USDA's $196M contract for pre-cooked meat and dairy products awarded to Goodman Food Products, Inc

Contract Overview

Contract Amount: $196,225,869 ($196.2M)

Contractor: Goodman Food Products, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2020-05-15

End Date: 2020-09-19

Contract Duration: 127 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020122/PRECOOKED MEAT BOX,DAIRY PRODUCTS BOX

Place of Performance

Location: INGLEWOOD, LOS ANGELES County, CALIFORNIA, 90302

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $196.2 million to GOODMAN FOOD PRODUCTS, INC. for work described as: 2000006919/4100020122/PRECOOKED MEAT BOX,DAIRY PRODUCTS BOX Key points: 1. The contract value of $196.2 million represents a significant investment in food supply chain resilience. 2. Competition dynamics for this contract appear robust, with 568 offers received, suggesting a healthy market. 3. The firm-fixed-price contract type generally offers good cost control for the government. 4. Performance is situated within the 'All Other Miscellaneous Food Manufacturing' NAICS code, indicating specialized production. 5. The contract's duration of 127 days suggests a focused, short-term need for these specific food items. 6. The geographic scope is limited to California, potentially indicating regional distribution or production focus.

Value Assessment

Rating: good

The contract's total value of $196.2 million for pre-cooked meat and dairy products is substantial. Benchmarking this against similar large-scale food procurement contracts is challenging without more specific product details and market data. However, the firm-fixed-price structure suggests an effort to lock in costs. The number of offers (568) indicates a competitive environment which typically drives better pricing, implying the value achieved is likely reasonable, though a detailed cost analysis would be needed for definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting a significant number of offers (568). This high level of competition is a positive indicator for price discovery and ensures that a wide range of potential suppliers had the opportunity to bid. The extensive bidding process suggests that the government likely received competitive pricing and a broad selection of qualified vendors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in more favorable pricing and a wider array of product options, maximizing the value of federal dollars spent on essential food supplies.

Public Impact

The primary beneficiaries are likely federal agencies and potentially food banks or disaster relief organizations that utilize these pre-cooked meat and dairy products. The services delivered involve the provision of essential food items, crucial for maintaining food security and operational readiness. The geographic impact is specified as California, suggesting that the distribution or production of these goods is concentrated within the state. Workforce implications could include employment within Goodman Food Products, Inc. and its supply chain, particularly in food manufacturing and logistics within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control and consistency of pre-cooked products over the contract duration.
Logistical challenges in distributing perishable food items within the specified region.

Positive Signals

High number of offers indicates strong market interest and potential for reliable sourcing.
Firm-fixed-price contract provides cost certainty for the government.
Award to an established entity suggests a degree of proven capability.

Sector Analysis

This contract falls within the broader food manufacturing sector, specifically focusing on processed and pre-cooked items. The market for such goods is substantial, driven by demand from government, institutional, and commercial sectors. The Agricultural Marketing Service (AMS) often procures food products to support various federal programs, including domestic nutrition assistance and disaster relief. Benchmarks for similar large-scale food procurements would depend heavily on the specific product mix and volume, but this contract represents a significant single award.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). While Goodman Food Products, Inc. is the prime contractor, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem is therefore indirect, potentially through opportunities within Goodman's supply chain if they engage small suppliers, but no direct set-aside benefits are evident.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service (AMS). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

National School Lunch Program
Food Distribution Program on Indian Reservations
Emergency Food Assistance Program
Disaster Food Assistance

Risk Flags

Potential for supply chain disruptions
Quality control of perishable goods
Logistical challenges in distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $196.2 million to GOODMAN FOOD PRODUCTS, INC.. 2000006919/4100020122/PRECOOKED MEAT BOX,DAIRY PRODUCTS BOX

Who is the contractor on this award?

The obligated recipient is GOODMAN FOOD PRODUCTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $196.2 million.

What is the period of performance?

Start: 2020-05-15. End: 2020-09-19.

What is the historical spending pattern for pre-cooked meat and dairy products by the Department of Agriculture?

Analyzing historical spending patterns for specific food items like 'pre-cooked meat box' and 'dairy products box' requires access to detailed historical contract databases. The Agricultural Marketing Service (AMS) within the USDA frequently procures food products to support various domestic nutrition programs and emergency food assistance. While this $196 million contract is substantial, AMS likely awards numerous contracts of varying sizes for different food categories annually. Trends in spending could be influenced by factors such as changes in program needs, commodity prices, and federal budget allocations. A comprehensive review would involve tracking spending across similar NAICS codes (e.g., 311999) and contract types over several fiscal years to identify patterns, fluctuations, and the prevalence of full and open competition versus other methods.

How does the per-unit cost of these food products compare to commercial market rates?

Determining the precise per-unit cost comparison is difficult without itemized pricing from the contract and specific market data for the exact 'pre-cooked meat box' and 'dairy products box' configurations. However, the contract's firm-fixed-price nature and the high number of bidders (568 offers) suggest competitive pricing was sought. Generally, government contracts can achieve prices at or below market rates due to volume purchasing power and competitive bidding. Conversely, specialized requirements or expedited delivery could sometimes lead to higher costs than standard commercial offerings. A detailed analysis would involve obtaining the unit prices within the contract and comparing them against current wholesale or bulk purchasing prices from major food distributors and manufacturers operating in California.

What are the specific quality assurance and inspection protocols for these food products?

The contract likely includes detailed specifications for the quality, safety, and composition of the pre-cooked meat and dairy products. The Agricultural Marketing Service (AMS) typically mandates compliance with USDA food safety regulations and may require specific certifications (e.g., HACCP). Inspection protocols could involve pre-shipment inspections, random sampling upon delivery, and adherence to shelf-life requirements. The contract terms would outline the procedures for acceptance or rejection of goods not meeting specifications. Goodman Food Products, Inc., as the contractor, is responsible for ensuring consistent quality throughout the contract period, and failure to meet these standards could result in penalties or contract termination.

What is the track record of Goodman Food Products, Inc. in fulfilling large federal food contracts?

Assessing Goodman Food Products, Inc.'s track record requires examining their past performance on federal contracts, particularly those of similar size and scope. Information on previous awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations would be relevant. As a recipient of a $196 million contract, it suggests they have demonstrated capability and reliability in previous dealings or possess the capacity to handle such a large undertaking. Further investigation into their contract history with the USDA or other federal agencies would provide a clearer picture of their performance reliability and experience in delivering food products under government requirements.

What are the potential risks associated with a short-duration contract for perishable goods?

Short-duration contracts for perishable goods, like this 127-day contract, carry specific risks. These include the potential for supply chain bottlenecks if demand surges unexpectedly within the limited timeframe, leading to delivery delays. There's also a risk of product spoilage or quality degradation if logistics and handling are not meticulously managed from production to delivery. For the government, a short window might limit the ability to fully leverage economies of scale or make mid-contract adjustments if needs evolve. The contractor, Goodman Food Products, Inc., faces pressure to meet all delivery schedules within the tight timeframe, potentially increasing operational costs or requiring significant inventory management.

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: 123J1420R0377/4100020122

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E BEACH AVE, INGLEWOOD, CA, 90302

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

Financial Breakdown

Contract Ceiling: $327,738,294

Exercised Options: $327,738,294

Current Obligation: $196,225,869

Actual Outlays: $156,709,351

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline