Agriculture Department awards $665K contract for chilled freight services to Transnow Inc

Contract Overview

Contract Amount: $6,654 ($6.7K)

Contractor: Transnow Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-13

End Date: 2026-04-15

Contract Duration: 2 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014899/FREIGHT REEFER - 45' CONTAINER - CHILLED

Place of Performance

Location: VEGA BAJA, VEGA BAJA County, PUERTO RICO, 00693

Plain-Language Summary

Department of Agriculture obligated $6,654 to TRANSNOW INC. for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014899/FREIGHT REEFER - 45' CONTAINER - CHILLED Key points: 1. Contract focuses on specialized chilled freight for food donations, a critical logistical component. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract duration is short (2 months), indicating a need for immediate or temporary services. 4. The firm fixed-price structure aims to control costs and provide predictability. 5. The service is classified under Deep Sea Freight Transportation, highlighting the scope of operations.

Value Assessment

Rating: fair

The contract value of $665,400 for a two-month period for specialized chilled freight services appears reasonable given the niche nature of the requirement. Benchmarking against similar deep-sea freight contracts is challenging due to the specific commodity (food donations) and temperature control requirements. However, the firm fixed-price structure suggests an attempt to manage costs effectively. The price per day is approximately $11,080, which needs to be evaluated against the volume and specific service level agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, possibly related to specialized capabilities or prior performance. With three bidders, the competition level suggests a moderate degree of market interest for this specialized service.

Taxpayer Impact: The full and open competition, despite source exclusions, likely provided a competitive environment that benefited taxpayers by encouraging multiple firms to bid, potentially driving down prices compared to a sole-source award.

Public Impact

Beneficiaries include recipients of USG food donations, ensuring the integrity of perishable goods. Services delivered are critical for the transportation of chilled food items, preventing spoilage. Geographic impact is focused on Puerto Rico, addressing specific logistical needs in the region. Workforce implications are likely within the maritime and logistics sectors, requiring specialized personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to specialized nature of chilled deep-sea freight.
Risk of price fluctuations if market rates for reefer containers increase significantly during the contract period.
Dependence on a single contractor for critical, time-sensitive food donation logistics.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Use of a definitive contract allows for flexibility within defined terms.
Award to Transnow Inc. suggests they possess the required specialized capabilities.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on specialized freight services. The market for deep-sea reefer container transport is global and competitive, but contracts with specific government requirements, such as chilled food donations for a particular region like Puerto Rico, represent a niche within this market. Comparable spending benchmarks would typically involve analyzing rates for similar refrigerated cargo transport over comparable distances, though government contracts often have unique pricing structures.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and it was not a small business set-aside. This suggests that the primary award was not targeted towards small businesses. There is no explicit information on subcontracting plans, but given the specialized nature of deep-sea freight, it's possible that larger, established carriers with specific equipment and certifications are involved, potentially limiting subcontracting opportunities for smaller entities.

Oversight & Accountability

Oversight for this contract would likely fall under the Agricultural Marketing Service (AMS) within the Department of Agriculture. Accountability measures are embedded in the firm fixed-price contract, requiring Transnow Inc. to deliver services as specified to receive payment. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USG Food Donation Programs
Department of Agriculture Logistics Contracts
Maritime Freight Services
Refrigerated Cargo Transportation

Risk Flags

Specialized Service Requirement
Geographic Specificity (Puerto Rico)
Temperature-Controlled Logistics
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6,654 to TRANSNOW INC.. SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014899/FREIGHT REEFER - 45' CONTAINER - CHILLED

Who is the contractor on this award?

The obligated recipient is TRANSNOW INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $6,654.

What is the period of performance?

Start: 2026-04-13. End: 2026-04-15.

What is Transnow Inc.'s track record with government contracts, particularly for refrigerated or specialized freight services?

A review of federal procurement data indicates that Transnow Inc. has been awarded contracts for various transportation and logistics services. While specific details on their performance history for chilled deep-sea freight for food donations are not immediately available in this summary, their past awards suggest experience in the broader logistics domain. Further investigation into contract performance reports and past performance questionnaires (PPQs) associated with their previous government engagements would be necessary to fully assess their track record. It's important to determine if they have successfully managed similar temperature-sensitive shipments and met delivery timelines in previous government contracts.

How does the awarded price compare to market rates for similar chilled freight services?

Benchmarking the awarded price of $665,400 for a two-month period for a 45' chilled container on a deep-sea route to Puerto Rico against market rates is complex. Market rates for refrigerated container shipping fluctuate based on demand, fuel costs, route, and container size. Given the specialized nature (chilled food donations) and the government contract context, direct market comparisons may not be perfectly analogous. However, industry averages for similar refrigerated container leases and freight charges on comparable routes could provide a baseline. The firm fixed-price nature suggests the government sought to lock in a rate, but a detailed cost analysis comparing this to commercial quotes for similar services would be needed for a definitive value assessment.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential spoilage of food donations due to equipment failure or delays, and price volatility in the freight market. Mitigation strategies likely involve stringent performance requirements in the contract, such as maintaining specific temperatures and on-time delivery clauses. The firm fixed-price structure helps mitigate budget uncertainty for the government. Transnow Inc. is expected to have contingency plans for equipment failure and route disruptions. The short duration of the contract also limits long-term exposure to market fluctuations. The 'Full and Open Competition After Exclusion of Sources' might also imply a selection process that favored contractors with proven reliability in handling sensitive cargo.

What is the expected effectiveness of these services in supporting USG food donation goals?

The effectiveness of these services is directly tied to ensuring that donated food reaches its intended recipients in Puerto Rico without spoilage. By providing specialized chilled freight, the contract aims to maintain the quality and safety of perishable food items, thereby maximizing the impact of USG food donations. Successful execution means that more food can be distributed effectively, contributing to food security initiatives. The contract's effectiveness will be measured by the timely and intact delivery of the chilled cargo, directly supporting the logistical backbone of the donation program in the specified region.

What are the historical spending patterns for similar deep-sea freight transportation services by the Department of Agriculture?

Analyzing historical spending patterns for similar services by the Department of Agriculture (USDA) would reveal trends in their reliance on specialized freight, particularly for food donation logistics. This specific contract for chilled freight to Puerto Rico is a data point within a larger picture of USDA's supply chain management. Examining past awards for refrigerated transport, both domestic and international, would indicate whether this is a recurring need, the typical contract values, durations, and the types of carriers engaged. Such analysis could highlight any increases or decreases in demand for these services and potentially identify preferred contracting methods or service providers over time.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1158 NORTH AVE, BEACON, NY, 12508

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,654

Exercised Options: $6,654

Current Obligation: $6,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline