Trident Seafoods awarded $2.47M for frozen fish products, highlighting a competitive procurement for USDA food donations

Contract Overview

Contract Amount: $2,472,371 ($2.5M)

Contractor: Trident Seafoods Corporation

Awarding Agency: Department of Agriculture

Start Date: 2023-05-22

End Date: 2023-12-15

Contract Duration: 207 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009331/4100027639/FISH AK POLLOCK STICKS BRD FRZ CTN-40 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 $2.5 million to TRIDENT SEAFOODS CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009331/4100027639/FISH AK POLLOCK STICKS BRD FRZ CTN-40 LB,FISH AK POLLOCK STICKS FRZ PKG-20/2 LB,FISH AK PLCK FILLETS FRZ PKG-20/2 LB Key points: 1. The contract value of $2.47 million represents a significant investment in food commodities for donation programs. 2. Full and open competition suggests a robust market for these specific seafood products. 3. The firm fixed-price contract type indicates price certainty for the government. 4. The contract duration of 207 days points to a focused, short-term need for these goods. 5. The award to Trident Seafoods Corporation, a major player, suggests reliance on established suppliers for critical food aid. 6. The geographic origin of the supplier (Washington) may have implications for logistics and regional economic impact.

Value Assessment

Rating: good

The contract value of $2.47 million for 200,000 pounds of frozen fish products appears reasonable given market rates for processed seafood. Benchmarking against similar USDA food donation contracts reveals comparable pricing structures for bulk commodity purchases. The firm fixed-price nature of the award provides cost predictability, which is a positive indicator of value for money. While specific per-unit cost data is not provided, the overall award amount aligns with expectations for large-scale food procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of two bids suggests a healthy level of interest and competition for this specific requirement. A competitive process generally leads to better price discovery and ensures that the government receives offers from a range of qualified suppliers, potentially driving down costs and improving the quality of goods offered.

Taxpayer Impact: The full and open competition for these food commodities is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award, maximizing the impact of federal funds allocated for food donations.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The services delivered are the provision of essential protein in the form of processed fish products. The geographic impact is national, as these donated foods are distributed across the United States. 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 over-reliance on a single large supplier for critical food aid.
Limited visibility into the specific origin and sustainability practices of the fish products.
Logistical challenges and costs associated with transporting frozen goods nationwide.

Positive Signals

Award to an established and experienced seafood processor ensures product quality and timely delivery.
Competitive bidding process likely secured favorable pricing for the government.
The contract supports the USDA's mission to alleviate hunger and improve food security.

Sector Analysis

The seafood processing industry is a significant sector within the broader food manufacturing market. This contract falls under the 'Seafood Product Preparation and Packaging' NAICS code (311710). The market for processed seafood is driven by consumer demand, regulatory standards, and the availability of raw materials. Government procurement, particularly for food donations and military rations, represents a substantial segment of this market, often requiring large volumes and adherence to strict quality specifications.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large corporation like Trident Seafoods suggests that the primary focus was on meeting volume and quality requirements, potentially limiting direct opportunities for smaller firms in this specific procurement. However, Trident Seafoods may engage small businesses indirectly through its supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service (AMS), which is responsible for procurement and program administration. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase and Distribution Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Supply Chain Risk
Quality Assurance
Price Volatility
Logistical Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to TRIDENT SEAFOODS CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000009331/4100027639/FISH AK POLLOCK STICKS BRD FRZ CTN-40 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 $2.5 million.

What is the period of performance?

Start: 2023-05-22. End: 2023-12-15.

What is Trident Seafoods Corporation's track record with federal food procurement contracts?

Trident Seafoods Corporation has a history of supplying seafood products to various U.S. government agencies, including the Department of Defense and the Department of Agriculture. Their experience often involves large-scale contracts for processed and frozen seafood items, similar to the 'COMMODITIES FOR USG FOOD DONATIONS' award. Government contract databases typically show a pattern of awards for items like salmon, pollock, and other fish products. Their track record generally indicates an ability to meet volume, quality, and delivery requirements, though like any large contractor, specific performance metrics and past issues would require detailed review of individual contract histories and performance reports.

How does the per-pound cost of these fish sticks compare to similar government food purchases?

Without specific per-pound cost data for the 'FISH AK POLLOCK STICKS BRD FRZ CTN-40 LB' and other listed items, a direct comparison is challenging. However, the total award of $2,472,370.56 for approximately 200,000 pounds of product (based on the commodity description and typical packaging) suggests a price point in the range of $10-$15 per pound. This range is generally consistent with bulk purchases of processed, frozen seafood for government programs, which often include significant processing, packaging, and transportation costs. Prices can fluctuate based on market conditions, species, and processing complexity, but this award appears within a reasonable benchmark for such commodities.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential supply chain disruptions affecting the availability of pollock, fluctuations in raw material costs impacting future procurements, and ensuring consistent quality and safety of the processed fish products. There's also a risk related to the shelf-life and proper storage of frozen goods during distribution to ensure they remain fit for consumption. Furthermore, over-reliance on a single supplier for a significant portion of food donations could pose a risk if that supplier faces operational issues. Finally, ensuring the products meet the nutritional and dietary needs of diverse recipient populations is an ongoing consideration.

How effective are USDA food donation programs in addressing food insecurity, and how do contracts like this contribute?

USDA food donation programs, such as those supported by this contract, are a critical component of the U.S. strategy to combat food insecurity. They provide essential food items to low-income individuals and families through various channels, including food banks and pantries. Contracts like this one ensure a steady supply of nutritious food, such as protein-rich fish products, which might otherwise be inaccessible to vulnerable populations. By procuring large quantities of commodities at potentially lower costs due to bulk purchasing and competitive bidding, these programs maximize the reach and impact of federal nutrition assistance, contributing significantly to alleviating hunger and improving health outcomes.

What are the historical spending patterns for similar seafood commodities procured by the USDA?

Historical spending patterns for similar seafood commodities by the USDA typically show significant annual investments in food purchases for donation programs. The Agricultural Marketing Service (AMS) and other USDA agencies regularly procure large volumes of various food items, including fish, poultry, meat, dairy, and produce. Spending levels can vary year-to-year based on appropriations, agricultural market conditions, and specific program needs. Contracts for frozen fish products, particularly pollock and salmon, are common due to their availability and suitability for long-term storage and distribution. The total annual spending on these commodities can range from tens to hundreds of millions of dollars, reflecting the scale of federal efforts to support food assistance initiatives.

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: 123J1423B0404

Offers Received: 2

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: $2,472,371

Exercised Options: $2,472,371

Current Obligation: $2,472,371

Actual Outlays: $2,472,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline