USDA's $27.7M Food Donation Support Contract Awarded to McLane Group International
Contract Overview
Contract Amount: $27,769,218 ($27.8M)
Contractor: Mclane Group International, L.P.
Awarding Agency: Department of Agriculture
Start Date: 2025-09-15
End Date: 2026-09-14
Contract Duration: 364 days
Daily Burn Rate: $76.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000010504/4400002495/4300014559/3PL SERVICES
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77090
State: Texas Government Spending
Plain-Language Summary
Department of Agriculture obligated $27.8 million to MCLANE GROUP INTERNATIONAL, L.P. for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000010504/4400002495/4300014559/3PL SERVICES Key points: 1. The contract focuses on essential warehousing and storage services for USG food donations. 2. McLane Group International, a significant player, secured this delivery order. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The primary sector is logistics and warehousing, crucial for supply chain efficiency.
Value Assessment
Rating: good
The contract's value of $27.7M for a one-year period appears reasonable for specialized third-party logistics services supporting food donations. Benchmarking against similar government warehousing contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to result in cost savings for taxpayers by securing efficient and cost-effective support services for food donation programs.
Public Impact
Ensures efficient distribution of donated food to those in need. Supports critical government functions in food security and aid. Creates jobs in warehousing and logistics sectors. Contributes to the stability of food supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for cost overruns with Time and Materials contract type.
- Dependence on a single vendor for critical logistics.
Positive Signals
- Full and open competition ensures fair pricing.
- Supports vital food donation programs.
- Awarded to an established logistics provider.
Sector Analysis
The sector is General Warehousing and Storage (NAICS 493110), a critical component of the supply chain. Government spending in this area supports national logistics infrastructure and ensures the efficient movement of goods, including essential food supplies.
Small Business Impact
The contract was awarded to McLane Group International, L.P., a large business. There is no indication of specific set-asides or subcontracting requirements for small businesses in the provided data.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting it has undergone initial review. Ongoing oversight by the Department of Agriculture's Food and Nutrition Service will be crucial to ensure performance and cost control.
Related Government Programs
- General Warehousing and Storage
- Department of Agriculture Contracting
- Food and Nutrition Service Programs
Risk Flags
- Time and Materials contract type can lead to cost uncertainty.
- Potential for vendor lock-in if competition is not sustained.
- Reliance on a single large business may limit small business participation.
- Geographic concentration in Texas could pose risks if disruptions occur.
Tags
general-warehousing-and-storage, department-of-agriculture, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $27.8 million to MCLANE GROUP INTERNATIONAL, L.P.. SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000010504/4400002495/4300014559/3PL SERVICES
Who is the contractor on this award?
The obligated recipient is MCLANE GROUP INTERNATIONAL, L.P..
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Food and Nutrition Service).
What is the total obligated amount?
The obligated amount is $27.8 million.
What is the period of performance?
Start: 2025-09-15. End: 2026-09-14.
What is the projected cost per pound or per unit handled under this contract, and how does it compare to industry benchmarks?
The provided data does not include specific cost per pound or unit metrics. A Time and Materials contract type can make precise cost forecasting challenging. Further analysis would require detailed operational data from McLane Group International to establish a meaningful benchmark against industry standards for food warehousing and distribution.
What are the key performance indicators (KPIs) for this contract, and what mechanisms are in place to mitigate risks associated with delivery delays or spoilage?
Specific KPIs are not detailed in the provided data. However, as a Time and Materials contract, performance is likely monitored closely. Mitigation strategies for delays or spoilage would typically involve contractual clauses, regular performance reviews, and contingency planning by both the contractor and the Food and Nutrition Service.
How does the government ensure the efficiency and cost-effectiveness of these third-party logistics services compared to in-house government operations?
The government leverages full and open competition to drive efficiency and cost-effectiveness by selecting the most competitive offer. Outsourcing to specialized third-party logistics providers like McLane Group International allows the government to access expertise and infrastructure without direct capital investment, potentially leading to lower overall costs and improved service delivery.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 12319825R0010
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1902 CYPRESS STATION DR STE 200, HOUSTON, TX, 77090
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,769,218
Exercised Options: $27,769,218
Current Obligation: $27,769,218
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 12319825D0002
IDV Type: IDC
Timeline
Start Date: 2025-09-15
Current End Date: 2026-09-14
Potential End Date: 2026-09-14 00:00:00
Last Modified: 2026-03-26
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