USDA Awards $31.7M for Frozen Ground Beef to Florida Beef Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $31,721,760 ($31.7M)

Contractor: Florida Beef Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-09-25

End Date: 2025-01-31

Contract Duration: 128 days

Daily Burn Rate: $247.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010350/4100031021/BEEF COARSE GROUND FRZ CTN-60 LB

Place of Performance

Location: CENTER HILL, SUMTER County, FLORIDA, 33514

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $31.7 million to FLORIDA BEEF INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010350/4100031021/BEEF COARSE GROUND FRZ CTN-60 LB Key points: 1. Significant award for a large quantity of frozen ground beef. 2. Florida Beef Inc. is the sole awardee for this contract. 3. The contract is for food donations, indicating a public service purpose. 4. The sector is primarily food commodities and agricultural products.

Value Assessment

Rating: good

The award amount of $31.7 million for 128 days of supply appears reasonable for bulk commodity procurement. Benchmarking against similar large-scale food donation contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process was initiated. This method aims to ensure fair pricing and access for qualified vendors.

Taxpayer Impact: The taxpayer impact is the direct cost of the contract, $31.7 million, which funds essential food donations.

Public Impact

Ensures availability of essential food items for donation programs. Supports agricultural producers and the food supply chain. Contributes to food security initiatives for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets.
Logistical challenges in distribution of frozen goods.

Positive Signals

Supports critical food donation programs.
Utilizes a competitive bidding process.
Clear contract duration and delivery schedule.

Sector Analysis

This contract falls within the agricultural and food commodities sector, specifically focusing on meat processing and distribution for government programs. Spending benchmarks for similar large-scale food procurement contracts are typically in the millions, aligning with this award.

Small Business Impact

The data indicates this is a large contract awarded to a specific company, Florida Beef Inc. There is no explicit mention of small business participation or subcontracting in the provided details, suggesting it may not directly benefit small businesses.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the Department of Agriculture is responsible for this procurement. Oversight would involve ensuring quality, timely delivery, and adherence to contract terms, particularly given the large volume and frozen nature of the product.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price volatility in commodity markets.
Dependence on a single supplier for a large volume.
Logistical complexity of frozen food distribution.
Lack of explicit small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $31.7 million to FLORIDA BEEF INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010350/4100031021/BEEF COARSE GROUND FRZ CTN-60 LB

Who is the contractor on this award?

The obligated recipient is FLORIDA BEEF INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2024-09-25. End: 2025-01-31.

What is the historical pricing trend for coarse ground beef from this vendor or similar vendors to assess value?

Analyzing historical pricing data for coarse ground beef from Florida Beef Inc. or comparable suppliers is crucial for a comprehensive value assessment. Without this data, it's difficult to definitively state if $31.7 million represents optimal value. Benchmarking against past USDA food donation contracts or market prices for similar quantities and quality would provide necessary context to determine if the current price is competitive and cost-effective for taxpayers.

What are the specific risks associated with the supply chain and quality control for a large volume of frozen beef?

Key risks include maintaining the cold chain integrity throughout transportation and storage to prevent spoilage, potential for supply disruptions due to unforeseen events (e.g., disease outbreaks, weather), and ensuring consistent product quality that meets USDA specifications. The large volume amplifies these risks, requiring robust logistical planning and stringent quality assurance protocols from the vendor and oversight from the agency.

How effectively does this procurement method ensure the best outcome for the food donation program's beneficiaries?

The 'Full and Open Competition After Exclusion of Sources' method aims to ensure a competitive price and access to qualified suppliers, which indirectly benefits beneficiaries by maximizing the quantity and quality of food procured within budget. However, the ultimate effectiveness also depends on efficient distribution and the specific nutritional needs of the recipient populations, which are outside the scope of this procurement data.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1424B0621

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 441 STATE ROAD 64 E, ZOLFO SPRINGS, FL, 33890

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

Financial Breakdown

Contract Ceiling: $31,721,760

Exercised Options: $31,721,760

Current Obligation: $31,721,760

Actual Outlays: $31,614,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline