USDA's $26.8M Contract for Precooked Meat Boxes Awarded to OSI Industries, LLC

Contract Overview

Contract Amount: $26,844,768 ($26.8M)

Contractor: OSI Industries, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $209.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020228/PRECOOKED MEAT BOX

Place of Performance

Location: AURORA, KANE County, ILLINOIS, 60505

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $26.8 million to OSI INDUSTRIES, LLC for work described as: 2000006919/4100020228/PRECOOKED MEAT BOX Key points: 1. The contract value of $26.8 million for precooked meat boxes represents a significant investment by the Department of Agriculture. 2. OSI Industries, LLC, a large business, secured this definitive contract under full and open competition. 3. The firm fixed price contract type suggests a clear understanding of costs and potential risks. 4. The Agricultural Marketing Service is the contracting agency, indicating a focus on food supply chain and distribution.

Value Assessment

Rating: good

The contract value of $26.8 million for 128 days of service appears reasonable given the scope of providing precooked meat boxes. Benchmarking against similar large-scale food procurement 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, allowing any qualified vendor to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, maximizing the value of taxpayer funds spent on this procurement.

Public Impact

Ensures availability of precooked meat products for federal programs, potentially supporting food assistance or institutional needs. Supports a large business contractor, contributing to employment and economic activity within the food processing sector. The procurement process under full and open competition aims for efficient use of public funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (128 days), potentially limiting long-term strategic planning or economies of scale.
Lack of specific details on the type and quantity of precooked meat makes a detailed value assessment challenging.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed price contract type provides cost certainty for the government.

Sector Analysis

The food processing and distribution sector is critical for government supply chains. This contract falls under NAICS code 311612 (Meat Processed from Carcasses), a segment of the broader food manufacturing industry.

Small Business Impact

This contract was awarded to OSI Industries, LLC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a standard procurement process. Further oversight would involve monitoring contract performance and adherence to terms by the Agricultural Marketing Service.

Related Government Programs

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

Risk Flags

Lack of detailed product specifications.
Short contract duration may limit long-term cost efficiencies.
No explicit mention of small business participation.
Potential for price fluctuations in raw meat commodities not fully mitigated by fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26.8 million to OSI INDUSTRIES, LLC. 2000006919/4100020228/PRECOOKED MEAT BOX

Who is the contractor on this award?

The obligated recipient is OSI INDUSTRIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

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

What specific types and quantities of precooked meat were procured, and how does this align with the agency's needs?

The provided data does not specify the exact types and quantities of precooked meat. Understanding these details is crucial for assessing if the $26.8 million contract value accurately reflects the agency's requirements and ensures efficient use of funds for intended programs.

What were the key performance metrics and quality standards for the precooked meat boxes, and how were they monitored?

Information regarding specific performance metrics and quality standards is not detailed in the provided data. Effective oversight would require clear contractual obligations for product quality, safety, and delivery timelines, along with a robust monitoring system by the Agricultural Marketing Service.

How does the unit cost of these precooked meat boxes compare to commercially available similar products or other government contracts?

Without specific details on the product composition and quantity per box, a direct unit cost comparison is difficult. However, the firm fixed price nature suggests the contractor has factored in all costs. A benchmark against similar large-scale food procurements would be necessary for a thorough value assessment.

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: 123J1420R0377/4100020228

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: OSI Group, LLC

Address: 1225 CORPORATE BLVD STE 105, AURORA, IL, 60505

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

Financial Breakdown

Contract Ceiling: $26,844,768

Exercised Options: $26,844,768

Current Obligation: $26,844,768

Actual Outlays: $26,844,768

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline