USDA's $20.76M seafood contract awarded to Ocean Select Seafood, L.L.C. for shrimp products

Contract Overview

Contract Amount: $20,760,118 ($20.8M)

Contractor: Ocean Select Seafood, L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2021-09-28

End Date: 2022-03-31

Contract Duration: 184 days

Daily Burn Rate: $112.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000008073/4100024224/SHRIMP PEELED & DVND 31-50 BLOCK#4/5 LB,SHRIMP PEELED & DVND 51-70 BLOCK#4/5 LB,SHRIMP PEELED & DVND 51-70 PKG#10/2 LB

Place of Performance

Location: BREAUX BRIDGE, SAINT MARTIN County, LOUISIANA, 70517

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.8 million to OCEAN SELECT SEAFOOD, L.L.C. for work described as: 2000008073/4100024224/SHRIMP PEELED & DVND 31-50 BLOCK#4/5 LB,SHRIMP PEELED & DVND 51-70 BLOCK#4/5 LB,SHRIMP PEELED & DVND 51-70 PKG#10/2 LB Key points: 1. The contract value of $20.76 million represents a significant investment in seafood procurement for federal programs. 2. Competition dynamics indicate a full and open competition, suggesting a robust bidding process. 3. The contract duration of 184 days points to a short-term need for these specific seafood products. 4. The firm fixed-price contract type aims to provide cost certainty for the government. 5. The absence of small business set-aside flags suggests larger contractors were primarily involved. 6. The procurement falls under the Seafood Product Preparation and Packaging NAICS code, indicating specific processing requirements.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the quantity and quality of shrimp procured. However, the total award of $20.76 million for a relatively short duration suggests a substantial volume. Further analysis would require comparing the per-pound cost against market rates for similar processed shrimp products. The firm fixed-price nature provides some assurance against cost overruns, but the overall value for money depends on the delivered quality and adherence to specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bids indicates a competitive environment, which generally benefits price discovery and can lead to more favorable pricing for the government. The level of competition suggests that the market for these specific shrimp products is sufficiently robust to attract multiple bidders.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages quality offerings.

Public Impact

The primary beneficiaries are likely federal nutrition programs, such as school lunch programs, which utilize procured seafood. The services delivered include the preparation and packaging of specific types of shrimp (peeled and deveined, various sizes). The geographic impact is primarily within the United States, supporting the domestic supply chain for seafood. Workforce implications may include jobs in seafood processing, packaging, and logistics related to fulfilling this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the seafood market impacting the fixed-price contract's value over time.
Dependence on a single contractor for a significant volume of a specific food product could pose supply chain risks.
Ensuring consistent quality and adherence to food safety standards throughout the contract period is critical.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides budget certainty.
The contractor, Ocean Select Seafood, L.L.C., is a participant in the federal contracting market.

Sector Analysis

The seafood processing industry is a significant segment of the broader food manufacturing sector. This contract falls within the Seafood Product Preparation and Packaging category, which involves cleaning, processing, and packaging seafood for distribution. The market for federal seafood procurement is substantial, driven by various government agencies supporting domestic agriculture and nutrition programs. Comparable spending benchmarks would involve analyzing other large-scale seafood procurement contracts awarded by agencies like the Department of Defense or the USDA itself.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'ss': false and 'sb': false. This suggests that the procurement was not specifically targeted towards small businesses, and larger entities likely participated in the bidding process. There is no explicit information on subcontracting plans for small businesses within the provided data, but the absence of a set-aside implies that opportunities for small business involvement may be limited unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service (AMS). AMS is responsible for ensuring that procured goods meet specified quality and delivery requirements. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful delivery. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

National School Lunch Program
USDA Food Purchase Programs
Federal Food Procurement
Seafood Supply Chain Management

Risk Flags

Potential for price volatility in the seafood market impacting fixed-price contract.
Supply chain risks associated with reliance on a single contractor for a specific food product.
Ensuring consistent quality and food safety standards for perishable goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.8 million to OCEAN SELECT SEAFOOD, L.L.C.. 2000008073/4100024224/SHRIMP PEELED & DVND 31-50 BLOCK#4/5 LB,SHRIMP PEELED & DVND 51-70 BLOCK#4/5 LB,SHRIMP PEELED & DVND 51-70 PKG#10/2 LB

Who is the contractor on this award?

The obligated recipient is OCEAN SELECT SEAFOOD, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2021-09-28. End: 2022-03-31.

What is the historical spending pattern for similar seafood procurement contracts by the Department of Agriculture?

Analyzing historical spending for similar seafood procurement contracts by the USDA requires access to comprehensive federal procurement data. Typically, agencies like the USDA procure large volumes of food products, including seafood, to support various domestic nutrition and agricultural programs. Past contracts would reveal trends in awarded dollar amounts, types of seafood procured (e.g., shrimp, fish fillets, canned tuna), contract durations, and the primary contractors involved. Examining this history can help identify fluctuations in demand, price trends, and the consistency of specific suppliers. For instance, a review might show whether the volume and value of shrimp procurement have remained relatively stable or have experienced significant shifts over the past five to ten years, potentially influenced by market conditions, policy changes, or program adjustments. Understanding these patterns provides context for the current $20.76 million award, allowing for an assessment of whether it aligns with historical norms or represents a deviation.

How does the per-unit cost of shrimp in this contract compare to market rates for similar products?

To compare the per-unit cost of shrimp in this contract to market rates, detailed information on the exact quantity (in pounds) and specific characteristics (e.g., size, grade, processing level) of the shrimp procured is necessary. The contract award of $20.76 million for 'SHRIMP PEELED & DVND 31-50 BLOCK#4/5 LB' and 'SHRIMP PEELED & DVND 51-70 PKG#10/2 LB' provides a total value but not a precise breakdown of pounds per type. Assuming an estimated total weight based on typical packaging and block sizes, one could calculate an average per-pound cost. This calculated cost would then be benchmarked against prevailing wholesale or commodity prices for similar shrimp products during the contract period (September 2021 to March 2022). Factors such as origin, wild-caught versus farmed, and specific certifications (e.g., sustainable sourcing) would also influence market rates. A significant deviation from market averages, either higher or lower, would warrant further investigation into the reasons behind the pricing.

What is Ocean Select Seafood, L.L.C.'s track record with federal contracts, particularly for seafood procurement?

Ocean Select Seafood, L.L.C.'s track record with federal contracts, especially for seafood procurement, can be assessed by reviewing their award history in federal procurement databases like SAM.gov or FPDS. This would reveal the number of contracts awarded, their total value, the agencies involved, and the types of goods or services provided. For seafood procurement specifically, it's important to note if they have consistently won contracts for similar products (e.g., shrimp, various sizes, peeled and deveined) and if they have a history of successful performance. Examining past performance evaluations, if publicly available, can provide insights into their reliability, quality of products, and adherence to delivery schedules. A history of successful, timely deliveries and quality products would indicate a lower risk for this current contract. Conversely, a record of contract disputes, late deliveries, or quality issues would raise concerns about their capacity and reliability.

What are the potential risks associated with a firm fixed-price contract for perishable goods like shrimp?

Firm fixed-price (FFP) contracts for perishable goods like shrimp present specific risks. For the government, the primary risk is that the contractor might cut corners on quality or service to maintain profitability if market prices rise unexpectedly or their costs increase significantly during the contract period. This could lead to receiving substandard products or facing delivery issues. For the contractor, the risk lies in absorbing unforeseen cost increases due to market volatility, supply chain disruptions, or changes in production costs (e.g., fuel, labor, feed for farmed shrimp). If their costs exceed the fixed price, they may incur losses. In the context of this $20.76 million USDA contract, potential risks include fluctuations in shrimp availability due to environmental factors, disease outbreaks in aquaculture, or global market demand shifts, all of which could impact the contractor's ability to deliver at the agreed-upon price and quality.

How does the competition level (7 bidders) impact the government's ability to secure favorable pricing for this seafood contract?

A competition level involving seven bidders, as indicated for this USDA seafood contract, generally signifies a healthy and competitive market for the specified products. A higher number of bidders typically increases the likelihood that the government will receive competitive pricing. Each bidder is incentivized to offer their best price and terms to win the contract, leading to downward pressure on costs. This level of competition allows the government to potentially secure more favorable pricing compared to a sole-source or limited-competition scenario. Furthermore, it provides a broader range of options in terms of product quality, delivery capabilities, and specialized services. The government can leverage the bids received to benchmark prices and negotiate effectively, ensuring that taxpayer funds are utilized efficiently. The presence of multiple bidders also reduces the risk of vendor lock-in and promotes a more dynamic marketplace.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1421B0563/4100024224

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1019 NINA HWY, BREAUX BRIDGE, LA, 70517

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,760,118

Exercised Options: $20,760,118

Current Obligation: $20,760,118

Actual Outlays: $20,760,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline