Wescott Agri Products secures $23.3M contract for U.S. food donations, highlighting perishable goods logistics

Contract Overview

Contract Amount: $23,288,275 ($23.3M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-06-22

End Date: 2023-10-31

Contract Duration: 131 days

Daily Burn Rate: $177.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009375/4100027873/PEACHES FRESH BAG PKG#12/2 LB,PEACHES FRESH TRAY PACK 18-20 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $23.3 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009375/4100027873/PEACHES FRESH BAG PKG#12/2 LB,PEACHES FRESH TRAY PACK 18-20 LB Key points: 1. Contract value of $23.3M for perishable food items suggests significant logistical and supply chain management requirements. 2. The contract's duration of 131 days indicates a focus on short-term, immediate needs for food donations. 3. The award to Wescott Agri Products, Inc. represents a key supplier in the federal food donation commodity chain. 4. The specific commodity, 'PEACHES FRESH BAG PKG#12/2 LB, PEACHES FRESH TRAY PACK 18-20 LB', points to a need for fresh produce in donation programs. 5. The contract's firm fixed-price nature aims to provide cost certainty for the government. 6. The geographic scope, indicated by 'ST: MN, SN: MINNESOTA', suggests a regional focus for distribution or sourcing.

Value Assessment

Rating: good

The contract value of $23.3 million for fresh peaches appears reasonable given the scale of federal food donation programs. Benchmarking against similar contracts for perishable goods is challenging due to the specific nature of the commodity and the federal program. However, the firm fixed-price structure suggests an effort to control costs. The number of offers (16) indicates a competitive process that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while a broad competition was initially considered, specific circumstances led to the exclusion of certain sources before the final award. The presence of 16 offers suggests a reasonably competitive environment, even with the exclusion clause. This level of competition is generally sufficient to drive competitive pricing.

Taxpayer Impact: The competition level, while not fully open, still involved a significant number of bidders, which is beneficial for taxpayers by encouraging competitive pricing and ensuring a reasonable cost for the procured goods.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The services delivered involve the procurement and supply of fresh peaches for these donation initiatives. The geographic impact is centered around Minnesota, as indicated by the 'ST: MN, SN: MINNESOTA' designation, suggesting distribution or sourcing within this state. Workforce implications may include agricultural labor for harvesting and packing, as well as logistics and distribution personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires stringent supply chain management to prevent waste.
Potential for price volatility in fresh produce markets impacting cost predictability.
Ensuring consistent quality and freshness of peaches throughout the donation pipeline.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Significant number of offers (16) indicates a healthy level of interest and competition.
Contract supports federal food donation programs, addressing food security needs.

Sector Analysis

This contract falls within the broader agricultural and food supply sector, specifically focusing on the procurement of fresh produce for federal food donation programs. The market for agricultural commodities is vast and subject to seasonal variations, weather impacts, and global supply dynamics. Federal procurement of such goods often involves complex logistics to ensure timely delivery and maintain product integrity, especially for perishable items.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned. The award to Wescott Agri Products, Inc. does not appear to directly involve small business participation as a primary strategy. Further analysis would be needed to determine if Wescott Agri Products utilizes small businesses in its supply chain for this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Agriculture's Agricultural Marketing Service is responsible for managing and overseeing this contract. Transparency is facilitated through public contract databases. Inspector General oversight would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Food Donation Programs
Agricultural Commodity Procurement
Department of Agriculture Food Assistance

Risk Flags

Perishability Risk
Supply Chain Vulnerability
Price Volatility
Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $23.3 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009375/4100027873/PEACHES FRESH BAG PKG#12/2 LB,PEACHES FRESH TRAY PACK 18-20 LB

Who is the contractor on this award?

The obligated recipient is WESCOTT AGRI PRODUCTS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2023-06-22. End: 2023-10-31.

What is the historical spending pattern for fresh peach procurement by the Department of Agriculture for donation purposes?

Analyzing historical spending for fresh peach procurement by the USDA for donation purposes requires access to detailed historical contract data. Without specific historical databases, it's difficult to provide exact figures. However, federal food donation programs, such as those managed by the Agricultural Marketing Service (AMS), have consistently procured a variety of commodities, including fresh produce, to meet nutritional needs. Spending on specific items like peaches can fluctuate based on availability, program priorities, and budget allocations. The current contract's value of $23.3 million suggests a substantial investment in this particular commodity for the contract period, indicating either a significant volume requirement or a higher-than-average unit cost, or both. Further investigation into AMS's historical procurement reports or budget justifications would be necessary to establish a precise spending trend.

How does the unit cost of peaches in this contract compare to market rates?

Determining the precise unit cost requires dividing the total contract value ($23,288,274.84) by the total quantity of peaches procured. The data provided lists '2000009375/4100027873/PEACHES FRESH BAG PKG#12/2 LB,PEACHES FRESH TRAY PACK 18-20 LB'. This notation suggests multiple line items or product descriptions, making a simple unit cost calculation difficult without knowing the exact quantities for each. However, to benchmark against market rates, one would typically compare the price per pound of fresh peaches. This would involve researching average wholesale or retail prices for similar quality and types of peaches during the contract period (June-October 2023) in the relevant geographic region (Minnesota). Factors like seasonality, grade, and packaging significantly influence market prices. Without the exact quantity breakdown, a direct comparison is not feasible, but the contract's firm fixed-price nature suggests the government aimed to secure a competitive rate based on anticipated market conditions at the time of award.

What are the specific risks associated with procuring perishable goods like fresh peaches for federal programs?

Procuring perishable goods like fresh peaches introduces several significant risks. The primary risk is spoilage, which can lead to substantial financial losses if the product degrades before it can be distributed or consumed. This necessitates robust cold chain management and rapid logistics, increasing operational complexity and cost. Another risk is price volatility; fresh produce prices can fluctuate dramatically due to weather events, seasonal availability, and market demand, potentially impacting the government's ability to procure goods at the initially estimated cost, even under a fixed-price contract if contract terms allow for adjustments or if initial estimates were inaccurate. Quality control is also a concern, ensuring that the peaches meet the required standards for freshness, ripeness, and freedom from defects. Finally, supply chain disruptions, whether from transportation issues, labor shortages, or unforeseen events, can jeopardize the timely delivery of these time-sensitive commodities.

What is the track record of Wescott Agri Products, Inc. in fulfilling federal contracts, particularly for perishable goods?

Assessing the track record of Wescott Agri Products, Inc. requires a review of their past performance on federal contracts. Publicly available data, such as the Federal Procurement Data System (FPDS) or other contract databases, would be the primary source for this information. A thorough analysis would involve examining the number of contracts awarded to the company, their values, the agencies involved, and the types of goods or services provided. Crucially, for this specific contract, it would be important to identify any prior contracts for perishable agricultural products, especially fruits like peaches. Performance metrics, such as on-time delivery, quality compliance, and any instances of contract disputes or terminations, would provide key insights into their reliability. Without direct access to a comprehensive performance history, it's difficult to definitively state their track record, but the award of this significant contract suggests they met the necessary qualifications and demonstrated capability.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause impact price discovery and taxpayer value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the solicitation was intended for full and open competition, certain potential offerors were excluded prior to the final award decision. This exclusion could occur for various reasons, such as failure to meet specific pre-qualification criteria, past performance issues, or other regulatory requirements. While the remaining competition (16 offers) is substantial and generally conducive to price discovery, the exclusion of certain sources might limit the breadth of competitive pressure. If the excluded sources were significant potential competitors, their absence could potentially lead to a less aggressive pricing environment than true full and open competition. However, the government must have determined that the exclusions were justified and necessary. The impact on taxpayer value depends on whether the remaining competition was sufficient to drive prices down to a fair and reasonable level, which is generally indicated by a sufficient number of competitive bids.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1423B0444

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28085 COUNTY ROAD 25, ELGIN, MN, 55932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,288,275

Exercised Options: $23,288,275

Current Obligation: $23,288,275

Actual Outlays: $23,268,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline