USDA awards $82.6M for fresh fruit and vegetable boxes, supporting food security initiatives

Contract Overview

Contract Amount: $82,638,985 ($82.6M)

Contractor: Five Star Gourmet Foods, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $645.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4100020177/FRESH FRUIT/VEG BOX

Place of Performance

Location: NAPLES, COLLIER County, FLORIDA, 34117

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $82.6 million to FIVE STAR GOURMET FOODS, INC. for work described as: 4100020177/FRESH FRUIT/VEG BOX Key points: 1. Contract value represents a significant investment in food distribution. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Fixed-price contract type offers cost certainty for the government. 4. Short contract duration may indicate a response to immediate needs. 5. Focus on perishable goods highlights logistical complexities. 6. Geographic focus on Florida suggests regional distribution priorities.

Value Assessment

Rating: good

The contract value of $82.6 million for fresh fruit and vegetable boxes appears reasonable given the scale of the program, likely aimed at supporting food assistance or distribution efforts. Benchmarking against similar large-scale food procurement contracts would provide further context on value for money. The firm fixed-price structure helps manage cost fluctuations inherent in perishable goods.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bids received (568) suggests strong interest and a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of suppliers to offer their best prices.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA programs. Services delivered involve the procurement and distribution of fresh fruit and vegetable boxes. Geographic impact is concentrated in Florida (ST: FL, SN: FLORIDA), serving residents within this state. Workforce implications may include jobs in agriculture, logistics, and food distribution within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for spoilage and waste given the perishable nature of the goods.
Logistical challenges in ensuring timely delivery and maintaining quality across the distribution network.
Dependence on agricultural supply chains which can be subject to weather and market volatility.

Positive Signals

Supports domestic agriculture by providing a market for fresh produce.
Addresses food insecurity by making nutritious food accessible to vulnerable populations.
The large number of bids (568) indicates a healthy market response and potential for strong supplier performance.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically focusing on perishable goods. The Agricultural Marketing Service (AMS) frequently procures food products to support various federal nutrition and food assistance programs. The market for such procurements is substantial, driven by government initiatives aimed at public health and agricultural support. Comparable spending benchmarks would involve other large-scale food box procurements by federal agencies like USDA or DOD.

Small Business Impact

While the contract was awarded under full and open competition and there is no explicit indication of a small business set-aside, the large number of bidders (568) suggests that small businesses may have participated. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, and their role in fulfilling the contract requirements.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight likely involves performance monitoring, quality control checks, and financial accountability measures to ensure compliance with the firm fixed-price terms. The Inspector General's office within USDA would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Supplemental Nutrition Assistance Program (SNAP)
Food Box Programs

Risk Flags

Perishable Goods Management
Supply Chain Vulnerability
Logistical Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $82.6 million to FIVE STAR GOURMET FOODS, INC.. 4100020177/FRESH FRUIT/VEG BOX

Who is the contractor on this award?

The obligated recipient is FIVE STAR GOURMET FOODS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $82.6 million.

What is the period of performance?

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

What is the historical spending pattern for similar fresh fruit and vegetable box procurements by the USDA?

The USDA has a long history of procuring fresh produce and food boxes to support various domestic nutrition assistance programs, particularly during times of agricultural surplus or increased need. For example, the Coronavirus Food Assistance Program (CFAP) involved significant procurements of similar food boxes. Historical data indicates that these contracts can range from tens of millions to hundreds of millions of dollars annually, depending on program scope and funding. The frequency and scale of these procurements are often influenced by legislative mandates, economic conditions, and public health emergencies. Analyzing past contract awards for similar items, such as produce boxes or commodity food packages, would reveal trends in pricing, supplier participation, and geographic distribution.

How does the per-unit cost of items within these fruit and vegetable boxes compare to market rates?

Determining the precise per-unit cost for items within the fruit and vegetable boxes requires detailed itemization of the contents and their respective quantities, which is not provided in the summary data. However, the overall contract value of $82.6 million for 568 awards (implying an average award size of approximately $145,000, though this is a simplification as it's one contract) suggests a substantial volume. To benchmark per-unit costs, one would need to compare the average cost per pound or per item of specific fruits and vegetables procured under this contract against prevailing wholesale market prices (e.g., USDA Agricultural Marketing Service's National Retail Report or wholesale market price data) around the contract period. Factors like packaging, assembly, and delivery costs are bundled into the contract price, making direct comparison challenging without granular data on the box contents and distribution logistics.

What is the track record of FIVE STAR GOURMET FOODS, INC. with federal contracts, particularly with the USDA?

FIVE STAR GOURMET FOODS, INC. has a history of receiving federal contracts, including those with the Department of Agriculture. A review of federal procurement data would reveal the extent and nature of their past performance. Key aspects to examine include the types of goods or services provided, contract values, performance ratings (if available), and any instances of contract disputes or terminations. Understanding their experience with perishable food procurement and distribution, especially for government programs, is crucial for assessing their capability to fulfill this $82.6 million contract effectively. Their past performance provides valuable insight into their reliability, quality control, and ability to meet delivery schedules and specifications.

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

The primary risks associated with this contract revolve around the perishable nature of the goods, potential supply chain disruptions, and logistical challenges in distribution. Spoilage and waste are significant concerns, requiring robust inventory management and rapid distribution. Supply chain vulnerabilities, such as weather events impacting crop yields or transportation issues, could affect availability and price. Logistical complexities include ensuring timely delivery to various points within Florida while maintaining the quality and freshness of the produce. Mitigation strategies likely involve stringent quality control measures, clear delivery schedules, contingency planning for supply shortages, and potentially working with a network of distributors to ensure efficient last-mile delivery. The firm fixed-price contract also shifts some price risk to the contractor.

How does this contract align with broader USDA objectives related to food security and agricultural support?

This contract directly aligns with the USDA's core objectives of enhancing food security and supporting the agricultural sector. By procuring fresh fruits and vegetables, the USDA provides vital nutrition to potentially underserved populations, thereby addressing food insecurity. Simultaneously, these procurements create demand for agricultural products, offering a market for farmers and producers, particularly during times when agricultural markets may be stressed. This dual benefit reinforces the domestic food supply chain, supports rural economies, and promotes healthy eating habits, all of which are central to the USDA's mission.

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: 123J1420R0377/4100020177

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3880 E EBONY ST, ONTARIO, CA, 91761

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

Financial Breakdown

Contract Ceiling: $82,638,985

Exercised Options: $82,638,985

Current Obligation: $82,638,985

Actual Outlays: $82,638,985

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline