Agriculture Department awards $38.7M contract for frozen fish products, highlighting a significant investment in seafood procurement

Contract Overview

Contract Amount: $38,681,330 ($38.7M)

Contractor: Trident Seafoods Corporation

Awarding Agency: Department of Agriculture

Start Date: 2019-09-25

End Date: 2020-09-30

Contract Duration: 371 days

Daily Burn Rate: $104.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000006416/4100018567/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 $38.7 million to TRIDENT SEAFOODS CORPORATION for work described as: 2000006416/4100018567/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 $38.7 million represents a substantial commitment to acquiring frozen fish products. 2. Trident Seafoods Corporation, the awardee, has secured a significant portion of this procurement. 3. The contract duration of 371 days suggests a medium-term supply need for these seafood items. 4. The use of a firm-fixed-price contract indicates predictable costs for the government. 5. The procurement falls under the Seafood Product Preparation and Packaging industry code. 6. The contract was awarded by the Department of Agriculture's Agricultural Marketing Service.

Value Assessment

Rating: good

The contract value of $38.7 million for frozen fish products appears to be within a reasonable range for large-scale government procurement of this nature. Benchmarking against similar large volume seafood contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost certainty for the agency. Without specific per-unit data or comparison to market prices at the time of award, a definitive value assessment is challenging, but the scale suggests a competitive process likely yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this significant seafood procurement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing. The agency's commitment to full and open competition maximizes the pool of potential offerors and promotes market efficiency.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces, ensuring that government funds are used efficiently. A competitive award means the government likely secured the best possible value for the frozen fish products.

Public Impact

The primary beneficiaries are likely federal food assistance programs or institutional feeding operations managed by the Department of Agriculture, which rely on procured food supplies. The services delivered include the supply of frozen Alaska Pollock sticks and fillets, essential components for various meal preparations. The geographic impact is primarily within the United States, supporting domestic food supply chains and potentially involving distribution to various federal facilities or programs nationwide. Workforce implications may include employment within Trident Seafoods Corporation's processing and distribution facilities, as well as related logistics and transportation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the seafood market impacting long-term value if not adequately managed within the fixed-price structure.
Dependence on a single contractor for a significant volume of a specific food product could pose supply chain risks.
Ensuring consistent quality and adherence to specifications for frozen seafood products over the contract duration requires diligent oversight.

Positive Signals

Award to a known entity like Trident Seafoods Corporation suggests a level of confidence in their production and delivery capabilities.
The firm-fixed-price contract provides budget certainty for the Department of Agriculture, simplifying financial planning.
Full and open competition indicates a robust market response and potential for competitive pricing, benefiting taxpayer value.

Sector Analysis

The seafood processing and packaging industry is a significant segment of the broader food manufacturing sector. This contract falls under NAICS code 311710 (Seafood Product Preparation and Packaging). The market for processed and frozen seafood is substantial, driven by both consumer demand and institutional procurement. Government contracts like this represent a stable demand source for processors, influencing production levels and potentially supporting domestic fishing industries. Comparable spending benchmarks would involve analyzing other large-scale federal procurements for similar food products or contracts within the broader food service supply chain.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Trident Seafoods Corporation is a large entity, the contract does not preclude subcontracting opportunities. However, without specific subcontracting goals or reporting requirements detailed in the award, the direct impact on the small business ecosystem is not explicitly defined. Further analysis of subcontracting plans would be needed to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service (AMS). AMS is responsible for ensuring contract compliance, quality control, and timely delivery of the specified frozen fish products. Accountability measures are embedded in the firm-fixed-price contract terms, with potential penalties for non-performance or deviations from specifications. Transparency is generally maintained through federal contract databases, though specific operational details may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense (DoD) Food Procurement
School Lunch Program Food Purchases
Federal Prison System Food Services
General Services Administration (GSA) Food Contracts

Risk Flags

Potential supply chain disruption risk
Quality control and assurance challenges
Market price volatility for seafood commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $38.7 million to TRIDENT SEAFOODS CORPORATION. 2000006416/4100018567/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 $38.7 million.

What is the period of performance?

Start: 2019-09-25. End: 2020-09-30.

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

Analyzing historical spending patterns for frozen fish products by the Department of Agriculture requires access to detailed procurement data over multiple fiscal years. Typically, agencies like USDA procure large quantities of food for various programs, including child nutrition and food assistance. Spending can fluctuate based on program needs, budget allocations, and market prices for commodities like Alaska Pollock. A review of past contracts would reveal trends in volume, types of products procured (e.g., fillets, sticks), and the primary awardees. Significant year-over-year variations might indicate shifts in policy, program demand, or the effectiveness of competitive bidding processes in securing favorable pricing.

How does the per-pound cost of these fish sticks and fillets compare to market rates at the time of award?

To compare the per-pound cost of these fish sticks and fillets to market rates, we would need the total quantity procured under the $38.7 million contract and the average market price for similar products (Alaska Pollock sticks and fillets) during the contract period (September 2019 - September 2020). For instance, if the contract covered 10 million pounds of product, the average cost per pound would be approximately $3.87. This figure would then be benchmarked against wholesale or retail market data for frozen Alaska Pollock products during that timeframe. Factors like product grade, processing method, and packaging would influence the comparison. A significantly lower per-pound cost would indicate excellent value, while a higher cost might suggest less competitive pricing or unique product specifications.

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

Trident Seafoods Corporation is a major player in the seafood industry and has a history of supplying products to various government entities. Their track record with federal food procurement contracts would typically involve reviewing past awards from agencies like the Department of Agriculture (USDA), Defense Logistics Agency (DLA), and others. Performance history, including on-time delivery, quality compliance, and any past disputes or contract terminations, would be key indicators. A consistent record of successful contract fulfillment suggests reliability and capability. Conversely, any significant performance issues or contract breaches would raise concerns about their suitability for large-scale procurements.

What are the specific quality standards and specifications for the frozen fish products in this contract?

The specific quality standards and specifications for the frozen fish products in this contract are detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents typically outline requirements for product type (e.g., Alaska Pollock fillets, sticks), size, weight, packaging, freezing methods, and acceptable levels of defects (e.g., bone fragments, skin). They often reference industry standards (like those from the National Marine Fisheries Service) or specific USDA/DoD grading criteria. Adherence to these specifications is crucial for ensuring the safety, quality, and suitability of the food for its intended use, whether for federal feeding programs or other applications. Compliance is usually verified through inspections and testing.

How does this contract's value compare to other large seafood procurements by federal agencies?

The $38.7 million value of this contract for frozen fish products is substantial and places it among significant federal seafood procurements. To compare it effectively, one would look at other large contracts awarded by agencies such as the Department of Agriculture (for school lunch programs or food banks), the Defense Logistics Agency (for military rations), or the Bureau of Prisons. These comparisons would involve examining contract values, quantities, product types, and contract durations. For example, a contract for millions of pounds of shrimp or salmon could be in a similar value range. This contract appears to be a significant, but not unprecedented, investment in securing essential seafood supplies for federal needs.

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: 123J1419B0621/4100018567

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: $38,681,330

Exercised Options: $38,681,330

Current Obligation: $38,681,330

Actual Outlays: $21,548,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline