnering directly with manufacturers. Currently, there are 33 contracts with 51 broad-line food service distributors -- companies that can provide a wide array of fresh and frozen meats, groceries, produce, dairy products and non-edible products. These distributors service over 750 military posts, bases, camps, and stations within the continental U.S. (CONUS) and 13 countries, with a combined purchasing volume of $120 million.
The program lowers food costs and increases food quality by eliminating the need to competitively bid food requirements; reducing or eliminating warehousing; allowing one-stop purchasing; providing U.S. products overseas at stateside prices; and reducing time spent searching for food items, unloading food procurement trucks, and processing invoices.
Why is this important to the Army? The Army, and the nation's Armed Forces as a whole, is challenged to meet the ever-changing demands of a fiscally-constrained environment. As the Department of Defense (DOD) moves towards more streamlined, cost-efficient business practices, the JSPVP initiative saves the military over $15 million a year though contracted pricing, off-invoice discounts, and manufacturer rebates.
For more information on JSPVP, click here.