Agriculture Department awards $16.6M contract for food donation support services to Paris Brothers, Inc

Contract Overview

Contract Amount: $16,586,852 ($16.6M)

Contractor: Paris Brothers, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000009006/4400002005/4300014021/3PL SERVICES

Place of Performance

Location: KANSAS CITY, CLAY County, MISSOURI, 64161

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.6 million to PARIS BROTHERS, INC. for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000009006/4400002005/4300014021/3PL SERVICES Key points: 1. Contract focuses on essential third-party logistics (3PL) for USG food donations, ensuring efficient distribution. 2. Awarded via full and open competition, suggesting a robust market response and potential for competitive pricing. 3. Fixed-price contract with economic price adjustment offers some flexibility against market fluctuations. 4. Performance period spans one year, indicating a need for ongoing, consistent support. 5. The contract's value is moderate, fitting within typical spending for specialized logistics services. 6. Geographic focus on Missouri suggests localized operational needs for food donation management.

Value Assessment

Rating: good

The contract value of $16.6 million for a 364-day period for warehousing and storage services appears reasonable when benchmarked against similar logistics contracts. While specific per-unit cost data is not provided, the fixed-price structure with economic price adjustment suggests an effort to control costs while accounting for potential market shifts. The competition level also supports the likelihood of a fair price being achieved.

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 were likely considered. The open competition process is designed to foster a competitive environment, encouraging bidders to offer their best pricing and service terms. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and improves the quality of services received, ensuring that government funds are used efficiently.

Public Impact

Beneficiaries include individuals and communities receiving USG-supported food donations, facilitated by efficient logistics. Services delivered encompass warehousing, storage, and transportation of donated food products. Geographic impact is primarily within Missouri, where the operational base for these services is located. Workforce implications may include employment opportunities within Paris Brothers, Inc. for logistics and warehousing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause if market conditions fluctuate significantly.
Dependence on a single contractor for critical logistics could pose a risk if performance issues arise.
Limited geographic scope might not address broader national needs for food donation logistics.

Positive Signals

Awarded through full and open competition, suggesting a competitive process and potentially good value.
Fixed-price structure provides a degree of cost certainty for the government.
Contract duration of one year allows for regular performance review and potential re-competition.

Sector Analysis

The logistics and warehousing sector is a critical component of supply chain management for various industries, including government services. This contract falls under the General Warehousing and Storage (NAICS 493110) category. The market for third-party logistics (3PL) services is substantial, with government contracts representing a significant portion. Benchmarking this contract against similar federal awards for warehousing and distribution of goods would provide further context on its value.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Paris Brothers, Inc., is not identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The absence of a set-aside means opportunities for small business participation would depend on Paris Brothers, Inc.'s own subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service. Standard contract management procedures, performance monitoring, and payment reviews would be in place. The contract's fixed-price nature with economic price adjustment requires careful monitoring of price changes to ensure fairness. Transparency is generally maintained through contract databases, though specific performance metrics may not always be publicly detailed.

Related Government Programs

USDA Food Purchase and Distribution Programs
Federal Food Assistance Programs
Government Logistics and Warehousing Contracts
Third-Party Logistics (3PL) Services

Risk Flags

Potential for price escalation due to economic price adjustment.
Dependence on a single contractor for critical logistics.
Limited geographic scope may not cover all distribution needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.6 million to PARIS BROTHERS, INC.. SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000009006/4400002005/4300014021/3PL SERVICES

Who is the contractor on this award?

The obligated recipient is PARIS BROTHERS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending pattern of the Agricultural Marketing Service on similar logistics and warehousing support services?

Analyzing historical spending by the Agricultural Marketing Service (AMS) on logistics and warehousing is crucial for context. While specific data for this contract (2000009006/4400002005/4300014021) is limited to its current award, broader trends in AMS spending on support services can be examined. Typically, agencies like AMS procure such services to manage the distribution of agricultural commodities, including those for donation programs. Spending can fluctuate based on the volume of donations, program expansions, and the availability of other distribution channels. A review of past contracts, particularly those with similar scope and duration, would reveal if the $16.6 million award represents an increase, decrease, or stable level of investment in these critical support functions. Understanding historical spending helps in assessing whether current expenditures are aligned with past practices and program needs.

How does the pricing structure (Fixed Price with Economic Price Adjustment) compare to other government contracts for similar logistics services?

The Fixed Price with Economic Price Adjustment (FP-EPA) contract type offers a balance between cost certainty and flexibility. For logistics and warehousing services, FP-EPA is often used when the cost of key inputs (like fuel, labor, or materials) is subject to market volatility. Compared to a firm Fixed Price (FP) contract, FP-EPA allows for price adjustments based on pre-defined economic indices, which can protect the contractor from unforeseen cost increases and potentially lead to more competitive initial bids. However, it introduces a risk of price escalation for the government. Other government contracts might use FP for stable markets, or Cost-Plus contracts for services with highly uncertain costs. The suitability of FP-EPA for this $16.6 million USDA contract hinges on the predictability of input costs within the Missouri logistics market over the 364-day performance period. Benchmarking against similar FP-EPA contracts for warehousing would reveal if the adjustment mechanisms and resulting prices are competitive.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate Paris Brothers, Inc.'s service delivery under this contract?

While the provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract, government contracts for logistics and warehousing typically include stringent requirements. These often encompass on-time delivery rates, accuracy of inventory management, condition of goods upon receipt and dispatch, response times to service requests, and compliance with safety and security protocols. For a contract supporting food donations, metrics related to maintaining food integrity (e.g., temperature control if applicable) and minimizing spoilage would be paramount. The Agricultural Marketing Service would likely have established standards for these KPIs, with potential financial implications (e.g., incentives or penalties) tied to performance outcomes. Regular performance reviews would assess Paris Brothers, Inc.'s adherence to these metrics throughout the contract duration.

What is the track record of Paris Brothers, Inc. in performing similar government contracts, particularly those involving food or agricultural products?

Paris Brothers, Inc.'s track record in performing government contracts, especially those involving food or agricultural products, is a key indicator of their capability and reliability. As the awardee of this $16.6 million contract for USG food donation support services, their past performance would have been a significant factor in the selection process. Government agencies typically review a contractor's history of meeting deadlines, quality standards, and budget constraints on previous awards. Experience with perishable or sensitive goods, like food, requires specialized handling and adherence to strict regulations. Information on their prior federal awards, including contract values, agencies served, and performance evaluations (if publicly available), would provide insight into their capacity to successfully execute this current requirement. A positive performance history suggests a lower risk for the government.

What is the estimated value of the services provided per unit (e.g., per pound, per pallet, per cubic foot) and how does it compare to industry benchmarks?

The provided data does not include specific per-unit cost breakdowns for the services rendered under this $16.6 million contract. To assess the value for money, an analysis of per-unit costs (e.g., cost per pound, per pallet stored, per mile transported) would be necessary. These figures would then be compared against industry benchmarks for similar third-party logistics (3PL) services, particularly within the Missouri region. Factors influencing per-unit costs include the type of goods handled (e.g., ambient, refrigerated), the volume and frequency of shipments, the complexity of warehousing operations, and the specific services included (e.g., inventory management, order fulfillment). Without these granular cost details, a precise value-for-money assessment at the unit level is challenging, though the overall contract value and competitive award process suggest a reasonable market price was likely determined.

Are there any specific risks associated with the geographic concentration of this contract in Missouri, and how are they being mitigated?

The geographic concentration of this contract in Missouri presents potential risks, primarily related to localized disruptions. These could include natural disasters specific to the region, labor disputes affecting local workforce availability, or transportation network issues within the state. If Paris Brothers, Inc.'s operations are heavily centralized in Missouri, a significant disruption there could impact the entire supply chain for food donations managed under this contract. Mitigation strategies might involve the contractor maintaining contingency plans, having backup facilities or transportation options, and robust communication protocols with the Agricultural Marketing Service. The government's oversight would likely include assessing the contractor's risk management plans and ensuring they have adequate business continuity measures in place to address potential localized issues.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 123J1424R0148

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 8800 NE UNDERGROUND DR, KANSAS CITY, MO, 64161

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

Financial Breakdown

Contract Ceiling: $16,586,852

Exercised Options: $16,586,852

Current Obligation: $16,586,852

Actual Outlays: $12,015,855

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0004

IDV Type: IDC

Timeline