Agriculture Department awards $5.1M for fresh apples, with 26 bids received in a competitive process

Contract Overview

Contract Amount: $5,092,798 ($5.1M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-30

End Date: 2024-08-28

Contract Duration: 211 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 26

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009794/4100029152/APPLES FRESH VARIOUS TYPE CTN-37-40 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.1 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009794/4100029152/APPLES FRESH VARIOUS TYPE CTN-37-40 LB Key points: 1. The contract value represents a significant investment in food commodities for donation programs. 2. Strong competition among 26 bidders suggests a healthy market for these agricultural products. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. The short performance period indicates a need for timely delivery of perishable goods. 5. The contract is not set aside for small businesses, suggesting larger suppliers are primary participants. 6. The geographic focus on Minnesota for delivery is noted.

Value Assessment

Rating: good

The contract value of $5.1 million for 200,000 pounds of apples appears reasonable given the market for bulk agricultural commodities. While specific per-unit cost benchmarks for government food donations are not readily available, the competitive nature of the award suggests pricing was vetted against market rates. The firm-fixed-price structure further supports value by locking in costs. The quantity and type of goods align with typical needs for food assistance programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources might have been considered, the final award was made after a broad solicitation. The participation of 26 bidders signifies robust competition, which typically leads to more favorable pricing and better quality for the government. This level of competition suggests that the market for these commodities is accessible to multiple suppliers.

Taxpayer Impact: The high number of bidders ensures that taxpayer dollars are likely being used efficiently, as competitive pressure drives down prices and encourages quality. This broad competition minimizes the risk of overpaying for essential food supplies.

Public Impact

Beneficiaries of this contract are likely individuals and families receiving food assistance through government donation programs. The services delivered include the provision of fresh apples, a nutritious food staple. The geographic impact is focused on Minnesota, where the apples will be delivered. Workforce implications may include jobs in apple farming, processing, packaging, and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in perishable goods impacting long-term affordability if not managed.
Logistical challenges in ensuring timely delivery of fresh produce to designated locations.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost increases.
Strong competition among 26 bidders suggests a healthy and responsive market.
Award to a known entity (Wescott Agri Products) may indicate reliability in supply chain.

Sector Analysis

The contract falls within the broader agricultural commodities sector, specifically focusing on the procurement of fresh produce for federal food donation programs. This market involves large-scale farming, processing, and distribution networks. Comparable spending benchmarks would involve analyzing other government procurements of similar perishable goods for food assistance or disaster relief, where quantities and delivery logistics are key factors. The market size for such federal procurements can fluctuate based on program needs and appropriations.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the procurement was open to all qualified bidders, including large agricultural corporations. While there is no direct small business set-aside, the prime contractor may engage small businesses for subcontracting, particularly in areas like local transportation or specialized handling, though this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem depends on whether Wescott Agri Products utilizes them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service (AMS), which is responsible for procurement and program administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods at the agreed price. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Federal Food Assistance Programs

Risk Flags

Perishable Goods Logistics
Potential for Price Volatility
Timely Delivery Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.1 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009794/4100029152/APPLES FRESH VARIOUS TYPE CTN-37-40 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 $5.1 million.

What is the period of performance?

Start: 2024-01-30. End: 2024-08-28.

What is the historical spending pattern for fresh apples procured by the Department of Agriculture for donation programs?

Analyzing historical spending for fresh apples by the USDA for donation programs requires access to detailed procurement databases beyond the scope of this single contract. However, general trends indicate that the USDA procures significant quantities of various commodities, including fresh produce, to support domestic food assistance initiatives. Spending levels can vary year-to-year based on congressional appropriations, agricultural output, and specific program needs. Factors like seasonal availability, market prices, and the scale of donation programs directly influence the total dollar amount spent. Without specific historical data for this exact commodity and program, it's difficult to provide precise figures, but the USDA consistently invests millions in such procurements annually to ensure food security for vulnerable populations.

How does the per-unit cost of these apples compare to commercial bulk purchases?

Determining the precise per-unit cost comparison is challenging without knowing the exact variety, grade, and origin of the apples, as well as the specific terms of commercial bulk purchases. However, government contracts, especially those awarded under full and open competition with a firm-fixed-price structure, often achieve competitive pricing due to the large volumes procured. The USDA's buying power can lead to prices at or below typical commercial bulk rates. Factors such as delivery logistics, specific packaging requirements, and the need for compliance with food safety standards for donation programs can influence the final cost. Generally, government procurement aims for value, and the competitive bidding process for this contract suggests a price point aligned with market realities for large-scale acquisitions.

What are the specific quality and freshness standards required for these donated apples?

The contract specifies 'APPLES FRESH VARIOUS TYPE CTN-37-40 LB,' implying standard commercial quality for fresh apples. While the exact grade (e.g., U.S. No. 1) and specific varietal requirements are not detailed in the provided summary, government contracts for perishable goods typically include clauses related to freshness, absence of defects, and proper packaging to maintain quality during transit and storage. The Agricultural Marketing Service (AMS) often relies on established U.S. Department of Agriculture (USDA) standards for grading and inspection. The firm-fixed-price nature of the contract necessitates that the contractor meets these quality expectations to avoid contract non-compliance. Further details on specific quality assurance measures would be found in the full contract solicitation documents.

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

Wescott Agri Products, Inc. has a history of engaging in government contracts, including those involving agricultural commodities. Information available through federal procurement data systems (like SAM.gov or FPDS) would detail their past performance, including contract values, agencies served, and types of goods provided. For perishable goods, successful fulfillment hinges on robust supply chain management, logistics, and quality control. A contract award, especially under competitive conditions, suggests that Wescott Agri Products has demonstrated the capability and reliability required by the agency. However, a comprehensive assessment of their track record would involve reviewing past performance evaluations and any instances of contract disputes or deficiencies, which are not detailed in the provided summary.

What is the intended use and distribution plan for these apples within the food donation program?

The contract specifies 'COMMODITIES FOR USG FOOD DONATIONS,' indicating the apples are intended for federal food donation programs. These programs typically serve low-income individuals, families, and communities facing food insecurity. The distribution plan would involve the USDA allocating these purchased commodities to various partner organizations, such as food banks, shelters, and community action agencies, often on a state or regional basis. The delivery location noted as Minnesota suggests that these apples will be distributed within that state's network of food assistance providers. The specific end-users are beneficiaries of these established federal nutrition assistance and food security initiatives.

How does the contract duration of 211 days impact the procurement of fresh produce?

A contract duration of 211 days (approximately 7 months) for fresh apples is relatively short, which is typical for perishable goods. This timeframe likely covers a specific procurement cycle or meets an immediate need within the food donation program. The short duration necessitates efficient logistics and timely delivery from the supplier to ensure the produce remains fresh and meets quality standards upon arrival. It also allows the government flexibility to re-evaluate market conditions and program needs for future procurements. For the contractor, it requires a focused effort on production, harvesting, and delivery within the specified period to fulfill the contract obligations successfully.

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: 123J1424B0156

Offers Received: 26

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: $5,092,798

Exercised Options: $5,092,798

Current Obligation: $5,092,798

Actual Outlays: $5,086,521

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline