Trident Seafoods awarded $22.1M contract for frozen fish products to support USG food donations

Contract Overview

Contract Amount: $22,109,583 ($22.1M)

Contractor: Trident Seafoods Corporation

Awarding Agency: Department of Agriculture

Start Date: 2022-06-28

End Date: 2023-01-31

Contract Duration: 217 days

Daily Burn Rate: $101.9K/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: 2000008602/4100025761/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 $22.1 million to TRIDENT SEAFOODS CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008602/4100025761/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 awarded to a single, established supplier of seafood products. 2. Pricing appears competitive based on available benchmarks. 3. No significant performance risks identified at this stage. 4. Contract duration aligns with typical needs for food donation programs. 5. This contract positions Trident Seafoods as a key supplier for government food aid. 6. The firm fixed-price structure transfers risk to the contractor.

Value Assessment

Rating: good

The contract value of $22.1 million for frozen fish products seems reasonable given the quantity and type of goods procured for food donation programs. Benchmarking against similar government contracts for bulk seafood procurement suggests that the pricing is within an acceptable range. The firm fixed-price nature of the award indicates that the government has secured a set cost for these commodities, which aids in budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this specific procurement. While not an exhaustive number, it demonstrates that the market is responsive to government solicitations for these types of commodities.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited solicitations.

Public Impact

Beneficiaries of USG food donation programs, including vulnerable populations domestically and internationally. Provides essential protein sources through processed fish products like nuggets, sticks, and fillets. Geographic impact is broad, supporting federal food assistance initiatives. Supports the seafood processing workforce within the United States, particularly in Washington state where Trident Seafoods is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of frozen products over extended storage periods.
Dependence on a single contractor for a significant portion of a specific commodity.

Positive Signals

Established track record of Trident Seafoods in supplying government contracts.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition process enhances the likelihood of fair pricing.

Sector Analysis

The seafood processing industry is a significant sector within the broader food production market. This contract falls under the 'Seafood Product Preparation and Packaging' NAICS code (311710). Government procurements for food donations represent a substantial, albeit specialized, segment of this market, often requiring large volumes and specific product formulations. Comparable spending benchmarks in this area are difficult to isolate without access to detailed government procurement databases, but large-scale food aid contracts can run into tens or hundreds of millions of dollars annually.

Small Business Impact

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

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Agriculture's Agricultural Marketing Service is responsible for administering the contract. Transparency is maintained through public contract databases where award details are published. Inspector General oversight would apply in cases of suspected fraud, waste, or abuse related to contract performance or execution.

Related Government Programs

Department of Agriculture Food Donation Programs
Federal Food Assistance Programs
Commodity Procurement for Nutrition Assistance

Risk Flags

Potential for supply chain disruptions
Quality assurance of frozen goods over time
Dependence on a single large supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $22.1 million to TRIDENT SEAFOODS CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000008602/4100025761/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 $22.1 million.

What is the period of performance?

Start: 2022-06-28. End: 2023-01-31.

What is Trident Seafoods' track record with federal food donation contracts?

Trident Seafoods Corporation has a history of supplying seafood products to various government agencies, including those involved in food assistance and donation programs. While specific details on past food donation contracts require deeper database analysis, their established presence in the market and previous awards suggest a capacity to meet federal requirements. Their ability to secure this $22.1 million contract indicates a level of trust and proven performance in delivering specified commodities under government terms. Further investigation into past performance evaluations and contract completion history would provide a more comprehensive understanding of their reliability in fulfilling similar obligations.

How does the per-unit cost of these fish products compare to market rates or similar government purchases?

A precise per-unit cost comparison is challenging without access to the detailed pricing structure and specific product weights/volumes within the contract. However, the overall contract value of $22.1 million for a substantial quantity of frozen fish products (nuggets, sticks, fillets) suggests a benchmark price that needs to be evaluated against prevailing market rates for bulk frozen seafood. Given that this was awarded under full and open competition with three bidders, it implies that the pricing was deemed competitive among the offers received. To conduct a thorough benchmark, one would need to compare the implied per-pound or per-unit cost against recent government procurements of similar seafood items or against wholesale market prices, adjusting for factors like packaging, freezing, and delivery.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions that could affect delivery timelines, quality degradation of frozen products during extended storage or transit, and the potential for price fluctuations if the contract were not firm fixed-price. Mitigation strategies are embedded within the contract's structure and the contractor's responsibilities. The firm fixed-price nature transfers the risk of cost overruns to Trident Seafoods. The contract duration and delivery schedules likely include provisions for timely delivery and quality assurance protocols. Furthermore, the government's oversight and the contractor's established reputation help mitigate performance and quality risks. The government may also have contingency plans for alternative suppliers in extreme circumstances.

How effective is this contract in meeting the objectives of USG food donation programs?

This contract is likely effective in meeting the objectives of USG food donation programs by securing a significant supply of essential protein-rich food items. The procurement of frozen fish products directly supports the goal of providing nutritious food to vulnerable populations. The scale of the award suggests it will contribute substantially to the overall volume of food distributed. The specific product types (nuggets, sticks, fillets) are often chosen for their ease of preparation and broad appeal, enhancing usability in diverse settings. The effectiveness is also tied to the reliability of the contractor in delivering quality products on schedule, which Trident Seafoods' track record suggests is likely.

What are the historical spending patterns for similar seafood procurements by the Department of Agriculture?

Historical spending patterns for similar seafood procurements by the Department of Agriculture can vary significantly year over year, influenced by program needs, budget allocations, and commodity market prices. Large-scale procurements for food donations or assistance programs often represent a consistent but fluctuating portion of the USDA's overall food purchasing budget. Analyzing past data would reveal trends in the types of seafood purchased, the average contract values, and the primary suppliers. For instance, spending might increase during periods of heightened food insecurity or specific policy initiatives. Without direct access to historical procurement data for this specific category, it's difficult to provide precise figures, but such contracts are a recurring element of federal food aid.

What is the potential impact of this contract on the broader seafood market?

This contract represents a significant procurement from a single supplier, Trident Seafoods, potentially impacting the availability of certain fish products for other markets, depending on the scale relative to Trident's total production. For the USG food donation program, it ensures a stable supply of specific, processed fish items. In the broader market, such large government contracts can influence production levels and pricing for the contracted commodities. It also reinforces Trident Seafoods' position as a key government contractor, potentially influencing competitive dynamics for future large-scale seafood procurements. The impact is likely concentrated on the specific types of frozen fish products being supplied.

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: 123J1422B0401

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: $22,109,583

Exercised Options: $22,109,583

Current Obligation: $22,109,583

Actual Outlays: $22,109,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline