USDA's $5.46M contract for food donations awarded to Guidry Liason Group, Inc

Contract Overview

Contract Amount: $5,456,490 ($5.5M)

Contractor: Guidry Liason Group, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-04-12

End Date: 2024-01-15

Contract Duration: 278 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009197/4100027311/WALNUT ENG PCS CTN-24/1 LB

Place of Performance

Location: HUGHSON, STANISLAUS County, CALIFORNIA, 95326

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.5 million to GUIDRY LIASON GROUP, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009197/4100027311/WALNUT ENG PCS CTN-24/1 LB Key points: 1. The contract value of $5.46 million for commodities for USG food donations represents a significant investment in food security programs. 2. The procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests a specific justification for limiting initial bidders, which warrants scrutiny. 3. The contract duration of 278 days indicates a relatively short-term need for these specific food commodities. 4. The fixed-price contract type aims to control costs, but the final value will depend on the exact quantities and specifications delivered. 5. The award to Guidry Liason Group, Inc. is a key data point for assessing contractor performance in this niche market. 6. The geographic focus on California for this contract may indicate regional needs or distribution strategies for the food donations.

Value Assessment

Rating: fair

The contract value of $5.46 million for roasted nuts and peanut butter is substantial. Benchmarking this against similar commodity procurements for food donations is challenging without more specific data on quantity and quality. The fixed-price nature provides some cost certainty, but the overall value for money depends on the effectiveness of the food distribution and the nutritional impact of the commodities provided. The 'per-unit cost' is not directly calculable from the provided data, making direct price assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, there was a prior exclusion of certain sources, suggesting a specific reason or requirement that narrowed the initial pool of potential bidders. The number of bidders (15) is a positive sign of some level of competition, but the 'exclusion of sources' aspect raises questions about whether the most competitive pricing was achieved.

Taxpayer Impact: The exclusion of sources may have limited the potential for broader price discovery, potentially impacting taxpayer savings if fewer highly competitive vendors were considered from the outset.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The services delivered involve the procurement and provision of roasted nuts and peanut butter, likely for nutritional support. The geographic impact is focused on California, suggesting this contract addresses specific needs or distribution channels within the state. Workforce implications are likely minimal for this specific contract, primarily involving logistics and distribution personnel rather than direct manufacturing labor funded by the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' requires further investigation to understand the rationale behind excluding potential bidders.
Lack of detailed unit pricing makes it difficult to assess if the $5.46 million represents a competitive market rate for the specified commodities.
The specific nutritional value and quality standards for the 'Roasted Nuts and Peanut Butter' are not detailed, impacting the assessment of overall program effectiveness.

Positive Signals

The award to Guidry Liason Group, Inc. indicates a successful bid in a competitive process with 15 bidders.
The use of a Firm Fixed Price contract provides cost predictability for the government.
The contract supports essential USG food donation programs, contributing to food security initiatives.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on commodity procurement for government programs. The market for specialized food items for donation can be niche, influenced by nutritional requirements, shelf-life considerations, and logistical capabilities. Comparable spending benchmarks would typically involve analyzing other USDA or agency contracts for similar food items, considering factors like volume, type of commodity, and delivery locations. The total value of $5.46 million is significant for a single commodity contract.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this data, but given the nature of commodity procurement, there might be limited direct subcontracting opportunities unless specialized logistics or distribution services are outsourced.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
National School Lunch Program
Food Bank Network Support

Risk Flags

Limited competition due to source exclusion
Lack of detailed unit pricing for value assessment
Unclear specific nutritional and quality standards for commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 million to GUIDRY LIASON GROUP, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009197/4100027311/WALNUT ENG PCS CTN-24/1 LB

Who is the contractor on this award?

The obligated recipient is GUIDRY LIASON GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2023-04-12. End: 2024-01-15.

What was the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' procurement?

The justification for excluding certain sources in a 'Full and Open Competition After Exclusion of Sources' procurement typically stems from specific technical requirements, unique capabilities, or prior performance issues with certain vendors. For this USDA contract, the exclusion might relate to specialized processing of roasted nuts and peanut butter, specific packaging requirements for donation, or logistical capabilities needed to serve the designated region. Without access to the solicitation documents and any associated justifications (e.g., Justification and Approval - J&A), the precise reasons remain unknown. However, such clauses are intended to ensure that only vendors capable of meeting stringent, often unique, contract demands are considered, even if it narrows the competitive field.

How does the $5.46 million contract value compare to historical spending on similar food donation commodities by the USDA?

Comparing the $5.46 million contract value for roasted nuts and peanut butter to historical USDA spending on similar food donation commodities requires access to a comprehensive database of past procurements. Factors such as the quantity of goods, specific product formulations (e.g., salt content, fortification), packaging types, and delivery timelines significantly influence contract values. Generally, large-scale commodity procurements for federal food assistance programs can range from hundreds of thousands to tens of millions of dollars, depending on the item and the scale of the need. This $5.46 million appears to be a substantial, but not unprecedented, investment for a specific food item supporting donation programs, likely reflecting a significant volume requirement.

What are the key performance indicators (KPIs) used to evaluate Guidry Liason Group, Inc.'s performance under this contract?

Key performance indicators (KPIs) for a contract involving food commodity procurement typically focus on several critical areas. These often include on-time delivery rates, ensuring that the specified quantities of roasted nuts and peanut butter arrive at designated locations by the contract's end date. Quality assurance is paramount, involving adherence to nutritional standards, product specifications, and absence of defects. Compliance with packaging and labeling requirements is also crucial, especially for food donations. Furthermore, adherence to any specific handling or storage instructions to maintain product integrity would be monitored. While not explicitly stated in the provided data, these are standard KPIs for such procurements, and Guidry Liason Group, Inc.'s performance would be assessed against them.

What is the anticipated impact of these food donations on food insecurity in California?

The anticipated impact of these food donations on food insecurity in California, funded by the $5.46 million contract for roasted nuts and peanut butter, is potentially significant. Roasted nuts and peanut butter are calorie-dense and provide essential protein and healthy fats, making them valuable additions to food assistance packages. By supplying these commodities, the USDA, through Guidry Liason Group, Inc., aims to supplement the nutritional intake of vulnerable populations, including low-income families, children, and seniors. The effectiveness will depend on the distribution network's reach within California and the specific needs of the recipient communities. These donations can help alleviate immediate hunger and contribute to better nutritional outcomes for those facing food insecurity.

Are there any known risks associated with Guidry Liason Group, Inc. as a contractor based on past performance or financial stability?

Assessing risks associated with Guidry Liason Group, Inc. requires access to contractor performance databases (like the Contractor Performance Assessment Reporting System - CPARS) and financial health reports, which are not publicly detailed in the provided data. However, the fact that they were awarded this contract, especially after a competitive process involving 15 bidders, suggests they met the minimum qualifications and were deemed capable of performance. Without specific negative performance flags or financial distress indicators, it's presumed they represent a reasonable risk. Further due diligence would involve reviewing their past federal contract history, any past performance issues, and their financial stability to provide a more definitive risk assessment.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1423B0291

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33082 RHINE AVE, TEMECULA, CA, 92592

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,456,490

Exercised Options: $5,456,490

Current Obligation: $5,456,490

Actual Outlays: $5,494,569

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline