USDA Awards $9.7M for Fresh Grapes to Wescott Agri Products Under Full and Open Competition

Contract Overview

Contract Amount: $9,669,034 ($9.7M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-06-20

End Date: 2024-10-02

Contract Duration: 104 days

Daily Burn Rate: $93.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010025/4100030323/GRAPES VARIETY FRESH CTN-19 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.7 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010025/4100030323/GRAPES VARIETY FRESH CTN-19 LB Key points: 1. Significant award for perishable food commodities, highlighting agricultural supply chain needs. 2. Wescott Agri Products secures a substantial contract, indicating strong market position. 3. Risk of spoilage and price volatility are key considerations for perishable goods. 4. Focus on food donations suggests a role in social welfare programs.

Value Assessment

Rating: good

The contract value of $9.7M for 104 days of supply appears reasonable given the nature and quantity of perishable goods. Benchmarking against similar large-scale food procurement contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method aims to ensure the government receives the best value by considering all eligible offerors.

Taxpayer Impact: The award supports food donation programs, indirectly benefiting recipients and potentially reducing food insecurity. The competitive nature of the award aims to ensure taxpayer funds are used efficiently.

Public Impact

Ensures availability of fresh produce for federal food donation programs. Supports agricultural producers and distributors in the fresh produce sector. Contributes to nutritional support for vulnerable populations through donated food.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires efficient logistics and storage.
Potential for price fluctuations in fresh produce markets.
Dependence on a single awardee for a critical supply.

Positive Signals

Full and open competition promotes fair pricing.
Clear contract duration and delivery schedule.
Award supports essential food donation initiatives.

Sector Analysis

The Agricultural Marketing Service procures commodities for various federal programs, including food donations. This contract for fresh grapes falls within the broader context of agricultural commodity procurement, with benchmarks often tied to market prices for similar produce.

Small Business Impact

While the awardee is Wescott Agri Products, Inc., the contract details do not specify any subcontracting goals for small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would focus on delivery schedules, quality of goods, and adherence to contract terms to ensure program effectiveness and proper use of funds.

Related Government Programs

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

Risk Flags

Perishability Risk
Market Price Volatility
Logistics and Supply Chain Complexity
Quality Control for Fresh Produce

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.7 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010025/4100030323/GRAPES VARIETY FRESH CTN-19 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 $9.7 million.

What is the period of performance?

Start: 2024-06-20. End: 2024-10-02.

What is the historical pricing trend for fresh grapes of this variety and quantity to assess the value proposition?

Analyzing historical pricing data for similar grape varieties and quantities procured by the government or in the open market would provide crucial context. This comparison helps determine if the $9.7M award represents a fair market price, considering factors like seasonality, quality specifications, and volume discounts. Without this historical data, assessing the true value proposition is challenging.

What are the specific risks associated with the perishability of grapes and how are they mitigated in this contract?

The primary risks include spoilage during transit and storage, leading to potential waste and financial loss. Mitigation strategies likely involve strict delivery timelines, specified packaging, temperature control requirements during transport, and quality inspection upon receipt. The short contract duration (104 days) also helps minimize long-term exposure to spoilage risks.

How effectively does this contract support the objectives of federal food donation programs?

This contract directly supports food donation programs by ensuring a supply of fresh, nutritious produce. Its effectiveness hinges on the timely delivery of high-quality grapes to intended recipients. The competitive award process suggests an effort to procure these goods efficiently, maximizing the impact of taxpayer funds on food security initiatives.

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: 123J1424B0346

Offers Received: 15

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: $9,669,034

Exercised Options: $9,669,034

Current Obligation: $9,669,034

Actual Outlays: $9,664,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline