Agriculture contract for food manufacturing awarded to Vincent Farms Inc. for over $31.4 million

Contract Overview

Contract Amount: $31,412,619 ($31.4M)

Contractor: Vincent Farms Inc.

Awarding Agency: Department of Agriculture

Start Date: 2020-09-17

End Date: 2020-10-31

Contract Duration: 44 days

Daily Burn Rate: $713.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 40

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007299/4100021638/COMBINATION BOX

Place of Performance

Location: DELMAR, SUSSEX County, DELAWARE, 19940

State: Delaware Government Spending

Plain-Language Summary

Department of Agriculture obligated $31.4 million to VINCENT FARMS INC. for work described as: 2000007299/4100021638/COMBINATION BOX Key points: 1. The contract value of $31.4 million represents a significant investment in food manufacturing services. 2. Competition dynamics indicate a full and open competition, suggesting a potentially competitive pricing environment. 3. The contract duration of 44 days is relatively short, implying a focused scope of work. 4. The firm fixed-price contract type suggests that the contractor bears the risk of cost overruns. 5. The award was made by the Agricultural Marketing Service, indicating a focus on agricultural products. 6. The North American Industry Classification System (NAICS) code 311999 points to 'All Other Miscellaneous Food Manufacturing'.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the goods or services procured. The total award amount of over $31.4 million for a 44-day period suggests a high daily expenditure. However, without comparable contracts for similar food manufacturing products or services, it's difficult to definitively assess value for money. The firm fixed-price nature of the contract shifts cost risk to the contractor, which can be a positive indicator if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which typically means that all responsible sources were permitted to submit a bid. The presence of 40 bids suggests a robust level of competition for this procurement. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government receiving the best value.

Taxpayer Impact: A high number of bids in a full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring federal dollars are used more efficiently.

Public Impact

The primary beneficiaries are likely the agricultural producers supplying raw materials and the consumers who will ultimately use the manufactured food products. The contract supports the manufacturing of miscellaneous food products, contributing to the national food supply chain. The geographic impact is primarily within Delaware, where the contract was awarded, and potentially extends to the distribution network of the manufactured goods. Workforce implications include employment opportunities within Vincent Farms Inc. and its supply chain for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short contract duration (44 days) might indicate a time-sensitive need or a limited scope, potentially leading to less long-term strategic planning.
Without detailed product specifications, it's difficult to assess the quality and suitability of the manufactured food products for their intended purpose.
The high total award amount for a short period warrants scrutiny to ensure efficient use of funds.

Positive Signals

The award was made under full and open competition with 40 bids, indicating a competitive process that likely yielded a fair price.
The firm fixed-price contract type places cost control responsibility on the contractor, Vincent Farms Inc.
The contract supports the Department of Agriculture's mission, aligning with federal objectives in the agricultural sector.

Sector Analysis

This contract falls within the broader food manufacturing sector, a critical component of the U.S. economy. The NAICS code 311999 covers a wide array of miscellaneous food products not elsewhere classified. Spending in this sector is influenced by consumer demand, agricultural commodity prices, and federal procurement needs for various programs. Comparable spending benchmarks would depend heavily on the specific type of food product being manufactured.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though Vincent Farms Inc. may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering goods or services within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not always be publicly available.

Related Government Programs

Department of Agriculture Food Procurement
National School Lunch Program
Food and Nutrition Service Contracts
Agricultural Commodity Purchases

Risk Flags

Short contract duration may indicate limited scope or time sensitivity.
Lack of specific product details hinders comprehensive value assessment.
Need for further investigation into contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $31.4 million to VINCENT FARMS INC.. 2000007299/4100021638/COMBINATION BOX

Who is the contractor on this award?

The obligated recipient is VINCENT FARMS INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

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

What specific food products were manufactured under this contract?

The provided data indicates the contract falls under NAICS code 311999, 'All Other Miscellaneous Food Manufacturing.' However, the specific food products manufactured are not detailed in the available information. This category is broad and can encompass a wide range of items such as spices, sauces, dressings, prepared meals, or other processed food items not classified elsewhere. To fully understand the contract's purpose and value, clarification on the exact nature of the manufactured goods would be necessary. This detail is crucial for comparing the contract's pricing and performance against industry standards and other government procurements.

How does the price per unit compare to market rates for similar food manufacturing services?

Calculating a precise per-unit cost is not feasible with the current data, as the specific quantity and type of food products are unknown. The total award was over $31.4 million for a 44-day period. If we were to assume a hypothetical output, the cost per unit would vary dramatically based on the complexity and value of the food item. Without knowing the exact items produced (e.g., bulk ingredients vs. specialized ready-to-eat meals) and their quantities, a meaningful comparison to market rates is impossible. Further details on the product specifications and quantities are required for such an analysis.

What is Vincent Farms Inc.'s track record with federal contracts, particularly with the Department of Agriculture?

Information regarding Vincent Farms Inc.'s specific track record with federal contracts, especially with the Department of Agriculture, is not provided in the initial data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any disputes or terminations, and the types and values of previous awards. Understanding their experience in fulfilling similar food manufacturing requirements is essential for evaluating the reliability and potential risks associated with this contract. Further research into the Federal Procurement Data System (FPDS) or other government contracting databases would be needed.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or the methods used to measure Vincent Farms Inc.'s performance under this contract. Typically, for manufacturing contracts, KPIs might include on-time delivery, product quality standards (e.g., adherence to specifications, defect rates), production volume, and compliance with safety regulations. The effectiveness of oversight and accountability relies heavily on clearly defined and measurable performance standards. Without this information, it is difficult to assess whether the contract achieved its intended objectives efficiently and effectively.

How does the spending on this contract compare to historical spending patterns for similar food manufacturing needs by the Department of Agriculture?

Comparing this $31.4 million contract to historical spending requires access to historical procurement data for similar food manufacturing services by the Department of Agriculture. The short duration (44 days) suggests this might be for a specific, potentially urgent, need rather than a long-term supply agreement. Analyzing past contracts for miscellaneous food manufacturing, especially those awarded under full and open competition, would reveal whether this award amount is typical, higher, or lower than previous procurements. Such a comparison would help determine if the current pricing reflects market trends or potential anomalies.

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: 123J1420B0677/4100021638

Offers Received: 40

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12487 SALT BARN RD, LAUREL, DE, 19956

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

Financial Breakdown

Contract Ceiling: $31,412,619

Exercised Options: $31,412,619

Current Obligation: $31,412,619

Actual Outlays: $29,235,327

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 123J1420G0058

IDV Type: BOA

Timeline