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ID NEWS: USF refutes allegations of contractual impropriety with government accounts

The Wall Street Journal has reported that U.S. Foodservice (USF), Columbia, MD, the nation's second largest broadliner, may have failed to pass along millions of dollars in rebates to government customers, as part of their cost-plus contracts.

This is the latest of a series of articles regarding the ongoing investigation of USF bookings of promo monies, in which more than $500 million over a two-year period may have been improperly recorded.

The $17.5-billion distributor has responded that it has a strong record of positive service on government contracts at the federal, state and local levels. "We are confident that the obligations of these contracts are being followed and they are being properly administered," says a spokesman. "Furthermore, government contracts are awarded through a competitive bidding process, so to infer that costs are somehow being artificially inflated simply makes no sense.

"However, to the extent that any of our customers have concerns about their particular contract, we want to hear from them, and we will certainly address any areas of concern."

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