USDA awards $2.68M for frozen ground beef to Schenk Packing Co. under full and open competition

Contract Overview

Contract Amount: $2,682,926 ($2.7M)

Contractor: Schenk Packing CO., Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-06-28

End Date: 2024-08-31

Contract Duration: 64 days

Daily Burn Rate: $41.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010148/4100030375/BEEF COARSE GROUND FRZ CTN-60 LB

Place of Performance

Location: STANWOOD, SNOHOMISH County, WASHINGTON, 98292

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.7 million to SCHENK PACKING CO., INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010148/4100030375/BEEF COARSE GROUND FRZ CTN-60 LB Key points: 1. Contract awarded for 60 lb cartons of frozen coarse ground beef. 2. Schenk Packing Co., Inc. is the sole awardee. 3. The contract is for a firm fixed price. 4. Competition was full and open after exclusion of sources.

Value Assessment

Rating: good

The contract value of $2.68M for 60 lb cartons of frozen ground beef appears reasonable given the quantity and commodity. Benchmarking against similar food donation contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process was employed. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The use of competitive bidding aims to secure the best value for taxpayer funds in procuring food commodities for donation programs.

Public Impact

Ensures availability of essential food items for U.S. government donation programs. Supports domestic agriculture and food supply chains. Provides nutritional resources to beneficiaries of food assistance programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets.
Logistical challenges in delivery and storage of frozen goods.

Positive Signals

Utilizes a competitive procurement process.
Supports a critical government function (food donations).

Sector Analysis

This contract falls within the agricultural commodities sector, specifically food processing and distribution. Spending benchmarks for similar government food procurement contracts would be relevant for a detailed analysis.

Small Business Impact

The awardee, Schenk Packing Co., Inc., is not indicated as a small business. Further analysis would be needed to determine if small businesses were excluded or had opportunities to participate in this procurement.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Standard oversight procedures for commodity procurement and delivery are expected to be in place.

Related Government Programs

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

Risk Flags

Potential for commodity price volatility.
Dependence on a single supplier for a specific commodity.
Logistical complexities of frozen food distribution.
Ensuring compliance with food safety and donation regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.7 million to SCHENK PACKING CO., INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010148/4100030375/BEEF COARSE GROUND FRZ CTN-60 LB

Who is the contractor on this award?

The obligated recipient is SCHENK PACKING CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2024-06-28. End: 2024-08-31.

What is the historical pricing trend for coarse ground beef commodities procured by the USDA?

Analyzing historical pricing data for coarse ground beef procured by the USDA would reveal market trends and potential cost savings or overages. This context is crucial for evaluating the current contract's value and identifying any significant deviations from past procurement costs. Understanding these trends helps in assessing the effectiveness of the firm fixed-price structure.

What are the specific criteria for 'exclusion of sources' in this full and open competition?

The 'exclusion of sources' in a full and open competition typically refers to specific, justifiable reasons for not considering certain potential offerors, such as national security, proprietary data, or unique capabilities. The rationale behind this exclusion is critical for ensuring the competition remained fair and that the government did not unnecessarily limit its options, potentially impacting price discovery.

How does the unit cost compare to commercial market prices for similar quality frozen ground beef?

Comparing the per-unit cost of this government contract to prevailing commercial market prices for equivalent quality frozen ground beef is essential for assessing value for money. Significant deviations could indicate either exceptional government purchasing power or potential inefficiencies in the procurement or pricing. This comparison directly impacts the perceived effectiveness of the contract.

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: 123J1424B0454

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8204 288TH ST NW, STANWOOD, WA, 98292

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

Financial Breakdown

Contract Ceiling: $2,682,926

Exercised Options: $2,682,926

Current Obligation: $2,682,926

Actual Outlays: $2,682,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline