USDA Awards $32.8M for Miscellaneous Food Manufacturing to Produce Alliance, LLC
Contract Overview
Contract Amount: $32,799,200 ($32.8M)
Contractor: Produce Alliance, L.L.C.
Awarding Agency: Department of Agriculture
Start Date: 2020-09-17
End Date: 2020-10-31
Contract Duration: 44 days
Daily Burn Rate: $745.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 46
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 2000007297/4100021610/COMBINATION BOX
Place of Performance
Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089
State: Illinois Government Spending
Plain-Language Summary
Department of Agriculture obligated $32.8 million to PRODUCE ALLIANCE, L.L.C. for work described as: 2000007297/4100021610/COMBINATION BOX Key points: 1. Contract awarded for miscellaneous food manufacturing services. 2. Full and open competition was utilized. 3. The contract value is $32.8 million. 4. The award was a delivery order under a larger contract. 5. The vendor is PRODUCE ALLIANCE, L.L.C.
Value Assessment
Rating: fair
The contract value of $32.8 million for miscellaneous food manufacturing appears to be a significant award. Benchmarking against similar contracts for food manufacturing services would be necessary to assess if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: Taxpayer funds are being used for the procurement of miscellaneous food manufacturing services. The use of full and open competition aims to ensure the best value for taxpayer dollars.
Public Impact
Ensures availability of essential food manufacturing services for the Department of Agriculture. Supports the Agricultural Marketing Service's mission. Potential impact on the food manufacturing sector through government contracts. The short duration of the delivery order (approx. 1 month) suggests a specific, immediate need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may indicate a reactive procurement rather than strategic planning.
- Lack of specific details on the 'miscellaneous food manufacturing' services.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Clear contract value and vendor identified.
Sector Analysis
The procurement falls under the 'All Other Miscellaneous Food Manufacturing' NAICS code. Spending in this sector can vary widely based on specific product needs and market conditions. This contract represents a significant investment in this category.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to understand the overall small business utilization within the parent contract or the broader Agricultural Marketing Service procurements.
Oversight & Accountability
The award was a delivery order, implying it falls under a pre-existing contract that likely underwent its own oversight. The specific oversight for this delivery order would depend on internal agency procedures for managing task orders.
Related Government Programs
- All Other Miscellaneous Food Manufacturing
- Department of Agriculture Contracting
- Agricultural Marketing Service Programs
Risk Flags
- Lack of specificity in service description.
- Short contract duration for a large value award.
- No indication of small business involvement.
- Potential for quality control issues due to tight timeline.
Tags
all-other-miscellaneous-food-manufacturi, department-of-agriculture, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $32.8 million to PRODUCE ALLIANCE, L.L.C.. 2000007297/4100021610/COMBINATION BOX
Who is the contractor on this award?
The obligated recipient is PRODUCE ALLIANCE, 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 $32.8 million.
What is the period of performance?
Start: 2020-09-17. End: 2020-10-31.
What specific 'miscellaneous food manufacturing' services were procured under this delivery order, and how do they align with the Agricultural Marketing Service's mission?
The provided data lacks specificity regarding the exact 'miscellaneous food manufacturing' services. Understanding these details is crucial to assess their alignment with the Agricultural Marketing Service's mission, which typically involves facilitating marketing, ensuring quality, and promoting agricultural products. Without this information, it's difficult to determine the strategic value and necessity of this $32.8 million award.
Given the short duration (44 days) and significant value ($32.8M), what risks are associated with the execution and quality of the food manufacturing services provided?
The short duration coupled with a high value suggests a potential risk of rushed production, impacting quality control and adherence to specifications. There's also a risk that the vendor may not have adequate capacity to deliver high-quality services within the tight timeframe, potentially leading to cost overruns or unmet requirements. The lack of detail on the specific services exacerbates this risk assessment.
How does the firm fixed price contract type ensure cost-effectiveness and value for money for these miscellaneous food manufacturing services?
A firm fixed price contract aims to provide cost certainty for the government, shifting the risk of cost overruns to the contractor. For miscellaneous food manufacturing, this structure can be effective if the scope of work is well-defined and predictable. However, if the 'miscellaneous' nature implies variability or unforeseen complexities, a fixed price could lead to the contractor cutting corners on quality or the government potentially overpaying if the contractor's initial cost estimates were too high.
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: 123J1420B0675/4100021610
Offers Received: 46
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 LEXINGTON DR STE 201, BUFFALO GROVE, IL, 60089
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,799,200
Exercised Options: $32,799,200
Current Obligation: $32,799,200
Actual Outlays: $32,598,861
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: 123J1420G0089
IDV Type: BOA
Timeline
Start Date: 2020-09-17
Current End Date: 2020-10-31
Potential End Date: 2020-10-31 00:00:00
Last Modified: 2023-02-07
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