USDA's $3.1M contract for fresh apples awarded to Wescott Agri Products via full and open competition

Contract Overview

Contract Amount: $3,079,223 ($3.1M)

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: $14.7K/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: 2000009793/4100029225/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 $3.1 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009793/4100029225/APPLES FRESH PKG-12/3 LB Key points: 1. The contract focuses on perishable food manufacturing, specifically fresh apples. 2. Wescott Agri Products, Inc. is the sole awardee. 3. The contract is a firm-fixed-price definitive contract. 4. This procurement falls under the Department of Agriculture's Agricultural Marketing Service. 5. The contract duration is 210 days.

Value Assessment

Rating: good

The contract value of $3.1M for 200,000 lbs of apples appears reasonable given market prices for fresh produce. Benchmarking against similar government food procurements would provide further validation.

Cost Per Unit: $15.40 per 3lb package

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 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: Taxpayers benefit from a competitive process that aims to secure goods at the best possible price for federal food donation programs.

Public Impact

Ensures availability of fresh produce for federal food donation programs. Supports agricultural producers and distributors within the food supply chain. Contributes to nutritional assistance initiatives for eligible recipients. Provides a consistent supply of a perishable commodity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires efficient logistics and distribution.
Potential for price fluctuations in agricultural commodities.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award.
Supports federal food donation objectives.

Sector Analysis

This contract falls within the broader 'Commodities' or 'Food and Agriculture' sector. Government spending on food commodities for donation programs is a significant component of agricultural support and nutritional assistance.

Small Business Impact

While the awardee is Wescott Agri Products, Inc., the data does not indicate if they are a small business. Further analysis would be needed to determine the impact on small business participation in this specific contract.

Oversight & Accountability

The Agricultural Marketing Service is responsible for overseeing this contract. Standard government procurement oversight processes should ensure compliance with terms and conditions, including delivery and quality standards.

Related Government Programs

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

Risk Flags

Perishability of goods
Potential for price volatility
Logistics and distribution challenges for fresh produce
Dependence on agricultural market conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009793/4100029225/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 $3.1 million.

What is the period of performance?

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

What is the historical pricing trend for fresh apples procured by the government for similar donation programs?

Analyzing historical pricing data for fresh apples in government food donation programs is crucial for establishing a robust benchmark. This would involve examining past contract awards for similar quantities, quality specifications, and delivery locations. Understanding these trends helps determine if the current $3.1M contract represents a fair market value and identifies any significant price deviations that might warrant further investigation into market conditions or procurement strategies.

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

The primary risks in procuring perishable goods like fresh apples include spoilage during transit or storage, leading to waste and potential unavailability for intended recipients. Additionally, price volatility in agricultural markets can impact the cost-effectiveness of the procurement. Ensuring timely delivery, maintaining appropriate temperature controls, and having contingency plans for unforeseen disruptions are critical to mitigate these risks and ensure program effectiveness.

How effectively does this contract support the Department of Agriculture's food donation mission?

This contract directly supports the Department of Agriculture's food donation mission by securing a significant quantity of fresh apples, a nutritious commodity. The firm-fixed-price structure and competitive award process aim to ensure value for money. The success of this contract in supporting the mission hinges on efficient logistics, timely delivery to distribution points, and the ultimate distribution of quality produce to intended beneficiaries.

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: $3,079,223

Exercised Options: $3,079,223

Current Obligation: $3,079,223

Actual Outlays: $3,071,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline