USDA awards $4.58M for canned beef products, Ameriqual Group LLC secures contract

Contract Overview

Contract Amount: $4,575,087 ($4.6M)

Contractor: Ameriqual Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-05-26

End Date: 2024-02-06

Contract Duration: 256 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009318/4100027687/BEEF CHILI W/BEANS PKG-12/15 OZ,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 $4.6 million to AMERIQUAL GROUP, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009318/4100027687/BEEF CHILI W/BEANS PKG-12/15 OZ,BEEF STEW CAN-24/24 OZ Key points: 1. Contract value appears reasonable for the quantity and type of specialized food products procured. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 256 days indicates a focused, short-term need for these commodities. 4. The specialty canning NAICS code points to a niche market within food manufacturing. 5. This procurement supports the Agricultural Marketing Service's role in managing food commodity programs. 6. The firm fixed-price structure transfers risk to the contractor, ensuring cost certainty for the government.

Value Assessment

Rating: good

The contract value of $4.58 million for specialized canned beef products seems aligned with market rates for similar government food procurements. Benchmarking against other Department of Agriculture contracts for food commodities suggests this award is within a typical range for the quantity and type of goods specified. The firm fixed-price nature of the contract provides cost certainty for the government, indicating good value if the delivered products meet quality standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Five bids were received, indicating a healthy level of interest and competition for this requirement. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Beneficiaries include individuals and families receiving food assistance through government donation programs. Services delivered include the provision of shelf-stable, high-protein food items. Geographic impact is national, as these donated commodities are distributed across the United States. Workforce implications are primarily within the food manufacturing and logistics sectors, supporting jobs at Ameriqual Group, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of essential food items.
Quality control of canned goods is critical to ensure food safety and nutritional value.
Dependence on a single contractor for a specific set of food commodities could pose a risk if performance issues arise.

Positive Signals

Contract awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty and transfers risk to the contractor.
The contractor, Ameriqual Group, LLC, has experience in food manufacturing and packaging for government needs.
Procurement supports vital federal food assistance programs.

Sector Analysis

This contract falls within the food manufacturing and processing sector, specifically focusing on specialty canning. The market for government food procurement is substantial, with agencies like the Department of Agriculture regularly sourcing commodities for various programs. Comparable spending benchmarks for similar canned goods and food rations for government use indicate that this award is in line with typical contract values for such specialized items.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Ameriqual Group, LLC, is likely a larger entity capable of fulfilling this significant food production order independently. The absence of small business set-asides means direct opportunities for small businesses within this specific contract are limited, though they may participate as suppliers to the prime contractor.

Oversight & Accountability

Oversight for this contract is managed by the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods at an agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential for supply chain delays
Food safety and quality assurance concerns
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.6 million to AMERIQUAL GROUP, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000009318/4100027687/BEEF CHILI W/BEANS PKG-12/15 OZ,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 $4.6 million.

What is the period of performance?

Start: 2023-05-26. End: 2024-02-06.

What is Ameriqual Group, LLC's track record with government food contracts?

Ameriqual Group, LLC has a history of securing contracts with various government agencies, including the Department of Defense and the Department of Agriculture, for the production and supply of shelf-stable food products. Their experience often involves providing MREs (Meals, Ready-to-Eat) and other specialized food packaging for military and humanitarian aid purposes. This specific contract for beef chili and stew aligns with their established capabilities in food manufacturing and packaging for government requirements. Past performance data, typically available through government databases like the Federal Procurement Data System (FPDS), would provide a more detailed assessment of their on-time delivery rates, quality compliance, and overall performance on previous similar awards.

How does the unit cost of these canned beef products compare to commercial market prices?

Determining the precise unit cost comparison is challenging without knowing the exact specifications (e.g., ingredient sourcing, specific nutritional content, packaging materials) and the total quantity of individual cans procured. However, government contracts often include administrative, quality assurance, and logistical overhead that can influence unit prices. For bulk purchases of standard canned goods, government prices might be competitive or slightly higher than retail due to these factors and the specialized nature of the procurement. The firm fixed-price nature suggests Ameriqual priced competitively to win the bid, implying their unit cost is viable within the market context for government-specified products.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential supply chain disruptions affecting the timely delivery of essential food items, quality control issues with the canned goods (food safety, spoilage), and contractor performance failures. These risks are mitigated through the firm fixed-price contract structure, which incentivizes the contractor to meet specifications and deadlines to ensure payment. The government's oversight by the Agricultural Marketing Service includes monitoring delivery schedules and product quality upon receipt. Furthermore, the use of full and open competition with five bidders reduces the risk of over-reliance on a single supplier and provides options if performance issues arise with the selected contractor.

How effective are USDA food donation programs in addressing food insecurity?

USDA food donation programs, such as those supported by this contract, play a significant role in addressing food insecurity across the United States. These programs provide essential food supplies to food banks, pantries, and other charitable organizations, which then distribute them to individuals and families in need. By procuring and distributing nutritious, shelf-stable food items like canned beef products, the USDA helps supplement the diets of vulnerable populations, including low-income families, seniors, and children. While these programs are a critical component of the food assistance network, their overall effectiveness is influenced by factors such as program funding levels, distribution efficiency, and the variety and nutritional quality of the food provided.

What is the historical spending trend for similar specialty canned food procurements by the USDA?

Historical spending data for similar specialty canned food procurements by the USDA would likely show consistent, albeit fluctuating, annual expenditures. The demand for such commodities is often driven by the needs of various food assistance programs and emergency response requirements. Spending can vary based on appropriations, changes in program eligibility, and global food market prices. Analyzing past contract awards for items like canned meats, stews, and chili over several fiscal years would reveal trends in contract values, quantities procured, and the primary contractors involved. This specific $4.58 million award for beef products appears to be a significant, but not unprecedented, investment in maintaining adequate supplies for these vital programs.

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: 123J1423B0393

Offers Received: 5

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: $4,575,087

Exercised Options: $4,575,087

Current Obligation: $4,575,087

Actual Outlays: $4,575,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline