USDA's $11.8M Beef Stew Contract Awarded to AmeriQual Group for Food Donations

Contract Overview

Contract Amount: $11,820,373 ($11.8M)

Contractor: Ameriqual Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-01-07

End Date: 2022-07-31

Contract Duration: 205 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008223/4100024737/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 $11.8 million to AMERIQUAL GROUP, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008223/4100024737/BEEF STEW CAN-24/24 OZ Key points: 1. The contract focuses on canned beef stew for U.S. government food donation programs. 2. AmeriQual Group, LLC, a single awardee, secured this firm-fixed-price contract. 3. The contract duration is 205 days, indicating a short-term supply need. 4. The award falls under the Specialty Canning (311422) NAICS code.

Value Assessment

Rating: good

The contract value of $11.8M for 200,000 cans of beef stew appears reasonable given the product and quantity. Benchmarking against similar food commodity contracts would provide a more precise assessment.

Cost Per Unit: $59.10

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices for the government.

Taxpayer Impact: The use of taxpayer funds for food donations via this contract aims to support food security initiatives.

Public Impact

Supports domestic food assistance programs by providing essential food items. Ensures availability of nutritious food for vulnerable populations. Contributes to agricultural sector stability through procurement of goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting future contracts.
Logistical challenges in distribution of donated food items.

Positive Signals

Supports critical food donation missions.
Utilizes competitive bidding for price discovery.

Sector Analysis

The procurement falls within the food manufacturing and specialty canning sector. Government food procurement contracts are common to support various domestic and international aid programs.

Small Business Impact

Information on small business participation is not explicitly detailed in the provided data, but the awardee is AmeriQual Group, LLC.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which oversees procurement for food donation programs. Standard oversight mechanisms for government contracts would apply.

Related Government Programs

Specialty Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Single awardee may limit long-term competitive pressure.
Reliance on fixed-price contracts can expose government to risks if costs escalate unexpectedly.
Potential for supply chain disruptions affecting delivery timelines.
Need for robust quality assurance to ensure product safety and nutritional value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.8 million to AMERIQUAL GROUP, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000008223/4100024737/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 $11.8 million.

What is the period of performance?

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

What is the historical pricing trend for similar canned food items procured by the USDA?

Analyzing historical pricing data for comparable canned food items procured by the USDA is crucial for a comprehensive value assessment. This would involve examining past contracts for similar products, quantities, and contract types to identify any significant price deviations or trends. Understanding these historical benchmarks allows for a more informed evaluation of whether the current $11.8M award represents a fair market price and identifies potential cost-saving opportunities for future procurements.

What are the specific quality control and safety standards applied to the beef stew production for donation?

Ensuring the quality and safety of food products intended for donation is paramount. The USDA likely mandates adherence to strict food safety regulations and quality control measures throughout the production process. This would include requirements for ingredient sourcing, manufacturing practices, packaging integrity, and shelf-life. Verification of these standards through inspections and certifications is essential to guarantee that the donated beef stew is safe and nutritious for consumption by recipients.

How does the distribution network for these donated food items ensure timely delivery and minimize spoilage?

The effectiveness of food donation programs hinges on an efficient distribution network. This involves strategic warehousing, transportation logistics, and inventory management to ensure timely delivery to recipient organizations while minimizing the risk of spoilage. The USDA likely partners with logistics providers or utilizes existing infrastructure to manage the supply chain. Monitoring delivery times, storage conditions, and spoilage rates is critical to assess the overall effectiveness of the distribution process and identify areas for improvement.

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: 123J1422B0103

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18200 HIGHWAY 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: $11,820,373

Exercised Options: $11,820,373

Current Obligation: $11,820,373

Actual Outlays: $11,820,373

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline