USDA's $55M Fresh Produce Contract Awarded to PERFECT PACT, LLC Amidst Pandemic

Contract Overview

Contract Amount: $54,956,150 ($55.0M)

Contractor: Perfect Pact, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-05-14

End Date: 2020-09-19

Contract Duration: 128 days

Daily Burn Rate: $429.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020239/FRESH FRUIT/VEGETABLE BOX

Place of Performance

Location: FERNANDINA BEACH, NASSAU County, FLORIDA, 32034

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $55.0 million to PERFECT PACT, LLC for work described as: 2000006919/4100020239/FRESH FRUIT/VEGETABLE BOX Key points: 1. Contract value of $54.96M for fresh fruit and vegetable boxes. 2. Awarded to PERFECT PACT, LLC under a Definitive Contract. 3. Competition method was Full and Open, indicating broad market access. 4. Sector is Perishable Prepared Food Manufacturing, with a focus on agricultural products.

Value Assessment

Rating: fair

The contract value of $54.96M for perishable food manufacturing is substantial. Benchmarking against similar large-scale food supply contracts is difficult without more specific data on box contents and delivery scope. The firm fixed price suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure favorable terms.

Taxpayer Impact: Taxpayer funds are utilized for this contract, aiming to provide essential food supplies. The firm fixed price contract type helps control costs and provides predictability for the government's expenditure.

Public Impact

Ensured access to fresh produce during a critical period (May-September 2020). Supported agricultural producers and the food supply chain. Provided food boxes to potentially underserved communities or populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for spoilage and logistical challenges with perishable goods.
Dependence on a single awardee for a large volume of goods.

Positive Signals

Awarded during a period of high demand for food assistance.
Utilized a competitive bidding process.
Firm fixed price contract limits cost overruns.

Sector Analysis

The Perishable Prepared Food Manufacturing sector involves significant logistical and quality control considerations. This contract, valued at nearly $55 million, falls within a typical range for large government food procurement, especially during emergency or high-demand periods.

Small Business Impact

The data indicates that PERFECT PACT, LLC was the awardee. There is no explicit information provided regarding small business participation or subcontracting opportunities within this contract. Further investigation would be needed to assess small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring contract performance, delivery schedules, and product quality to ensure compliance with the firm fixed price agreement.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Contract awarded during a period of national emergency (COVID-19 pandemic).
Perishable nature of goods requires robust logistical management.
Large contract value concentrated with a single awardee.
Lack of detailed information on specific produce included.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $55.0 million to PERFECT PACT, LLC. 2000006919/4100020239/FRESH FRUIT/VEGETABLE BOX

Who is the contractor on this award?

The obligated recipient is PERFECT PACT, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $55.0 million.

What is the period of performance?

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

What was the specific breakdown of items included in the 'FRESH FRUIT/VEGETABLE BOX' and how did the pricing reflect the market value of these items at the time of award?

The provided data does not detail the specific contents of the 'FRESH FRUIT/VEGETABLE BOX.' To assess value, a breakdown of fruits and vegetables, quantities, and quality standards would be necessary. Comparing the per-unit cost against prevailing market prices for similar produce baskets during the contract period (May-September 2020) would reveal if the $54.96M award represented fair market value.

Given the perishable nature of the goods, what risk mitigation strategies were in place to prevent waste and ensure timely delivery across potentially wide geographic areas?

The contract's duration of 128 days and the nature of perishable goods inherently carry risks of spoilage and logistical delays. While the firm fixed price contract incentivizes the contractor to manage these risks, specific details on the contractor's cold chain management, distribution network, and contingency plans for disruptions are not provided. The government's oversight would be crucial in monitoring these aspects.

How effectively did the full and open competition process ensure the best possible pricing and quality for the government and taxpayers?

Full and open competition is designed to maximize price discovery and quality by allowing all eligible vendors to compete. The success of this process in achieving the best value depends on the clarity of the solicitation requirements, the number and capability of the bidders, and the evaluation criteria used. Without knowing the number of bids received and the evaluation details, it's difficult to definitively assess the effectiveness beyond the procedural compliance.

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: 123J1420R0377/4100020239

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3267 PEARL RD, MEDINA, OH, 44256

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,100,950

Exercised Options: $95,100,950

Current Obligation: $54,956,150

Actual Outlays: $47,377,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline