USDA Awards $2.7M Contract to DLF Packing for Oranges, Ensuring Food Donations

Contract Overview

Contract Amount: $2,701,515 ($2.7M)

Contractor: DLF Packing LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-06-24

Contract Duration: 160 days

Daily Burn Rate: $16.9K/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: 2000011099/4100033599/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 $2.7 million to DLF PACKING LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033599/ORANGES CTN-34-39 LB Key points: 1. Contract value of $2.7M for perishable food manufacturing, specifically oranges. 2. DLF Packing LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The contract runs for 160 days, indicating a short-term need for these commodities. 4. The Agricultural Marketing Service is the contracting agency, focusing on agricultural products for donation.

Value Assessment

Rating: fair

The contract value of $2.7M for 20,000 cases of oranges seems reasonable given the perishable nature and specific packaging requirements. Benchmarking against similar large-scale food procurement contracts would provide a clearer picture of cost-effectiveness.

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,' suggesting that while competition was sought, specific criteria or circumstances led to the exclusion of certain potential bidders. This method aims for competitive pricing but may limit the pool of offerors.

Taxpayer Impact: Taxpayer funds are used to procure food commodities for donation programs, aiming to support food security initiatives.

Public Impact

Ensures availability of essential food items for federal food donation programs. Supports agricultural producers and the food processing industry through government procurement. Contributes to efforts addressing food insecurity within the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in perishable commodities.
Logistical challenges in distributing perishable goods.
Limited duration of the contract may require subsequent procurements.

Positive Signals

Supports critical food donation missions.
Utilizes established procurement processes.
Clear contract end date.

Sector Analysis

This contract falls under the food manufacturing and distribution sector, specifically for agricultural commodities. Government spending in this area is crucial for supporting domestic food programs and ensuring supply chain stability for essential goods.

Small Business Impact

The data indicates that DLF Packing LLC received the award. Further analysis would be needed to determine if this company qualifies as a small business or if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

The Agricultural Marketing Service, part of the USDA, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and accountability.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Perishability of goods requires careful logistical planning.
Short contract duration may lead to frequent re-procurement.
Potential for price volatility in agricultural commodities.
Limited information on the specific justification for excluding sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.7 million to DLF PACKING LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033599/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 $2.7 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-06-24.

What is the specific breakdown of the $2.7M contract value per unit or pound of oranges?

The provided data does not include a per-unit or per-pound cost breakdown for the oranges. The total contract value is $2,701,515.07 for an unspecified quantity within the 20,000 cases. To assess value effectively, a detailed cost breakdown would be necessary to compare against market rates for similar quality and quantity of oranges.

What were the specific reasons for excluding other sources in the 'full and open competition after exclusion of sources' method?

The specific reasons for excluding other sources are not detailed in the provided data. This procurement method typically involves a justification, such as specialized requirements, urgent needs, or prior performance, that limits the pool of eligible contractors. Understanding these reasons is crucial for assessing the fairness and competitiveness of the procurement process.

How does the contract duration of 160 days align with the typical needs of the food donation program?

A 160-day contract duration suggests a short-term or seasonal need for these specific orange commodities. While efficient for immediate requirements, it may indicate a need for recurring procurements to ensure continuous supply for the food donation program. The agency's strategy for longer-term supply chain management should be considered.

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: $2,701,515

Exercised Options: $2,701,515

Current Obligation: $2,701,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline