USDA awards $7.28M for canned tomatoes to Red Gold, Inc. under full and open competition

Contract Overview

Contract Amount: $7,284,705 ($7.3M)

Contractor: RED Gold, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-11-15

End Date: 2024-06-30

Contract Duration: 228 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009705/4400001894/4100028585/TOMATO DICED CAN-24/300

Place of Performance

Location: GENEVA, ADAMS County, INDIANA, 46740

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.3 million to RED GOLD, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009705/4400001894/4100028585/TOMATO DICED CAN-24/300 Key points: 1. The contract focuses on canned diced tomatoes, a common commodity for food donations. 2. Red Gold, Inc. is the sole awardee, indicating a specific supplier was chosen. 3. The contract is firm fixed price, providing cost certainty for the government. 4. This award falls under the Agricultural Marketing Service within the Department of Agriculture. 5. The duration is 228 days, covering a significant portion of the fiscal year.

Value Assessment

Rating: good

The award amount of $7.28M for 200,000 cases of canned diced tomatoes appears reasonable given market prices for canned goods. Benchmarking against similar government solicitations for bulk canned vegetables would provide a more precise comparison.

Cost Per Unit: $36.42 per case

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it drives down costs through market forces.

Public Impact

Ensures availability of essential food items for federal food donation programs. Supports domestic agriculture and food processing industries. Provides a consistent supply of a staple commodity for nutritional assistance. The award contributes to the USDA's mission of supporting food security. Transparency in procurement allows public scrutiny of government spending on food.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting future procurements.
Reliance on a single awardee for a large quantity of a specific item.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides budget certainty.
Supports domestic food producers.

Sector Analysis

This procurement falls within the food processing and distribution sector, specifically canned goods. Government spending on agricultural commodities for donation programs is a significant component of federal food assistance initiatives.

Small Business Impact

While the award was made under full and open competition, there is no specific indication of small business participation or set-asides in this particular award notice. Further analysis of the solicitation details would be needed to assess small business impact.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure proper execution and accountability.

Related Government Programs

Fruit and Vegetable Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential supply chain disruption risk.
Price volatility in commodity markets.
Limited competition if future needs arise.
Dependence on a single supplier's production capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.3 million to RED GOLD, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009705/4400001894/4100028585/TOMATO DICED CAN-24/300

Who is the contractor on this award?

The obligated recipient is RED GOLD, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2023-11-15. End: 2024-06-30.

What is the historical pricing trend for diced tomatoes procured by the government, and how does this award compare?

Analyzing historical data for similar canned tomato procurements would reveal if this $7.28M award represents a favorable price point. Factors like inflation, market demand, and specific product requirements (e.g., organic, sodium content) influence pricing. Comparing this award to previous contracts of similar volume and specifications will indicate whether the government is achieving competitive pricing over time.

What are the risks associated with relying on a single awardee for such a large quantity of a critical food commodity?

Sole reliance on one awardee, even if selected through competition, poses risks such as supply chain disruptions (e.g., natural disasters, production issues) impacting delivery. It could also limit future competitive opportunities if the awardee's capacity becomes a bottleneck. Contingency planning and monitoring supplier performance are crucial to mitigate these risks.

How effectively does this procurement support the USDA's food donation program objectives and food security goals?

This procurement directly supports food donation programs by securing a large volume of a staple food item. Its effectiveness hinges on timely delivery, product quality meeting program standards, and efficient distribution to recipient organizations. Successful execution contributes to alleviating food insecurity by providing nutritious options to vulnerable populations.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1423B0614

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 TOMATO COUNTRY WAY, ELWOOD, IN, 46036

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

Financial Breakdown

Contract Ceiling: $7,284,705

Exercised Options: $7,284,705

Current Obligation: $7,284,705

Actual Outlays: $7,270,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0141

IDV Type: IDC

Timeline