USDA's $107.8M contract with GOFRESH, LLC for food boxes awarded under full and open competition

Contract Overview

Contract Amount: $107,857,760 ($107.9M)

Contractor: Gofresh, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-08-31

Contract Duration: 109 days

Daily Burn Rate: $989.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020051/FLUID MILK,COMBINATION BOX,FRESH FRUIT/VEGETABLE BOX,DAIRY PRODUCTS BOX

Place of Performance

Location: MIRAMAR, BROWARD County, FLORIDA, 33025

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $107.9 million to GOFRESH, LLC for work described as: 2000006919/4100020051/FLUID MILK,COMBINATION BOX,FRESH FRUIT/VEGETABLE BOX,DAIRY PRODUCTS BOX Key points: 1. Contract awarded to GOFRESH, LLC for a total of $107.8 million. 2. The contract was competed under a 'full and open' basis, indicating broad market participation. 3. The contract duration was 109 days, suggesting a short-term or specific need. 4. The contract type is 'firm fixed price', which shifts cost risk to the contractor. 5. The contract was awarded to a single vendor, GOFRESH, LLC. 6. The contract was not set aside for small businesses. 7. The contract was awarded in Florida, with a performance location also in Florida.

Value Assessment

Rating: good

The contract's value of $107.8 million for a 109-day period for food box delivery appears substantial. Without specific details on the quantity and type of food boxes, a direct value-for-money assessment is challenging. However, the firm fixed-price nature suggests the government secured a predictable cost. Benchmarking against similar large-scale food distribution contracts would provide further insight into its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition', meaning all responsible sources were permitted to submit a bid. The data indicates 568 offers were received, suggesting a highly competitive bidding process. A large number of bidders typically leads to better price discovery and potentially lower prices for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for the food boxes.

Public Impact

The contract directly benefits recipients of USDA food assistance programs by providing essential food items. Services delivered include the provision of fluid milk, combination boxes, fresh fruit/vegetable boxes, and dairy products boxes. The geographic impact is focused on Florida, where the contract was awarded and performed. The contract supports the food manufacturing and distribution workforce involved in preparing and delivering these food boxes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single vendor for a significant food supply chain operation.
Short contract duration may indicate a reactive procurement rather than strategic long-term planning.
Lack of small business set-aside could limit opportunities for smaller enterprises in this sector.

Positive Signals

Full and open competition suggests a wide range of potential suppliers were considered, promoting market efficiency.
Firm fixed-price contract structure effectively transfers cost overrun risks to the contractor.
High number of offers received (568) indicates strong market interest and competitive pressure.

Sector Analysis

The contract falls within the broader food manufacturing and distribution sector, specifically related to perishable prepared foods. This sector is critical for national food security and involves complex logistics. The scale of this contract, over $100 million, suggests a significant operation, potentially involving large-scale food processing and packaging facilities. Comparable spending benchmarks would typically be found within federal food procurement programs like school lunch programs or disaster relief efforts.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). While the large value might naturally favor larger companies, the absence of a specific set-aside or subcontracting plan requirement means opportunities for small businesses in this specific procurement were not explicitly prioritized. This could limit the direct economic impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Agricultural Marketing Service (AMS). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Accountability measures are inherent in the firm fixed-price structure, requiring GOFRESH, LLC to deliver specified goods within the agreed price. Transparency is generally maintained through contract databases like FPDS, though specific performance metrics and IG oversight details would require further investigation.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Supplemental Nutrition Assistance Program (SNAP) related procurements
Disaster Food Assistance

Risk Flags

High contract value for a short duration
Lack of detailed itemization in summary data
Potential for single-vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $107.9 million to GOFRESH, LLC. 2000006919/4100020051/FLUID MILK,COMBINATION BOX,FRESH FRUIT/VEGETABLE BOX,DAIRY PRODUCTS BOX

Who is the contractor on this award?

The obligated recipient is GOFRESH, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $107.9 million.

What is the period of performance?

Start: 2020-05-14. End: 2020-08-31.

What was the specific breakdown of food items and quantities included in the $107.8 million contract?

The provided data lists the general categories of food items: 'FLUID MILK, COMBINATION BOX, FRESH FRUIT/VEGETABLE BOX, DAIRY PRODUCTS BOX'. However, it does not specify the exact quantities, types of milk, specific combinations of items within the boxes, or the precise mix of fruits and vegetables. To fully assess the value and impact, a detailed breakdown of the ordered items and their respective quantities would be necessary. This level of detail is often found in the contract's statement of work or delivery orders.

How does the per-unit cost of these food boxes compare to market rates or similar government contracts?

A precise per-unit cost comparison is not possible with the current data, as the specific quantities and contents of the 'boxes' are not detailed. The contract value is $107.8 million over approximately 3.5 months (109 days). To benchmark, one would need to know the average weight or number of servings per box, the types of items included, and the geographic delivery points. Without this granular information, comparing the per-unit cost to market rates or other federal food procurements is speculative. The firm fixed-price nature suggests the government aimed for a predictable cost, but the actual value-for-money hinges on the specifics of the goods delivered.

What is GOFRESH, LLC's track record with federal food supply contracts, particularly with the USDA?

The provided data indicates GOFRESH, LLC was awarded this specific $107.8 million contract. Further investigation into the Federal Procurement Data System (FPDS) or other contract databases would be required to ascertain their complete federal contracting history. This would include details on previous awards, performance history, any past performance issues or awards of excellence, and their experience with similar large-scale food distribution contracts. Understanding their prior performance is crucial for assessing the reliability and effectiveness of their service delivery under this contract.

What was the primary purpose or program driving this significant food box procurement by the USDA?

While the data specifies the contract was awarded by the Department of Agriculture's Agricultural Marketing Service (AMS), the primary purpose is not explicitly stated. However, contracts of this nature and scale are often associated with USDA initiatives aimed at supporting food security, assisting agricultural producers during market disruptions, or providing nutritional support to vulnerable populations. Given the timing (award in May 2020, end August 2020), it is plausible this contract was related to pandemic-related food assistance programs, such as the Farmers to Families Food Box Program, which aimed to purchase surplus agricultural products and distribute them to those in need.

How did the 568 offers received translate into the final price negotiated with GOFRESH, LLC?

The fact that 568 offers were received indicates a highly competitive environment. In a full and open competition with numerous bidders, the government typically selects the offer that represents the best value, considering both price and other factors (though for a firm fixed-price contract, price is often the dominant factor). The final negotiated price with GOFRESH, LLC would be the price proposed by GOFRESH, LLC that was deemed most advantageous to the government among the competitive offers. The high number of bids suggests that GOFRESH, LLC's offer was competitive enough to win, likely reflecting efficient operations or a strategic pricing approach to secure a large contract.

Are there any specific performance metrics or quality standards outlined in the contract for the food boxes?

The provided summary data does not include specific performance metrics or quality standards. Typically, such details are elaborated in the contract's Statement of Work (SOW) or associated delivery orders. These would likely include requirements related to the freshness and quality of perishable items (milk, fruits, vegetables), the types and variety of items in the 'combination boxes', packaging standards to ensure product integrity during transport, and delivery timelines. Adherence to these standards would be crucial for ensuring the effectiveness of the food assistance provided and would be subject to government inspection and acceptance.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1420R0377/4100020051

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1691 N 161ST E AVE, TULSA, OK, 74116

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

Financial Breakdown

Contract Ceiling: $107,857,760

Exercised Options: $107,857,760

Current Obligation: $107,857,760

Actual Outlays: $49,395,485

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline