USDA's $39.9M fresh fruit and vegetable box contract awarded to FARM CUT LLC for pandemic relief

Contract Overview

Contract Amount: $39,854,420 ($39.9M)

Contractor: Farm CUT LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $311.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4100020176/FRESH FRUIT/VEG BOX

Place of Performance

Location: PLANT CITY, HILLSBOROUGH County, FLORIDA, 33566

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $39.9 million to FARM CUT LLC for work described as: 4100020176/FRESH FRUIT/VEG BOX Key points: 1. Contract aimed to support farmers and provide food to those in need during the COVID-19 pandemic. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract's short duration (128 days) indicates a response to an immediate need. 4. Pricing appears to be a firm fixed price, offering cost certainty. 5. The contract value is substantial, reflecting the scale of the pandemic's impact on food supply chains. 6. Geographic focus on Florida (ST/SN) suggests targeted regional support.

Value Assessment

Rating: good

The contract value of approximately $39.9 million for a 128-day period for fresh fruit and vegetable boxes appears reasonable given the context of pandemic-related supply chain disruptions and the need for rapid food distribution. Benchmarking against similar disaster relief or food box programs would provide further insight, but the scale suggests a significant effort to procure and distribute essential food items. The firm fixed-price structure offers predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bids received (568) is exceptionally high, suggesting robust market interest and a competitive environment. This level of competition is generally favorable for price discovery and achieving value for the government.

Taxpayer Impact: A high number of bidders in a full and open competition typically leads to more competitive pricing, potentially resulting in cost savings for taxpayers compared to less competitive solicitations.

Public Impact

Beneficiaries include farmers who received a market for their produce and individuals and families who received food assistance. Services delivered include the procurement, packaging, and distribution of fresh fruit and vegetable boxes. The geographic impact was primarily focused on Florida, as indicated by the state and county codes. Workforce implications include support for agricultural workers involved in harvesting, packing, and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for logistical challenges in rapid distribution of perishable goods.
Ensuring equitable distribution to all intended recipients within the target region.
Monitoring the quality and freshness of produce throughout the supply chain.

Positive Signals

Direct support to agricultural producers during a period of market disruption.
Provision of essential nutrition to vulnerable populations.
Demonstrated ability to rapidly procure and distribute large quantities of food.

Sector Analysis

This contract falls within the broader agricultural and food distribution sector. The market for fresh produce is vast, with numerous suppliers and distributors. This specific contract, however, was a targeted initiative likely driven by emergency circumstances, such as the COVID-19 pandemic, to address both agricultural market stability and food security. Comparable spending might be found in other government food assistance programs or disaster relief efforts.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit indication of a small business set-aside. The high number of bidders (568) suggests that small businesses could have participated, but their specific involvement or subcontracting opportunities are not detailed in the provided data. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Oversight would typically involve contract management by the agency to ensure compliance with terms, delivery of goods, and adherence to the firm fixed-price agreement. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

USDA Farmers to Families Food Box Program
SNAP (Supplemental Nutrition Assistance Program)
WIC (Women, Infants, and Children) Program
Disaster Food Assistance Programs

Risk Flags

Perishability of goods requires efficient logistics.
Potential for supply chain disruptions impacting delivery.
Ensuring equitable distribution to target populations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $39.9 million to FARM CUT LLC. 4100020176/FRESH FRUIT/VEG BOX

Who is the contractor on this award?

The obligated recipient is FARM CUT LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2020-05-14. End: 2020-09-19.

What was the specific mechanism for distributing the food boxes to end recipients?

The provided data does not detail the specific distribution mechanisms. However, similar USDA programs during the pandemic often involved partnerships with local food banks, community organizations, schools, and direct delivery routes to reach households. The Agricultural Marketing Service (AMS) likely coordinated with state and local entities to manage the logistics of getting the boxes from producers to consumers, prioritizing areas with high need and limited access to fresh food.

How did the number of bidders (568) compare to typical solicitations for similar agricultural products?

A solicitation receiving 568 bids is exceptionally high for most government contracts, including those for agricultural products. This suggests either a very broad market appeal, a significant unmet need that attracted many potential suppliers, or perhaps a unique solicitation structure that encouraged widespread participation. For standard agricultural commodity procurements, the number of bidders is often much lower, typically in the dozens rather than hundreds. This high number likely reflects the urgency and specific nature of the program, possibly related to pandemic relief efforts.

What was the average cost per box or per pound of produce under this contract?

The provided data does not include the quantity of boxes or the total weight of produce procured, making it impossible to calculate a precise per-box or per-pound cost. The total award amount was approximately $39.9 million over a 128-day period. To determine unit costs, one would need additional information on the number of boxes distributed or the total tonnage of fruits and vegetables purchased. Without this, benchmarking the value on a per-unit basis is not feasible.

What was the track record of FARM CUT LLC prior to this award?

The provided data does not contain information on FARM CUT LLC's prior contract history or performance record. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) for previous awards, contract performance evaluations (CPARS), and any reported issues or successes. Without this external data, it's impossible to evaluate their past performance or suitability for this large-scale contract.

Were there any performance issues or contract modifications during the contract period?

The provided data does not include details on contract modifications or performance issues. The contract had a short duration (128 days) and a firm fixed-price structure, which typically aims to minimize modifications. However, in emergency situations, modifications can occur due to unforeseen circumstances. A review of the contract file or official modification logs would be necessary to determine if any changes were made or if performance issues arose.

How did this contract's value compare to other USDA food box initiatives during the pandemic?

This contract, valued at approximately $39.9 million, was part of the broader USDA response to the COVID-19 pandemic, which included initiatives like the Farmers to Families Food Box Program. While this specific award is substantial, the overall Farmers to Families program involved billions of dollars in contracts distributed across numerous vendors and regions. This $39.9 million contract represents one component of that larger federal effort to support agricultural markets and provide food assistance during the crisis.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 123J1420R0377/4100020176

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oakes Farms Food & Distribution Services LLC

Address: 3508 SYDNEY RD, PLANT CITY, FL, 33566

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

Financial Breakdown

Contract Ceiling: $39,854,420

Exercised Options: $39,854,420

Current Obligation: $39,854,420

Actual Outlays: $39,832,027

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline