USDA's $41M Retailer Investigations Contract Awarded to Coventbridge USA Inc

Contract Overview

Contract Amount: $41,151,633 ($41.2M)

Contractor: Coventbridge USA Inc

Awarding Agency: Department of Agriculture

Start Date: 2021-07-13

End Date: 2026-07-12

Contract Duration: 1,825 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RETAILER INVESTIGATIONS CONTRACT

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $41.2 million to COVENTBRIDGE USA INC for work described as: RETAILER INVESTIGATIONS CONTRACT Key points: 1. Contract value of $41.15M over 5 years for investigation services. 2. Awarded under full and open competition, indicating market availability. 3. Potential risk related to the effectiveness and necessity of ongoing investigations. 4. Sector: Services (Investigation & Background Checks).

Value Assessment

Rating: fair

The contract value of $41.15M over five years averages approximately $8.23M annually. Benchmarking against similar contracts for investigation services is difficult without more specific service details, but the duration and value suggest a significant need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple vendors were capable of performing the services. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayer funds are being used for investigations, the direct impact of which depends on the outcomes and efficiency of the services provided.

Public Impact

Ensures integrity of food assistance programs by investigating retailer compliance. Supports law enforcement and regulatory functions within the Department of Agriculture. Provides employment for the contractor's personnel conducting investigations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or inefficient service delivery.
Reliance on contractor performance for critical investigative functions.

Positive Signals

Awarded via full and open competition.
Clear contract duration and fixed price.

Sector Analysis

The Department of Agriculture, specifically the Food and Nutrition Service, utilizes contracts for investigative services to maintain program integrity. Spending in this area is crucial for preventing fraud and abuse in federal programs.

Small Business Impact

This contract was not awarded to small businesses, as indicated by the prime contractor's information. Opportunities for small businesses may exist as subcontractors, but this award does not directly benefit them.

Oversight & Accountability

Oversight by the Department of Agriculture's Food and Nutrition Service is critical to ensure the contractor meets performance requirements and that funds are used effectively and appropriately.

Related Government Programs

Investigation and Personal Background Check Services
Department of Agriculture Contracting
Food and Nutrition Service Programs

Risk Flags

Contract duration is long (5 years).
No indication of small business participation.
Effectiveness metrics not detailed.
Potential for contractor performance issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $41.2 million to COVENTBRIDGE USA INC. RETAILER INVESTIGATIONS CONTRACT

Who is the contractor on this award?

The obligated recipient is COVENTBRIDGE USA INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food and Nutrition Service).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2021-07-13. End: 2026-07-12.

What is the specific scope of 'Retailer Investigations' and how is success measured?

The specific scope of 'Retailer Investigations' likely pertains to ensuring compliance with regulations for retailers participating in federal food assistance programs like SNAP. Success is typically measured by metrics such as the number of investigations completed, fraud identified, funds recovered, and adherence to investigative protocols and timelines, all contributing to program integrity.

What are the risks associated with outsourcing investigative services?

Outsourcing investigative services carries risks such as potential loss of direct control over sensitive operations, reliance on contractor expertise and integrity, and challenges in ensuring consistent quality and adherence to agency standards. There's also a risk of data security breaches and the possibility that contractor performance may not fully align with the agency's evolving needs or legal requirements.

How does this contract contribute to the overall effectiveness of food assistance programs?

This contract contributes to the effectiveness of food assistance programs by deterring and detecting fraud, waste, and abuse among participating retailers. By ensuring retailers comply with program rules, the contract helps maintain the integrity of programs like SNAP, ensuring benefits reach eligible recipients and taxpayer funds are used appropriately.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12319821Q0050

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9485 REGENCY SQ BLVD STE 200, JACKSONVILLE, FL, 32225

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

Financial Breakdown

Contract Ceiling: $41,151,633

Exercised Options: $41,151,633

Current Obligation: $41,151,633

Actual Outlays: $35,492,092

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline