USDA Awards $20.27M for Canned Pork and Beef to Lakeside Foods Inc

Contract Overview

Contract Amount: $20,270,324 ($20.3M)

Contractor: Lakeside Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2020-07-02

End Date: 2020-09-30

Contract Duration: 90 days

Daily Burn Rate: $225.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007083/4100020951/PORK CAN-24/24 OZ,BEEF CAN-24/24 OZ

Place of Performance

Location: PLAINVIEW, WABASHA County, MINNESOTA, 55964

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.3 million to LAKESIDE FOODS INC for work described as: 2000007083/4100020951/PORK CAN-24/24 OZ,BEEF CAN-24/24 OZ Key points: 1. Contract awarded to Lakeside Foods Inc. for canned meat products. 2. The contract falls under the Animal Slaughtering industry (NAICS 311611). 3. Full and open competition was utilized for this procurement. 4. The contract value is $20,270,323.71. 5. The contract duration is 90 days.

Value Assessment

Rating: good

The contract value of $20.27M for canned meat products appears reasonable given the quantity and type of goods. Benchmarking against similar large-scale food procurements would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a competitive bidding process that likely led to a fair market price discovery. The use of a definitive contract indicates a clear scope of work.

Taxpayer Impact: Taxpayer funds are being used to procure essential food supplies, likely for federal programs or distribution. The competitive nature of the award aims to ensure value for money.

Public Impact

Ensures availability of canned meat products for federal needs. Supports the agricultural sector through procurement contracts. Provides food resources potentially for emergency relief or federal feeding programs. Contributes to the supply chain for processed meat products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (90 days) may limit long-term supplier engagement.
Reliance on a single awardee for a large quantity of goods.

Positive Signals

Utilized full and open competition.
Clear contract type (Definitive Contract) and pricing (Firm Fixed Price).

Sector Analysis

The procurement falls within the Food Manufacturing sector, specifically animal slaughtering and processing. Spending benchmarks for canned goods procurement by the USDA can vary significantly based on demand and market conditions.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The use of full and open competition and a definitive contract suggests a structured procurement process. Oversight would focus on contract performance, quality control, and timely delivery.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Short contract duration
Potential for supply chain disruption
Limited time for quality assurance
Need for rapid re-procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.3 million to LAKESIDE FOODS INC. 2000007083/4100020951/PORK CAN-24/24 OZ,BEEF CAN-24/24 OZ

Who is the contractor on this award?

The obligated recipient is LAKESIDE FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2020-07-02. End: 2020-09-30.

What specific federal programs or needs are being met by this large procurement of canned meat?

This procurement likely supports various Department of Agriculture programs, such as food assistance initiatives, strategic reserves, or provisions for federal institutions. The exact end-use would be detailed in the contract's statement of work, ensuring alignment with specific agency objectives and public benefit.

What are the potential risks associated with a 90-day contract for such a large quantity of canned goods?

A short 90-day duration poses risks such as potential supply chain disruptions if the supplier faces unforeseen issues, limited time for quality assurance checks, and the need for rapid re-procurement if demand continues. It may also limit the ability to secure bulk discounts or long-term production planning.

How does the firm fixed price structure impact the government's financial risk in this contract?

A firm fixed price (FFP) contract shifts most of the financial risk to the contractor, Lakeside Foods Inc. The government is obligated to pay the agreed-upon price regardless of the contractor's actual costs. This structure provides cost certainty for the government but requires careful negotiation to ensure the price is fair and reasonable.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1420B0518/4100020951

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lakeside Foods, Inc.

Address: 808 HAMILTON ST, MANITOWOC, WI, 54220

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

Financial Breakdown

Contract Ceiling: $20,270,324

Exercised Options: $20,270,324

Current Obligation: $20,270,324

Actual Outlays: $20,270,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline