USDA's $40.3M Contract for Instant Milk Powder Awarded to Transylvania Vocational Services

Contract Overview

Contract Amount: $40,293,201 ($40.3M)

Contractor: Transylvania Vocational Services, Inc

Awarding Agency: Department of Agriculture

Start Date: 2021-12-01

End Date: 2022-07-31

Contract Duration: 242 days

Daily Burn Rate: $166.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000008183/4100024527/MILK INSTANT NDM PKG-24/12.8 OZ

Place of Performance

Location: BREVARD, TRANSYLVANIA County, NORTH CAROLINA, 28712

State: North Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.3 million to TRANSYLVANIA VOCATIONAL SERVICES, INC for work described as: 2000008183/4100024527/MILK INSTANT NDM PKG-24/12.8 OZ Key points: 1. The contract value is $40.3 million for instant milk powder. 2. Competition was not available for this contract. 3. The contract is a firm fixed price type. 4. This falls under the Dry, Condensed, and Evaporated Dairy Product Manufacturing sector.

Value Assessment

Rating: questionable

The contract value is substantial at $40.3 million. Without available pricing data or benchmarks, it's difficult to assess if this represents good value compared to similar contracts for instant milk powder.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: The $40.3 million expenditure represents taxpayer funds. The lack of competition raises concerns about whether the government secured the best possible price for these dairy products.

Public Impact

Ensures supply of essential dairy products for government programs. Supports the dairy manufacturing industry. Potential for higher costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited transparency on pricing benchmarks

Positive Signals

Supports a specific industry sector
Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls within the Dry, Condensed, and Evaporated Dairy Product Manufacturing sector. Spending in this sector can vary widely based on demand for specific products and government programs.

Small Business Impact

The data indicates that the awardee is Transylvania Vocational Services, Inc. Further analysis would be needed to determine if this company qualifies as a small business and the extent of their role in fulfilling this contract.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring contract performance and adherence to terms.

Related Government Programs

Dry, Condensed, and Evaporated Dairy Product Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Lack of competition may lead to inflated pricing.
Absence of clear per-unit cost benchmarks hinders value assessment.
Limited transparency on the justification for sole-source award.
Potential for suboptimal price discovery due to limited vendor pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.3 million to TRANSYLVANIA VOCATIONAL SERVICES, INC. 2000008183/4100024527/MILK INSTANT NDM PKG-24/12.8 OZ

Who is the contractor on this award?

The obligated recipient is TRANSYLVANIA VOCATIONAL SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.3 million.

What is the period of performance?

Start: 2021-12-01. End: 2022-07-31.

What is the typical market price for 12.8 oz packages of instant milk powder to assess value?

Determining the typical market price for 12.8 oz packages of instant milk powder requires access to industry pricing data, wholesale costs, and competitor pricing. Without this information, it is challenging to establish a reliable benchmark. Factors like ingredient costs, manufacturing processes, and distribution expenses influence the final price. A thorough market analysis would be necessary to provide an accurate comparison.

What were the specific reasons for the contract not being open to competition?

The contract's status as 'NOT AVAILABLE FOR COMPETITION' suggests potential reasons such as a sole-source requirement, a specific urgent need, or a unique capability held by the awarded vendor. Understanding the justification for this limitation is crucial for assessing the procurement process and ensuring that taxpayer funds are used efficiently and effectively.

How does the firm fixed price contract structure impact the government's risk and potential for cost savings?

A firm fixed price (FFP) contract shifts most of the cost risk to the contractor. This means the government pays a set price regardless of the contractor's actual costs. While this provides budget certainty for the government, it can lead to higher initial prices if the contractor anticipates potential cost overruns. It limits the government's ability to benefit from cost savings if the contractor is highly efficient.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Dry, Condensed, and Evaporated Dairy Product Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 123J1422B0067/4100024527

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 MOUNTAIN INDUSTRIAL DR, BREVARD, NC, 28712

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Minority Owned Business, Nonprofit Organization, Other Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,293,201

Exercised Options: $40,293,201

Current Obligation: $40,293,201

Actual Outlays: $40,408,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline