USDA awards $47.5M for food donations, with Ameriqual Group securing a significant portion

Contract Overview

Contract Amount: $47,471,365 ($47.5M)

Contractor: Ameriqual Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-08-03

End Date: 2024-06-30

Contract Duration: 332 days

Daily Burn Rate: $143.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009492/4400001834/4100028170/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 $47.5 million to AMERIQUAL GROUP, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009492/4400001834/4100028170/BEEF CHILI W/BEANS PKG-12/15 OZ,BEEF STEW CAN-24/24 OZ Key points: 1. Value for money appears reasonable given the scale of food provision, though detailed cost breakdowns are needed for precise benchmarking. 2. Competition dynamics indicate a full and open process, suggesting a competitive market for these food commodities. 3. Risk indicators are moderate, with contract duration and delivery order structure presenting standard logistical challenges. 4. Performance context is tied to critical food donation programs, highlighting the importance of reliable supply chains. 5. Sector positioning places this within the broader federal food procurement and agricultural support landscape.

Value Assessment

Rating: good

The contract value of $47.5 million for food commodities is substantial. Benchmarking against similar large-scale food procurement contracts for donation programs would provide a clearer picture of value. The firm fixed-price structure suggests that the contractor bears the risk of cost fluctuations, which can be favorable for the government if costs are managed effectively. However, without granular cost data, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach generally fosters a competitive environment, driving potentially better pricing and service offerings. The presence of three bidders (no) suggests a healthy level of interest and competition for this type of federal food supply contract.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing goods and services at the most competitive prices, preventing potential overspending.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered involve the procurement and delivery of essential food commodities like canned beef chili and beef stew. Geographic impact is national, supporting the distribution of food aid across the United States. Workforce implications are indirect, primarily supporting jobs within the food manufacturing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of critical food aid.
Ensuring consistent quality and nutritional value across large batches of canned goods requires robust oversight.

Positive Signals

Contract awarded through full and open competition, suggesting competitive pricing and a broad vendor pool.
Firm fixed-price contract structure shifts cost overrun risk to the contractor.
Delivery order mechanism allows for phased procurement and delivery, potentially improving logistical efficiency.

Sector Analysis

This contract falls within the broader federal food procurement and agricultural support sector. The market for supplying canned goods and other commodities to government programs is significant, involving numerous food manufacturers and distributors. Comparable spending benchmarks would involve analyzing other large contracts for food bank support, disaster relief provisions, and school lunch programs, which often involve similar commodity types and scale.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). While Ameriqual Group, LLC is the prime contractor, there is potential for subcontracting opportunities with small businesses in areas such as logistics, transportation, and ingredient sourcing. However, the extent of small business participation is not detailed in this summary.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) within the USDA, responsible for procurement and contract management. Accountability measures would include performance standards, delivery schedules, and quality control checks outlined in the contract. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase and Distribution Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Supply Chain Vulnerability
Quality Assurance for Canned Goods
Price Volatility of Raw Agricultural Commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $47.5 million to AMERIQUAL GROUP, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000009492/4400001834/4100028170/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 $47.5 million.

What is the period of performance?

Start: 2023-08-03. End: 2024-06-30.

What is the historical spending pattern for similar food donation commodity contracts awarded by the USDA?

Analyzing historical spending for similar USDA food donation contracts requires accessing federal procurement data over several fiscal years. Typically, the USDA procures large volumes of shelf-stable food items like canned goods, pasta, and rice to support various domestic nutrition assistance programs. Spending patterns can fluctuate based on appropriations, program needs, and market prices for agricultural commodities. For instance, during periods of increased food insecurity or natural disasters, emergency food procurement spending might rise. Contracts for specific items like canned beef chili and stew are recurring, with award values varying based on quantity, duration, and prevailing market conditions. Examining past awards to Ameriqual Group, LLC and other major food suppliers would reveal trends in contract values, competition levels, and the types of commodities prioritized.

How does the per-unit cost of the 'BEEF CHILI W/BEANS PKG-12/15 OZ' and 'BEEF STEW CAN-24/24 OZ' compare to market rates for similar products?

To accurately compare the per-unit cost of 'BEEF CHILI W/BEANS PKG-12/15 OZ' and 'BEEF STEW CAN-24/24 OZ' to market rates, we would need the exact quantities procured under this $47.5 million contract and the specific unit prices. Assuming the total value is distributed across these items, we could derive an average per-unit cost. This derived cost would then need to be benchmarked against wholesale or bulk purchasing prices from major food distributors or manufacturers for comparable products. Factors such as packaging size, ingredients, and brand reputation influence market prices. Federal contracts often achieve economies of scale, potentially leading to lower per-unit costs than retail, but direct comparison requires detailed cost breakdowns and access to current wholesale market data. Without these specifics, a precise comparison is not feasible.

What is Ameriqual Group, LLC's track record with federal food procurement contracts, particularly with the USDA?

Ameriqual Group, LLC has a significant track record in supplying food products to various U.S. government agencies, including the Department of Defense (DoD) and the USDA. They specialize in producing shelf-stable, ready-to-eat meals and canned goods. Their history with the USDA likely involves providing commodities for domestic nutrition programs, similar to this contract. Past performance data, available through federal procurement databases like SAM.gov or FPDS, would detail the types of contracts awarded, their values, durations, and any performance evaluations. A review of this data would indicate their reliability, capacity to handle large-scale orders, and compliance with federal regulations and quality standards. Generally, companies with long-standing government contracts demonstrate a capacity to meet federal requirements.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential supply chain disruptions (e.g., ingredient shortages, transportation delays), quality control issues with large-batch food production, and price volatility of raw materials. Mitigation strategies typically involve robust contract terms that specify delivery schedules, quality assurance protocols, and potentially price adjustment clauses tied to commodity indices, although this contract is firm fixed-price. The USDA's Agricultural Marketing Service (AMS) would oversee performance, conducting inspections and monitoring deliveries. The contractor, Ameriqual Group, LLC, is responsible for managing its own supply chain and quality control. The firm fixed-price nature places the burden of cost overruns on the contractor, incentivizing efficient management. The delivery order structure allows for phased delivery, potentially reducing the impact of any single disruption.

How does the competition level (full and open) for this contract influence the final price and overall value for taxpayers?

A 'full and open' competition strategy is designed to maximize the number of potential bidders, thereby fostering a competitive environment. This increased competition typically drives down prices as contractors vie for the award by offering their most favorable terms. For taxpayers, this means a higher likelihood of securing the required food commodities at a price that reflects true market value, rather than one inflated by limited vendor options. The presence of three bidders (no) suggests that the market is sufficiently robust to support multiple suppliers for these types of goods. This competitive pressure not only benefits the initial price but can also encourage innovation and efficiency among suppliers seeking future government contracts.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1423B0528

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameriqual Group Holdings LLC

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: $47,471,365

Exercised Options: $47,471,365

Current Obligation: $47,471,365

Actual Outlays: $47,444,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0110

IDV Type: IDC

Timeline