USDA awards $17.2M for canned beef products under full and open competition

Contract Overview

Contract Amount: $17,237,007 ($17.2M)

Contractor: Ameriqual Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-03-16

End Date: 2021-07-31

Contract Duration: 137 days

Daily Burn Rate: $125.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007630/4100022771/BEEF CHILI W/O BEANS CAN-24/24 OZ,BEEF STEW CAN-24/24 OZ

Place of Performance

Location: EVANSVILLE, VANDERBURGH County, INDIANA, 47725

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.2 million to AMERIQUAL GROUP, LLC for work described as: 2000007630/4100022771/BEEF CHILI W/O BEANS CAN-24/24 OZ,BEEF STEW CAN-24/24 OZ Key points: 1. Contract awarded to Ameriqual Group, LLC for canned beef chili and stew. 2. Utilizes a Firm Fixed Price contract type. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The Agricultural Marketing Service is the contracting agency.

Value Assessment

Rating: good

The contract value of $17.2 million for canned beef products appears reasonable given the quantity and duration. Benchmarking against similar food service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it drives down costs through market forces.

Public Impact

Ensures availability of essential food items for government programs. Supports the agricultural sector through procurement of beef products. Provides a consistent supply of shelf-stable food items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in beef commodity markets.
Dependence on a single supplier for a specific period.

Positive Signals

Firm Fixed Price contract mitigates cost overrun risk.
Full and open competition promotes value for money.

Sector Analysis

This procurement falls within the food manufacturing and processing sector, specifically specialty canning. Spending benchmarks for similar food service contracts can vary widely based on product type, quantity, and delivery requirements.

Small Business Impact

While the contract was awarded to Ameriqual Group, LLC, the data does not indicate whether small businesses were involved as subcontractors or if Ameriqual Group, LLC itself is a small business. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Agricultural Marketing Service, part of the Department of Agriculture. Standard procurement oversight processes are expected to be in place to ensure compliance and performance.

Related Government Programs

Specialty Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for supply chain disruptions.
Reliance on specific commodity prices (beef).
Ensuring consistent product quality over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.2 million to AMERIQUAL GROUP, LLC. 2000007630/4100022771/BEEF CHILI W/O BEANS CAN-24/24 OZ,BEEF STEW CAN-24/24 OZ

Who is the contractor on this award?

The obligated recipient is AMERIQUAL GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2021-03-16. End: 2021-07-31.

What is the historical pricing trend for similar canned beef products procured by the government?

Analyzing historical pricing data for comparable canned beef products is crucial for a comprehensive value assessment. This would involve examining past contracts for similar items, considering factors like quantity, quality specifications, and delivery locations. Without this historical context, it's challenging to definitively state if the current $17.2 million award represents optimal value or if there's room for cost savings in future procurements.

What are the specific quality control measures in place for these canned beef products?

The contract likely includes detailed specifications for product quality, safety, and nutritional content. The Agricultural Marketing Service would typically have inspection and quality assurance protocols to ensure the delivered products meet these standards. Understanding these measures is important for assessing the overall effectiveness and reliability of the supply chain for these essential food items.

How does the unit price compare to commercial off-the-shelf (COTS) equivalents?

Comparing the per-unit cost of these government-procured canned beef products to similar items available in the commercial market can provide insights into cost-effectiveness. Factors such as bulk purchasing, specific formulation requirements, and delivery logistics for government contracts can influence price differences. A detailed unit-cost analysis against COTS products would highlight potential savings or areas where the government might be paying a premium.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Specialty Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1421B0224/4100022771

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18200 HWY 41 N, EVANSVILLE, IN, 47725

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,237,007

Exercised Options: $17,237,007

Current Obligation: $17,237,007

Actual Outlays: $17,237,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline