Agriculture Dept. awards $40.4M for food products, with 171 delivery orders issued

Contract Overview

Contract Amount: $40,429,903 ($40.4M)

Contractor: Liberty Fruit CO, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2021-01-19

End Date: 2021-05-31

Contract Duration: 132 days

Daily Burn Rate: $306.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 171

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007490/4100022308/COMBINATION BOX

Place of Performance

Location: KANSAS CITY, WYANDOTTE County, KANSAS, 66105

State: Kansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.4 million to LIBERTY FRUIT CO, INC. for work described as: 2000007490/4100022308/COMBINATION BOX Key points: 1. Contract value appears reasonable given the scope of food product delivery. 2. Full and open competition suggests a healthy market for these goods. 3. No immediate risk indicators are apparent from the contract details. 4. Performance period was relatively short, indicating a need for timely fulfillment. 5. This contract falls within the broader food manufacturing and distribution sector. 6. The firm fixed-price structure helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of $40.4 million for food products seems aligned with typical government procurement for such goods. Benchmarking against similar contracts for bulk food supplies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the pricing was determined upfront and is intended to remain stable, which is generally favorable for the government.

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. The presence of 171 delivery orders suggests a dynamic ordering process within the contract's framework. A high level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer funds are likely being used efficiently by fostering a competitive environment that drives down prices and encourages quality offerings.

Public Impact

Beneficiaries include federal agencies and potentially food banks or other distribution networks relying on USDA supplies. Services delivered involve the provision of various food products. Geographic impact is likely national, depending on the distribution points for the food products. Workforce implications could include jobs in food manufacturing, processing, packaging, and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type provides cost certainty.
Contract awarded to a single entity (LIBERTY FRUIT CO, INC.) for efficient management.
Multiple delivery orders indicate ongoing need and utilization.

Sector Analysis

This contract operates within the broader food manufacturing and distribution sector, a critical component of the U.S. economy. The Agricultural Marketing Service (AMS) within the Department of Agriculture frequently procures food products to support various federal programs, including school lunch programs and disaster relief. Spending in this area is substantial and fluctuates based on program needs and appropriations. Comparable spending benchmarks would involve analyzing other large-scale food procurement contracts by federal agencies.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the nature of large-scale food procurement often involves prime contractors who may then engage small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agricultural Marketing Service (AMS) contracting officers and program managers. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National School Lunch Program
Food and Nutrition Service (FNS) programs
Disaster Assistance programs
Commodity Supplemental Food Program

Risk Flags

Potential for supply chain disruptions
Risk of quality control issues with perishable goods
Price volatility impacting contractor profitability
Logistical challenges with multiple delivery orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.4 million to LIBERTY FRUIT CO, INC.. 2000007490/4100022308/COMBINATION BOX

Who is the contractor on this award?

The obligated recipient is LIBERTY FRUIT CO, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.4 million.

What is the period of performance?

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

What is the track record of LIBERTY FRUIT CO, INC. with federal contracts?

LIBERTY FRUIT CO, INC. has a history of receiving federal contracts, primarily through the Department of Agriculture. The data indicates this specific contract (ID 2000007490/4100022308) was for food products and involved a significant value of $40.4 million, with 171 delivery orders issued over its period. Further analysis of their contract history would reveal the types of goods and services they have provided, their performance ratings on past contracts, and any instances of contract modifications or disputes. Understanding their broader federal contracting footprint is essential for assessing their capacity and reliability as a government supplier.

How does the $40.4 million contract value compare to similar food procurement contracts?

The $40.4 million contract value for food products awarded to LIBERTY FRUIT CO, INC. by the Department of Agriculture's Agricultural Marketing Service is substantial, suggesting a significant volume or variety of food items procured. To benchmark this value effectively, one would need to compare it against other large-scale food procurement contracts issued by agencies like the Department of Defense (through DLA Troop Support) or the Department of Veterans Affairs. Factors such as the specific types of food (e.g., fresh produce, processed goods, dairy), delivery locations, and contract duration heavily influence pricing. Without direct comparison data for identical or highly similar food categories and delivery scopes, it's challenging to definitively state if this represents exceptional value, but the amount indicates a major procurement effort.

What are the primary risks associated with this type of food procurement contract?

Primary risks in food procurement contracts include supply chain disruptions (e.g., weather, transportation issues, labor shortages), quality control failures (e.g., spoilage, contamination, non-compliance with specifications), and price volatility for raw ingredients. For a contract involving 171 delivery orders, managing logistics and ensuring consistent delivery across potentially diverse locations presents a significant operational risk. Furthermore, changes in dietary guidelines or public health concerns could necessitate contract modifications. The firm fixed-price nature, while beneficial for cost certainty, can expose the contractor to risks if input costs rise unexpectedly, potentially impacting their ability to fulfill the contract without issues.

How effective is the Agricultural Marketing Service (AMS) in managing large food procurement contracts?

The Agricultural Marketing Service (AMS) plays a crucial role in procuring agricultural products for various federal programs. Their effectiveness in managing large contracts like the one awarded to LIBERTY FRUIT CO, INC. hinges on robust contract administration, clear performance metrics, and strong vendor oversight. The issuance of 171 delivery orders suggests a well-established process for managing task orders under a larger contract vehicle. AMS's success is often measured by its ability to secure high-quality food products at competitive prices, ensure timely delivery to intended recipients (which could include schools, food banks, or disaster relief efforts), and maintain compliance with safety and nutritional standards. Historical performance data and audit reports would provide a more definitive assessment of AMS's effectiveness in this specific area.

What is the historical spending trend for food products by the Department of Agriculture?

The Department of Agriculture (USDA), through its various agencies like the Agricultural Marketing Service (AMS) and the Food and Nutrition Service (FNS), consistently spends billions of dollars annually on food procurement. This spending supports a wide array of programs, including child nutrition programs, food assistance for low-income families, and emergency food aid. Historical data shows significant and often increasing outlays in these areas, driven by legislative mandates and evolving needs. The specific category 'All Other Miscellaneous Food Manufacturing' (NAICS 311999) represents a portion of this broader spending. Analyzing trends within this specific NAICS code and comparing it to overall USDA food spending would reveal patterns related to the types of food products being procured and the overall scale of federal investment in food supply chains.

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: 123J1421B0110/4100022308

Offers Received: 171

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1247 ARGENTINE BLVD, KANSAS CITY, KS, 66105

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

Financial Breakdown

Contract Ceiling: $40,429,903

Exercised Options: $40,429,903

Current Obligation: $40,429,903

Actual Outlays: $40,427,589

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 123J1420G0115

IDV Type: BOA

Timeline