USDA's Agricultural Marketing Service awards $49.4M contract for food manufacturing to Costa Fruit & Produce Co

Contract Overview

Contract Amount: $49,364,938 ($49.4M)

Contractor: Costa Fruit & Produce CO

Awarding Agency: Department of Agriculture

Start Date: 2021-01-19

End Date: 2021-05-31

Contract Duration: 132 days

Daily Burn Rate: $374.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 171

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007490/4100022287/COMBINATION BOX

Place of Performance

Location: CHARLESTOWN, SUFFOLK County, MASSACHUSETTS, 02129

State: Massachusetts Government Spending

Plain-Language Summary

Department of Agriculture obligated $49.4 million to COSTA FRUIT & PRODUCE CO for work described as: 2000007490/4100022287/COMBINATION BOX Key points: 1. The contract value of $49.4 million is significant for the 'All Other Miscellaneous Food Manufacturing' NAICS code. 2. Costa Fruit & Produce Co. secured this award through full and open competition. 3. The contract is a delivery order under a larger agreement, indicating potential for follow-on work. 4. The firm fixed price contract type suggests price certainty for the government.

Value Assessment

Rating: good

The contract value of $49.4 million appears reasonable given the scope of 'All Other Miscellaneous Food Manufacturing'. Benchmarking against similar large-scale food supply contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.

Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, likely resulting in a fair market price for the goods or services procured.

Public Impact

Ensures continued supply of essential food products for government programs. Supports a key player in the food manufacturing sector. Potential impact on food prices and availability depending on the specific products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product details limits full understanding of value.
Potential for price fluctuations in raw materials impacting firm fixed price.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Delivery order structure suggests established relationship and potential for efficiency.

Sector Analysis

This contract falls under the 'All Other Miscellaneous Food Manufacturing' sector, which encompasses a broad range of food processing activities. Spending in this sector can vary widely based on government needs for specific food items.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses were subcontractors.

Oversight & Accountability

The contract was awarded as a delivery order, suggesting it is part of a larger framework agreement. Oversight would focus on the performance of this specific order and its alignment with the parent contract.

Related Government Programs

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

Risk Flags

Lack of specific product details.
Potential for raw material price volatility.
Contract awarded as a delivery order, not a standalone new contract.
No small business set-aside indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $49.4 million to COSTA FRUIT & PRODUCE CO. 2000007490/4100022287/COMBINATION BOX

Who is the contractor on this award?

The obligated recipient is COSTA FRUIT & PRODUCE CO.

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: 2021-01-19. End: 2021-05-31.

What specific food products or services are covered under this contract, and how do they align with USDA's mission?

The contract is categorized under 'All Other Miscellaneous Food Manufacturing' (NAICS 311999). While specific product details are not provided, this category typically includes processed foods like canned goods, frozen foods, baked goods, and other prepared food items. These likely support various USDA programs, such as food assistance, school lunch programs, or strategic food reserves, contributing to national food security and nutrition goals.

What are the potential risks associated with a firm fixed price contract for food manufacturing, especially given the short performance period?

A primary risk with firm fixed price contracts in food manufacturing is the potential for cost overruns if raw material prices or production costs increase unexpectedly during the contract period. For Costa Fruit & Produce Co., this could reduce profit margins. The short performance period (January 19, 2021, to May 31, 2021) might mitigate some long-term price volatility risks but could still be affected by short-term market fluctuations.

How does the competitive landscape for 'All Other Miscellaneous Food Manufacturing' contracts influence pricing and vendor selection?

Full and open competition generally fosters a competitive landscape, encouraging vendors like Costa Fruit & Produce Co. to offer competitive pricing to secure the award. This benefits the government by driving down costs. However, the specific nature of 'miscellaneous' food manufacturing means the vendor pool might be specialized, and the government likely sought vendors with proven capabilities in producing the required items efficiently and at scale.

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: 123J1421B0110/4100022287

Offers Received: 171

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18 BUNKER HILL INDUSTRIAL PARK, BOSTON, MA, 02129

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

Financial Breakdown

Contract Ceiling: $49,364,938

Exercised Options: $49,364,938

Current Obligation: $49,364,938

Actual Outlays: $49,364,938

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 123J1420G0099

IDV Type: BOA

Timeline