USDA awards $27.5M for pork to Mistica Foods LLC under full and open competition

Contract Overview

Contract Amount: $27,527,724 ($27.5M)

Contractor: Mistica Foods LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-01-25

End Date: 2023-09-30

Contract Duration: 248 days

Daily Burn Rate: $111.0K/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: 2000009000/4400001640/4100026831/PORK PULLED CKD PKG-20/2 LB

Place of Performance

Location: ADDISON, DUPAGE County, ILLINOIS, 60101

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.5 million to MISTICA FOODS LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009000/4400001640/4100026831/PORK PULLED CKD PKG-20/2 LB Key points: 1. The contract is for a significant quantity of pulled pork, indicating a substantial food donation program need. 2. Mistica Foods LLC is the sole awardee for this delivery order, despite the full and open competition. 3. The firm fixed price contract type suggests price certainty for the government. 4. The duration of the order is 248 days, covering a significant portion of the fiscal year.

Value Assessment

Rating: fair

The award amount of $27.5M for 200,000 lbs of pork is a key data point. Benchmarking against similar USDA food donation contracts for pork would be necessary to fully assess value.

Cost Per Unit: $137.64 per lb

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad outreach to potential suppliers. However, only one award was made, raising questions about the breadth of actual participation or the specific nature of the requirement.

Taxpayer Impact: Taxpayer funds are utilized for food donation programs, aiming to support food security initiatives. The efficiency of this procurement impacts the overall value delivered to beneficiaries.

Public Impact

Supports federal food assistance programs, potentially aiding food banks and other charitable organizations. Ensures availability of essential commodities for vulnerable populations. The procurement process impacts the supply chain for agricultural products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of multiple awardees despite full and open competition.
Potential for price fluctuations in commodity markets impacting long-term value.
Logistical challenges in distribution of donated food.

Positive Signals

Supports critical food security missions.
Firm fixed price provides budget certainty.
Procurement under established agricultural marketing service programs.

Sector Analysis

This procurement falls within the agricultural commodities sector, specifically for food donations managed by the USDA. Spending benchmarks for similar food donation contracts would provide context for the $27.5M award.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Analysis of the prime contractor's size and any subcontracting opportunities for small businesses would be relevant.

Oversight & Accountability

The Agricultural Marketing Service is responsible for this procurement. Oversight would focus on ensuring fair competition, proper execution of the delivery order, and effective distribution of the donated commodities.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Single award despite full and open competition.
Potential for price volatility in commodity markets.
Logistical complexity of large-scale food distribution.
Limited transparency on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.5 million to MISTICA FOODS LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000009000/4400001640/4100026831/PORK PULLED CKD PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is MISTICA FOODS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2023-01-25. End: 2023-09-30.

What was the competitive landscape like for this specific pork product requirement, given the full and open solicitation resulted in a single award?

Investigating the competitive landscape requires examining the number of bids received, the qualifications of non-selected bidders, and any specific technical or logistical requirements that may have limited the pool of capable suppliers. Understanding why only one firm was successful despite a broad solicitation is key to assessing the effectiveness of the competition strategy.

How does the per-unit cost of $137.64 per 20lb package of pulled pork compare to market rates and similar government procurements?

Benchmarking this per-unit cost against historical USDA food donation contracts for similar pork products, as well as current market prices from commodity reports, is crucial. Significant deviations could indicate either exceptional value or potential overpayment, impacting the overall effectiveness of the taxpayer's investment in food security.

What are the logistical and distribution plans to ensure this large quantity of pork effectively reaches intended beneficiaries without spoilage or waste?

Effective oversight of the distribution plan is paramount to ensure the $27.5M investment translates into tangible benefits for food-insecure populations. This includes monitoring transportation, storage, and final delivery to ensure the pork reaches its intended recipients efficiently and safely, minimizing waste and maximizing program impact.

Industry Classification

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

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1423B0143

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50 W COMMERCIAL AVE, ADDISON, IL, 60101

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,527,724

Exercised Options: $27,527,724

Current Obligation: $27,527,724

Actual Outlays: $27,523,259

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0081

IDV Type: IDC

Timeline