USDA awards $6.6M contract for refrigerated freight services to Puerto Rico, supporting food donations

Contract Overview

Contract Amount: $6,599 ($6.6K)

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: /4300014900/FREIGHT REEFER - 45' CONTAINER - CHILLED

Place of Performance

Location: CAGUAS, CAGUAS County, PUERTO RICO, 00725

Plain-Language Summary

Department of Agriculture obligated $6,599 to TRANSNOW INC. for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014900/FREIGHT REEFER - 45' CONTAINER - CHILLED Key points: 1. Contract value of $6.6 million for essential food donation logistics. 2. Competition method indicates a potentially competitive bidding process. 3. Risk of service disruption or cost overruns exists in transportation. 4. Sector focus on logistics and transportation for agricultural support.

Value Assessment

Rating: good

The contract value of $6.6 million for a short duration (2 days) seems reasonable for specialized refrigerated freight. Benchmarking against similar deep-sea freight contracts would provide a clearer picture of cost-effectiveness.

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,' suggesting an initial exclusion followed by open competition. This method aims for competitive pricing while potentially addressing specific source requirements.

Taxpayer Impact: The competitive nature of the award should help ensure taxpayer funds are used efficiently for this critical food donation support.

Public Impact

Ensures timely delivery of essential food aid to Puerto Rico. Supports USDA's mission to combat food insecurity. Facilitates the distribution of perishable goods, reducing waste.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in deep-sea freight impacting donation schedules.
Reliance on a single provider for a critical logistical link.

Positive Signals

Supports a vital government program for food assistance.
Competitive award process likely secured a fair price.

Sector Analysis

This contract falls within the transportation and logistics sector, specifically focusing on cold chain management for perishable goods. Spending benchmarks for similar deep-sea freight services are typically high due to specialized equipment and routes.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would focus on ensuring timely delivery, proper handling of chilled goods, and adherence to contract terms.

Related Government Programs

Deep Sea Freight Transportation
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for service delays impacting food freshness.
Dependence on a single provider for a critical transport leg.
Geopolitical or environmental factors affecting deep-sea routes.
Ensuring compliance with international shipping and food safety regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6,599 to TRANSNOW INC.. SUPPORT SERVICES FOR USG FOOD DONATIONS: /4300014900/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 $6,599.

What is the period of performance?

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

What is the typical cost per container for similar deep-sea refrigerated freight services?

Benchmarking the $6.6 million contract against industry standards for 45' refrigerated containers on deep-sea routes is crucial. Factors like route, duration, and specific service inclusions heavily influence pricing. Without detailed route and service data, a precise comparison is difficult, but this value appears substantial for a short-term service.

What are the primary risks associated with deep-sea refrigerated freight for food donations?

Key risks include potential delays due to weather, port congestion, or vessel issues, which could compromise the quality of chilled food. Equipment malfunction leading to temperature fluctuations is another significant concern. Ensuring robust contingency plans and monitoring systems is vital for mitigating these risks and maintaining food safety.

How effectively does this contract support the overall goal of food donation distribution?

This contract is critical for the physical movement of donated food to Puerto Rico, directly enabling distribution. Its effectiveness hinges on reliable service delivery, maintaining the required temperature for perishables, and meeting delivery timelines. Successful execution ensures that food reaches intended recipients without spoilage, maximizing the impact of donations.

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: $6,599

Exercised Options: $6,599

Current Obligation: $6,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline