USDA's $30.1M Contract for Roasted Pistachios Awarded to Stutz Packing Company Under Full and Open Competition

Contract Overview

Contract Amount: $30,123,406 ($30.1M)

Contractor: Stutz Packing Company

Awarding Agency: Department of Agriculture

Start Date: 2024-02-15

End Date: 2024-11-04

Contract Duration: 263 days

Daily Burn Rate: $114.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009842/4100029322/PISTACHIO ROASTED IN SHELL PKG-25/1 LB

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.1 million to STUTZ PACKING COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009842/4100029322/PISTACHIO ROASTED IN SHELL PKG-25/1 LB Key points: 1. The contract focuses on roasted pistachios, a specific commodity within the broader food donation program. 2. Stutz Packing Company, a manufacturer of roasted nuts, is the sole awardee. 3. The contract's fixed-price nature aims to control costs, but market fluctuations in pistachio prices could pose a risk. 4. Spending is concentrated within the Agricultural Marketing Service, supporting domestic food assistance programs.

Value Assessment

Rating: good

The $30.1 million contract price appears reasonable for a large quantity of roasted pistachios, considering market prices for bulk nuts. Benchmarking against similar government food procurement contracts for high-value commodities would provide further validation.

Cost Per Unit: N/A

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 is designed to ensure fair pricing and access for qualified vendors.

Taxpayer Impact: The use of competitive bidding aims to secure the best value for taxpayer dollars by encouraging multiple offers and potentially lower prices for essential food commodities.

Public Impact

Ensures a supply of nutritious food for USG food donation programs, potentially benefiting food banks and vulnerable populations. Supports the agricultural sector by purchasing a processed commodity, contributing to economic activity in California. The contract's duration of 263 days suggests a timely procurement to meet immediate or short-term needs for the food donation program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential price volatility of pistachios impacting the fixed-price contract.
Dependence on a single supplier for this specific commodity.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Fixed-price contract helps manage budget certainty.
Supports domestic agriculture and food assistance programs.

Sector Analysis

This contract falls within the food manufacturing and agricultural commodities sector. Government spending in this area typically supports domestic food programs and agricultural producers, with prices influenced by crop yields and market demand.

Small Business Impact

The data does not indicate whether Stutz Packing Company is a small business. Further analysis would be needed to determine the impact on small business participation in this procurement.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service, which is responsible for managing commodity purchases for federal programs. Standard oversight procedures for contract performance and delivery would apply.

Related Government Programs

Roasted Nuts and Peanut Butter Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Price Volatility Risk
Supply Chain Dependency
Quality Control Assurance
Contract Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.1 million to STUTZ PACKING COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000009842/4100029322/PISTACHIO ROASTED IN SHELL PKG-25/1 LB

Who is the contractor on this award?

The obligated recipient is STUTZ PACKING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2024-02-15. End: 2024-11-04.

What is the historical pricing trend for roasted pistachios procured by the government, and how does this contract's price compare?

Analyzing historical government procurement data for roasted pistachios would reveal average prices paid over time and identify any significant deviations. Comparing this contract's price ($30.1M for 200,000 lbs) against these benchmarks would indicate whether the current price represents good value or potentially an overpayment, considering factors like inflation and market fluctuations.

What are the specific risks associated with relying on a single supplier for a critical food commodity like pistachios?

Reliance on a single supplier, even if competitively selected, introduces risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues) or quality control failures. If Stutz Packing Company cannot fulfill the contract, the government may face delays in food donations or need to procure at potentially higher emergency prices from other sources.

How effectively does this contract contribute to the overall goals of the USG food donation program?

This contract directly contributes by procuring a specific, high-value commodity for donation. Its effectiveness hinges on the timely delivery of quality pistachios at a fair price, ensuring they reach intended beneficiaries. The program's success also depends on the broader distribution network and the nutritional impact of the donated foods.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1424B0195

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 82689 AVENUE 45, INDIO, CA, 92201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,123,406

Exercised Options: $30,123,406

Current Obligation: $30,123,406

Actual Outlays: $30,099,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline