USDA's $3.1M food donation contract for canned green beans awarded to Lakeside Foods Inc

Contract Overview

Contract Amount: $3,115,639 ($3.1M)

Contractor: Lakeside Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-11-17

End Date: 2024-06-30

Contract Duration: 226 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009711/4400001937/4100028665/BEANS GREEN CAN-24/300

Place of Performance

Location: NEW RICHMOND, SAINT CROIX County, WISCONSIN, 54017

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to LAKESIDE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009711/4400001937/4100028665/BEANS GREEN CAN-24/300 Key points: 1. Value for money appears reasonable given the fixed-price nature and market demand for canned goods. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing was sought. 3. Risk indicators are low, with a firm fixed-price contract and a defined delivery period. 4. Performance context is within the scope of agricultural marketing and food security programs. 5. Sector positioning is within the broader food processing and government procurement landscape.

Value Assessment

Rating: good

The contract value of $3.1 million for canned green beans seems aligned with typical government procurement for food commodities. Benchmarking against similar contracts for canned vegetables would provide a more precise value-for-money assessment, but the firm fixed-price structure suggests the government secured a set price. The quantity and delivery timeline are key factors in determining overall value, which appear to be met within the contract's parameters.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 12 bids suggests a healthy level of competition for this requirement. This broad participation generally leads to more competitive pricing and a wider selection of qualified suppliers, benefiting the government.

Taxpayer Impact: A competitive bidding process for food commodities like canned green beans helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging quality offerings.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, potentially food banks and charitable organizations. Services delivered involve the supply of canned green beans, a staple food item. Geographic impact is national, as donated food is distributed across the U.S. Workforce implications are primarily within the food processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting long-term affordability if this becomes a recurring contract.
Ensuring consistent quality and timely delivery across all batches of canned goods.
Logistical challenges in distributing perishable or semi-perishable goods to various donation points.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market for this product.
Award to an established supplier (Lakeside Foods Inc.) implies a degree of reliability.

Sector Analysis

The food processing industry, particularly canned goods, is a significant sector within the broader agricultural economy. Government procurement, such as this contract with the USDA's Agricultural Marketing Service, represents a stable demand source for food manufacturers. Comparable spending benchmarks would involve analyzing other USDA food purchase contracts for similar commodities or other agencies procuring food supplies for various programs.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While Lakeside Foods Inc. is the prime contractor, there is no explicit information on subcontracting plans. The impact on the small business ecosystem would depend on whether small businesses are involved as suppliers or subcontractors to Lakeside Foods.

Oversight & Accountability

Oversight for this contract would primarily fall under the USDA's Agricultural Marketing Service, responsible for ensuring compliance with contract terms, quality standards, and delivery schedules. Accountability measures are embedded in the firm fixed-price contract, with penalties or remedies for non-performance. Transparency is facilitated through public contract databases where such awards are reported.

Related Government Programs

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

Risk Flags

Potential for price volatility in agricultural commodities.
Ensuring consistent quality and safety standards for food products.
Logistical complexities in nationwide distribution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to LAKESIDE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009711/4400001937/4100028665/BEANS GREEN CAN-24/300

Who is the contractor on this award?

The obligated recipient is LAKESIDE 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 $3.1 million.

What is the period of performance?

Start: 2023-11-17. End: 2024-06-30.

What is Lakeside Foods Inc.'s track record with government contracts, particularly with the USDA?

Lakeside Foods Inc. has a history of receiving government contracts, including those with the USDA for food commodities. Analyzing their past performance, including on-time delivery rates, quality compliance, and any past disputes or contract modifications, would provide a clearer picture of their reliability. Their experience with similar large-scale food procurements suggests they possess the operational capacity to fulfill this contract. Further investigation into their contract history, available through public databases like FPDS, would reveal the frequency and value of previous awards, as well as their performance metrics.

How does the per-unit cost of these canned green beans compare to market rates or similar government purchases?

Without the exact quantity of cans or the total weight, calculating a precise per-unit cost is challenging. However, the total award of $3,115,639.15 for canned green beans suggests a significant volume. To benchmark, one would need to determine the number of cans or cases procured and compare this price against commercial wholesale prices for canned green beans or against similar USDA food purchase contracts awarded to other vendors. Factors like packaging, specific variety, and delivery terms can influence price comparisons. The firm fixed-price nature indicates the government aimed to lock in a price, but its competitiveness relies on the initial bidding.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential supply chain disruptions affecting raw material availability or processing, quality control issues with the canned product, and logistical challenges in timely delivery. Mitigation strategies are inherent in the contract structure: the firm fixed-price agreement caps the government's cost exposure. Lakeside Foods Inc., as the contractor, bears the risk of cost overruns. Quality assurance protocols and delivery schedules are standard contractual requirements, with potential penalties for non-compliance. The USDA's oversight role also serves as a mitigation factor.

How effective are USDA food donation programs in addressing food insecurity, and how do contracts like this contribute?

USDA food donation programs, such as those supported by this contract, are a critical component of the U.S. strategy to combat food insecurity. They provide essential food supplies to a network of food banks, pantries, and other emergency food providers nationwide. Contracts like this ensure a consistent supply of nutritious, shelf-stable food items that can be distributed to vulnerable populations. The effectiveness is measured by the reach of these programs, the nutritional quality of the food provided, and the reduction in food insecurity rates among recipient households. This specific contract contributes by supplying a key commodity.

What is the historical spending pattern for canned green beans or similar commodities by the USDA?

The USDA consistently procures large quantities of various food commodities, including canned vegetables, to support domestic nutrition assistance programs. Historical spending data would reveal trends in the volume and value of canned green bean purchases over time. This includes analyzing fluctuations based on agricultural output, program needs, and budget allocations. Examining past contracts would also highlight the typical number of bidders, average contract values, and the primary suppliers for these items, providing context for the current $3.1 million award.

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: 123J1424B0001

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lakeside Foods, Inc.

Address: 2400 S 44TH ST, MANITOWOC, WI, 54220

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

Financial Breakdown

Contract Ceiling: $3,115,639

Exercised Options: $3,115,639

Current Obligation: $3,115,639

Actual Outlays: $3,037,570

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0172

IDV Type: IDC

Timeline