The impact of subsistence prime vendor on the subsistence supplier base

Abstract

Acquisition Reform has brought rapid change within the acquisition community. The streamlining of the acquisition process has led to a number of innovations within the contracting discipline. This research will focus on one of these innovations, the Subsistence Prime Vendor (SPV) Program. The SPV program was implemented to reduce the inventories and to improve the quality of food products purchased to support military dining facilities. Under the traditional subsistence inventory system, the Government procured food items directly from manufacturers. The contracting process centered on filling a space in a warehouse. Prime vendor contracting is centered on the end-user. The customer communicates his requirements directly to the assigned prime vendor, and the prime vendor delivers in accordance with terms of the contract and the customer's request. The prime vendor assumes the role as the food distributor with subsistence no longer being procured from food manufacturers and stored in warehouses. As a result, the subsistence supplier base has undergone radical change. The purpose of this thesis is to analyze the impact that the prime vendor concept has had on the subsistence supplier base.