USDA's $30.1M contract for pre-cooked meat and dairy boxes awarded to Tasty Brands LLC

Contract Overview

Contract Amount: $30,129,001 ($30.1M)

Contractor: Tasty Brands LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $235.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020189/PRECOOKED MEAT BOX,COMBINATION BOX,DAIRY PRODUCTS BOX

Place of Performance

Location: SYOSSET, NASSAU County, NEW YORK, 11791

State: New York Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.1 million to TASTY BRANDS LLC for work described as: 2000006919/4100020189/PRECOOKED MEAT BOX,COMBINATION BOX,DAIRY PRODUCTS BOX Key points: 1. Contract value represents a significant investment in food provisions. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The short duration of the contract (128 days) indicates a specific, time-bound need. 5. The North American Industry Classification System (NAICS) code 311612 points to meat processing, aligning with the product description. 6. The contract was awarded to a single vendor, Tasty Brands LLC.

Value Assessment

Rating: fair

The contract value of $30.1 million for pre-cooked meat and dairy boxes over approximately four months appears substantial. Benchmarking this against similar large-scale food provision contracts is difficult without more specific details on the quantity, type, and quality of the goods. The firm fixed-price nature suggests the government aimed to lock in costs, but the overall value-for-money assessment depends heavily on the delivered quality and the necessity of such a large, short-term procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The record shows 568 offers were received, suggesting a highly competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The large number of bidders implies that multiple companies were capable of meeting the requirements.

Taxpayer Impact: The extensive competition for this contract likely resulted in a lower price for taxpayers compared to a sole-source or limited competition award. It suggests that the government secured a good deal due to the active participation of numerous vendors.

Public Impact

Beneficiaries likely include recipients of USDA food assistance programs or disaster relief efforts. Services delivered include the provision of pre-cooked meat boxes, combination boxes, and dairy products. The contract's geographic impact is centered in New York (ST: NY, SN: NEW YORK), where the vendor is located. Workforce implications are primarily within Tasty Brands LLC's operations and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor options in future similar procurements if Tasty Brands LLC is the only one with specific capabilities.
Dependence on a single vendor for a large quantity of essential food items could pose a supply chain risk.
The short contract duration might indicate a reactive procurement rather than strategic long-term planning.

Positive Signals

Successful execution of a large-scale food provision contract demonstrates operational capacity.
The firm fixed-price structure indicates a commitment to cost control by the contractor.
Award under full and open competition suggests the contractor met stringent government requirements.

Sector Analysis

The food manufacturing sector, specifically processed meats and dairy, is a significant part of the broader agricultural industry. This contract falls under the 'Meat Processed from Carcasses' (NAICS 311612) category. The market for government food procurement is substantial, driven by programs like school lunches, disaster relief, and military rations. Comparable spending benchmarks would depend on the specific product mix and volume, but large contracts for essential food items are common.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any small business set-aside. There is no explicit mention of subcontracting plans for small businesses. This suggests that small businesses may not have been primary bidders or subcontractors on this specific large-scale award, potentially limiting their direct participation in this particular procurement.

Oversight & Accountability

The contract is a 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type, which are standard mechanisms for cost control and accountability. Oversight would typically be managed by the Agricultural Marketing Service (AMS) within the Department of Agriculture. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA Food Purchase Programs
Disaster Assistance Food Contracts
School Lunch Program Provisions
Emergency Food Relief Contracts

Risk Flags

Potential supply chain vulnerability due to single-vendor award.
Lack of detailed product specifications in summary data.
Short contract duration may indicate reactive procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.1 million to TASTY BRANDS LLC. 2000006919/4100020189/PRECOOKED MEAT BOX,COMBINATION BOX,DAIRY PRODUCTS BOX

Who is the contractor on this award?

The obligated recipient is TASTY BRANDS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

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

What was the specific rationale for procuring pre-cooked meat and dairy boxes under this contract?

The provided data does not explicitly state the rationale. However, contracts for pre-cooked meat and dairy boxes are often associated with emergency food relief, disaster assistance, or specific feeding programs where convenience and rapid deployment of food supplies are critical. Given the short duration (128 days) and the substantial value, it's plausible this contract was to meet an urgent, time-sensitive need, potentially related to a natural disaster, public health event, or a surge in demand for a specific USDA feeding initiative.

How does the price per unit for these food boxes compare to market rates or similar government contracts?

Without detailed specifications of the contents (e.g., weight, type of meat, specific dairy products, quantity per box), a precise per-unit cost comparison is not feasible. The total contract value of $30.1 million over approximately 4 months for 568 offers suggests a significant volume. To benchmark, one would need to know the exact composition of the 'PRECOOKED MEAT BOX, COMBINATION BOX, DAIRY PRODUCTS BOX' and compare that to commercial wholesale prices or other government solicitations for comparable items. The firm fixed-price nature implies the contractor believed this price was competitive and profitable.

What is Tasty Brands LLC's track record with government contracts, particularly with the Department of Agriculture?

The provided data indicates Tasty Brands LLC was awarded this specific contract. Further investigation into the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to determine their complete contract history. This would include the number of previous awards, their values, agencies involved, and performance ratings. A review of their past performance would be crucial for assessing their reliability and capability in fulfilling large-scale food provision contracts.

What are the potential risks associated with a single vendor receiving such a large award for essential food items?

The primary risks associated with a single vendor receiving a large award include supply chain disruption if the vendor faces operational issues (e.g., production problems, labor shortages, transportation failures), potential for price escalation in future contracts if competition is limited, and reduced flexibility for the government to switch vendors if performance is unsatisfactory. Given the 568 offers received, the initial competition was strong, mitigating some immediate risk, but long-term reliance on one supplier for critical needs warrants monitoring.

How does this contract's value and duration compare to typical USDA food procurement contracts?

This contract, valued at $30.1 million over 128 days, is substantial, especially for its short duration. Typical USDA food procurement contracts can vary widely. Some, like the National School Lunch Program, involve continuous, multi-year agreements for large volumes. Others, particularly those for emergency or disaster relief, can be large and time-bound, similar to this one. The $30.1M figure over ~4 months suggests a high-intensity, possibly urgent, procurement need rather than routine, long-term supply.

What quality control measures are likely in place for the food products being supplied under this contract?

As a federal contract, especially involving food, stringent quality control measures are expected. These would typically include adherence to USDA and FDA regulations for food safety and handling, specific product specifications outlined in the contract (e.g., nutritional content, packaging, shelf-life), and potential government inspections of facilities and products. The 'PRECOOKED MEAT BOX, COMBINATION BOX, DAIRY PRODUCTS BOX' likely have detailed specifications regarding ingredients, preparation methods, and packaging to ensure safety and quality.

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: 123J1420R0377/4100020189

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6800 JERICHO TPKE # 101 W, SYOSSET, NY, 11791

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

Financial Breakdown

Contract Ceiling: $30,129,001

Exercised Options: $30,129,001

Current Obligation: $30,129,001

Actual Outlays: $29,737,674

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline