USDA awards $99M contract for fresh fruit and vegetable boxes to Dimare Fresh, Inc

Contract Overview

Contract Amount: $99,092,986 ($99.1M)

Contractor: Dimare Fresh, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $774.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4100020155/FRESH FRUIT/VEG BOX

Place of Performance

Location: ARLINGTON, TARRANT County, TEXAS, 76011

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $99.1 million to DIMARE FRESH, INC. for work described as: 4100020155/FRESH FRUIT/VEG BOX Key points: 1. Significant contract value of $99M for perishable food manufacturing. 2. Dimare Fresh, Inc. secured the award under full and open competition. 3. Contract duration of 128 days suggests a focused, short-term need. 4. The award is for firm-fixed-price, indicating price certainty for the government.

Value Assessment

Rating: good

The contract value of $99M for a 128-day period is substantial. Benchmarking against similar large-scale food supply contracts would be necessary for a precise value assessment, but the firm-fixed-price structure suggests a degree of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The existence of a single awardee suggests Dimare Fresh, Inc. was the most competitive bidder.

Taxpayer Impact: The firm-fixed-price contract provides cost certainty for taxpayers, protecting against potential cost overruns during the contract period.

Public Impact

Ensures availability of fresh produce for specific programs or needs. Supports the agricultural sector by providing a large procurement opportunity. Potential impact on food security and access to nutritious options.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a specific, time-sensitive need.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

This contract falls under the perishable prepared food manufacturing sector, specifically focusing on fresh fruit and vegetable boxes. Government spending in this area often supports food assistance programs or disaster relief efforts, with typical contract values varying widely based on scope and duration.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the contract's scale inherently favored larger entities.

Oversight & Accountability

The award was made by the Department of Agriculture's Agricultural Marketing Service. Standard procurement oversight processes would apply, focusing on contract compliance, delivery, and adherence to the firm-fixed-price terms.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for spoilage/quality issues with perishable goods.
Lack of small business participation.
Short contract duration may indicate a specific, time-sensitive need requiring further clarification.
Contract value is high, necessitating thorough review of pricing and justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $99.1 million to DIMARE FRESH, INC.. 4100020155/FRESH FRUIT/VEG BOX

Who is the contractor on this award?

The obligated recipient is DIMARE FRESH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $99.1 million.

What is the period of performance?

Start: 2020-05-14. End: 2020-09-19.

What was the specific purpose of these fresh fruit and vegetable boxes, and how did this influence the contract's structure and value?

The specific purpose of the fresh fruit and vegetable boxes is not detailed in the provided data. However, given the awarding agency (USDA) and the nature of the product, it could be related to food assistance programs (like school lunches or food banks), disaster relief efforts, or specific agricultural support initiatives. The purpose would directly influence the required quantity, delivery locations, and ultimately the contract's total value and duration.

What risks are associated with a firm-fixed-price contract for perishable goods, and how were they mitigated?

A primary risk with firm-fixed-price contracts for perishable goods is the potential for spoilage or quality degradation before delivery, which could lead to financial losses for the contractor if not managed effectively. Mitigation strategies likely included strict quality control measures, efficient logistics and transportation planning, defined delivery schedules, and potentially clauses addressing acceptable quality upon receipt. The contractor's experience and reputation would also be a factor in assessing this risk.

How does the $99M award compare to typical spending for similar perishable food procurements by the USDA?

A $99M award for a 128-day period is a substantial procurement. Without specific benchmarks for 'fresh fruit and vegetable boxes,' direct comparison is difficult. However, large-scale government food procurements, especially those supporting national programs or emergency responses, can reach these figures. It suggests a significant demand or a large-scale distribution requirement during the contract period, potentially exceeding routine operational needs.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 123J1420R0377/4100020155

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dimare/New England Farms

Address: 4629 DIPLOMACY RD, FORT WORTH, TX, 76155

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

Financial Breakdown

Contract Ceiling: $99,092,986

Exercised Options: $99,092,986

Current Obligation: $99,092,986

Actual Outlays: $99,092,765

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline