USDA awards $3M for fresh apples to Wescott Agri Products under full and open competition

Contract Overview

Contract Amount: $3,034,861 ($3.0M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-30

End Date: 2024-05-29

Contract Duration: 120 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 27

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009792/4100029176/APPLES FRESH PKG-12/3 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.0 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009792/4100029176/APPLES FRESH PKG-12/3 LB Key points: 1. Contract awarded for 120 days, indicating a short-term need for perishable goods. 2. Wescott Agri Products, a single awardee, suggests potential for concentrated market share. 3. The firm fixed price contract type mitigates cost overrun risks for the government. 4. Spending in the perishable food manufacturing sector can be volatile due to supply and demand fluctuations.

Value Assessment

Rating: good

The contract value of $3,034,860.67 for apples appears reasonable given the quantity and perishable nature. Benchmarking against similar large-scale food procurement 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, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the donated food commodities.

Public Impact

Ensures availability of essential food items for U.S. government donation programs. Supports agricultural producers and distributors within the food supply chain. Provides nutritional resources to individuals and families in need through donation channels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires efficient logistics and distribution.
Potential for price fluctuations in the fresh produce market.
Reliance on a single supplier for a critical commodity.

Positive Signals

Competitive award process.
Firm fixed price contract type.
Clear contract duration.

Sector Analysis

The Agricultural Marketing Service procures commodities for various federal programs. Spending in this sector is influenced by agricultural yields, market prices, and program demands for food assistance.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific procurement, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service, a standard procurement process. Oversight would focus on delivery, quality, and adherence to contract terms.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Perishability of Goods
Market Price Volatility
Logistical Complexity
Potential for Waste

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.0 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009792/4100029176/APPLES FRESH PKG-12/3 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 $3.0 million.

What is the period of performance?

Start: 2024-01-30. End: 2024-05-29.

What is the typical unit cost for fresh apples procured in bulk by government agencies for donation programs?

Determining a precise typical unit cost for bulk fresh apple procurement is challenging due to significant market variability. Factors such as apple variety, season, origin, packaging, and specific program requirements influence pricing. However, government contracts for similar perishable goods often aim for prices at or below prevailing wholesale market rates, adjusted for bulk purchasing and delivery logistics.

What are the primary risks associated with procuring perishable goods like fresh apples for government donation?

The primary risks include spoilage during transit or storage, leading to waste and financial loss. Price volatility in the fresh produce market can impact the value for money. Ensuring consistent quality and meeting delivery schedules under varying weather and supply conditions also pose significant logistical challenges for both the government and the contractor.

How effectively does the 'full and open competition after exclusion of sources' method ensure value for taxpayer money in this context?

This method generally promotes value by allowing all responsible sources to compete, driving down prices. Excluding specific sources might be justified by unique capabilities or past performance, but requires clear justification to ensure it doesn't unduly limit competition. The firm fixed price contract further locks in costs, enhancing taxpayer value protection.

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: 123J1424B0154

Offers Received: 27

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: $3,034,861

Exercised Options: $3,034,861

Current Obligation: $3,034,861

Actual Outlays: $3,031,597

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline