USDA Awards $2.18M for Canned Goods to Del Monte Foods Inc. for Food Donations

Contract Overview

Contract Amount: $2,175,173 ($2.2M)

Contractor: DEL Monte Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-11-15

End Date: 2024-03-31

Contract Duration: 137 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009701/4400001854/4100028588/BEANS GREEN CAN-24/300,BEANS GREEN CAN-6/10,CARROTS CAN-24/300,CARROTS CAN-6/10,POTATOES WHT SLICES CAN-24/300

Place of Performance

Location: PLOVER, PORTAGE County, WISCONSIN, 54467

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.2 million to DEL MONTE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009701/4400001854/4100028588/BEANS GREEN CAN-24/300,BEANS GREEN CAN-6/10,CARROTS CAN-24/300,CARROTS CAN-6/10,POTATOES WHT SLICES CAN-24/300 Key points: 1. Contract awarded to a single, well-known supplier. 2. Focus on canned vegetables for food donation programs. 3. Firm fixed price contract mitigates cost escalation risk. 4. Competition method was full and open, suggesting market availability.

Value Assessment

Rating: good

The awarded amount of $2,175,172.83 for canned goods appears reasonable given the quantity and nature of the items. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment.

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 generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of taxpayer funds for food donations aims to support vulnerable populations, representing a social benefit rather than direct cost savings.

Public Impact

Ensures availability of essential food items for federal nutrition assistance programs. Supports domestic agricultural producers and food processing industries. Contributes to food security initiatives for low-income individuals and families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited supplier options in future similar procurements if market consolidates.
Dependence on a single supplier for a critical need.

Positive Signals

Supports a vital government program (food donations).
Utilizes a competitive bidding process.
Firm fixed price contract provides cost certainty.

Sector Analysis

This procurement falls within the food processing and distribution sector, specifically for canned goods. Spending benchmarks for similar commodity procurements vary widely based on item, quantity, and program requirements.

Small Business Impact

While the award went to Del Monte Foods Inc., a large corporation, the procurement process itself was full and open, allowing small businesses to potentially participate as subcontractors or in future, smaller-scale procurements.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the USDA is responsible for this procurement. Oversight typically involves ensuring contract compliance, quality control, and timely delivery of goods.

Related Government Programs

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

Risk Flags

Award to a single, large entity.
Potential for limited competition in future similar procurements.
Dependence on one supplier for critical food items.
Geographic concentration of production could pose risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.2 million to DEL MONTE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009701/4400001854/4100028588/BEANS GREEN CAN-24/300,BEANS GREEN CAN-6/10,CARROTS CAN-24/300,CARROTS CAN-6/10,POTATOES WHT SLICES CAN-24/300

Who is the contractor on this award?

The obligated recipient is DEL MONTE 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 $2.2 million.

What is the period of performance?

Start: 2023-11-15. End: 2024-03-31.

What is the historical pricing trend for these specific canned goods under similar government contracts?

Analyzing historical pricing data for canned beans, carrots, and potatoes procured by the government would reveal if the current $2.18 million award represents a favorable or unfavorable price point. Factors like inflation, market supply, and contract duration significantly influence these trends, requiring a comparative analysis over several years to establish a reliable benchmark.

What is the risk of supply chain disruption for these specific canned goods given the single awardee?

The risk of supply chain disruption is moderate. While Del Monte Foods Inc. is a large, established company, relying on a single supplier for a significant volume of goods creates vulnerability. Disruptions could arise from natural disasters affecting production facilities, labor issues, or unforeseen logistical challenges, potentially impacting the timely distribution of donated food.

How effectively does this procurement meet the nutritional needs of the intended recipients of food donations?

This procurement effectively meets basic nutritional needs by providing staple canned vegetables. However, a comprehensive assessment of effectiveness would require evaluating the variety of foods procured, ensuring a balanced nutritional profile beyond just vegetables. The quantity and shelf-life of the canned goods are also critical factors in their utility for donation programs.

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: 123J1423B0475

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 205 N WIGET LN, WALNUT CREEK, CA, 94598

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,175,173

Exercised Options: $2,175,173

Current Obligation: $2,175,173

Actual Outlays: $2,070,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0119

IDV Type: IDC

Timeline