USDA's $242.8M Contract for Miscellaneous Food Manufacturing Awarded to Caribbean Produce Exchange LLC

Contract Overview

Contract Amount: $242,839,607 ($242.8M)

Contractor: Caribbean Produce Exchange LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $1.9M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020237/COMBINATION BOX

Place of Performance

Location: CATANO, CATANO County, PUERTO RICO, 00962

Plain-Language Summary

Department of Agriculture obligated $242.8 million to CARIBBEAN PRODUCE EXCHANGE LLC for work described as: 2000006919/4100020237/COMBINATION BOX Key points: 1. Significant contract value of $242.8 million awarded. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Contract type is 'Definitive Contract' with a 'Firm Fixed Price' for cost control. 4. The award is for 'All Other Miscellaneous Food Manufacturing' in Puerto Rico.

Value Assessment

Rating: good

The contract value of $242.8 million is substantial. Benchmarking against similar 'Miscellaneous Food Manufacturing' contracts is difficult without more specific product details, but the firm fixed price suggests an effort to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method indicates that multiple vendors had the opportunity to bid. This process is generally expected to lead to competitive pricing and better value for the government.

Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, with competition driving the initial price.

Public Impact

Ensures supply of essential food manufacturing products for a specific region (Puerto Rico). Supports the Agricultural Marketing Service's mission in food distribution and availability. Potential impact on local food supply chains and related industries in Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product details makes detailed value assessment challenging.
Geographic concentration in Puerto Rico may limit broader economic impact.

Positive Signals

Full and open competition utilized.
Firm fixed price contract for cost predictability.

Sector Analysis

The contract falls under miscellaneous food manufacturing, a broad category. Specific spending benchmarks are hard to ascertain without knowing the exact nature of the 'miscellaneous food products'. The value is significant for this sector.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The use of a definitive contract and full and open competition suggests a structured procurement process. Oversight would focus on contract performance and adherence to the firm fixed price.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Lack of specificity in product description.
Potential for limited visibility into subcontractor performance.
Geographic concentration of the award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $242.8 million to CARIBBEAN PRODUCE EXCHANGE LLC. 2000006919/4100020237/COMBINATION BOX

Who is the contractor on this award?

The obligated recipient is CARIBBEAN PRODUCE EXCHANGE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $242.8 million.

What is the period of performance?

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

What specific food products are included in 'All Other Miscellaneous Food Manufacturing' to better assess value?

The specific food products are not detailed in the provided data. 'All Other Miscellaneous Food Manufacturing' is a broad NAICS code category that can encompass a wide range of processed food items not classified elsewhere. Understanding the exact nature of these products is crucial for a precise value assessment and comparison with industry benchmarks.

What were the key performance indicators and evaluation criteria used during the full and open competition?

The provided data does not specify the key performance indicators or evaluation criteria used during the full and open competition. Typically, these would include factors like price, technical approach, past performance, and small business participation. Knowing these details would offer insight into how the government prioritized different aspects of the bids.

How does the firm fixed price compare to market rates for similar goods or services in Puerto Rico?

Without knowing the specific goods or services procured, a direct comparison of the firm fixed price to market rates is not feasible. The contract value of $242.8 million over its duration suggests a significant volume or complexity. A detailed market analysis would be required, considering the specific product category and regional economic factors.

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: 123J1420R0377/4100020237

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CARR 869 KM 2.8 INTERIOR LAS PALMAS INDUSTRIAL PARK, CATANO, PR, 00962

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

Financial Breakdown

Contract Ceiling: $242,839,607

Exercised Options: $242,839,607

Current Obligation: $242,839,607

Actual Outlays: $205,407,806

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline