USDA's $70.6M Contract for Precooked Meat and Produce Boxes Awarded to Gordon Food Service

Contract Overview

Contract Amount: $70,652,428 ($70.7M)

Contractor: Gordon Food Service, Inc

Awarding Agency: Department of Agriculture

Start Date: 2020-05-15

End Date: 2020-08-31

Contract Duration: 108 days

Daily Burn Rate: $654.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020130/PRECOOKED MEAT BOX,FRESH FRUIT/VEGETABLE BOX,DAIRY PRODUCTS BOX

Place of Performance

Location: WYOMING, KENT County, MICHIGAN, 49509

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $70.7 million to GORDON FOOD SERVICE, INC for work described as: 2000006919/4100020130/PRECOOKED MEAT BOX,FRESH FRUIT/VEGETABLE BOX,DAIRY PRODUCTS BOX Key points: 1. Significant contract value of $70.6 million for essential food items. 2. Gordon Food Service, a major player, secured the award. 3. Potential risk of limited long-term price stability due to firm fixed-price structure. 4. Spending falls within the broad category of food and agricultural services.

Value Assessment

Rating: good

The contract value of $70.6 million for a 108-day period appears reasonable given the scope of providing fresh produce, dairy, and precooked meat boxes. Benchmarking against similar large-scale food distribution contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors are encouraged to bid.

Taxpayer Impact: The competitive bidding process likely resulted in a fair price for taxpayers, avoiding inflated costs associated with sole-source or limited competition awards.

Public Impact

Ensures availability of essential food items like meat, fruits, vegetables, and dairy. Supports food supply chains and potentially local producers through Gordon Food Service's distribution network. Provides critical resources during the specified contract period, potentially for emergency or program needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (108 days) may limit long-term planning and economies of scale.
Firm fixed-price contract could lead to vendor profit if costs decrease significantly.
Reliance on a single large vendor for a substantial volume of goods.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract addresses essential food needs, aligning with public service goals.
Clear contract start and end dates facilitate accountability.

Sector Analysis

This contract falls under the broader food services and distribution sector. Spending benchmarks for similar government contracts involving large-scale food procurement and distribution can vary widely based on quantity, type of goods, and duration.

Small Business Impact

While Gordon Food Service is a large corporation, the contract's scale might indirectly benefit small businesses within their supply chain. However, the primary awardee is not a small business, and there's no explicit mention of small business set-asides in this data.

Oversight & Accountability

The Agricultural Marketing Service (AMS) awarded this contract. Oversight would involve monitoring delivery, quality, and adherence to contract terms by Gordon Food Service to ensure taxpayer funds are used effectively.

Related Government Programs

Meat Processed from Carcasses
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price increases if market conditions change significantly during the contract.
Limited visibility into the specific end-use program, making value assessment less precise.
Short contract duration may not reflect long-term strategic sourcing benefits.
Dependence on a single large contractor for a substantial volume of essential goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $70.7 million to GORDON FOOD SERVICE, INC. 2000006919/4100020130/PRECOOKED MEAT BOX,FRESH FRUIT/VEGETABLE BOX,DAIRY PRODUCTS BOX

Who is the contractor on this award?

The obligated recipient is GORDON FOOD SERVICE, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $70.7 million.

What is the period of performance?

Start: 2020-05-15. End: 2020-08-31.

What was the specific need or program driving this large procurement of precooked meat and produce boxes?

The specific need or program driving this procurement is not detailed in the provided data. However, such contracts often support federal nutrition assistance programs, disaster relief efforts, or provisioning for federal facilities. Understanding the end-use would clarify the necessity and value proposition of the $70.6 million expenditure.

How does the per-unit cost of these boxes compare to commercial market prices, considering the bulk purchasing power?

Without specific unit details (e.g., weight, quantity per box type), a direct per-unit cost comparison is challenging. However, government contracts often aim for prices at or below commercial rates due to bulk purchasing. The firm fixed-price nature suggests the government accepted a specific price, assuming it was competitive at the time of award.

What mechanisms are in place to ensure the quality and freshness of the delivered food items over the contract period?

Quality assurance mechanisms typically involve detailed specifications within the contract regarding product standards, packaging, and delivery conditions. The Agricultural Marketing Service would likely conduct inspections and require vendor compliance reports. Failure to meet quality standards could result in penalties or contract termination.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Meat Processed from Carcasses

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 123J1420R0377/4100020130

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1300 GEZON PKWY SW, WYOMING, MI, 49509

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

Financial Breakdown

Contract Ceiling: $70,652,428

Exercised Options: $70,652,428

Current Obligation: $70,652,428

Actual Outlays: $58,837,099

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline