USDA's $59.7M Fresh Produce Contract Awarded to GOFRESH, LLC Amidst Supply Chain Disruptions

Contract Overview

Contract Amount: $59,703,446 ($59.7M)

Contractor: Gofresh, LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-06-25

End Date: 2020-09-19

Contract Duration: 86 days

Daily Burn Rate: $694.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 568

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006919/4100020883/FRESH FRUIT/VEGETABLE BOX

Place of Performance

Location: TULSA, ROGERS County, OKLAHOMA, 74116

State: Oklahoma Government Spending

Plain-Language Summary

Department of Agriculture obligated $59.7 million to GOFRESH, LLC for work described as: 2000006919/4100020883/FRESH FRUIT/VEGETABLE BOX Key points: 1. The contract, valued at $59.7 million, was awarded to GOFRESH, LLC for fresh fruit and vegetable boxes. 2. Awarded under full and open competition, the contract aimed to address food supply chain challenges. 3. The fixed-price contract duration was 86 days, suggesting a short-term, responsive procurement. 4. The Agricultural Marketing Service (AMS) managed this procurement for the Department of Agriculture.

Value Assessment

Rating: good

The contract's fixed-price structure provides cost certainty. Benchmarking against similar large-scale food distribution contracts is difficult due to the specific nature of fresh produce and the context of pandemic-related supply chain issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a broad solicitation for offers. This method generally promotes competitive pricing and allows for a wide range of potential suppliers to bid.

Taxpayer Impact: This contract likely aimed to support food access and agricultural markets during a period of disruption, with taxpayer funds supporting the distribution of essential food items.

Public Impact

Ensured availability of fresh produce to consumers during a period of significant supply chain strain. Supported agricultural producers by providing an outlet for their perishable goods. Demonstrated government's ability to rapidly procure essential food supplies in response to national needs. Potentially mitigated food waste by distributing surplus or redirected produce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term supplier relationships.
Perishability of goods introduces inherent logistical risks.
Dependence on a single awardee for a large volume of goods.

Positive Signals

Fulfilled critical need for fresh produce.
Utilized competitive bidding process.
Responsive procurement to immediate market conditions.

Sector Analysis

The procurement falls under the broad category of food services and distribution, often managed by agencies like the USDA. Spending in this sector can fluctuate based on seasonal availability, disaster relief efforts, and public health initiatives.

Small Business Impact

While awarded under full and open competition, the data does not indicate if small businesses were prime contractors or subcontractors. Large-scale food distribution contracts can sometimes present barriers for smaller entities to compete effectively.

Oversight & Accountability

The contract was managed by the Agricultural Marketing Service, a division of the USDA. Oversight would focus on delivery, quality of produce, and adherence to contract terms, especially given the perishable nature of the goods.

Related Government Programs

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

Risk Flags

Potential for spoilage and waste due to perishability.
Logistical complexity of distributing fresh produce nationwide.
Dependence on a single vendor for a large volume.
Limited duration may not address long-term supply chain needs.
Lack of specific performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $59.7 million to GOFRESH, LLC. 2000006919/4100020883/FRESH FRUIT/VEGETABLE BOX

Who is the contractor on this award?

The obligated recipient is GOFRESH, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $59.7 million.

What is the period of performance?

Start: 2020-06-25. End: 2020-09-19.

What was the primary objective of this contract beyond general procurement?

The primary objective was likely to address critical needs arising from supply chain disruptions, potentially related to the COVID-19 pandemic. This included ensuring access to fresh produce for consumers, supporting farmers by purchasing their goods, and preventing food waste during a period of market volatility.

What are the key risks associated with a contract for perishable goods?

Key risks include spoilage during transit and storage, quality degradation, and logistical challenges in timely delivery. Managing these risks requires robust cold chain management, efficient distribution networks, and contingency plans for unforeseen delays or temperature fluctuations.

How effective was this contract in achieving its stated or implied goals?

Effectiveness can be assessed by the successful delivery of produce, the extent to which it met consumer needs, and the support provided to agricultural producers. Without post-award performance data, a definitive assessment is challenging, but the short duration suggests a focus on immediate impact.

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: 123J1420R0377/4100020883

Offers Received: 568

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1691 N 161ST E AVE, TULSA, OK, 74116

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,625,846

Exercised Options: $77,625,846

Current Obligation: $59,703,446

Actual Outlays: $33,490,674

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline