USDA's $14.75M Salmon Contract Awarded to Ocean Beauty Seafoods LLC Under Full and Open Competition

Contract Overview

Contract Amount: $17,273,599 ($17.3M)

Contractor: Ocean Beauty Seafoods LLC

Awarding Agency: Department of Agriculture

Start Date: 2020-06-11

End Date: 2020-12-31

Contract Duration: 203 days

Daily Burn Rate: $85.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007034/4100020775/SALMON PINK CAN-24/14.75 OZ (33630),K SALMON PINK CAN-24/14.75 OZ (33630)

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.3 million to OCEAN BEAUTY SEAFOODS LLC for work described as: 2000007034/4100020775/SALMON PINK CAN-24/14.75 OZ (33630),K SALMON PINK CAN-24/14.75 OZ (33630) Key points: 1. The Agricultural Marketing Service awarded a $14.75 million contract for canned salmon. 2. Ocean Beauty Seafoods LLC secured the contract through full and open competition. 3. The contract type is Firm Fixed Price, indicating price certainty for the government. 4. This award falls within the Seafood Product Preparation and Packaging NAICS code (311710).

Value Assessment

Rating: good

The contract value of $14.75 million for canned salmon appears reasonable given the quantity and duration. Benchmarking against similar government procurements for canned seafood products would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best possible price for goods and services.

Public Impact

Ensures availability of canned salmon for potential government use or distribution programs. Supports the seafood industry, specifically canned product preparation and packaging. The award to a single vendor, Ocean Beauty Seafoods LLC, highlights their competitive position in this market segment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data makes detailed value assessment challenging.
Small business participation is not indicated, potentially missing opportunities for smaller enterprises.

Positive Signals

Awarded under full and open competition, promoting market competitiveness.
Firm Fixed Price contract provides cost certainty.
Clear contract duration and delivery schedule.

Sector Analysis

The award is within the food manufacturing sector, specifically seafood processing. Government spending in this area often supports domestic agricultural production and ensures supply chain stability for essential food products.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses were excluded or if they did not bid on this specific opportunity.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would involve monitoring contract performance, delivery, and adherence to specifications.

Related Government Programs

Seafood Product Preparation and Packaging
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for missed small business opportunities.
Limited granular cost data for detailed value analysis.
Dependence on a single vendor for this specific procurement.
Contract duration is relatively short, requiring potential re-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.3 million to OCEAN BEAUTY SEAFOODS LLC. 2000007034/4100020775/SALMON PINK CAN-24/14.75 OZ (33630),K SALMON PINK CAN-24/14.75 OZ (33630)

Who is the contractor on this award?

The obligated recipient is OCEAN BEAUTY SEAFOODS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2020-06-11. End: 2020-12-31.

What is the estimated cost per can or per pound to assess the value more granularly?

Without specific unit breakdowns, a precise cost per can or pound is not available from the provided data. The total award of $14.75 million over 203 days for canned salmon suggests a significant volume. Further analysis of the contract's detailed specifications and delivery quantities would be necessary to calculate and benchmark these unit costs against industry standards or similar government contracts.

What were the key factors that led to Ocean Beauty Seafoods LLC winning this contract over potential competitors?

As the contract was awarded under full and open competition, Ocean Beauty Seafoods LLC likely submitted the most advantageous offer based on a combination of price, quality, delivery schedule, and potentially other evaluation factors outlined in the solicitation. The firm fixed price structure suggests their bid was competitive and met the government's cost expectations for the specified canned salmon product.

How does this contract contribute to the Agricultural Marketing Service's mission or specific programs?

This contract likely supports the Agricultural Marketing Service's role in maintaining stable food supplies and potentially fulfilling requirements for domestic food programs, disaster relief, or other initiatives. Ensuring a consistent supply of essential commodities like canned salmon through competitive procurement aligns with the agency's mission to facilitate the marketing of agricultural products.

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: 123J1420B0478/4100020775

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 W EWING ST, SEATTLE, WA, 98119

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

Financial Breakdown

Contract Ceiling: $17,273,599

Exercised Options: $17,273,599

Current Obligation: $17,273,599

Actual Outlays: $17,273,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline