USDA's $25.2M contract for canned salmon to OBI Seafoods, LLC, awarded via full and open competition

Contract Overview

Contract Amount: $25,224,316 ($25.2M)

Contractor: OBI Seafoods, LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-08-03

End Date: 2024-06-30

Contract Duration: 332 days

Daily Burn Rate: $76.0K/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: 2000009492/4400001831/4100028172/K SALMON PINK CAN-24/14.75 OZ (33630)

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.2 million to OBI SEAFOODS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009492/4400001831/4100028172/K SALMON PINK CAN-24/14.75 OZ (33630) Key points: 1. Contract awarded to OBI Seafoods, LLC for canned salmon. 2. Total value of $25.2 million. 3. Procurement method was full and open competition. 4. Sector is Food & Agriculture, specifically seafood processing.

Value Assessment

Rating: good

The contract value of $25.2 million for canned salmon appears reasonable given the quantity and duration. Benchmarking against similar large-scale food commodity contracts would provide further validation.

Cost Per Unit: $126.12 per unit (200,000 units)

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that likely resulted in fair market pricing. This method maximizes opportunities for various suppliers.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process, ensuring the government receives good value for donated food commodities.

Public Impact

Ensures availability of essential food items for U.S. government food donation programs. Supports the domestic seafood industry, specifically salmon processing. Provides nutritional resources to individuals and families in need through donation channels.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized.
Clear delivery period and end date.
Firm fixed price contract type.

Sector Analysis

This contract falls within the Food & Agriculture sector, specifically the seafood processing industry. Spending benchmarks for similar government food commodity procurements can vary widely based on item, quantity, and market conditions.

Small Business Impact

While this specific contract was awarded to OBI Seafoods, LLC, a larger entity, the use of full and open competition allows for potential participation by small businesses in future solicitations or as subcontractors.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the USDA is responsible for this procurement. Oversight typically involves ensuring delivery schedules are met and product quality standards are maintained.

Related Government Programs

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

Risk Flags

Potential for price volatility in seafood commodities.
Dependence on a single awardee for this specific delivery order.
Logistical challenges in distributing perishable or shelf-stable goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.2 million to OBI SEAFOODS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000009492/4400001831/4100028172/K SALMON PINK CAN-24/14.75 OZ (33630)

Who is the contractor on this award?

The obligated recipient is OBI SEAFOODS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2023-08-03. End: 2024-06-30.

What is the historical pricing trend for canned salmon procured by the government?

Historical pricing data for government canned salmon procurements would reveal trends influenced by market fluctuations, supply chain dynamics, and competition levels. Analyzing past contracts can help determine if the current $126.12 per unit price is consistent, higher, or lower than previous awards, providing context for value assessment.

What are the specific food donation programs this canned salmon will support?

The canned salmon procured under this contract likely supports various USDA food donation programs such as the National School Lunch Program, food banks, or emergency food assistance initiatives. Understanding the specific programs clarifies the end-use and impact of the procured commodity on vulnerable populations.

Are there any quality control or inspection requirements specified for the canned salmon?

Quality control and inspection requirements are crucial for food donations to ensure safety and nutritional value. While not detailed in the provided data, government contracts typically include specifications for product quality, packaging, and inspection protocols, often managed by the procuring agency (AMS) to meet program standards.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1423B0528

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 W EWING ST, SEATTLE, WA, 98119

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,224,316

Exercised Options: $25,224,316

Current Obligation: $25,224,316

Actual Outlays: $25,218,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0117

IDV Type: IDC

Timeline