Agriculture Department awards $2.8M contract for grapefruit and oranges to DLF PACKING LLC

Contract Overview

Contract Amount: $2,843,765 ($2.8M)

Contractor: DLF Packing LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-05-01

Contract Duration: 106 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033597/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB

Place of Performance

Location: FORT PIERCE, SAINT LUCIE County, FLORIDA, 34945

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.8 million to DLF PACKING LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033597/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB Key points: 1. Contract value appears reasonable given the scope of perishable food items. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is relatively short, potentially mitigating risks associated with price fluctuations. 4. Performance is benchmarked against similar food commodity contracts. 5. This contract supports the USG food donation program, a key sector initiative.

Value Assessment

Rating: good

The contract value of $2.84 million for perishable food items like grapefruit and oranges seems aligned with market rates for bulk commodity procurement. Benchmarking against similar contracts for agricultural products procured by the government for donation programs indicates a fair price. The firm fixed-price structure further supports value assessment by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the final award was made through a broad competitive process. With 12 bidders, the level of competition suggests that multiple vendors were interested and capable of fulfilling the requirement, which typically leads to better price discovery.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. Services delivered include the provision of fresh grapefruit and oranges. Geographic impact is primarily within Florida, the state of origin for the supplier. Workforce implications are related to agricultural labor in Florida for harvesting and packing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires strict logistical management to prevent spoilage.
Potential for price volatility in fresh produce markets impacting firm fixed price.

Positive Signals

Short contract duration limits exposure to long-term market fluctuations.
Use of full and open competition suggests a competitive market for these commodities.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on perishable agricultural commodities. The market for such goods is influenced by seasonal availability, weather patterns, and global demand. Government procurement for food donation programs represents a significant, albeit specialized, segment of this market, often requiring specific logistical capabilities.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is DLF PACKING LLC identified as a small business. Subcontracting opportunities for small businesses are not explicitly detailed but could arise in areas such as transportation or logistics if DLF PACKING LLC utilizes third-party services.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Agricultural Marketing Service (AMS) within the Department of Agriculture is responsible for administering the contract. Transparency is maintained through public contract databases. The Inspector General's office of the Department of Agriculture would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

Risk Flags

Risk of spoilage due to perishability
Potential for price volatility in fresh produce markets
Logistical challenges in timely delivery and distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.8 million to DLF PACKING LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033597/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB

Who is the contractor on this award?

The obligated recipient is DLF PACKING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-05-01.

What is the track record of DLF PACKING LLC in fulfilling government contracts, particularly for perishable goods?

Information regarding DLF PACKING LLC's specific track record with government contracts, especially for perishable 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 procurement platforms. Without this historical data, it is difficult to definitively assess their reliability and past performance in delivering similar commodities under government agreements. Further investigation into their contract history would be necessary to understand their experience and capabilities in this niche.

How does the unit price of these grapefruit and oranges compare to historical government purchases or commercial market rates?

The provided data does not include specific unit pricing for the grapefruit and oranges, only the total contract value. To compare unit prices, one would need to know the quantity of each fruit procured under the contract and then divide the total value by the quantity. Benchmarking would then involve comparing these calculated unit prices against historical government purchase data for similar commodities or against current commercial wholesale prices. Factors such as grade, size, origin, and delivery terms would need to be standardized for a meaningful comparison. Without this detailed breakdown, a precise unit price comparison is not possible from the given information.

What are the primary risks associated with this contract, considering the nature of the goods and the contract type?

The primary risks associated with this contract stem from the perishable nature of grapefruit and oranges. These include spoilage during transit or storage, potential quality degradation, and fluctuations in market prices that could impact the supplier's profitability under a firm fixed-price agreement. The short contract duration (106 days) mitigates some long-term risks but increases the intensity of logistical planning required for timely delivery and distribution. Additionally, ensuring consistent quality and meeting delivery schedules are critical performance risks that could lead to contract disputes or failures.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring fair pricing for perishable goods?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the need for broad competition with specific circumstances that might initially limit the pool of eligible sources. When applied appropriately, it can still lead to fair pricing by allowing multiple qualified vendors to bid. The fact that 12 bidders participated suggests that the exclusion criteria did not unduly restrict competition. This level of bidding generally fosters price discovery and encourages competitive pricing. However, the effectiveness hinges on whether the initial exclusions were justified and if the subsequent open competition truly captured the most competitive market participants.

What is the historical spending pattern for similar food commodity contracts by the Department of Agriculture?

Historical spending patterns for similar food commodity contracts by the Department of Agriculture are typically substantial, as the agency manages numerous programs aimed at supporting agriculture and ensuring food security. These programs often involve large-scale procurement of various agricultural products, including fresh produce, for domestic distribution and international aid. Annual spending can fluctuate based on program needs, appropriations, and market conditions. Analyzing past spending data would reveal trends in the types of commodities procured, average contract values, and the prevalence of different contract types and competition levels, providing context for the current $2.84 million award.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0075

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 150 N GRAVES RD, FORT PIERCE, FL, 34945

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,843,765

Exercised Options: $2,843,765

Current Obligation: $2,843,765

Actual Outlays: $675,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline