USDA awards $7.5M for fresh grapefruit, highlighting perishable food manufacturing needs

Contract Overview

Contract Amount: $7,542,207 ($7.5M)

Contractor: Bushmans' Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-12-01

End Date: 2024-05-29

Contract Duration: 180 days

Daily Burn Rate: $41.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009683/4100028794/GRAPEFRUIT FRESH CTN-34-39 LB

Place of Performance

Location: GRAND MARSH, ADAMS County, WISCONSIN, 53936

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.5 million to BUSHMANS' INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009683/4100028794/GRAPEFRUIT FRESH CTN-34-39 LB Key points: 1. Contract value represents a significant investment in essential food commodities. 2. Competition dynamics suggest a robust market for perishable food suppliers. 3. Contract duration and type indicate a need for timely, fixed-price delivery. 4. Geographic focus on Wisconsin points to specific regional distribution needs. 5. The award to Bushman's Inc. warrants a review of their capacity and past performance. 6. This procurement supports federal food donation programs, impacting food security initiatives.

Value Assessment

Rating: good

The contract value of $7.5 million for fresh grapefruit appears reasonable given the quantity and delivery timeline. Benchmarking against similar USDA procurements for perishable goods would provide further context on pricing efficiency. The firm fixed-price structure suggests a clear understanding of costs by both parties, mitigating risk for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific circumstances led to the exclusion of certain potential bidders. The presence of 8 bidders suggests a competitive environment, but the exclusion clause warrants further investigation to ensure fairness and maximize value.

Taxpayer Impact: While competition was present, the exclusion of sources may have limited the potential for even lower pricing for taxpayers. Understanding the rationale behind the exclusion is key to assessing if taxpayer funds were optimally utilized.

Public Impact

Beneficiaries include recipients of USG food donations, potentially addressing food insecurity. Services delivered include the provision of fresh grapefruit, a key nutritional commodity. Geographic impact is focused on distribution within Wisconsin. Workforce implications may involve logistics, transportation, and agricultural labor related to grapefruit supply.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Need to verify the specific reasons for excluding sources in the competition.
Assess contractor's ability to maintain quality and freshness of perishable goods throughout the delivery period.
Evaluate potential supply chain vulnerabilities for perishable items.

Positive Signals

Award to an established entity (Bushman's Inc.) suggests a degree of reliability.
The firm fixed-price contract provides cost certainty for the government.
Multiple bidders indicate a healthy market response for this type of commodity.

Sector Analysis

This contract falls within the broader agricultural and food distribution sector, specifically focusing on perishable goods. The market for supplying fresh produce to government programs is competitive, with various distributors and agricultural producers vying for these opportunities. The value of this single contract is significant within its niche, supporting federal food assistance and donation initiatives.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further review would be needed to determine if small businesses were involved in the supply chain or if opportunities were missed.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) within the USDA, responsible for procurement and contract administration. Transparency is facilitated through federal contract databases. Accountability measures would involve performance monitoring against contract terms and quality standards.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
Federal Food Assistance Programs

Risk Flags

Potential for spoilage of perishable goods
Dependence on specific agricultural yields and seasonality
Logistical challenges in timely delivery
Ensuring consistent quality of fresh produce

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.5 million to BUSHMANS' INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009683/4100028794/GRAPEFRUIT FRESH CTN-34-39 LB

Who is the contractor on this award?

The obligated recipient is BUSHMANS' INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2023-12-01. End: 2024-05-29.

What is the track record of Bushman's Inc. in fulfilling government contracts, particularly for perishable goods?

A review of Bushman's Inc.'s contract history with the federal government is essential to assess their reliability and performance. Specifically, examining past awards for similar perishable food items, delivery timeliness, quality compliance, and any instances of contract disputes or terminations would provide critical insights. Understanding their experience with USDA procurements, in particular, would offer a direct comparison. While this specific award is for $7.5 million, their overall capacity and history of successful contract completion are key indicators of future performance and risk mitigation for the government.

How does the unit price of grapefruit in this contract compare to market rates or similar federal procurements?

Determining the unit price requires dividing the total contract value by the estimated quantity of grapefruit. This unit price should then be benchmarked against prevailing market rates for fresh grapefruit (e.g., wholesale prices) during the contract period. Additionally, comparing it to the unit prices of similar USDA procurements for grapefruit or other fresh fruits, considering factors like season, origin, and packaging, is crucial. A significant deviation from market or historical averages could indicate either exceptional value or potential overpricing, necessitating further investigation into contract specifics and supplier costs.

What were the specific criteria or reasons for excluding certain sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the solicitation was broadly advertised, but specific potential offerors were subsequently excluded. The reasons for exclusion must be documented and justifiable, typically relating to failure to meet minimum qualifications, technical requirements, past performance issues, or other criteria outlined in the solicitation. Understanding these specific exclusion criteria is vital to ensure that the competition, while not entirely unrestricted, was conducted fairly and that the government did not forgo potentially better offers due to arbitrary or flawed exclusion processes. This transparency is key to taxpayer confidence.

What is the expected impact of this contract on the availability and distribution of food aid within Wisconsin?

This contract directly supports the USG's food donation programs by ensuring a supply of fresh grapefruit for distribution. The focus on Wisconsin suggests a targeted effort to bolster food aid resources within that state. The quantity procured is intended to meet specific needs, contributing to the nutritional intake of beneficiaries. The efficiency of the distribution network, managed by the Agricultural Marketing Service and its partners, will determine how effectively these donated commodities reach their intended recipients, thereby impacting local food security initiatives and potentially alleviating nutritional deficiencies within vulnerable populations in Wisconsin.

Are there any historical spending patterns with Bushman's Inc. or for grapefruit procurement that this contract deviates from?

Analyzing historical spending with Bushman's Inc. and for similar grapefruit procurements by the USDA is crucial for context. If this $7.5 million award represents a significant increase or decrease compared to previous contracts with this vendor or for this commodity, it warrants explanation. Deviations could be due to changes in market prices, increased program needs, shifts in sourcing strategies, or competitive bidding outcomes. Understanding these historical trends helps in assessing whether the current contract represents a normal fluctuation, a strategic adjustment, or a potential anomaly requiring deeper scrutiny regarding value and necessity.

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: 123J1424B0055

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 E GRAND AVE, ROSHOLT, WI, 54473

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

Financial Breakdown

Contract Ceiling: $7,542,207

Exercised Options: $7,542,207

Current Obligation: $7,542,207

Actual Outlays: $7,540,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline