USDA's $2.55M Contract for Fresh Apples Awarded to Wescott Agri Products Amidst Full and Open Competition

Contract Overview

Contract Amount: $2,552,620 ($2.6M)

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: $21.3K/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: 2000009792/4100029178/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 $2.6 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009792/4100029178/APPLES FRESH PKG-12/3 LB Key points: 1. Significant award for fresh apples, indicating demand for food donation commodities. 2. Wescott Agri Products secures a substantial contract, highlighting their role in the supply chain. 3. The contract's fixed-price nature aims to control costs for the government. 4. Competition was conducted under 'Full and Open Competition after Exclusion of Sources', suggesting a specific justification for the method.

Value Assessment

Rating: good

The contract value of $2,552,620.06 for fresh apples appears reasonable given the quantity and duration. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition method, 'Full and Open Competition after Exclusion of Sources,' implies that while open to all, specific sources might have been initially considered or excluded based on certain criteria before the broader competition. This method aims for competitive pricing while potentially addressing specific program needs.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages multiple bids, driving down prices and ensuring value for money in government food donation programs.

Public Impact

Ensures a supply of fresh produce for vital USG food donation programs. Supports agricultural producers and distributors involved in the food supply chain. Provides nutritional benefits to recipients of government-assisted food programs. Demonstrates government commitment to food security initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Need for clarity on 'Exclusion of Sources' in competition.
Potential for price fluctuations in perishable goods.
Logistical challenges in distributing fresh produce.

Positive Signals

Commitment to providing fresh, nutritious food.
Utilizes a competitive bidding process.
Supports agricultural sector.

Sector Analysis

The Agricultural Marketing Service (AMS) within the USDA frequently procures agricultural commodities for various programs, including food donations. Spending in this sector is driven by nutritional guidelines, program needs, and seasonal availability of produce.

Small Business Impact

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

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, quality of produce, and adherence to contract terms, with potential reviews by internal auditors or program beneficiaries.

Related Government Programs

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

Risk Flags

Potential for spoilage and logistical challenges with perishable goods.
Dependence on a single awarded contractor for a significant quantity.
Need for transparency regarding the 'Exclusion of Sources' rationale.
Market price volatility for agricultural commodities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009792/4100029178/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 $2.6 million.

What is the period of performance?

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

What specific criteria led to the exclusion of certain sources before the 'Full and Open Competition' phase?

The 'Exclusion of Sources' designation within the 'Full and Open Competition' framework suggests that initial solicitations or pre-qualification rounds may have narrowed the field based on specific requirements, such as certifications, past performance, or specialized capabilities. This is often done to ensure that only qualified vendors participate, streamlining the process while still allowing broad competition among eligible entities.

How does the fixed-price contract structure mitigate risks associated with fluctuating commodity prices for fresh produce?

A Firm Fixed Price (FFP) contract locks in the price per unit, shifting the risk of price increases to the contractor, Wescott Agri Products. While this protects the government from cost overruns due to market volatility, it requires the contractor to accurately forecast costs and manage their supply chain effectively to maintain profitability. The government benefits from cost certainty.

What is the expected impact of these fresh apples on the recipients of USG food donation programs?

The provision of 200,000+ units of fresh apples is expected to significantly enhance the nutritional quality of food available through USG donation programs. Access to fresh fruit contributes to healthier diets, addressing food insecurity and promoting well-being among vulnerable populations. This procurement directly supports the USDA's mission to improve food access and nutrition.

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: $2,552,620

Exercised Options: $2,552,620

Current Obligation: $2,552,620

Actual Outlays: $2,551,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline