USDA Awards $170M for Shrimp Amidst Firm Fixed Price Contract

Contract Overview

Contract Amount: $17,039,735 ($17.0M)

Contractor: Ocean Select Seafood, L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2020-09-24

End Date: 2021-01-31

Contract Duration: 129 days

Daily Burn Rate: $132.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007319/4100021815/SHRIMP PEELED&DVND 31-50 PKG#10/2 LB,SHRIMP PEELED&DVND 51-70 PKG#10/2 LB

Place of Performance

Location: BREAUX BRIDGE, SAINT MARTIN County, LOUISIANA, 70517

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.0 million to OCEAN SELECT SEAFOOD, L.L.C. for work described as: 2000007319/4100021815/SHRIMP PEELED&DVND 31-50 PKG#10/2 LB,SHRIMP PEELED&DVND 51-70 PKG#10/2 LB Key points: 1. Contract awarded to OCEAN SELECT SEAFOOD, L.L.C. for peeled and deveined shrimp. 2. The contract utilizes a Firm Fixed Price (FFP) structure, providing cost certainty. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. The contract duration is 129 days, indicating a short-term supply need.

Value Assessment

Rating: fair

The contract's value of $170.4 million for shrimp is substantial. Without specific per-unit cost data or benchmarks for similar seafood contracts, a precise value assessment is difficult. The firm fixed price offers predictability but doesn't inherently guarantee the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method implies that multiple vendors had the opportunity to bid, which typically drives competitive pricing. The impact on price discovery is generally positive, as the government seeks the best value through a broad solicitation.

Taxpayer Impact: The significant award amount suggests a considerable expenditure of taxpayer funds. The effectiveness of the competition in securing optimal pricing will determine the ultimate taxpayer impact.

Public Impact

Ensures supply of essential food products for government programs or distribution. Supports the seafood industry, potentially impacting domestic or international suppliers. Price stability is maintained through the firm fixed price contract type. Availability of specific shrimp sizes (31-50 and 51-70 count) caters to particular needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes value assessment challenging.
Potential for price fluctuations in the seafood market impacting long-term value.
Dependence on a single vendor for a large quantity of a specific product.

Positive Signals

Competitive bidding process likely secured a reasonable price.
Firm Fixed Price contract provides budget certainty.
Clear product specifications ensure quality and suitability.

Sector Analysis

The seafood industry is subject to global supply and demand dynamics, environmental factors, and regulatory changes. This contract falls under food procurement, a common area for government spending, particularly within the Department of Agriculture.

Small Business Impact

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

Oversight & Accountability

Standard contract oversight by the Department of Agriculture's Agricultural Marketing Service would apply. Ensuring compliance with contract terms, delivery schedules, and quality standards is crucial for accountability.

Related Government Programs

Seafood Product Preparation and Packaging
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Large contract value raises scrutiny regarding price reasonableness.
Potential for market volatility in seafood pricing.
Lack of transparency on specific cost components.
Single awardee for a significant quantity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.0 million to OCEAN SELECT SEAFOOD, L.L.C.. 2000007319/4100021815/SHRIMP PEELED&DVND 31-50 PKG#10/2 LB,SHRIMP PEELED&DVND 51-70 PKG#10/2 LB

Who is the contractor on this award?

The obligated recipient is OCEAN SELECT SEAFOOD, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2020-09-24. End: 2021-01-31.

What was the average price per pound for the shrimp under this contract, and how does it compare to market rates at the time of award?

Calculating the exact price per pound requires dividing the total award amount by the total pounds of shrimp procured. Given the two package sizes (31-50 and 51-70 count per pound), the average price would vary. Comparing this to prevailing market rates for similar quality and size shrimp during the contract period would reveal if the government secured a competitive price or overpaid.

What were the specific criteria used to evaluate bids during the full and open competition, and how did they prioritize price versus other factors?

Evaluation criteria for full and open competition typically include factors beyond just price, such as technical approach, past performance, and socioeconomic considerations. Understanding the weighting of these criteria is essential to assess if the contract award truly represented the best value. A heavy emphasis on price might lead to lower quality, while over-emphasis on non-price factors could result in higher costs.

What is the typical demand for shrimp of these specific counts within the awarding agency's programs, and does this contract adequately meet that demand without over-procurement?

Assessing the typical demand helps determine if the contract quantity is appropriate. Over-procurement leads to waste and inefficient use of taxpayer funds, while under-procurement can disrupt essential services. Analyzing historical procurement data and program needs would clarify whether this $170.4 million award aligns with realistic consumption patterns.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1420B0694/4100021815

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1019 NINA HWY, BREAUX BRIDGE, LA, 70517

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

Financial Breakdown

Contract Ceiling: $17,039,735

Exercised Options: $17,039,735

Current Obligation: $17,039,735

Actual Outlays: $17,039,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline