USDA's $67M Fresh Produce Contract Awarded to C & C Produce, LLC Amidst Pandemic

Contract Overview

Contract Amount: $67,181,311 ($67.2M)

Contractor: C & C Produce, LLC.

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $524.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020208/FRESH FRUIT/VEGETABLE BOX

Place of Performance

Location: KANSAS CITY, CLAY County, MISSOURI, 64116

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $67.2 million to C & C PRODUCE, LLC. for work described as: 2000006919/4100020208/FRESH FRUIT/VEGETABLE BOX Key points: 1. Significant contract value highlights demand for essential food supplies. 2. Competition method (Full and Open) suggests potential for competitive pricing. 3. Risk of supply chain disruption for perishable goods is inherent. 4. Sector focus on food manufacturing and distribution.

Value Assessment

Rating: good

The contract value of $67.2M for a 128-day period appears reasonable given the scale and nature of providing fresh fruit and vegetable boxes. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment among suppliers.

Public Impact

Ensured access to fresh produce for consumers during a critical period. Supported agricultural producers by providing a market for their goods. Demonstrated government's ability to procure essential food items rapidly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires efficient logistics and distribution.
Potential for price fluctuations in fresh produce markets.
Reliance on a single awardee for a large volume of goods.

Positive Signals

Contract awarded during a period of high demand for food.
Utilized a competitive bidding process.
Clear contract type (Firm Fixed Price) for cost certainty.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically focusing on perishable goods. Spending in this area can fluctuate based on public health needs and agricultural output.

Small Business Impact

While the awardee is listed as C & C PRODUCE, LLC, it is not explicitly stated whether they are a small business. Further investigation would be needed to determine the extent of small business participation or subcontracting.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring delivery, quality, and adherence to contract terms to ensure accountability.

Related Government Programs

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

Risk Flags

Perishability of goods
Potential for price volatility
Logistical challenges in distribution
Reliance on a single awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $67.2 million to C & C PRODUCE, LLC.. 2000006919/4100020208/FRESH FRUIT/VEGETABLE BOX

Who is the contractor on this award?

The obligated recipient is C & C PRODUCE, LLC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $67.2 million.

What is the period of performance?

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

What was the specific need driving such a large procurement of fresh produce?

The data suggests this contract was awarded in May 2020, coinciding with the early stages of the COVID-19 pandemic. Such large procurements were likely driven by the need to support food banks, distribute food to underserved communities, and stabilize agricultural markets disrupted by widespread closures of restaurants and schools.

How did the firm fixed price impact the government's cost exposure given potential produce price volatility?

A firm fixed price contract shifts the risk of price volatility to the contractor. While this provides cost certainty for the government, it means C & C Produce, LLC bore the risk of fluctuating market prices for fruits and vegetables during the contract period. If prices rose significantly, their profit margin would decrease; if prices fell, their profit would increase.

What mechanisms were in place to ensure the quality and timely delivery of perishable goods?

Specific quality assurance and delivery protocols would be detailed within the contract's statement of work. Typically, this involves inspection upon receipt, adherence to temperature control standards for perishables, and defined delivery schedules. Failure to meet these would likely result in penalties or contract termination, as outlined in the contract terms.

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: 123J1420R0377/4100020208

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 ATLANTIC AVE, KANSAS CITY, MO, 64116

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

Financial Breakdown

Contract Ceiling: $67,181,311

Exercised Options: $67,181,311

Current Obligation: $67,181,311

Actual Outlays: $51,071,588

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline