USDA awards $44.3M for roasted nuts, including pistachio and pecan packages, to Stutz Packing Company

Contract Overview

Contract Amount: $44,345,811 ($44.3M)

Contractor: Stutz Packing Company

Awarding Agency: Department of Agriculture

Start Date: 2019-08-14

End Date: 2019-12-19

Contract Duration: 127 days

Daily Burn Rate: $349.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006259/4100018192/PECAN PIECES PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-12/2 LB

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $44.3 million to STUTZ PACKING COMPANY for work described as: 2000006259/4100018192/PECAN PIECES PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-12/2 LB Key points: 1. The contract focuses on roasted nuts, a niche within the broader food manufacturing sector. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value is substantial for a specialized food product. 4. Risk appears moderate, tied to supply chain and quality of perishable goods.

Value Assessment

Rating: good

The contract value of $44.3M for roasted nuts appears reasonable given the quantity and type of product. Benchmarking against similar large-scale food procurement contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds were used efficiently through a competitive bidding process for essential food supplies.

Public Impact

Ensures availability of essential food items for federal programs. Supports the agricultural sector by procuring processed nut products. Provides a consistent supply of roasted nuts for various government needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw nut commodities.
Logistical challenges in distributing perishable goods.

Positive Signals

Utilizes full and open competition.
Contract awarded to a single, established vendor.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the food manufacturing sector, specifically roasted nuts. Spending benchmarks for this sub-sector are difficult to isolate but are part of the larger agricultural procurement landscape.

Small Business Impact

The contract was awarded to Stutz Packing Company, which is not explicitly identified as a small business in the provided data. Further investigation would be needed to determine the impact on small businesses in the supply chain.

Oversight & Accountability

The contract was awarded under a definitive contract with a firm fixed price, indicating clear terms and conditions. Oversight would focus on delivery, quality, and adherence to the contract specifications.

Related Government Programs

Roasted Nuts and Peanut Butter Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility.
Perishability of goods requires careful logistics.
Dependence on specific agricultural outputs.
Limited visibility into Stutz Packing Company's small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $44.3 million to STUTZ PACKING COMPANY. 2000006259/4100018192/PECAN PIECES PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-12/2 LB

Who is the contractor on this award?

The obligated recipient is STUTZ PACKING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.3 million.

What is the period of performance?

Start: 2019-08-14. End: 2019-12-19.

What is the typical profit margin for roasted nut packaging contracts of this size?

Profit margins for food packaging contracts can vary significantly based on factors like raw material costs, processing efficiency, packaging complexity, and market competition. For a contract of this magnitude, typical profit margins might range from 5% to 15%. However, without specific cost breakdowns from Stutz Packing Company or industry-specific data for large-scale nut processing, this remains an estimation.

What are the primary risks associated with the supply chain for these specific nut products?

Primary supply chain risks include weather-related crop failures affecting pistachio and pecan yields, leading to price volatility and availability issues. Geopolitical events in sourcing regions, transportation disruptions (shipping delays, fuel costs), and stringent food safety regulations also pose significant risks. Ensuring consistent quality and preventing spoilage during transit and storage are critical operational risks.

How effectively does this contract support the Department of Agriculture's broader mission?

This contract supports the USDA's mission by procuring agricultural products, thereby stimulating demand for domestic nut farmers and processors. It ensures the availability of nutritious food items for federal programs, potentially including food assistance or distribution initiatives. By awarding through full and open competition, it also promotes fair market practices within the agricultural supply chain.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1419B0498/4100018192

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 82689 AVENUE 45, INDIO, CA, 92201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,345,811

Exercised Options: $44,345,811

Current Obligation: $44,345,811

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline