Agriculture Department awards $35.4M for food products, with 45 delivery orders issued

Contract Overview

Contract Amount: $35,408,043 ($35.4M)

Contractor: Caribbean Produce Exchange LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-09-17

End Date: 2021-01-08

Contract Duration: 113 days

Daily Burn Rate: $313.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 45

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007296/4100021597/COMBINATION BOX

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00936

Plain-Language Summary

Department of Agriculture obligated $35.4 million to CARIBBEAN PRODUCE EXCHANGE LLC for work described as: 2000007296/4100021597/COMBINATION BOX Key points: 1. Value for money appears reasonable given the firm fixed-price contract type and the number of delivery orders. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are low due to the short contract duration and fixed-price nature. 4. Performance context shows a relatively small contract with a defined scope. 5. Sector positioning is within food manufacturing and distribution, supporting agricultural programs.

Value Assessment

Rating: good

The contract's total value of $35.4 million for food products seems aligned with market rates for similar procurements, especially considering it encompasses 45 individual delivery orders. The firm fixed-price structure provides cost certainty. Benchmarking against other USDA procurements for food items of this nature would offer further insight, but the scale and duration suggest a fair price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that 45 delivery orders were issued suggests a sustained need for these products over the contract period. The level of competition, while not explicitly detailed by the number of bidders, is presumed to be adequate given the 'full and open' designation, which generally promotes price discovery.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its expenditure on food products.

Public Impact

Beneficiaries include recipients of USDA-supported food programs, potentially in Puerto Rico. Services delivered involve the provision of various food products, likely for distribution. Geographic impact is focused on Puerto Rico, supporting local or regional food supply chains. Workforce implications are likely related to the food manufacturing and distribution sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly during the contract period, though mitigated by fixed-price.
Ensuring consistent quality and timely delivery across all 45 orders requires robust oversight.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition suggests a competitive market for these products.
Short contract duration limits long-term exposure to market risks.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, a critical component of the agricultural economy. The Agricultural Marketing Service (AMS) often procures food products to support various domestic and international food assistance programs. Spending in this area can fluctuate based on program needs and appropriations. Comparable spending benchmarks would involve analyzing other AMS contracts for similar food commodities or delivery order structures.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was awarded under full and open competition, it does not appear to have been specifically set aside for small businesses. Further investigation into subcontracting requirements would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is facilitated by the contract award notice, though detailed performance reports are not publicly available.

Related Government Programs

USDA Food Purchase Programs
Agricultural Commodity Procurement
Food Distribution Programs

Risk Flags

Potential for inconsistent quality across multiple delivery orders.
Need for diligent oversight to manage numerous order fulfillments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $35.4 million to CARIBBEAN PRODUCE EXCHANGE LLC. 2000007296/4100021597/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 $35.4 million.

What is the period of performance?

Start: 2020-09-17. End: 2021-01-08.

What specific types of food products were procured under this contract?

The provided data indicates the contract was for 'COMBINATION BOX' and falls under the North American Industry Classification System (NAICS) code 311999, 'All Other Miscellaneous Food Manufacturing.' While the exact composition of the 'COMBINATION BOX' is not detailed, this classification suggests a mix of processed food items. These could range from canned goods, dried foods, or other shelf-stable products intended for distribution. Further details would likely be found in the contract's statement of work or delivery order specifications, which are not publicly available in this dataset.

How does the per-unit cost of items under this contract compare to market rates?

A precise per-unit cost comparison is not feasible with the provided data, as it lacks specific item details and quantities per delivery order. The total award of $35.4 million spread across 45 delivery orders over approximately 113 days (from award to end date) indicates a significant volume of goods. To benchmark effectively, one would need to identify the specific food items, their quantities, and compare their average prices against prevailing market rates for similar items procured by other government agencies or in the commercial sector during the contract period. The firm fixed-price nature suggests the contractor assumed the risk of market fluctuations.

What is the track record of Caribbean Produce Exchange LLC with federal contracts?

Caribbean Produce Exchange LLC has been awarded this specific contract by the Department of Agriculture. To assess their broader track record, a search of federal procurement databases (like SAM.gov or FPDS) would be necessary to identify other contracts awarded to this entity. This would reveal the types of goods or services they have provided, the agencies they have served, contract values, and performance history. Without this broader search, it's difficult to establish a comprehensive track record beyond this single award.

What is the historical spending pattern for similar food product procurements by the Agricultural Marketing Service?

Historical spending patterns for similar food product procurements by the Agricultural Marketing Service (AMS) can vary significantly year-to-year, influenced by congressional appropriations, specific program needs (e.g., domestic nutrition assistance, international aid), and commodity market conditions. AMS procures a wide range of food items, from fresh produce to processed goods, often in large volumes. Analyzing past AMS contracts, particularly those under similar NAICS codes or for comparable food categories, would reveal trends in contract values, durations, and competition levels. This specific $35.4 million contract represents a notable, but not necessarily exceptional, expenditure within the context of AMS's overall procurement activities.

What are the potential risks associated with a contract involving multiple delivery orders?

Contracts with multiple delivery orders, like this $35.4 million award, introduce several potential risks. Firstly, managing and tracking performance across numerous orders requires robust administrative oversight to ensure each delivery meets specifications and timelines. Secondly, there's a risk of scope creep if the cumulative requirements of the delivery orders exceed the original intent or budget, although the firm fixed-price nature mitigates direct cost overruns. Thirdly, ensuring consistent quality and compliance across all orders can be challenging. Finally, if the contractor faces financial or operational difficulties, it could impact the fulfillment of multiple outstanding orders, potentially disrupting supply chains for the supported programs.

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: 123J1420B0674/4100021597

Offers Received: 45

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: $35,408,043

Exercised Options: $35,408,043

Current Obligation: $35,408,043

Actual Outlays: $35,408,043

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 123J1420G0112

IDV Type: BOA

Timeline