USDA awards $4.1M for fresh apples to Wescott Agri Products under full and open competition

Contract Overview

Contract Amount: $4,126,798 ($4.1M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-01-31

End Date: 2024-08-28

Contract Duration: 210 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009793/4100029207/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 $4.1 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009793/4100029207/APPLES FRESH PKG-12/3 LB Key points: 1. Contract awarded for 200,000 lbs of fresh apples. 2. Wescott Agri Products is the sole awardee. 3. Contract type is Firm Fixed Price. 4. Duration of 210 days. 5. Awarded by the Department of Agriculture's Agricultural Marketing Service.

Value Assessment

Rating: good

The contract value of $4.1M for 200,000 lbs of apples suggests a per-pound cost of $20.63. This price needs to be benchmarked against market rates for similar USDA food donation contracts to assess value.

Cost Per Unit: $20.63 per pound

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process was used. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for food donations.

Public Impact

Ensures availability of fresh produce for food donation programs. Supports agricultural producers and distributors. Provides nutritional benefits to recipients of food assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires careful logistical planning.
Price volatility in agricultural commodities.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Competitive award process.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically for food donations. Spending benchmarks for similar food procurement contracts by the USDA would provide further context on the value of this award.

Small Business Impact

The data does not indicate if Wescott Agri Products is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The Agricultural Marketing Service is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance and delivery.

Related Government Programs

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

Risk Flags

Perishability of product
Potential for price fluctuations in agricultural markets
Logistical challenges for timely delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.1 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009793/4100029207/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 $4.1 million.

What is the period of performance?

Start: 2024-01-31. End: 2024-08-28.

How does the per-pound cost of these apples compare to historical USDA food donation contracts for similar produce?

Benchmarking the $20.63 per pound cost against historical USDA food donation contracts for apples or comparable fresh produce is crucial. Factors like seasonality, specific apple varieties, packaging, and delivery locations can influence pricing. A detailed comparison would reveal if this award represents a fair market price or if there are opportunities for cost savings in future procurements.

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

The primary risks involve spoilage during transit and storage, leading to waste and potential non-compliance with delivery requirements. Ensuring proper handling, temperature control, and timely delivery is critical. Market price fluctuations for fresh produce also pose a risk, although the Firm Fixed Price contract mitigates this for the government once awarded.

How effectively does this contract support the USDA's food donation mission and nutritional goals?

This contract directly supports the USDA's mission by procuring fresh apples for donation, contributing to nutritional assistance programs. The competitive award process suggests an effort to maximize the quantity and quality of apples obtained for the allocated funds, thereby enhancing the effectiveness of the donation program in meeting recipient needs.

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: 123J1424B0155

Offers Received: 21

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: $4,126,798

Exercised Options: $4,126,798

Current Obligation: $4,126,798

Actual Outlays: $4,123,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline