USDA Awards $28.6M for Fresh Produce Boxes to Travel Well Holdings LLC Under Full and Open Competition

Contract Overview

Contract Amount: $28,948,560 ($28.9M)

Contractor: Travel Well Holdings LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-15

End Date: 2020-09-19

Contract Duration: 127 days

Daily Burn Rate: $227.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020283/FRESH FRUIT/VEGETABLE BOX

Place of Performance

Location: SEBASTOPOL, SONOMA County, CALIFORNIA, 95472

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $28.9 million to TRAVEL WELL HOLDINGS LLC for work described as: 2000006919/4100020283/FRESH FRUIT/VEGETABLE BOX Key points: 1. Contract awarded to Travel Well Holdings LLC for $28.6 million. 2. Competition type: Full and Open Competition. 3. Contract type: Definitive Contract with Firm Fixed Price. 4. Sector: Perishable Prepared Food Manufacturing. 5. Risk: Potential for price fluctuations with perishable goods.

Value Assessment

Rating: good

The contract value of $28.6 million for a 127-day period appears reasonable given the scope of providing fresh fruit and vegetable boxes. Benchmarking against similar large-scale food distribution contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market pricing.

Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for essential goods.

Public Impact

Ensures access to fresh produce for consumers, potentially addressing food insecurity. Supports the agricultural sector by providing a market for fruits and vegetables. Creates economic activity through the logistics and distribution of food products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires efficient logistics and quality control.
Potential for supply chain disruptions affecting delivery timelines.

Positive Signals

Full and open competition promotes market efficiency.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the perishable food manufacturing and distribution sector. Spending in this area is often driven by public health initiatives, disaster relief, or nutritional programs, with benchmarks varying widely based on program scope and duration.

Small Business Impact

While the primary awardee is Travel Well Holdings LLC, the full and open competition may have allowed smaller businesses to participate as subcontractors or in future bidding rounds, though direct award to a large entity is noted.

Oversight & Accountability

The definitive contract structure implies a clear scope of work and deliverables. Oversight by the Department of Agriculture's Agricultural Marketing Service is expected to ensure contract compliance and quality standards.

Related Government Programs

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

Risk Flags

Perishability management
Supply chain reliability
Price volatility risk
Logistical complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $28.9 million to TRAVEL WELL HOLDINGS LLC. 2000006919/4100020283/FRESH FRUIT/VEGETABLE BOX

Who is the contractor on this award?

The obligated recipient is TRAVEL WELL HOLDINGS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2020-05-15. End: 2020-09-19.

What was the specific mechanism for ensuring the quality and freshness of the produce throughout the distribution chain?

The contract likely includes detailed specifications for produce quality, packaging, and handling. The Agricultural Marketing Service would have oversight mechanisms, potentially including inspections and performance metrics, to ensure adherence to these standards and maintain the freshness of the delivered goods.

How did the firm fixed price structure account for potential fluctuations in the market price of fresh produce?

The firm fixed price likely reflects an anticipated average cost based on market research at the time of bidding. The contractor assumes the risk of price volatility. Any significant, unforeseen market shifts might necessitate contract review or renegotiation, though the initial agreement aims for cost predictability.

What was the intended impact of these produce boxes on food accessibility or nutritional outcomes in the target population?

The program likely aimed to improve access to nutritious food for specific populations, such as low-income families or communities with limited access to fresh produce. The goal would be to enhance dietary intake and potentially reduce diet-related health issues.

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: 123J1420R0377/4100020283

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3229 FREI RD, SEBASTOPOL, CA, 95472

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $28,948,560

Exercised Options: $28,948,560

Current Obligation: $28,948,560

Actual Outlays: $28,948,280

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline