USDA awards $6.58M contract for food consumption data analysis to Circana, LLC

Contract Overview

Contract Amount: $6,582,000 ($6.6M)

Contractor: Circana, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD AWAY FROM HOME (FAFH) FOOD AT HOME (FAH) LOCATIONS AND PATTERNS DATASETS

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60601

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.6 million to CIRCANA, LLC for work described as: FOOD AWAY FROM HOME (FAFH) FOOD AT HOME (FAH) LOCATIONS AND PATTERNS DATASETS Key points: 1. Contract focuses on analyzing food away from home (FAFH) and food at home (FAH) consumption patterns. 2. Sole-source award raises questions about competition and potential value for money. 3. Long contract duration of 4 years suggests a need for sustained data collection and analysis. 4. The contract is categorized under 'Other Scientific and Technical Consulting Services', indicating specialized expertise is required. 5. Geographic location of contractor in Illinois may not be a primary factor for this type of data analysis. 6. Firm Fixed Price contract type aims to control costs, but the lack of competition limits price discovery.

Value Assessment

Rating: fair

The contract value of $6.58 million over four years for data analysis services appears reasonable given the scope of collecting and analyzing national food consumption patterns. However, without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition prevents a thorough assessment of whether the government secured the best possible value. The firm fixed price structure provides cost certainty, but the absence of multiple bids means there's no direct comparison to gauge efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Circana, LLC, was solicited. This approach is typically used when specific capabilities or circumstances justify bypassing full and open competition. The lack of multiple bidders means there was no opportunity for price negotiation or comparison among different providers, potentially leading to a higher cost than if the contract had been competed. The rationale for this sole-source award would need to be clearly documented to ensure it served the government's best interest.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price due to the absence of competitive pressure. This can result in a less efficient use of public funds compared to a competed contract.

Public Impact

The primary beneficiaries are the Department of Agriculture's Agricultural Research Service (ARS), which will receive critical data for understanding consumer behavior. The services delivered include the collection, analysis, and reporting of data on food consumption patterns, both at home and away from home. The geographic impact is national, as the data collected will inform policies and research across the United States. Workforce implications are likely internal to Circana, LLC, and potentially within ARS for data utilization, rather than broad public employment impacts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for money.
Lack of transparency in the justification for sole-source procurement.
Long contract duration could lead to cost overruns if not managed effectively.
Potential for vendor lock-in due to specialized data analysis requirements.

Positive Signals

Contract addresses a critical need for understanding national food consumption trends.
Firm Fixed Price contract type offers cost predictability.
Circana, LLC likely possesses specialized expertise required for this complex data analysis.
Long-term data collection can provide valuable longitudinal insights.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, specifically focusing on data analysis and research related to consumer behavior. The market for such services is broad, encompassing firms with expertise in data science, market research, and agricultural economics. The USDA's Agricultural Research Service often procures services to gather and analyze data that informs agricultural policy, food safety, and public health initiatives. Benchmarking this contract's value is challenging without competitive data, but the scale of national food consumption analysis suggests a significant undertaking.

Small Business Impact

There is no indication that this contract includes small business set-asides or subcontracting requirements. As a sole-source award to a single large entity (Circana, LLC), it is unlikely to directly benefit the small business ecosystem. The focus is on specialized data analysis capabilities that may be concentrated in larger firms. Further review of the contract details would be needed to confirm any subcontracting provisions, but the nature of the award suggests limited direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Research Service contracting officers and program managers. Accountability measures would be defined in the contract's statement of work, including deliverables, timelines, and performance standards. Transparency regarding the sole-source justification and the data analysis methodology would be key aspects of oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Health and Nutrition Examination Survey (NHANES)
Economic Research Service (ERS) Data Products
Bureau of Labor Statistics Consumer Expenditure Survey
Food Plans: Cost of Food Reports

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency in procurement process.
Long contract duration requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.6 million to CIRCANA, LLC. FOOD AWAY FROM HOME (FAFH) FOOD AT HOME (FAH) LOCATIONS AND PATTERNS DATASETS

Who is the contractor on this award?

The obligated recipient is CIRCANA, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the specific methodology Circana, LLC will use to collect and analyze food consumption data?

The provided data does not specify the exact methodology Circana, LLC will employ. However, contracts of this nature typically involve a combination of data sources, which may include consumer surveys, retail scanner data, and potentially other market research techniques. The Agricultural Research Service (ARS) would likely have detailed requirements in the contract's Statement of Work (SOW) outlining the expected data collection protocols, analytical frameworks, and reporting standards. These methodologies are crucial for ensuring the data's accuracy, reliability, and relevance to ARS research objectives concerning food security, nutrition, and consumer behavior.

How does the $6.58 million contract value compare to similar data analysis contracts for food consumption?

Benchmarking this $6.58 million contract against similar data analysis contracts for food consumption is challenging due to the sole-source nature of this award and the lack of publicly available, directly comparable contracts. Typically, the cost of such services depends heavily on the scope, duration, data sources utilized, and the specific analytical requirements. Contracts involving national-level consumer data analysis can range significantly. Without competitive bids, it's difficult to ascertain if this price represents optimal value for the government. A thorough review would require access to a broader dataset of federal procurements for similar services.

What are the key performance indicators (KPIs) for this contract, and how will Circana, LLC's performance be measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. However, for a contract focused on data analysis, KPIs would typically revolve around the quality, timeliness, and completeness of deliverables. This could include metrics such as adherence to data collection schedules, accuracy rates in data processing, the comprehensiveness of analytical reports, and the successful identification of key consumption trends. Performance would likely be assessed through regular reviews by the Agricultural Research Service (ARS) contracting officer's representative (COR), evaluation of interim and final reports, and potentially through user feedback on the utility of the data provided.

What is Circana, LLC's track record in handling large-scale government data analysis contracts, particularly in the agricultural or food sector?

Circana, LLC, formed from the merger of IRI and NPD Group, has a significant track record in market research and data analytics across various consumer sectors, including food. While specific details on their past government contracts are not provided here, their extensive experience with private sector clients in analyzing consumer purchasing behavior, market trends, and product performance suggests a strong capability to handle large-scale data analysis. Their expertise likely encompasses managing vast datasets and employing sophisticated analytical tools, which would be relevant for a government contract of this nature. Further investigation into their government contracting history would provide a more precise assessment.

What are the potential risks associated with a sole-source award for critical food consumption data?

The primary risk associated with a sole-source award for critical food consumption data is the potential lack of competitive pricing, which could lead to the government paying more than necessary. Another risk is the absence of diverse perspectives and innovative approaches that might emerge from a competitive bidding process. Furthermore, reliance on a single vendor could create dependency and limit flexibility if the vendor's capabilities or business circumstances change. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations to mitigate these risks and guarantee the quality and value of the services received.

How will the data collected under this contract be used by the Department of Agriculture, and what are the expected outcomes?

The data collected under this contract will be used by the Department of Agriculture's Agricultural Research Service (ARS) to gain a comprehensive understanding of national food consumption patterns, differentiating between food consumed at home (FAH) and food away from home (FAFH). Expected outcomes include informing ARS research on nutrition, food security, dietary guidelines, and the economic impact of food choices. This data can help policymakers develop targeted interventions, support agricultural producers by understanding market demands, and contribute to public health initiatives aimed at improving dietary habits across the United States. The insights derived are crucial for evidence-based decision-making within the agricultural and food policy domains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1232SA22R0029

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Samsung Electronics CO.,Ltd.

Address: 203 N LASALLE ST STE 1500,, CHICAGO, IL, 60601

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

Financial Breakdown

Contract Ceiling: $10,390,000

Exercised Options: $6,582,000

Current Obligation: $6,582,000

Actual Outlays: $4,935,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline