USDA awards $2.7M for frozen broccoli, highlighting agricultural commodity procurement needs

Contract Overview

Contract Amount: $2,738,323 ($2.7M)

Contractor: INN Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-05-08

End Date: 2024-12-15

Contract Duration: 221 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010064/4100029873/BROCCOLI FRZ CTN-30 LB

Place of Performance

Location: SALEM, MARION County, OREGON, 97305

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.7 million to INN FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010064/4100029873/BROCCOLI FRZ CTN-30 LB Key points: 1. Contract focuses on essential food donations, supporting critical supply chains. 2. Procurement method indicates broad market engagement for commodity sourcing. 3. Fixed-price structure aims to control costs for essential goods. 4. Short performance period suggests immediate need for the commodity. 5. Geographic focus on Oregon for this specific commodity delivery. 6. Contract value is moderate within the context of federal food aid programs.

Value Assessment

Rating: good

The contract value of $2.7 million for frozen broccoli appears reasonable given the quantity and nature of the goods. Benchmarking against similar federal food donation contracts for frozen vegetables would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to lock in costs, which is generally positive for taxpayer value, assuming the price reflects fair market value for the specified quality and quantity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and quality. The presence of 5 bidders suggests a healthy level of interest and competition for this specific commodity procurement.

Taxpayer Impact: Full and open competition maximizes the chances of securing the best possible price for taxpayers by allowing all qualified vendors to participate and bid.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of frozen broccoli, a nutritious food staple. Geographic impact is primarily within the United States, supporting domestic food distribution networks. Workforce implications are indirect, supporting jobs within the agricultural and food processing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the commodity market impacting long-term affordability.
Logistical challenges in ensuring timely delivery and proper storage of frozen goods.

Positive Signals

Commitment to supporting domestic agriculture and food supply chains.
Use of a competitive bidding process to ensure fair pricing.
Focus on providing nutritious food items for federal programs.

Sector Analysis

This contract falls within the broader agricultural sector, specifically focusing on processed and preserved foods. The market for frozen fruits and vegetables is substantial, driven by both consumer demand and government procurement for programs like food assistance and school lunches. Federal spending in this area supports agricultural producers, processors, and distributors, ensuring a stable supply of essential commodities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is INN FOODS INC, there is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain for this commodity.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Agricultural Marketing Service (AMS) within the USDA is responsible for managing this procurement. Transparency is maintained through contract award databases. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential supply chain disruptions
Commodity price volatility
Quality control during frozen storage and transport

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.7 million to INN FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010064/4100029873/BROCCOLI FRZ CTN-30 LB

Who is the contractor on this award?

The obligated recipient is INN FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2024-05-08. End: 2024-12-15.

What is the historical spending trend for frozen broccoli procurement by the USDA?

Analyzing historical spending data for frozen broccoli procurement by the USDA requires access to detailed contract databases over several fiscal years. Generally, federal spending on agricultural commodities for donation programs can fluctuate based on appropriations, agricultural output, and program needs. Factors such as crop yields, market prices, and specific policy initiatives (e.g., increased focus on healthy food options) can influence the volume and value of contracts awarded. Without specific historical data for this exact commodity and contract type, it's difficult to provide precise figures, but it's reasonable to assume that spending aligns with the ongoing need to supply nutritious food items to various federal assistance programs.

How does the price per pound of this frozen broccoli compare to market rates?

To compare the price per pound of this frozen broccoli to market rates, we first need to calculate it. The contract is for 20,000,001,006,4/4100029873/BROCCOLI FRZ CTN-30 LB, with a total award of $2,738,323.35. Assuming the '30 LB' refers to the net weight per container and the quantity is measured in these containers, we'd need the total number of containers to calculate the total pounds. If we interpret the '30 LB' as the unit of measure for the total quantity, and the contract value is $2,738,323.35 for an unspecified total weight, a direct price-per-pound calculation is not immediately possible without knowing the total pounds procured. However, if we assume the contract is for a specific total weight, and use a typical market price for bulk frozen broccoli (e.g., $1.50-$2.50 per pound), we could then benchmark. For instance, if the contract were for 1,000,000 pounds, the price per pound would be approximately $2.74, which might be on the higher end of market rates depending on quality and specific packaging.

What are the specific quality standards required for the frozen broccoli?

The provided data does not explicitly detail the quality standards for the frozen broccoli. However, federal procurement contracts for food commodities typically reference specific standards to ensure nutritional value, safety, and suitability for the intended programs. These standards often align with U.S. Department of Agriculture (USDA) grading criteria for frozen fruits and vegetables, which may include factors like color, size, absence of defects, and proper freezing techniques. The contract likely incorporates by reference relevant sections of the U.S. Code of Federal Regulations (CFR) or specific USDA specifications that outline acceptable quality parameters. Further review of the full contract document would be necessary to ascertain the precise quality requirements.

What is INN FOODS INC's track record with federal food procurement contracts?

Information regarding INN FOODS INC's specific track record with federal food procurement contracts is not detailed in the provided summary data. To assess their performance history, one would typically need to consult federal procurement databases like SAM.gov or FPDS-NG to review past awards, contract performance evaluations (e.g., CPARS), and any history of disputes or terminations. A company's experience with similar commodities, contract types (like firm-fixed-price), and agencies (like USDA) would be key indicators of their reliability and capability in fulfilling federal requirements. Without this specific historical data, it's challenging to evaluate their past performance.

Are there any specific performance risks associated with this contract?

Potential performance risks associated with this contract include logistical challenges related to the transportation and storage of frozen goods, ensuring the broccoli maintains its quality throughout the supply chain until delivery. There's also a risk related to market price volatility for agricultural commodities, although the firm-fixed-price contract structure aims to mitigate this for the government. Supplier reliability, ensuring INN FOODS INC can consistently meet delivery schedules and quantity requirements, is another factor. Finally, ensuring the product meets the required quality and safety standards upon delivery is paramount, as any deviation could lead to rejection and delays in program fulfillment.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Fruit, Juice, and Vegetable Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1424B0384

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 WALKER ST, WATSONVILLE, CA, 95076

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

Financial Breakdown

Contract Ceiling: $2,738,323

Exercised Options: $2,738,323

Current Obligation: $2,738,323

Actual Outlays: $2,738,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline