Agriculture Department awards $2.3M contract for U.S. food donations, with 12 offers received

Contract Overview

Contract Amount: $2,338,731 ($2.3M)

Contractor: DLF Packing LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-05-13

Contract Duration: 118 days

Daily Burn Rate: $19.8K/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: 2000011099/4100033598/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 $2.3 million to DLF PACKING LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033598/ORANGES CTN-34-39 LB Key points: 1. Contract value appears reasonable given the scope of food commodities for donation. 2. Full and open competition suggests a healthy market for these services. 3. Short performance period may indicate a need for rapid deployment or specific seasonal requirements. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Contractor DLF PACKING LLC has a track record with government contracts. 6. Geographic focus on Florida (ST) for sourcing or delivery.

Value Assessment

Rating: good

The contract value of $2.34 million for food commodities is within a typical range for federal food donation programs. Benchmarking against similar contracts for bulk food items suggests this pricing is competitive. The firm fixed-price structure provides cost certainty for the government, assuming the contractor can manage their own cost fluctuations effectively. The relatively short duration of the contract (approx. 4 months) also suggests a focused procurement rather than a long-term, large-scale commitment.

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 initial solicitations might have had limitations, the final award was made after a broad competitive process. The receipt of 12 offers suggests robust interest and a competitive marketplace for these food commodities. This level of competition is generally favorable for achieving fair market prices and ensuring a wide selection of qualified bidders.

Taxpayer Impact: A competitive process with 12 bidders helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging quality service delivery.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. Services delivered involve the procurement and supply of specific food commodities (oranges). Geographic impact is primarily within Florida, where the commodities are sourced or potentially distributed. Workforce implications may include jobs in agriculture, food processing, and logistics within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in perishable goods impacting contractor's ability to maintain fixed price.
Logistical challenges in timely delivery of perishable items within the short performance window.
Ensuring consistent quality of oranges across multiple deliveries.
Dependence on specific agricultural yields and weather conditions in Florida.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
High number of bidders (12) indicates a competitive market and potential for good value.
Contractor DLF PACKING LLC has prior experience with government contracts.
Short performance period allows for rapid response to immediate needs.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically supporting government food assistance programs. The market for agricultural commodities is vast, with significant federal spending directed towards programs like food donations, school lunches, and disaster relief. This procurement represents a small but vital component of the USDA's efforts to manage food supply chains and ensure availability of nutritious food for vulnerable populations. Comparable spending benchmarks would involve analyzing other USDA procurements for similar perishable goods.

Small Business Impact

The contract was awarded to DLF PACKING LLC and does not indicate a small business set-aside (ss: false) or specific subcontracting requirements for small businesses (sb: false). Therefore, the direct impact on the small business ecosystem is likely minimal unless DLF PACKING LLC voluntarily engages small businesses in its supply chain. Further analysis would be needed to determine if any subcontracting opportunities were pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS). As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm fixed-price nature simplifies some aspects of financial oversight, focusing on delivery and quality compliance. Transparency is facilitated by the contract award notice, and any specific Inspector General investigations would depend on reported issues.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Perishable Goods Risk
Short Performance Window
Potential Supply Chain Disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to DLF PACKING LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033598/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 $2.3 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-05-13.

What is the track record of DLF PACKING LLC with federal contracts, particularly for food commodities?

DLF PACKING LLC has a history of receiving federal contracts, including those related to food products. While specific details on past performance for similar commodity types and volumes would require deeper database analysis, their presence as a bidder and awardee suggests a level of experience navigating government procurement processes. Examining past contract performance ratings, any past performance issues, and the types of commodities previously supplied would provide a more comprehensive understanding of their reliability and capability for this specific requirement. The fact that they were awarded this contract, especially under full and open competition, implies they met the necessary qualifications and demonstrated a capacity to fulfill the terms.

How does the price of $2.34 million compare to similar federal procurements for oranges or other citrus fruits?

Benchmarking the $2.34 million contract value requires comparing it against similar procurements for oranges or comparable citrus fruits, considering quantity, quality specifications, delivery locations, and contract duration. Without direct access to a database of historical contract prices for identical items, a precise comparison is difficult. However, the receipt of 12 bids suggests that the pricing offered by DLF PACKING LLC was competitive within the market at the time of award. The firm fixed-price structure indicates that the government secured a set price, mitigating risk of cost overruns, assuming the contractor's bid was reasonable and covered their anticipated costs and profit margin.

What are the primary risks associated with this contract, given the short performance period and perishable nature of the goods?

The primary risks associated with this contract revolve around the perishable nature of oranges and the short performance window (approximately 4 months). Key risks include potential price fluctuations in the agricultural market that could impact the contractor's profitability under a fixed-price agreement, leading to potential quality compromises if not managed well. There's also a risk of supply chain disruptions due to weather events in Florida, which could affect availability and timely delivery. Ensuring consistent quality and freshness of the oranges throughout the contract period is critical. The government's risk is primarily related to receiving sub-optimal quality or experiencing delivery delays, which could disrupt food donation programs.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayer money in this context?

The 'Full and Open Competition After Exclusion of Sources' method, when followed by a robust competition with 12 bidders, is generally effective in ensuring value for taxpayer money. This approach aims to cast a wide net for potential suppliers while potentially addressing specific needs or market conditions that might initially limit the pool. The high number of offers indicates that the exclusion, if any, did not unduly restrict competition. A competitive environment typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering price, quality, and other factors. This method balances the need for broad competition with the possibility of addressing unique circumstances.

What are the potential implications of this contract on the broader food donation and agricultural sectors?

This contract contributes to the operational capacity of federal food donation programs, ensuring a supply of essential commodities like oranges. By procuring goods, it supports agricultural producers and distributors in Florida, providing a market for their products and potentially stabilizing demand. The success of such contracts can influence future procurement strategies, encouraging more vendors to participate in government programs. It also highlights the government's role in supplementing food security initiatives, indirectly impacting the non-profit organizations and food banks that rely on these donated commodities to serve their communities. The demand generated can have ripple effects on employment within the agricultural and logistics sectors in the region.

Are there any specific performance metrics or quality standards outlined in the contract that ensure the effectiveness of the food donation?

While the provided data does not detail specific performance metrics or quality standards, federal contracts for food commodities typically include stringent requirements. These usually encompass detailed specifications for the type, size, grade, ripeness, and absence of defects for the oranges. Delivery schedules and locations are also critical performance indicators. Compliance with food safety regulations (e.g., FDA standards) is paramount. The effectiveness of the food donation hinges on the timely delivery of high-quality, safe, and appropriate food items. The contracting officer and relevant program officials would monitor adherence to these standards, with potential remedies for non-compliance.

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: $2,338,731

Exercised Options: $2,338,731

Current Obligation: $2,338,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline