USDA's $1.05M contract for frozen ground beef awarded to Seminole Tribe of Florida, Inc

Contract Overview

Contract Amount: $1,053,054 ($1.1M)

Contractor: Seminole Tribe of Florida, Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-11-17

End Date: 2023-01-31

Contract Duration: 75 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008906/4100026515/BEEF FINE GROUND FRZ CTN-40 LB

Place of Performance

Location: FORT MCCOY, MARION County, FLORIDA, 32134

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.1 million to SEMINOLE TRIBE OF FLORIDA, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008906/4100026515/BEEF FINE GROUND FRZ CTN-40 LB Key points: 1. Value for money appears reasonable given the quantity and type of goods procured. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The duration of the contract (75 days) suggests a need for immediate or short-term supply. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The procurement falls under the 'Animal (except Poultry) Slaughtering' NAICS code, relevant to food supply chains. 6. The awardee, Seminole Tribe of Florida, Inc., is a significant entity with potential for large-scale supply.

Value Assessment

Rating: good

The contract value of $1.05 million for 200,000 lbs of frozen ground beef translates to approximately $5.25 per pound. This price point is within a reasonable range for bulk, frozen beef, especially considering potential fluctuations in commodity markets and the costs associated with processing, packaging, and delivery for government specifications. Benchmarking against similar government food donation contracts would provide a more precise value assessment, but the initial per-pound cost does not raise immediate concerns.

Cost Per Unit: $5.25 per pound

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This specific solicitation type suggests that while the competition was intended to be open, certain sources may have been excluded prior to the final award, possibly due to specific requirements or prior relationships. With 7 bids received, the competition level indicates a moderate interest from potential suppliers. The exclusion of sources warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the receipt of multiple bids suggests that taxpayers likely benefited from a competitive price. The exclusion of certain sources, however, may have limited the potential for even greater cost savings.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The contract delivers 200,000 pounds of frozen ground beef, a key protein source for nutritional support. The geographic impact is likely national, as donated food is distributed through various channels across the United States. This contract supports the agricultural sector by providing a market for beef producers and processors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure it did not unduly limit competition.
The short contract duration (75 days) might indicate a reactive procurement rather than strategic long-term planning, potentially leading to less favorable pricing.
Lack of detailed performance metrics in the provided data makes it difficult to assess the quality and timeliness of delivery.

Positive Signals

The award to Seminole Tribe of Florida, Inc., a tribal entity, may align with government objectives for supporting minority or disadvantaged businesses.
The firm fixed-price contract type provides cost certainty for the government.
The procurement of a staple food item like ground beef directly supports critical food security initiatives.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on the procurement of meat products. The market for government food procurement is substantial, driven by programs like the National School Lunch Program and food assistance initiatives. The USDA's Agricultural Marketing Service (AMS) plays a crucial role in purchasing and distributing agricultural commodities. Comparable spending benchmarks would involve analyzing other large-scale procurements of frozen meat products by federal agencies, considering factors like volume, type of meat, and delivery logistics.

Small Business Impact

The provided data does not indicate that this contract was specifically set aside for small businesses, nor does it mention any subcontracting requirements. The awardee, Seminole Tribe of Florida, Inc., is a tribal organization, which may have specific programs or affiliations that support small businesses within its ecosystem, but this is not explicitly detailed in the contract information. Further review of the awardee's business structure and subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service (AMS), which is responsible for procurement and contract management. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

National School Lunch Program
Food and Nutrition Service (FNS) Programs
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential for limited competition due to source exclusion.
Short contract duration may indicate urgency or reactive procurement.
Need for further data to assess contractor performance and value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.1 million to SEMINOLE TRIBE OF FLORIDA, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000008906/4100026515/BEEF FINE GROUND FRZ CTN-40 LB

Who is the contractor on this award?

The obligated recipient is SEMINOLE TRIBE OF FLORIDA, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2022-11-17. End: 2023-01-31.

What is the track record of Seminole Tribe of Florida, Inc. in fulfilling federal food supply contracts?

Information regarding the specific track record of Seminole Tribe of Florida, Inc. in fulfilling federal food supply contracts is not detailed in the provided data snippet. However, as a tribal entity, it is likely involved in various business ventures, potentially including agricultural production and distribution. To assess their track record thoroughly, one would need to examine past performance evaluations, contract completion history, and any reported issues or commendations on federal procurement databases. Their capacity to handle a 200,000 lb frozen beef order suggests a certain level of operational capability. Further research into their history with the USDA or other federal agencies would be necessary for a comprehensive understanding of their reliability and performance in similar procurements.

How does the per-pound cost of $5.25 for frozen ground beef compare to market rates at the time of award?

The per-pound cost of $5.25 for frozen ground beef, as indicated by this contract, needs to be benchmarked against prevailing market rates for similar commodities around November 2022 (the contract's start date). Factors influencing market rates include the type of beef (e.g., lean percentage), packaging, origin, and overall commodity market conditions. General market data from agricultural reports or commodity price indices for that period would be essential for comparison. If market rates were significantly lower, this contract's price might be considered less favorable. Conversely, if market rates were at or above this level, the price would be deemed competitive. Without access to specific market data for November 2022, a definitive comparison is challenging, but $5.25/lb is a plausible figure for bulk frozen beef procurement.

What are the specific reasons for the 'exclusion of sources' in this full and open competition?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded from participating in the bidding process. The specific reasons for such exclusions are typically documented within the contract file and agency procurement records. Common justifications might include failure to meet mandatory pre-qualification criteria, non-compliance with specific technical requirements outlined in the solicitation, past performance issues, or the need to restrict the pool to sources capable of meeting highly specialized needs. Understanding the exact criteria used for exclusion is crucial to determine if the process was fair and if it potentially limited the government's ability to secure the best possible price and value.

What is the intended use and distribution plan for the 200,000 lbs of frozen ground beef?

The 200,000 pounds of frozen ground beef procured under this contract are intended for use in U.S. Department of Agriculture (USDA) food donation programs. These programs aim to alleviate hunger and improve nutrition among vulnerable populations. The distribution plan typically involves the Agricultural Marketing Service (AMS) purchasing the commodities and then coordinating with various federal, state, and local agencies, as well as non-profit organizations, to distribute the food to eligible recipients. This could include food banks, shelters, and other community-based organizations that serve low-income families, children, and the elderly. The specific end-users and geographic reach would depend on the particular USDA food assistance initiatives this procurement supports.

How does this contract's value and volume compare to historical USDA procurements of similar commodities?

To compare this contract's value ($1.05M) and volume (200,000 lbs of frozen ground beef) to historical USDA procurements, one would need to access historical federal procurement data, such as through the Federal Procurement Data System (FPDS) or similar databases. Analyzing past contracts for similar commodities (e.g., frozen beef, other meats) awarded by the USDA's Agricultural Marketing Service (AMS) or other relevant agencies would be necessary. Key comparison points would include the quantity purchased, the per-pound price, the contract duration, and the type of competition. For instance, if historical data shows similar volumes procured at significantly lower per-pound prices, it might suggest this contract was less cost-effective. Conversely, if prices are in line or higher, it indicates consistent market pricing or potential inflation impacts. This contract appears to be a moderately sized procurement for food donation purposes.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1423B0063

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6300 STIRLING RD, HOLLYWOOD, FL, 33024

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Government, HUBZone Firm, Native American Tribal Government, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Agricultural Cooperative, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,053,054

Exercised Options: $1,053,054

Current Obligation: $1,053,054

Actual Outlays: $1,053,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline