Wallaces Farmer

Senate Democrats seek answers on Food Box program

Democrats, led by Sen. Stabenow, send letter to Secretary Perdue asking questions about the Farmers to Families Food Box program.

Compiled by staff

June 8, 2020

4 Min Read
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Lew Robertson / Getty Images

Agriculture Secretary Sonny Perdue has made several appearances to highlight USDA's Farmers to Families Food Box program, which has come under fire for contracts awarded to companies with little to no experience in agriculture or food distribution. On June 5, 10 Senate Democrats sent a letter to Perdue outlining their concerns.

"Although some areas have reported positive experiences, we are concerned that the food box program has a number of gaps that will affect its ability to provide food to families in an efficient and equitable way," wrote the senators, led by Sen. Debbie Stabenow, D-Michigan, ranking member of the Senate Committee on Agriculture, Nutrition and Forestry.

After Congress provided resources in the Families First Coronavirus Response Act, the USDA created the Farmers to Families Food Box Program and awarded contracts to suppliers who will purchase and package food to be distributed to food banks.

In a recent Sonnyside of the Farm podcast, Perdue talks to a farmer and a processor about the Farmers to Families Food Box program.

Sonny Perdue · USDA's Farmers to Families Food Box Program

Senate Democrats cite press reports that some of the companies that won contracts are having to hire staff and acquire needed infrastructure before they would be able to fulfill the contract. In other instances, contract awards have reportedly been bigger than the previous annual revenue of the bidder. At least one large contract awarded has already been cancelled.

The senators ask Perdue to answer the following questions by June 22, 2020:

  1. How did USDA contracting officials determine if a bidder had satisfactory ability or historical experience to determine the bidder could successfully perform the contract?  Did bidders have to explain in detail resources they had currently available to carry out the contract?

  2. Why weren’t Perishable Agricultural Commodities Act (PACA) licenses required for a bidder to win a contract?  How will you ensure that contract awardees obtain PACA licenses before contract performance?

  3. USDA received approximately 550 bids and awarded just under 200 contracts one week after the bids were due. How many contracting officials were involved in reviewing such proposals? What level of contract training and experience did each of these officials have?

  4. What is the total value of the food actually being delivered under the contracts? How much of the total value of the contracts went to distributors for labor costs and other expenses?

  5. For each contract awarded, please provide a breakdown showing the area of distribution covered by the contract, the value of the contract, and value of the food to be delivered.

  6. What areas of the country are not covered by a contract?

  7. How will USDA monitor contractor performance? Please describe auditing processes that USDA will use to monitor contract performance. How many contracting officials will oversee contract performance to ensure contractors timely deliver food boxes and to prevent waste, fraud, and abuse? How will USDA ensure payments are not made under the contracts until after food boxes are delivered?

  8. Will USDA require each contract awardee to provide details on the quantity and price per pound of food delivered under the contracts?

  9. Did the total amount of funding for each region take into account population in each region? If not, why not?

  10.  According to press reports, Ben Holtz Consulting DBA California Avocados Direct received a contract of $40 million, which makes up over 15% of contracts for the South-West region and just under 40% of produce-specific contracts for that region. Why was this contract terminated? How will the termination of that contract impact the distribution of food to those in need?

  11.  Have any other contracts been terminated?

  12.  Why weren’t food banks offered the opportunity in the program to request or provide information on the quantities and types of food they needed to meet their current demands?

In addition to Stabenow, the letter was signed by Sens. Sherrod Brown, D-Ohio, Robert Casey, D-Penn., Dick Durbin, D-Ill., Tina Smith, D-Minn., Michael Bennet, D-Colo., Amy Klobuchar, D-Minn., Kirsten Gillibrand, D-N.Y., and Patrick Leahy, D-Vt., who are all members of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, and Senate Minority Leader Charles Schumer, D-N.Y

The full text of the letter is available here.

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