Agriculture Department awards $5.9M contract for food donation support services to Paris Brothers, Inc

Contract Overview

Contract Amount: $5,920,117 ($5.9M)

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: $16.3K/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: 2000009006/4400002005/4300014022/3PL SERVICES

Place of Performance

Location: KANSAS CITY, CLAY County, MISSOURI, 64161

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.9 million to PARIS BROTHERS, INC. for work described as: SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000009006/4400002005/4300014022/3PL SERVICES Key points: 1. Contract focuses on essential third-party logistics (3PL) for USG food donations. 2. Awarded via full and open competition, suggesting a robust bidding process. 3. Fixed-price contract with economic price adjustment offers some cost certainty with flexibility. 4. Performance period of one year indicates a short-term need or pilot program. 5. The North American Industry Classification System (NAICS) code 493110 points to general warehousing and storage services. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $5.9 million for a one-year term for logistics support appears reasonable, especially considering the specialized nature of handling food donations. Benchmarking against similar 3PL contracts for government agencies would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure aims to balance cost control with market fluctuations, which is a common and generally effective approach for services susceptible to price changes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service terms. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of competition was sought.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down prices and encourages innovation, leading to more efficient use of public funds.

Public Impact

Beneficiaries include individuals and communities receiving USG-donated food through improved logistical support. Services delivered encompass warehousing, transportation, and distribution of food donations. Geographic impact is centered in Missouri, where the contractor is based. 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 increased costs due to economic price adjustment if market prices rise significantly.
Dependence on a single contractor for critical logistics could pose a risk if performance issues arise.
Limited duration of the contract may necessitate a lengthy re-competition process if services are needed long-term.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price structure with economic price adjustment provides a degree of cost predictability.
Contractor's base in Missouri may offer localized expertise for regional food donation distribution.

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 general warehousing and storage, a segment that supports the broader distribution of goods. The market for third-party logistics (3PL) services is substantial, with government contracts representing a significant portion. Comparable spending benchmarks would involve analyzing other government contracts for similar warehousing and distribution services, particularly those related to food or perishable goods.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates 'sb' is false. This suggests that the requirement was open to all business sizes. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem is neutral to potentially negative if larger firms dominate the service provision without significant subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service (AMS). Standard contract administration procedures, performance monitoring, and payment reviews would be in place. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

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

Risk Flags

Potential for cost increases due to economic price adjustment.
Dependence on contractor performance for critical service delivery.
Limited contract duration may require future re-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.9 million to PARIS BROTHERS, INC.. SUPPORT SERVICES FOR USG FOOD DONATIONS: 2000009006/4400002005/4300014022/3PL 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 $5.9 million.

What is the period of performance?

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

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

Information regarding Paris Brothers, Inc.'s specific track record with government contracts, especially those involving food donations or similar sensitive goods, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on federal awards. Without this historical data, it is difficult to definitively gauge their experience and reliability for this specific type of service. Further investigation into federal procurement databases and contractor performance systems would be necessary to ascertain their suitability and past performance quality.

How does the awarded amount of $5.9 million compare to the typical cost of similar third-party logistics (3PL) services for food donation support?

The awarded amount of $5.9 million for a one-year contract for 3PL services supporting USG food donations is a significant figure, suggesting a substantial scope of work. To benchmark its value, one would need to compare it against similar contracts awarded by government agencies for food warehousing, transportation, and distribution. Factors such as the volume of food handled, geographic coverage, specific services required (e.g., temperature control, specialized handling), and contract duration heavily influence pricing. Without access to a database of comparable contracts, it's challenging to definitively state if this represents excellent, fair, or concerning value. However, the full and open competition suggests an effort to secure competitive pricing.

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

Key risks for this contract include potential disruptions in the supply chain, spoilage or damage to food donations due to inadequate handling or storage, and cost overruns if economic price adjustments are substantial. Performance failures by Paris Brothers, Inc. could also impact the timely delivery of food aid. Mitigation strategies likely involve robust contract oversight by the Agricultural Marketing Service, clear performance standards and metrics, regular reporting requirements, and contingency planning. The fixed-price nature, even with economic adjustments, provides some cost control, and the competition aims to select a capable provider. Insurance and adherence to food safety regulations are also critical risk mitigators.

How effective is the 'fixed price with economic price adjustment' contract type in managing costs for logistics services?

The 'fixed price with economic price adjustment' (FPEPA) contract type is designed to provide a balance between cost certainty for the government and flexibility for the contractor when facing fluctuating market conditions. For logistics services, where fuel, labor, and material costs can change, this structure allows for price adjustments based on pre-defined economic indices. This can help prevent contractors from inflating their base prices to account for potential future cost increases, while still protecting them from significant losses due to unforeseen market volatility. The effectiveness hinges on the clarity and fairness of the economic adjustment formula and diligent oversight to ensure adjustments are warranted and accurately calculated.

What is the historical spending pattern for similar food donation support services by the Department of Agriculture?

The provided data does not include historical spending patterns for food donation support services. To analyze this, one would need to examine past contracts awarded by the Department of Agriculture (or related agencies) for similar logistics, warehousing, and distribution services specifically for food donations. This would involve looking at contract values, durations, and the number of awards over several fiscal years. Understanding historical spending can reveal trends in program needs, contractor utilization, and overall investment in these support services, helping to contextualize the current $5.9 million award.

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: $5,920,117

Exercised Options: $5,920,117

Current Obligation: $5,920,117

Actual Outlays: $4,175,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0004

IDV Type: IDC

Timeline