USDA Awards $9.6M Delivery Order to Americold Logistics for Food Donation Support Services

Contract Overview

Contract Amount: $9,600,000 ($9.6M)

Contractor: Americold Logistics, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-01-17

End Date: 2026-04-24

Contract Duration: 462 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4400002274/4300013928/3PL SERVICES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30328

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.6 million to AMERICOLD LOGISTICS, LLC for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: /4400002274/4300013928/3PL SERVICES Key points: 1. Americold Logistics secured a $9.6M contract for 3PL services supporting USG food donations. 2. The contract was not competed, raising questions about potential price discovery. 3. This award falls under General Warehousing and Storage, a critical sector for supply chain efficiency. 4. The firm fixed price contract aims to control costs for these essential support services.

Value Assessment

Rating: fair

The $9.6M award for 462 days of service appears reasonable given the scope of 3PL support for food donations. Benchmarking against similar warehousing and logistics contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning Americold Logistics was selected without a bidding process. This limits price discovery and may not ensure the government receives the best possible price.

Taxpayer Impact: Without competition, taxpayers may be paying a premium for these essential logistics services, though the firm fixed price contract offers some cost certainty.

Public Impact

Ensures efficient distribution of USG food donations to those in need. Supports critical supply chain infrastructure for humanitarian efforts. Potential for increased costs to taxpayers due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment

Positive Signals

Supports critical food donation program
Firm fixed price contract

Sector Analysis

This contract falls within the General Warehousing and Storage sector (NAICS 493110). Spending in this sector is vital for maintaining supply chains, especially for essential goods like food. Benchmarks for similar 3PL services can vary significantly based on scale and specific requirements.

Small Business Impact

This contract was awarded to Americold Logistics, LLC, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.

Oversight & Accountability

The lack of competition warrants further oversight to ensure the pricing is fair and reasonable. The Agricultural Marketing Service should document the justification for the sole-source award and monitor performance closely.

Related Government Programs

General Warehousing and Storage
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Sole-source award
Potential for non-competitive pricing
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.6 million to AMERICOLD LOGISTICS, LLC. SUPPORT SERVICES FOR USG FOOD DONATIONS: /4400002274/4300013928/3PL SERVICES

Who is the contractor on this award?

The obligated recipient is AMERICOLD LOGISTICS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2025-01-17. End: 2026-04-24.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves specific circumstances such as the urgency of the need, the unique capabilities of the contractor, or the lack of other responsible sources. Without further documentation from the agency, it is difficult to ascertain the precise reason for not competing this $9.6M delivery order.

How does the pricing compare to market rates for similar 3PL services, given the lack of competition?

Without a competitive bidding process, it is challenging to definitively assess if the pricing is optimal. A thorough market analysis or review of historical pricing for comparable services would be necessary to determine if Americold Logistics' rates are aligned with industry standards and offer good value to the government.

What is the potential impact on the effectiveness of food donation programs if costs are inflated due to non-competitive pricing?

Inflated costs due to non-competitive pricing could reduce the overall volume of food that can be procured and distributed through donation programs, or divert funds from other essential services. This could indirectly impact the reach and effectiveness of the program in serving beneficiaries.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Americold Realty Trust

Address: 10 GLENLAKE PKWY STE 600, ATLANTA, GA, 30328

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,600,000

Exercised Options: $9,600,000

Current Obligation: $9,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0217

IDV Type: IDC

Timeline