Special Notice for Third Party Logistic (3PL) Firms for Transportation, Storage, and Distribution of Food for the Agricultural Marketing Service (AMS) – Request for Information

POC: Nick Skarzynski, Contract Specialist, AMS Commodity Procurement Program, Phone (404) 562-5862, Email: [email protected]

THIS IS A SPECIAL NOTICE FOR A REQUEST FOR INFORMATION. THIS NOTICE IS ISSUED FOR MARKET RESEARCH PURPOSES ONLY. IT DOES NOT CONSTITUTE A COMMITMENT BY THE GOVERNMENT, NOR IS IT A SOLICITATION OR REQUEST FOR OFFERS. RESPONSE TO THIS RFI IS VOLUNTARY.

This Request for Information aims to gather feedback, suggestions, and questions in support of a solution for Third-Party Logistics (3PL) for the storage and distribution of foods purchased by USDA for its nutrition assistance programs, including the Food Distribution Program on Indian Reservations (FDPIR), the Commodity Supplemental Food Program (CSFP) and other anticipated needs. We are particularly interested in ideas and suggestions that strengthen 3PL supply chain resilience and improve the customer experience. We are seeking information from 3PL firms specializing in the full spectrum of food logistics functions, including tracking and reporting, quality inspection and monitoring of all work performed, as well as the receipt, storage, handling, transport, and distribution of dry, refrigerated, and frozen packaged food products. We also will use responses to gain insights into potentially qualified facility size classifications, including Large Business, Small Business, 8(a), HUBZone, SDVOSB, or WOSB Programs, under NAICS code 493110 (size standard for small business designation is $34.0 million). These services are currently being performed under existing contracts, and AMS seeks information to enhance future requirements.

Services include but are not limited to:

• Receiving full truckloads of food products from AMS suppliers (in dry, refrigerated, and frozen forms)
  • FDPIR Product List
  • CSFP Product List
• Storing an inventory of dry, refrigerated, and frozen food products
• Fulfilling orders for scheduled deliveries to local warehouses of varying sizes across the contiguous United States as well as the U.S. Virgin Islands, Puerto Rico, Guam, Hawaii and Alaska.
• Interfacing with USDA's Web-Based Supply Chain Management (WBSCM) SAP-based system

Order fulfillment typically involves creating mixed trucks and/or pallets for delivery to one or more locations on a weekly, bi-monthly or monthly basis. Storage facilities must accommodate dry and temperature-controlled products. They must also be able to track product receipt dates and best-if-used-by dates on all external containers and report these details electronically to WBSCM. Contractors also have the flexibility to add additional delivery routes as needed, including multi-stop direct deliveries.

Providing storage and distribution services to Indian Tribal Organizations and state CSFP operating agencies across the United States and its territories creates significant logistical challenges that affect efficiency, cost-effectiveness, and the timely ability to meet the needs of remote and diverse communities. Key challenges include:

• Insufficient distribution system resilience
• The complexity of managing inventory on a first expiration, first out basis (FEFO)
• Variable program delivery volume monthly and ensuring adequate storage space for storing, picking, and staging products before shipment
• Limited technology integration and visibility across the distribution supply chain
• Complicated stock removal/picking requirements which increase the risk of inaccurate shipments
• Use of multi-compartment trucks to separate frozen, refrigerated, and dry goods, consolidating product deliveries to regions with varying temperature requirements
• Communication of shipments and deliveries with a broad array of dissimilar customers across the U.S. and its territories
• Lack of adequate/need for improved technology, warehouse space, transportation and logistics equipment at some program operator sites

AMS requests that respondents propose a 3PL model and provide information that informs the parameters of a potential solicitation in the future:

1. Propose a 3PL distribution model for storing and distributing dry, refrigerated, and frozen products, including a requirement for multiple warehouses and/or regional distribution solutions for the full FDPIR and/or CSFP food catalog.
2. Identify how this model would support quality, on time deliveries and exceptional customer service for food distribution for the FDPIR and CSFP programs together or separately, including multi-compartment shipments and less-than-truckload quantities to remote areas.
3. Identify how the model addresses the documented program challenges noted above.
4. Recommend contract incentives for a future solicitation in accordance with the Federal Acquisition Regulations, to include sub-contracting incentives aimed at achieving supply chain resilience via the usage of small/regional distributors, including Tribally-owned distributors, in the model proposed.
5. Recommend the data (i.e., pallet positions, square footage, shipment periodicity, delivery locations) you would need in a future solicitation to submit a proposal for 3PL services.
6. Recommend quality assurance/quality control, customer service/communication/data requirements and performance metrics for AMS to consider in a future solicitation.
7. Recommend system integration requirements for AMS to consider in a future solicitation that would provide USDA visibility into all supply chain activities.
8. Recommend contingency plan requirements (overflow contract agreements, performance bonds, product quality, transportation/delivery services, etc.) that AMS should consider in a future solicitation that would ensure supply chain resilience and consistent/reliable achievement of program goals.

Written questions in response to this RFI should be sent by e-mail to the attention of Nick Skarzynski, Contract Specialist at [email protected] by October 15, 2024. AMS will make every attempt to provide answers to questions in sufficient time for respondents to incorporate new information into their response to this RFI. However, AMS may be unable to respond to questions that are received late. Please include "Special Notice for Third Party Logistic (3PL) Firms - Request for Information" in the subject line of any email correspondence. AMS will post answers to questions on the System for Award Management website (SAM.gov).

Written responses to this RFI should be limited to 5-7 pages, e-mailed to the attention of Nicholas Skarzynski, Contract Specialist at [email protected]. Please include "Special Notice for Third Party Logistic (3PL) Firms - Request for Information" in the subject line. These responses must be received no later than November 4, 2024. AMS may or may not contact respondents for clarification. Responses will not be shared with any other respondent, and there will be no public notification of the market research results. AMS may use responses to this RFI in creating a future solicitation, but not responding to this RFI does not preclude submitting a proposal in response to a future solicitation.