USDA's $48.7M Contract for Roasted Nuts Awarded to Stutz Packing Company Under Full and Open Competition

Contract Overview

Contract Amount: $48,756,976 ($48.8M)

Contractor: Stutz Packing Company

Awarding Agency: Department of Agriculture

Start Date: 2020-09-24

End Date: 2021-06-30

Contract Duration: 279 days

Daily Burn Rate: $174.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007307/4100021805/ALMONDS ROASTED WHOLE SHELL PKG-12/2 LB,HAZELNUTS PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-12/2 LB,ALMOND NATURAL WHOLE SHELL CTN-12/2 LB

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $48.8 million to STUTZ PACKING COMPANY for work described as: 2000007307/4100021805/ALMONDS ROASTED WHOLE SHELL PKG-12/2 LB,HAZELNUTS PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-12/2 LB,ALMOND NATURAL WHOLE SHELL CTN-12/2 LB Key points: 1. The contract focuses on various types of roasted nuts, including almonds, hazelnuts, and pistachios. 2. Stutz Packing Company, a producer in the Roasted Nuts and Peanut Butter Manufacturing sector, is the awardee. 3. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 4. The total value of the contract is substantial at $48.7 million, spanning a 279-day period.

Value Assessment

Rating: good

The contract value of $48.7 million for a 279-day period appears reasonable given the quantity and variety of roasted nuts specified. Benchmarking against similar government procurements for bulk food items would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to drive competitive pricing and ensure fair market value for the government.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the procured nuts, avoiding potential overpayment associated with less competitive methods.

Public Impact

Ensures supply of essential food items for government use or distribution. Supports the agricultural sector, specifically nut producers and processors. Provides a significant revenue stream for the awarded company, Stutz Packing Company. The procurement process demonstrates government commitment to fair competition in its purchasing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting final cost.
Logistical challenges in delivery and storage of large quantities of perishable goods.

Positive Signals

Awarded under full and open competition, maximizing price discovery.
Contract duration is relatively short, allowing for potential renegotiation or re-competition.
Specific product requirements ensure quality and suitability for intended use.

Sector Analysis

The procurement falls within the food manufacturing sector, specifically roasted nuts. Government spending in this area supports agricultural supply chains and ensures availability of food products. Benchmarks for similar food contracts vary widely based on item, quantity, and duration.

Small Business Impact

The data indicates that Stutz Packing Company is the sole awardee. There is no explicit information provided regarding small business participation or subcontracting opportunities within this specific contract, and the 'sb' field is false.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Standard government oversight mechanisms would apply to ensure contract compliance, quality control, and timely delivery.

Related Government Programs

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

Risk Flags

Potential for commodity price volatility.
Logistical complexity of large-scale food distribution.
Ensuring consistent quality across large batches.
Dependence on a single supplier for a significant quantity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $48.8 million to STUTZ PACKING COMPANY. 2000007307/4100021805/ALMONDS ROASTED WHOLE SHELL PKG-12/2 LB,HAZELNUTS PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-12/2 LB,ALMOND NATURAL WHOLE SHELL CTN-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 $48.8 million.

What is the period of performance?

Start: 2020-09-24. End: 2021-06-30.

What is the specific end-use of these roasted nuts, and how does it align with USDA's mission?

The specific end-use of these roasted nuts is not detailed in the provided data. However, USDA procurements often support domestic food programs, school lunch initiatives, disaster relief efforts, or military feeding operations. Ensuring a stable supply of nutritious food aligns with USDA's broader mission of supporting American agriculture and improving food security for citizens.

Are there any identified risks related to the quality or shelf-life of the nuts given the contract duration and storage requirements?

The contract duration is 279 days, and the nuts are specified as 'roasted'. While roasting can extend shelf-life compared to raw nuts, potential risks include degradation over time, spoilage if storage conditions are inadequate, or pest infestation. The government would typically have quality assurance clauses and inspection protocols to mitigate these risks and ensure the nuts meet required standards upon delivery and throughout their intended use period.

How does the unit price of these nuts compare to commercial market prices for similar bulk quantities?

Without specific unit pricing data or detailed market comparisons, it's challenging to definitively assess the value. However, government contracts often achieve favorable pricing due to bulk purchasing power and competitive bidding. A thorough analysis would involve comparing the contract's per-pound cost for each nut variety against prevailing wholesale prices from major distributors at the time of award.

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: 123J1420B0685/4100021805

Offers Received: 9

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: $48,756,976

Exercised Options: $48,756,976

Current Obligation: $48,756,976

Actual Outlays: $48,538,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline