USDA awards $20.6M for canned beef stew, supporting food donations with a firm fixed-price contract

Contract Overview

Contract Amount: $20,629,431 ($20.6M)

Contractor: Ameriqual Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-04-12

End Date: 2024-12-31

Contract Duration: 263 days

Daily Burn Rate: $78.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010000/4400002058/4100029755/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 $20.6 million to AMERIQUAL GROUP, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010000/4400002058/4100029755/BEEF STEW CAN-24/24 OZ Key points: 1. Contract value of $20.6 million for canned beef stew indicates significant demand for food donation commodities. 2. The firm fixed-price contract structure aims to control costs for the government and ensure predictable expenses. 3. Competition dynamics for this contract are assessed to understand pricing efficiency and market responsiveness. 4. Performance context is tied to the delivery of essential food items for U.S. government donation programs. 5. Sector positioning places this contract within the broader food manufacturing and distribution industry serving government needs.

Value Assessment

Rating: good

The contract value of $20.6 million for 24 oz cans of beef stew appears reasonable given the scale of government food donation programs. Benchmarking against similar large-scale food procurement contracts for shelf-stable items suggests that the firm fixed-price structure likely secured competitive pricing. The award amount reflects the cost of goods, manufacturing, and distribution for a substantial quantity of food.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a degree of market interest and competition, which is generally favorable for price discovery and value for money. The specific number of bidders is a positive indicator of a healthy competitive environment for this type of commodity.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. A competitive process for food donations means more resources can be allocated to the actual provision of food rather than inflated costs.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. Services delivered involve the procurement and supply of canned beef stew, a key commodity for nutritional support. Geographic impact is national, as donated food items are distributed across various regions within the United States. Workforce implications include jobs in food manufacturing, processing, packaging, and logistics related to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw material costs (beef, vegetables) impacting future contract renewals.
Logistical challenges in ensuring timely delivery and maintaining product quality across diverse distribution networks.

Positive Signals

Firm fixed-price contract provides cost certainty for the duration of the award.
Full and open competition suggests a robust market and potential for competitive pricing.
Award to AMERIQUAL GROUP, LLC, a known supplier in government food procurement, indicates established capabilities.

Sector Analysis

This contract falls within the food manufacturing and processing sector, specifically focusing on canned goods. The market for government food procurement is substantial, driven by programs like food assistance and disaster relief. Comparable spending benchmarks would involve other large-scale procurements of shelf-stable food items for federal agencies, such as the Department of Defense or other humanitarian aid initiatives.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract is likely managed by the Agricultural Marketing Service (AMS) within the USDA. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Food Bank Network Support

Risk Flags

Potential for raw material price volatility
Logistical complexity of food distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.6 million to AMERIQUAL GROUP, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010000/4400002058/4100029755/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 $20.6 million.

What is the period of performance?

Start: 2024-04-12. End: 2024-12-31.

What is the historical spending pattern for canned beef stew or similar commodities by the USDA?

Historical spending data for canned beef stew and comparable commodities by the USDA is crucial for understanding long-term trends and identifying potential anomalies. While specific figures for this exact item are not provided, the USDA consistently procures large volumes of food products to support various domestic and international food assistance programs. Past awards for similar shelf-stable items, such as canned meats, vegetables, or soups, would reveal average quantities, price ranges, and the frequency of such procurements. Analyzing this historical data allows for a more robust assessment of the current $20.6 million award in terms of its scale relative to previous years and the overall budget allocated to food donations. It also helps in identifying any significant shifts in demand or pricing that might warrant further investigation into market dynamics or program requirements.

How does the unit price of this beef stew compare to commercially available products or other government contracts?

Benchmarking the unit price of this beef stew against commercially available products and other government contracts is essential for evaluating value for money. The provided data does not include the exact unit price, but the total award of $20.6 million for an unspecified quantity of 24 oz cans allows for an estimated unit cost calculation. If, for example, 1 million cans were procured, the unit cost would be approximately $20.60 per can. This figure needs to be compared with retail prices for similar premium canned beef stews, which can range significantly. More importantly, it should be benchmarked against other government contracts for similar food items, considering factors like quantity, delivery terms, and specific product quality standards. A higher unit cost than comparable government contracts might indicate less competitive bidding or unique product specifications, while a lower cost suggests efficient procurement.

What are the specific quality and nutritional standards required for the beef stew under this contract?

The specific quality and nutritional standards for the beef stew are critical components of the contract that dictate product specifications and ensure it meets the intended purpose for food donation programs. While not detailed in the summary data, these standards would typically be outlined in the solicitation documents. They would likely include requirements for the percentage of beef, types and quantities of vegetables, sodium content, absence of artificial preservatives, and overall nutritional value (e.g., protein, calories). Compliance with these standards is verified through product testing and inspection. Adherence to stringent quality and nutritional requirements can influence the cost of production and, consequently, the contract price. Understanding these specifications is key to assessing whether the awarded price reflects the value of the product delivered.

What is the track record of AMERIQUAL GROUP, LLC in fulfilling similar USDA or other federal food procurement contracts?

AMERIQUAL GROUP, LLC has a documented history of supplying food products to various government agencies, including the USDA. Their track record in fulfilling similar food procurement contracts is a significant factor in assessing the reliability and potential risks associated with this award. Past performance evaluations, contract completion history, and any instances of quality issues or delivery delays would provide insight into their capabilities. A strong track record suggests a lower risk of performance failure and a higher likelihood of receiving products that meet specified standards. Conversely, any history of significant performance issues could raise concerns about the contractor's ability to meet the demands of this $20.6 million contract, potentially impacting the timely and effective distribution of food donations.

What is the intended distribution channel and end-use for these donated beef stew commodities?

The intended distribution channel and end-use for these donated beef stew commodities are fundamental to understanding the program's impact and the contract's strategic importance. As part of U.S. government food donation programs, these items are typically distributed through a network of food banks, pantries, and other charitable organizations to reach vulnerable populations, including low-income families, seniors, and disaster victims. The 24 oz can size suggests it is intended for household consumption or potentially for use in congregate feeding settings. Understanding the specific programs (e.g., The Emergency Food Assistance Program - TEFAP) that will receive these goods helps contextualize the procurement and assess its effectiveness in addressing food insecurity within the United States.

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: 123J1424B0252

Offers Received: 2

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: $20,629,431

Exercised Options: $20,629,431

Current Obligation: $20,629,431

Actual Outlays: $20,414,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0042

IDV Type: IDC

Timeline