USDA's $47M Salmon Contract Awarded to OBI Seafoods Amidst Full and Open Competition

Contract Overview

Contract Amount: $47,105,512 ($47.1M)

Contractor: OBI Seafoods, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-01-19

End Date: 2022-09-30

Contract Duration: 254 days

Daily Burn Rate: $185.5K/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: 2000008252/4100024810/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 $47.1 million to OBI SEAFOODS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008252/4100024810/SALMON PINK CAN-24/14.75 OZ (33630) Key points: 1. The contract for canned salmon is a significant expenditure within the food donation program. 2. OBI Seafoods, LLC secured the award, indicating a competitive landscape for seafood suppliers. 3. The firm fixed price contract type suggests price certainty, but potential for overpayment exists if market prices fluctuate. 4. The sector is Seafood Product Preparation and Packaging, with spending benchmarks to be determined.

Value Assessment

Rating: fair

The contract value of $47.1 million for canned salmon appears substantial. Benchmarking against similar government food donation contracts for canned seafood would be necessary to assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: Taxpayer funds are utilized for food donations, with the efficiency of this procurement impacting the quantity and quality of food provided to recipients.

Public Impact

Ensures a supply of essential food items for federal food donation programs. Supports the fishing and seafood processing industry, particularly in Alaska. Potential impact on food security for recipient populations. Transparency in government procurement processes is maintained through full and open competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for benchmarking.
Potential for price volatility not fully mitigated by firm fixed price.
No explicit mention of small business participation.

Positive Signals

Awarded through full and open competition.
Supports a critical government program (food donations).
Firm fixed price provides budget certainty.

Sector Analysis

This contract falls within the Seafood Product Preparation and Packaging sector. Government spending in this area is often tied to specific programs like food assistance or strategic reserves, making direct sector-wide benchmarks challenging without program context.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses had the opportunity to compete or if subcontracting opportunities exist.

Oversight & Accountability

The award was made under a definitive contract by the Department of Agriculture's Agricultural Marketing Service. Standard procurement oversight processes should apply, ensuring compliance with federal acquisition regulations.

Related Government Programs

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

Risk Flags

Lack of detailed cost breakdown.
Potential for overpayment if market prices decline.
No clear indication of small business utilization.
Limited transparency on specific program allocation.
Benchmarking data not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $47.1 million to OBI SEAFOODS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000008252/4100024810/SALMON PINK CAN-24/14.75 OZ (33630)

Who is the contractor on this award?

The obligated recipient is OBI 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 $47.1 million.

What is the period of performance?

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

What is the historical pricing trend for canned pink salmon in government contracts?

Analyzing historical contract data for canned pink salmon would reveal price fluctuations over time. Factors such as market demand, supply chain disruptions, and raw material costs influence these prices. Understanding these trends helps assess if the current $47.1 million award represents a fair market value or if potential savings could have been achieved through different contracting strategies or timing.

What are the specific food donation programs this salmon is intended for, and what is their reach?

The canned salmon is designated for USG food donations, likely supporting programs like the Food Purchase and Distribution Program (FPDP) or The Emergency Food Assistance Program (TEFAP). These programs aim to improve food security for low-income individuals and families. The reach depends on the allocation and distribution networks of these specific USDA initiatives, impacting numerous beneficiaries nationwide.

How does the firm fixed price impact the government's ability to benefit from potential market price decreases?

A firm fixed price (FFP) contract locks in the price regardless of market fluctuations. While this provides budget certainty for the government, it means they will not benefit if the market price of canned salmon decreases during the contract period. Conversely, the contractor is protected from price increases, shifting that risk to the supplier.

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: 1100 W EWING ST, SEATTLE, WA, 98119

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,105,512

Exercised Options: $47,105,512

Current Obligation: $47,105,512

Actual Outlays: $47,105,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline