Usda Awards $25.5M Contract for Fats and Oils Refining to CAL Western Packaging Corporation

Contract Overview

Contract Amount: $25,490,976 ($25.5M)

Contractor: CAL Western Packaging Corporation

Awarding Agency: Department of Agriculture

Start Date: 2009-12-02

End Date: 2010-12-20

Contract Duration: 383 days

Daily Burn Rate: $66.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VO13-129A

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38109

State: Tennessee Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.5 million to CAL WESTERN PACKAGING CORPORATION for work described as: VO13-129A Key points: 1. Contract value of $25.5M for refining and blending fats and oils. 2. Awarded under full and open competition, suggesting market availability. 3. Fixed-price contract type aims to control costs. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract value is substantial for the specified NAICS code. Benchmarking against similar contracts for fats and oils refining is difficult without more granular data on the specific services and quantities involved. The award amount appears within a reasonable range for a single-year contract of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing. The agency selected CAL WESTERN PACKAGING CORPORATION, suggesting they offered the best value.

Taxpayer Impact: Taxpayer funds are utilized for the procurement of essential agricultural processing services. The competitive nature of the award aims to ensure efficient use of these funds.

Public Impact

Ensures supply chain continuity for agricultural products. Supports the agricultural sector by providing necessary processing services. Potential impact on food prices depending on the end products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Fixed-price contract may not fully account for unforeseen market fluctuations.
Limited duration of the contract.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Clear award to a single entity.

Sector Analysis

The agricultural processing sector, particularly fats and oils refining, is crucial for food production and various industrial applications. Spending in this area is often driven by commodity prices and agricultural output. This contract falls within the broader food manufacturing and processing industry.

Small Business Impact

The contract data indicates that small businesses were not involved in this award, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed or if the scope of work was not conducive to small business participation.

Oversight & Accountability

The award was made under full and open competition, suggesting a standard procurement process was followed. Oversight would focus on contract performance, adherence to terms, and financial accountability throughout the contract period.

Related Government Programs

Fats and Oils Refining and Blending
Department of Agriculture Contracting
Farm Service Agency Programs

Risk Flags

High number of contract modifications (16).
No small business participation.
Lack of detailed service/product specification for value assessment.
Limited contract duration (approx. 1 year).

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.5 million to CAL WESTERN PACKAGING CORPORATION. VO13-129A

Who is the contractor on this award?

The obligated recipient is CAL WESTERN PACKAGING CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2009-12-02. End: 2010-12-20.

What specific types of fats and oils were refined, and what was the volume processed under this contract?

The provided data does not specify the exact types or volumes of fats and oils processed. This information is crucial for a detailed value assessment, as different commodities have varying market prices and processing complexities. Understanding the specifics would allow for a more accurate comparison to industry benchmarks and a better evaluation of the $25.5 million award.

Were there any performance issues or contract modifications during the contract period?

The data indicates a contract duration from December 2, 2009, to December 20, 2010, with 16 modifications. The presence of numerous modifications (16) warrants further investigation into the reasons behind them. While modifications can be routine, a high number might suggest initial planning issues, scope changes, or unforeseen challenges that could impact overall cost-effectiveness and risk management.

How did the final price compare to the initial bid and the government's estimate?

The data provides the award amount ($25,490,975.80) but does not include the initial bids received or the government's estimate. Without this comparative data, it's impossible to assess the effectiveness of the competition in driving down prices or whether the final price represented good value. Knowing the bid range and estimate would highlight the success of the procurement process.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Fats and Oils Refining and Blending

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: VO13-129A

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16203 PENINSULA BLVD, HOUSTON, TX, 90

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,490,976

Exercised Options: $25,490,976

Current Obligation: $25,490,976

Contract Characteristics

Cost or Pricing Data: NO

Timeline