USDA's $4.3M Apple Juice Contract Awarded to Cherry Central Cooperative

Contract Overview

Contract Amount: $4,327,203 ($4.3M)

Contractor: Cherry Central Cooperative, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-01-10

End Date: 2024-09-11

Contract Duration: 245 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009773/4100029020/APPLE JUICE PLST BTL-8/64 FL OZ

Place of Performance

Location: LUDINGTON, MASON County, MICHIGAN, 49431

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.3 million to CHERRY CENTRAL COOPERATIVE, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009773/4100029020/APPLE JUICE PLST BTL-8/64 FL OZ Key points: 1. Contract focuses on apple juice for food donations, a key USDA program. 2. Cherry Central Cooperative, a Michigan-based entity, secured the award. 3. The contract utilizes a firm fixed price, providing cost certainty. 4. Competition was full and open after exclusion of sources, suggesting a competitive process.

Value Assessment

Rating: good

The $4.3 million contract for apple juice appears reasonable given the quantity and type of product. Benchmarking against similar food commodity contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This method generally promotes competitive pricing and ensures fair market value is obtained.

Taxpayer Impact: The use of competitive bidding aims to secure the best value for taxpayer funds allocated to food donation programs.

Public Impact

Ensures supply of apple juice for federal food assistance programs. Supports agricultural producers and processors within the US. Provides a healthy beverage option for recipients of food donations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting long-term value.
Dependence on a single supplier for a specific commodity.

Positive Signals

Supports domestic agriculture and food security initiatives.
Utilizes a competitive procurement process.
Fixed price contract offers budget predictability.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically fruit and vegetable processing. Spending in this area supports federal nutrition programs and agricultural markets.

Small Business Impact

While the awardee is a cooperative, further analysis is needed to determine the extent of small business participation in the supply chain or subcontracting opportunities.

Oversight & Accountability

The contract is managed by the Agricultural Marketing Service, which oversees procurement for USDA food programs. Oversight ensures compliance with contract terms and delivery schedules.

Related Government Programs

Fruit and Vegetable Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for supply chain disruptions affecting delivery.
Commodity price volatility.
Dependence on a single awardee for this specific product.
Ensuring equitable distribution to all intended food donation recipients.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.3 million to CHERRY CENTRAL COOPERATIVE, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009773/4100029020/APPLE JUICE PLST BTL-8/64 FL OZ

Who is the contractor on this award?

The obligated recipient is CHERRY CENTRAL COOPERATIVE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2024-01-10. End: 2024-09-11.

What is the historical pricing trend for bulk apple juice, and how does this contract's price compare?

Analyzing historical pricing data for bulk apple juice, particularly from the region of award, would reveal if this $4.3 million contract represents a favorable or unfavorable price. Factors like crop yields, market demand, and processing costs influence these trends. A comparison against industry benchmarks or previous USDA procurements of similar volume and quality is essential for a comprehensive value assessment.

What are the specific criteria for 'exclusion of sources' in this full and open competition, and does it limit potential competition?

The 'exclusion of sources' in a full and open competition typically refers to specific, justifiable reasons for not considering certain types of suppliers or products, such as unique capabilities, specific certifications, or logistical constraints. While intended to streamline the process, it's crucial to ensure these exclusions are narrowly defined and do not unduly restrict competition, potentially leading to higher prices or reduced innovation.

How effectively does this contract meet the nutritional and logistical requirements for USG food donations?

The effectiveness of this contract hinges on the apple juice meeting all specified nutritional standards and packaging requirements for distribution through USG food donation channels. Successful delivery within the 245-day duration and adherence to quality control measures are key indicators. Feedback from recipient agencies and end-users would provide valuable insights into the product's suitability and the overall success of the procurement.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1424B0137

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1771 N US HIGHWAY 31 S, TRAVERSE CITY, MI, 49684

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Agricultural Cooperative, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,327,203

Exercised Options: $4,327,203

Current Obligation: $4,327,203

Actual Outlays: $4,327,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline