Trident Seafoods awarded $12.5M for canned salmon and pollock products for USG food donations

Contract Overview

Contract Amount: $12,518,878 ($12.5M)

Contractor: Trident Seafoods Corporation

Awarding Agency: Department of Agriculture

Start Date: 2022-01-19

End Date: 2022-09-30

Contract Duration: 254 days

Daily Burn Rate: $49.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008252/4100024808/SALMON PINK CAN-24/14.75 OZ (33630),FISH AK POLLOCK NUGGETS FRZ PKG-20/2 LB,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 $12.5 million to TRIDENT SEAFOODS CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008252/4100024808/SALMON PINK CAN-24/14.75 OZ (33630),FISH AK POLLOCK NUGGETS FRZ PKG-20/2 LB,FISH AK POLLOCK STICKS FRZ PKG-20/2 LB,FISH AK PLCK FILLETS FRZ PKG-20/2 LB Key points: 1. Contract value represents a significant investment in food aid programs. 2. Competition dynamics suggest a potentially competitive bidding process for seafood products. 3. Performance risks may include supply chain disruptions and quality control for perishable goods. 4. This contract supports the Agricultural Marketing Service's role in food assistance. 5. The seafood sector is crucial for providing diverse and nutritious food aid. 6. Contract duration of 254 days indicates a focused procurement for specific needs.

Value Assessment

Rating: good

The contract value of $12.5 million for canned salmon and pollock products appears reasonable given the quantities and nature of the commodities. Benchmarking against similar large-scale food donation contracts would provide further insight, but the price seems aligned with bulk procurement of seafood for humanitarian purposes. The firm fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a healthy level of competition for this seafood procurement. This competitive environment is generally expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where the best value is sought, potentially leading to lower prices than a sole-source or limited competition award.

Public Impact

Beneficiaries of USG food donations, including vulnerable populations domestically and internationally, will receive nutritious seafood products. The contract delivers essential protein sources in the form of canned salmon and pollock nuggets/fillets. Geographic impact is broad, supporting the distribution of food aid across various regions served by USG programs. Workforce implications are primarily within the seafood processing and logistics sectors, supporting jobs at Trident Seafoods and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Ensuring consistent quality and freshness of frozen seafood products.
Logistical challenges in distributing food aid to intended recipients.

Positive Signals

Award to a known entity in the seafood industry.
Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust procurement process.

Sector Analysis

The seafood industry is a significant global market, with the US being a major producer and consumer. This contract falls within the broader food processing and distribution sector, specifically focusing on value-added seafood products. Comparable spending benchmarks in federal food procurement for donation programs can vary widely based on commodity type, volume, and specific program requirements. This contract represents a substantial, albeit specific, allocation within the government's food aid budget.

Small Business Impact

This contract was not specifically set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large corporation like Trident Seafoods suggests that the primary focus was on meeting the volume and specifications required for the food donation program, rather than explicitly promoting small business participation in this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Agricultural Marketing Service, which is responsible for managing food purchase and distribution programs. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award being publicly available, though detailed performance monitoring reports may not be readily accessible.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
The Emergency Food Assistance Program (TEFAP)
WIC Food Packages

Risk Flags

Supply Chain Vulnerability
Quality Control for Perishables
Logistical Complexity of Distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12.5 million to TRIDENT SEAFOODS CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000008252/4100024808/SALMON PINK CAN-24/14.75 OZ (33630),FISH AK POLLOCK NUGGETS FRZ PKG-20/2 LB,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 $12.5 million.

What is the period of performance?

Start: 2022-01-19. End: 2022-09-30.

What is Trident Seafoods' 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, including the Department of Defense and the Department of Agriculture. Their experience likely includes fulfilling large-scale orders for food programs, ensuring compliance with quality standards and delivery schedules. While specific details of past contracts are not provided here, their established presence suggests a capacity to manage complex government procurements. The company's size and operational scope indicate they are well-equipped to handle the demands of federal food donation initiatives, which often require significant production volumes and adherence to strict logistical requirements.

How does the value of this contract compare to similar federal food donation procurements?

The $12.5 million value for canned salmon and pollock products is substantial, reflecting the cost of acquiring significant quantities of these specific seafood items for donation. Comparing it directly to 'similar' contracts requires careful consideration of the commodity, volume, and duration. For instance, procurements of staple grains or dairy products might have different price points. However, for specialized protein sources like seafood, especially when processed and packaged for long shelf life or specific dietary needs, this figure appears to be within a reasonable range for a large federal food assistance initiative. The Agricultural Marketing Service manages numerous food purchase contracts, and the value of individual awards can fluctuate based on market prices and program needs.

What are the primary risks associated with this specific seafood procurement contract?

The primary risks associated with this contract revolve around the perishable nature of seafood and the complexities of large-scale food distribution. Supply chain disruptions, whether due to weather events affecting fishing, processing plant issues, or transportation delays, could impact the timely delivery of the specified salmon and pollock products. Maintaining consistent quality and freshness throughout the processing, packaging, and delivery chain is critical to ensure the donated food is safe and palatable for recipients. Furthermore, logistical challenges in distributing the food aid to intended beneficiaries, potentially across wide geographic areas, present another layer of risk that requires robust planning and execution by the government agencies involved.

How effective are federal food donation programs in addressing food insecurity?

Federal food donation programs, such as those supported by USDA's Agricultural Marketing Service, play a vital role in mitigating food insecurity for millions of Americans and international recipients. By purchasing surplus or specific commodities, these programs provide essential nutritional support to vulnerable populations through various channels like food banks, schools, and disaster relief efforts. The effectiveness is measured by the reach of these programs, the nutritional quality of the food provided, and the reduction in reported food insecurity rates. While these programs are crucial, their overall impact can be influenced by funding levels, administrative efficiency, and the ability to procure a diverse range of nutritious foods that meet the dietary needs and preferences of recipients.

What are the historical spending patterns for seafood procurement in federal food donation programs?

Historical spending patterns for seafood procurement within federal food donation programs show variability influenced by market prices, availability, and specific program objectives. While staple commodities like grains and dairy often represent a larger portion of overall food purchase budgets due to volume and cost-effectiveness, seafood is procured for its nutritional value, particularly protein and omega-3 fatty acids. Spending on seafood can fluctuate based on congressional appropriations, the success of competitive bidding processes, and the strategic decisions of agencies like the USDA to include diverse protein sources in donation packages. Data from previous years would reveal trends in the types of seafood purchased (e.g., canned, frozen fillets) and the average costs per pound or unit, offering context for the current $12.5 million award.

What is the typical duration for contracts of this nature?

The typical duration for contracts involving the procurement of specific food commodities for donation programs can vary significantly. Contracts like this one, with a duration of 254 days (approximately 8.5 months), are often designed to fulfill immediate or medium-term needs for specific food items. Longer-term contracts might exist for more stable, year-round supply needs, while shorter durations are common for seasonal products or when specific funding cycles dictate procurement timelines. The 254-day period suggests a focused effort to acquire and distribute these seafood products within a defined operational window, likely aligned with program requirements or available funding for that fiscal period.

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: 123J1422B0126

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: $12,518,878

Exercised Options: $12,518,878

Current Obligation: $12,518,878

Actual Outlays: $12,518,878

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline