USDA Awards $140M for Food Manufacturing, Boosting Michigan's Economy

Contract Overview

Contract Amount: $140,261,908 ($140.3M)

Contractor: VAN Solkema Produce of Georgia, LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-01-19

End Date: 2021-05-31

Contract Duration: 132 days

Daily Burn Rate: $1.1M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 171

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007490/4100022275/COMBINATION BOX

Place of Performance

Location: BYRON CENTER, KENT County, MICHIGAN, 49315

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $140.3 million to VAN SOLKEMA PRODUCE OF GEORGIA, LLC for work described as: 2000007490/4100022275/COMBINATION BOX Key points: 1. Significant contract value of $140.26 million awarded. 2. Full and open competition indicates a competitive marketplace. 3. Potential risk associated with 'All Other Miscellaneous Food Manufacturing' NAICS code. 4. Contract supports the Agricultural Marketing Service within the Department of Agriculture.

Value Assessment

Rating: good

The award amount of $140.26 million appears reasonable given the broad scope of 'All Other Miscellaneous Food Manufacturing'. Benchmarking against similar large-scale food production contracts would provide further clarity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award is likely to result in taxpayer savings compared to a sole-source or limited competition scenario.

Public Impact

Supports domestic food production and supply chains. Potential impact on food prices and availability for consumers. Contributes to economic activity and employment within the food manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

NAICS code '311999' is broad and may lack specificity.
Contract duration of 132 days is relatively short for large-scale manufacturing.

Positive Signals

Awarded under full and open competition.
Supports a key agricultural agency.

Sector Analysis

This contract falls within the broad food manufacturing sector. Spending benchmarks for this NAICS code are difficult to establish due to its wide scope, but the award size is substantial.

Small Business Impact

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

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Standard oversight mechanisms for federal contracts should apply, including performance monitoring and payment verification.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Broad NAICS code lacks specificity.
Short contract duration for a large award.
Lack of small business participation data.
Potential for undefined scope of work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $140.3 million to VAN SOLKEMA PRODUCE OF GEORGIA, LLC. 2000007490/4100022275/COMBINATION BOX

Who is the contractor on this award?

The obligated recipient is VAN SOLKEMA PRODUCE OF GEORGIA, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $140.3 million.

What is the period of performance?

Start: 2021-01-19. End: 2021-05-31.

What specific food manufacturing services or products were procured under this contract?

The contract's NAICS code, '311999 - All Other Miscellaneous Food Manufacturing,' is very broad. Without further details, it's impossible to determine the exact nature of the goods or services. This lack of specificity could obscure the true value and necessity of the procurement.

What is the risk associated with the broad NAICS code and short contract duration?

The broad NAICS code presents a risk of procuring undefined or potentially unnecessary items. The short 132-day duration for a $140 million contract might indicate a need for rapid fulfillment or a potential for contract extensions, which could impact long-term cost-effectiveness and planning.

How does this contract contribute to the Agricultural Marketing Service's mission?

This contract likely supports the Agricultural Marketing Service's mission to facilitate the marketing of agricultural products. The specific contribution depends on the nature of the food manufacturing services procured, potentially aiding in processing, packaging, or distribution of agricultural commodities.

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: 123J1421B0110/4100022275

Offers Received: 171

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2630 PRESCOTT ST SW, BYRON CENTER, MI, 49315

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $140,261,908

Exercised Options: $140,261,908

Current Obligation: $140,261,908

Actual Outlays: $140,246,662

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 123J1420G0191

IDV Type: BOA

Timeline