USDA awards $4.5M for frozen beef and pork products to Goodman Food Products, Inc

Contract Overview

Contract Amount: $4,512,379 ($4.5M)

Contractor: Goodman Food Products, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-09-22

End Date: 2023-12-15

Contract Duration: 84 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009565/4100028444/BEEF PATTY CKD FRZ 2.0 MMA CTN-40 LB,BEEF CRUMBLES W/SPP PKG-4/10 LB,PORK PULLED CKD PKG-8/5 LB,BEEF SPP PTY HSTYLE CKD 2.0MMA CTN-40 LB

Place of Performance

Location: INGLEWOOD, LOS ANGELES County, CALIFORNIA, 90302

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.5 million to GOODMAN FOOD PRODUCTS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009565/4100028444/BEEF PATTY CKD FRZ 2.0 MMA CTN-40 LB,BEEF CRUMBLES W/SPP PKG-4/10 LB,PORK PULLED CKD PKG-8/5 LB,BEEF SPP PTY HSTYLE CKD 2.0MMA CTN-40 LB Key points: 1. Contract awarded for essential food commodities, supporting critical supply chains. 2. The contract value represents a significant investment in food procurement. 3. Competition dynamics suggest a potentially competitive bidding process. 4. Performance period is relatively short, indicating a focused delivery requirement. 5. Geographic focus on California for delivery. 6. Contract type is a firm fixed price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $4.5 million for food commodities appears reasonable given the quantity and type of products. Benchmarking against similar large-scale food procurement contracts would provide further insight into value for money. The firm fixed price structure helps manage cost risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded prior to the final award. The presence of 4 bidders suggests a degree of competition, but the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The limited competition may have resulted in a higher price than if all potential sources were considered. Taxpayers benefit from the existing competition, but the exclusion of sources could represent a missed opportunity for greater cost savings.

Public Impact

Beneficiaries include recipients of USG food donations, potentially including food banks and international aid programs. Services delivered include the supply of essential frozen beef and pork products. Geographic impact is centered in California for delivery. Workforce implications are likely within the food processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition process needs clarification to ensure maximum value for taxpayers.
The short performance period might indicate a need for rapid fulfillment, potentially increasing logistical complexity or cost.

Positive Signals

The award to Goodman Food Products, Inc. supports a known supplier in the food industry.
The firm fixed price contract provides budget certainty for the procuring agency.
The contract specifies clear deliverables for beef and pork products.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector. The market for government food procurement is substantial, with agencies like the USDA regularly sourcing large quantities of commodities. Comparable spending benchmarks would involve analyzing other large-scale food supply contracts awarded by federal agencies.

Small Business Impact

The contract does not indicate a small business set-aside. Analysis of subcontracting opportunities for small businesses would be necessary to determine the broader impact on the small business ecosystem. Without specific set-aside provisions, the primary focus is on the prime contractor's capabilities.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) within the USDA. Accountability measures would include adherence to contract specifications, delivery schedules, and quality standards. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Food and Nutrition Service Contracts

Risk Flags

Limited competition justification required
Potential for price volatility in commodity markets
Supply chain disruption risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.5 million to GOODMAN FOOD PRODUCTS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009565/4100028444/BEEF PATTY CKD FRZ 2.0 MMA CTN-40 LB,BEEF CRUMBLES W/SPP PKG-4/10 LB,PORK PULLED CKD PKG-8/5 LB,BEEF SPP PTY HSTYLE CKD 2.0MMA CTN-40 LB

Who is the contractor on this award?

The obligated recipient is GOODMAN FOOD PRODUCTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2023-09-22. End: 2023-12-15.

What is the track record of Goodman Food Products, Inc. with federal contracts?

Goodman Food Products, Inc. has a history of receiving federal contracts, primarily with the Department of Agriculture. Reviewing past contract performance, including any instances of disputes, late deliveries, or quality issues, would provide a comprehensive understanding of their reliability. Data on the total value and duration of previous contracts would also be informative. While this specific contract is for frozen beef and pork, their broader experience in supplying food commodities to government agencies is a key indicator of their capacity and suitability for fulfilling this requirement.

How does the pricing of this contract compare to similar food commodity procurements?

Benchmarking the pricing of this $4.5 million contract against similar USDA or other federal agency procurements for beef patties, crumbles, and pulled pork is crucial for assessing value for money. Factors such as the specific cuts, weight, packaging, and delivery locations influence price. A detailed analysis would involve comparing the per-pound cost of the commodities in this contract to historical data for comparable items. If this contract's unit prices are significantly higher than market rates or previous government purchases, it could indicate potential overpricing or less effective competition. Conversely, prices in line with or below benchmarks would suggest good value.

What are the primary risks associated with this food commodity contract?

Key risks for this contract include supply chain disruptions, particularly given the nature of food products which are perishable and subject to market fluctuations. Quality control is another significant risk; ensuring the delivered beef and pork products meet the specified standards is paramount. Delivery timeliness is also critical, as delays could impact the intended distribution of these commodities. Furthermore, price volatility in the meat market could pose a risk if not adequately managed through the firm fixed price mechanism. The 'limited' competition aspect also introduces a risk that the government may not have secured the absolute best price available.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method for this type of procurement?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this food commodity procurement depends heavily on the justification for excluding certain sources. If the exclusions were based on legitimate technical requirements or prior performance issues, then the remaining competition among qualified bidders could still yield good results. However, if sources were excluded without clear justification, it could limit price discovery and potentially lead to higher costs for the government. The fact that four bidders participated suggests some level of competition was maintained, but a thorough review of the exclusion rationale is needed to fully assess effectiveness and taxpayer value.

What is the historical spending pattern for similar food commodities by the Department of Agriculture?

Analyzing historical spending patterns for similar food commodities by the Department of Agriculture provides essential context for this $4.5 million contract. Understanding the volume, frequency, and average cost of beef and pork products procured by the USDA over the past several years can reveal trends in pricing, supplier reliability, and overall program demand. This historical data allows for a more robust comparison of the current contract's value and terms against established benchmarks. Significant deviations from historical spending could signal changes in market conditions, procurement strategies, or potential issues with the current award.

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: 123J1423B0587

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E BEACH AVE, INGLEWOOD, CA, 90302

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,512,379

Exercised Options: $4,512,379

Current Obligation: $4,512,379

Actual Outlays: $4,512,379

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline