USDA's Agricultural Marketing Service Awards $14.1M Contract for Frozen Pacific Rockfish and Whiting Fillets

Contract Overview

Contract Amount: $14,115,744 ($14.1M)

Contractor: Dulcich Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-09-01

End Date: 2022-12-31

Contract Duration: 121 days

Daily Burn Rate: $116.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008716/4100026208/PACIFIC ROCKFISH FILLETS FRZ PKG-20/2 LB,PACIFIC WHITING FILLETS FRZ PKG-20/2 LB

Place of Performance

Location: WOODLAND, COWLITZ County, WASHINGTON, 98674

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.1 million to DULCICH INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008716/4100026208/PACIFIC ROCKFISH FILLETS FRZ PKG-20/2 LB,PACIFIC WHITING FILLETS FRZ PKG-20/2 LB Key points: 1. The contract focuses on frozen seafood products, specifically Pacific Rockfish and Whiting fillets. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value is substantial at over $14 million. 4. The duration is 121 days, indicating a short-term supply need. 5. The award was made to DULCICH INC.

Value Assessment

Rating: good

The contract value of $14.1M for 121 days of seafood supply appears reasonable given the quantity and type of product. Benchmarking against similar large-scale food commodity contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a firm-fixed-price contract further locks in costs.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential food donations.

Public Impact

Ensures availability of essential food items for USG food donation programs. Supports the fishing and seafood processing industry. Provides nutritious food options to beneficiaries of donation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in seafood commodities.
Logistical challenges in delivering frozen goods.

Positive Signals

Full and open competition utilized.
Firm fixed price contract provides cost certainty.
Supports domestic food supply chains.

Sector Analysis

This contract falls under the broader category of food commodities and agricultural products. Spending in this sector is crucial for supporting domestic agriculture and ensuring food security through various government programs.

Small Business Impact

While the award was made to DULCICH INC., the data does not indicate if this is a small business. Further analysis would be needed to determine the impact on small businesses in the seafood supply chain.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which has established processes for procurement and oversight of food commodity contracts.

Related Government Programs

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

Risk Flags

Potential for spoilage during transit and storage.
Market price volatility of seafood commodities.
Dependence on specific types of fish (Rockfish, Whiting).
Short contract duration may require rapid procurement cycles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.1 million to DULCICH INC. COMMODITIES FOR USG FOOD DONATIONS: 2000008716/4100026208/PACIFIC ROCKFISH FILLETS FRZ PKG-20/2 LB,PACIFIC WHITING FILLETS FRZ PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is DULCICH INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2022-09-01. End: 2022-12-31.

What is the specific breakdown of the 200,000 lbs of fish being procured, and how does this quantity align with historical donation needs?

The data specifies 'PACIFIC ROCKFISH FILLETS FRZ PKG-20/2 LB' and 'PACIFIC WHITING FILLETS FRZ PKG-20/2 LB'. The exact weight breakdown per fish type isn't detailed, but the total quantity is 200,000 lbs. Aligning this with historical donation needs requires access to program-specific demand data, which is not provided here. Understanding past consumption rates would clarify if this quantity is standard, excessive, or insufficient.

What are the key risk factors associated with procuring frozen seafood for donation, and how are they mitigated?

Key risks include spoilage due to temperature control failures during transport and storage, potential quality degradation over time, and market price volatility for seafood. Mitigation strategies likely involve stringent cold chain management requirements in the contract, quality inspection protocols upon delivery, and potentially buffer stock considerations. The firm-fixed-price nature also shifts some price risk to the contractor.

How does the firm-fixed-price structure impact the government's ability to achieve cost savings compared to other pricing arrangements for food commodities?

A firm-fixed-price contract provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. This can lead to savings if the contractor accurately estimates costs and operates efficiently. However, if market prices decrease significantly after the contract is awarded, the government might miss out on potential savings compared to a contract with price adjustment clauses. It also incentivizes the contractor to manage costs effectively.

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: 123J1422B0494

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 16797 SE 130TH AVE, CLACKAMAS, OR, 97015

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,115,744

Exercised Options: $14,115,744

Current Obligation: $14,115,744

Actual Outlays: $14,115,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline