Agriculture Department awards $20.9M contract for frozen fish products, with 3 bidders competing

Contract Overview

Contract Amount: $20,912,808 ($20.9M)

Contractor: Trident Seafoods Corporation

Awarding Agency: Department of Agriculture

Start Date: 2019-03-15

End Date: 2019-12-31

Contract Duration: 291 days

Daily Burn Rate: $71.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000005933/4100016951/FISH AK POLLOCK STICKS FRZ PKG-20/2 LB,FISH AK PLCK FILLETS FRZ PKG-20/2 LB

Place of Performance

Location: ANACORTES, SKAGIT County, WASHINGTON, 98221

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.9 million to TRIDENT SEAFOODS CORPORATION for work described as: 2000005933/4100016951/FISH AK POLLOCK STICKS FRZ PKG-20/2 LB,FISH AK PLCK FILLETS FRZ PKG-20/2 LB Key points: 1. The contract value of $20.9 million represents a significant investment in food procurement. 2. Competition dynamics indicate a healthy market for seafood products, with multiple suppliers vying for the award. 3. The firm fixed-price structure suggests a predictable cost for the government, mitigating budget uncertainty. 4. Performance context is crucial for ensuring the quality and timely delivery of these essential food items. 5. This contract positions the agency to meet its nutritional and supply chain objectives for the specified period. 6. The award to Trident Seafoods Corporation highlights a key player in the federal seafood supply chain.

Value Assessment

Rating: good

The contract value of $20.9 million for frozen fish products appears reasonable given the quantity and duration. Benchmarking against similar large-scale food procurement contracts would provide further insight into value for money. The firm fixed-price nature helps control costs, but the specific unit prices were not detailed in the provided data. Without direct comparisons to market rates for identical products, a definitive value assessment is challenging, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bidders submitting proposals. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and interested in the opportunity. The presence of three bidders indicates a reasonably competitive market for these types of seafood products, which should theoretically drive better pricing and quality for the government.

Taxpayer Impact: A full and open competition with multiple bidders helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better terms.

Public Impact

Beneficiaries include recipients of USDA-distributed food products, potentially including schools, food banks, and other nutritional assistance programs. Services delivered include the supply of frozen Alaska Pollock sticks and fillets, crucial for meeting dietary guidelines and food security initiatives. Geographic impact is national, as these products are likely distributed through various USDA programs across the United States. Workforce implications may include employment in fishing, processing, packaging, and logistics sectors involved in fulfilling this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and freshness of frozen seafood products over the contract duration.
Monitoring contractor performance to ensure adherence to specifications and delivery schedules.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract provides cost certainty for the government.
Trident Seafoods Corporation is an established entity in the seafood industry.

Sector Analysis

The federal government is a significant purchaser of food products, including seafood, to support various domestic nutrition programs. The market for seafood processing and packaging is substantial, with numerous companies capable of meeting federal specifications. This contract fits within the broader category of federal food procurement, which aims to ensure the availability of nutritious food items while supporting domestic industries. Comparable spending benchmarks would involve analyzing other large-scale contracts for similar frozen seafood products awarded by agencies like the Department of Defense or other USDA programs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses and that small business subcontracting was not a specified requirement (sb: false). This suggests that the primary award went to a large business, Trident Seafoods Corporation. While there is no direct indication of subcontracting opportunities for small businesses within this specific award, large federal contracts can sometimes indirectly benefit small businesses through the supply chain if the prime contractor utilizes smaller suppliers for components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Agricultural Marketing Service (AMS) within the Department of Agriculture. Accountability measures would include performance monitoring against contract specifications, delivery schedules, and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or fulfillment of the contract.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Department of Defense Fresh Fruit and Vegetable Program

Risk Flags

Supply Chain Vulnerability
Quality Control Risk
Market Price Fluctuations
Food Safety Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.9 million to TRIDENT SEAFOODS CORPORATION. 2000005933/4100016951/FISH AK POLLOCK STICKS FRZ PKG-20/2 LB,FISH AK PLCK FILLETS FRZ PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is TRIDENT SEAFOODS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2019-03-15. End: 2019-12-31.

What is the historical spending pattern for frozen fish products by the Department of Agriculture?

Historical spending on frozen fish products by the Department of Agriculture can be analyzed by examining contract awards over several fiscal years. Data from sources like FPDS-NG reveals that USDA, particularly through its Agricultural Marketing Service (AMS), consistently procures large quantities of food, including seafood, to support domestic nutrition assistance programs. Annual spending can fluctuate based on program needs, budget allocations, and market prices. For instance, spending might increase during periods of high demand for school lunch programs or other commodity distribution initiatives. Analyzing trends in contract values, quantities, and types of fish procured over time provides insight into the agency's procurement strategy and its reliance on specific suppliers or product categories. This specific contract for Alaska Pollock products represents a significant single award within a broader pattern of ongoing seafood procurement.

How does the price per pound for these Alaska Pollock products compare to market rates?

Determining the exact price per pound requires dividing the total contract value ($20,902,807.64) by the total quantity of pounds. The data indicates two product descriptions: 'FISH AK POLLOCK STICKS FRZ PKG-20/2 LB' and 'FISH AK PLCK FILLETS FRZ PKG-20/2 LB'. Without the specific quantities for each product type, an exact average price per pound cannot be calculated. However, if we assume an even split or estimate based on typical product weights, the average price per pound would need to be benchmarked against current wholesale prices for similar frozen Alaska Pollock products. Market rates can vary significantly based on seasonality, fishing quotas, global demand, and processing costs. A preliminary estimate suggests the price per pound would likely fall within a competitive range for bulk, government-procured frozen seafood, but a precise comparison requires detailed quantity data and up-to-date market intelligence.

What is Trident Seafoods Corporation's track record with federal contracts?

Trident Seafoods Corporation has a significant history of receiving federal contracts, primarily from agencies such as the Department of Agriculture and the Department of Defense. Their awards often involve the procurement of various seafood products, including salmon, pollock, and other fish items, for use in domestic food programs and military commissaries. Reviewing their contract history reveals a pattern of securing large-value awards, often through competitive bidding processes. Performance data associated with these contracts, where publicly available, generally indicates successful fulfillment of delivery and quality requirements. However, as with any large contractor, occasional performance issues or contract modifications may arise, necessitating careful monitoring by the contracting agency. Their sustained success in winning federal contracts suggests a strong capability in meeting government procurement demands.

What are the potential risks associated with this specific contract?

Several potential risks are associated with this contract for frozen fish products. Firstly, supply chain disruptions, whether due to weather, fishing conditions, or logistical challenges, could impact the timely delivery of the products. Secondly, maintaining the quality and freshness of frozen seafood over the contract's duration requires stringent handling and storage protocols; any lapse could lead to product spoilage or reduced nutritional value. Thirdly, price volatility in the global seafood market, although mitigated by a firm fixed-price contract, could affect the contractor's profitability and potentially their long-term willingness to bid on similar contracts. Finally, ensuring compliance with all food safety regulations and inspection requirements adds another layer of operational risk for the contractor and oversight responsibility for the agency.

How does this contract align with USDA's mission regarding food security and nutrition?

This contract directly aligns with the USDA's mission to enhance food security and promote nutrition, particularly through its domestic nutrition assistance programs. By procuring substantial quantities of frozen Alaska Pollock products, the USDA ensures the availability of a protein-rich food source for vulnerable populations, including children in schools, low-income families, and seniors. Alaska Pollock is a versatile and relatively affordable fish, making it suitable for large-scale distribution. The contract supports the agency's goal of providing nutritious food options that contribute to healthier diets and combat food insecurity across the nation. The procurement process itself, especially when competitive, also supports the broader economic mission by engaging with the domestic seafood industry.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1419B0231/4100016951

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5303 SHILSHOLE AVE NW, SEATTLE, WA, 98107

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,912,808

Exercised Options: $20,912,808

Current Obligation: $20,912,808

Actual Outlays: $114,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline