USDA Awards $49.4M for Food Manufacturing to DIMARE FRESH, INC. Under Full and Open Competition

Contract Overview

Contract Amount: $49,363,764 ($49.4M)

Contractor: Dimare Fresh, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2020-09-17

End Date: 2020-10-31

Contract Duration: 44 days

Daily Burn Rate: $1.1M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 40

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007303/4100021584/COMBINATION BOX

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76155

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $49.4 million to DIMARE FRESH, INC. for work described as: 2000007303/4100021584/COMBINATION BOX Key points: 1. Significant award value of $49.4 million for food manufacturing services. 2. Full and open competition indicates a potentially competitive bidding process. 3. Short contract duration (44 days) suggests a specific, time-sensitive need. 4. Awarded to DIMARE FRESH, INC., a single entity for the entire amount.

Value Assessment

Rating: fair

The award value of $49.4 million for a 44-day contract is substantial. Without specific details on the goods or services provided, it's difficult to benchmark against similar contracts. The firm fixed price suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders were allowed to participate. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price.

Public Impact

Ensures supply of essential food manufacturing services for the Department of Agriculture. Supports the agricultural sector by procuring manufactured food products. The large contract value may indicate a significant demand or specific project requirement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product/service details makes value assessment difficult.
Short duration may indicate a reactive procurement rather than strategic planning.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.

Sector Analysis

The food manufacturing sector is diverse, encompassing a wide range of products. This award falls under miscellaneous food manufacturing, suggesting specialized processing or packaging. Benchmarking requires detailed understanding of the specific food items procured.

Small Business Impact

The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine small business involvement.

Oversight & Accountability

The contract was awarded via a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific call against a pre-existing agreement. Oversight would focus on delivery and quality.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Lack of specificity on goods/services procured.
Limited contract duration raises questions about long-term planning.
No indication of small business participation.
Potential for price inflation if competition was not robust despite being 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $49.4 million to DIMARE FRESH, INC.. 2000007303/4100021584/COMBINATION 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 $49.4 million.

What is the period of performance?

Start: 2020-09-17. End: 2020-10-31.

What specific food manufacturing services or products were procured under this contract?

The provided data identifies the NAICS code as 'All Other Miscellaneous Food Manufacturing' (311999), but lacks specific details on the exact products or services. Understanding the nature of these manufactured food items is crucial for assessing the value and appropriateness of the $49.4 million award.

What was the competitive landscape like during the full and open competition process?

While 'full and open competition' was utilized, the number of bids received and the specific pricing strategies of competitors are not detailed. This information is essential to confirm if the competition effectively drove down costs and ensured the best value for the government.

How does the firm fixed price of $49.4 million compare to industry benchmarks for similar food manufacturing services over a 44-day period?

Benchmarking the $49.4 million firm fixed price is challenging without knowing the precise nature of the food manufacturing services. Factors like ingredient costs, processing complexity, volume, and packaging requirements significantly influence pricing. A detailed cost breakdown would be necessary for a robust comparison.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 123J1420B0681/4100021584

Offers Received: 40

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,363,764

Exercised Options: $49,363,764

Current Obligation: $49,363,764

Actual Outlays: $33,724,293

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 123J1420G0121

IDV Type: BOA

Timeline