Trident Seafoods awarded $20M contract for canned salmon, highlighting significant USG food donation procurement

Contract Overview

Contract Amount: $20,023,936 ($20.0M)

Contractor: Trident Seafoods Corporation

Awarding Agency: Department of Agriculture

Start Date: 2023-07-13

End Date: 2024-01-31

Contract Duration: 202 days

Daily Burn Rate: $99.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009419/4100028009/SALMON RED CAN-24/7.5 OZ,SALMON FILLETS WILD FRZ PKG-40/1 LB

Place of Performance

Location: KETCHIKAN, KETCHIKAN GATEWAY County, ALASKA, 99901

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.0 million to TRIDENT SEAFOODS CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009419/4100028009/SALMON RED CAN-24/7.5 OZ,SALMON FILLETS WILD FRZ PKG-40/1 LB Key points: 1. Contract value of $20 million for canned salmon indicates substantial investment in food donation programs. 2. Sole awardee suggests potential for concentrated market power or specialized capabilities in seafood processing for donations. 3. The contract's duration and value warrant scrutiny for cost-effectiveness and potential for long-term supplier relationships. 4. Performance context is critical to understand how this procurement aligns with broader USG food security and donation objectives. 5. Positioned within the 'Commodities for USG Food Donations' category, this contract serves a vital humanitarian mission.

Value Assessment

Rating: good

The contract value of $20 million for 200,000 cases of canned salmon appears reasonable given the scale of the procurement and the specialized nature of processing and packaging for government donations. Benchmarking against similar large-scale food commodity contracts for humanitarian aid would provide further context on value for money. The firm fixed-price structure offers cost certainty to the government, mitigating risk associated with fluctuating market prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 8 bidders suggests a competitive marketplace for this type of commodity. A competitive process generally leads to better pricing and quality for the government, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely drives down the cost of essential food commodities for donation programs, maximizing the impact of federal spending on food security initiatives.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. Services delivered include the supply of 200,000 cases of canned salmon, a nutritious protein source. Geographic impact is national, as donated food reaches various communities across the United States. Workforce implications may include employment in seafood processing, packaging, and logistics related to fulfilling this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single supplier for critical food donation commodities.
Need to ensure consistent quality and timely delivery to meet program demands.
Market concentration could limit future competition if other suppliers exit the market.

Positive Signals

Successful award under full and open competition demonstrates market responsiveness.
Firm fixed-price contract provides budget certainty for the government.
Procurement supports vital USG food donation programs, addressing food insecurity.

Sector Analysis

The seafood processing industry is a significant sector involving the preparation and packaging of fish and shellfish. This contract falls within the broader food manufacturing and distribution sector, specifically catering to government procurement needs for humanitarian and nutritional programs. Comparable spending benchmarks would involve analyzing other large-scale commodity procurements for food banks and disaster relief efforts.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Trident Seafoods Corporation, is a large entity. The implications for small businesses would primarily be through potential subcontracting opportunities, which are not detailed in this award notice. Further analysis would be needed to determine if small businesses are involved in the supply chain or service delivery.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. Accountability is ensured through the terms of the definitive contract, including delivery schedules and quality specifications. Transparency is facilitated by the public nature of contract awards. The Inspector General's office of the Department of Agriculture would have jurisdiction over any potential fraud, waste, or abuse related to this procurement.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Bank Network Support
Disaster Relief Food Supplies

Risk Flags

Potential supply chain vulnerability for specialized seafood products.
Ensuring consistent quality control for a large volume of processed goods.
Dependence on a single large contractor for a significant portion of a specific commodity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.0 million to TRIDENT SEAFOODS CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000009419/4100028009/SALMON RED CAN-24/7.5 OZ,SALMON FILLETS WILD FRZ PKG-40/1 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 $20.0 million.

What is the period of performance?

Start: 2023-07-13. End: 2024-01-31.

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

Trident Seafoods Corporation has a history of supplying seafood products to the U.S. government, including for food donation programs. Their experience in large-scale processing and distribution makes them a capable supplier for contracts of this magnitude. Analyzing past performance on similar contracts, including delivery timeliness, product quality, and adherence to specifications, would provide a more comprehensive understanding of their reliability. Publicly available contract data can be reviewed to assess their historical engagement with federal agencies like the USDA's Agricultural Marketing Service for commodity procurements.

How does the per-unit cost of this canned salmon compare to market rates or similar government procurements?

Without specific per-unit cost data or detailed market analysis, a direct comparison is challenging. However, the total contract value of $20 million for 200,000 cases suggests an average cost of $100 per case, or approximately $8 per 7.5 oz can. This price needs to be benchmarked against commercial retail prices for similar quality canned salmon, factoring in the costs associated with government specifications, packaging, and delivery. Comparing this to historical USDA food purchase prices for similar commodities would also offer valuable insight into whether this represents a competitive price point for taxpayers.

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

Key risks include potential supply chain disruptions affecting salmon availability or processing, quality control issues with the canned product, and delivery delays impacting program timelines. Mitigation strategies likely involve the firm fixed-price contract, which shifts some price risk to the contractor, and stringent quality assurance clauses within the contract. The government's oversight and the contractor's established track record in seafood processing also serve as risk mitigation factors. Furthermore, the full and open competition process helps ensure that multiple capable suppliers are available, reducing reliance on a single point of failure.

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

The effectiveness of this procurement is directly tied to its ability to provide a consistent and high-quality supply of nutritious food to vulnerable populations. Canned salmon is a valuable source of protein and omega-3 fatty acids, contributing to nutritional security. The large quantity (200,000 cases) suggests a significant contribution to the overall goals of the food donation programs. Success metrics would include the timely distribution of the product to intended recipients and positive feedback on its quality and utility from partner organizations and beneficiaries.

What are the historical spending patterns for 'COMMODITIES FOR USG FOOD DONATIONS' and how does this contract compare?

Historical spending data for 'COMMODITIES FOR USG FOOD DONATIONS' would reveal trends in the types and volumes of food procured, as well as the average contract values. This $20 million contract for canned salmon represents a substantial single award within this category. Analyzing past years' spending would indicate whether this is a typical investment level for such a commodity or an outlier. Understanding the historical allocation of funds across different food types (e.g., grains, dairy, protein) would provide context on the strategic importance placed on specific nutritional components like seafood in the donation programs.

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: 123J1423B0467

Offers Received: 8

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: $20,023,936

Exercised Options: $20,023,936

Current Obligation: $20,023,936

Actual Outlays: $20,023,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline