USDA awards $4.1M for canned peas, highlighting firm fixed-price contract for food donations

Contract Overview

Contract Amount: $4,104,300 ($4.1M)

Contractor: Lakeside Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-11-17

End Date: 2024-07-02

Contract Duration: 228 days

Daily Burn Rate: $18.0K/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: 2000009711/4400001937/4100028677/PEAS CAN-24/300

Place of Performance

Location: PLAINVIEW, WABASHA County, MINNESOTA, 55964

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.1 million to LAKESIDE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009711/4400001937/4100028677/PEAS CAN-24/300 Key points: 1. Contract value of $4.1M for canned peas indicates significant procurement for food assistance programs. 2. Firm fixed-price structure suggests predictable costs for the government, mitigating budget uncertainty. 3. Full and open competition implies a broad market engagement, potentially leading to competitive pricing. 4. The contract duration of 228 days points to a focused, short-term need for the commodity. 5. Awarded by the Agricultural Marketing Service, this procurement supports the USG's food donation initiatives. 6. The specific commodity, canned peas, aligns with nutritional requirements for food aid.

Value Assessment

Rating: good

The contract value of $4.1 million for 200,000 cases of canned peas appears reasonable given the scale of the procurement for food donations. The firm fixed-price (FFP) contract type is advantageous as it locks in costs, protecting the government from price fluctuations. Benchmarking against similar large-scale commodity purchases for food aid programs would provide further context, but the FFP structure and competitive award suggest a fair value was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and terms. The presence of 12 bids suggests robust market interest and a healthy level of competition for this food commodity procurement.

Taxpayer Impact: A competitive bidding process for essential food commodities like canned peas helps ensure taxpayer dollars are used efficiently, securing the best possible price and quality for government food donation programs.

Public Impact

Beneficiaries of USG food donation programs, including low-income families and individuals facing food insecurity, will receive essential nutritional support through these canned peas. The services delivered involve the procurement and supply of canned peas, a staple food item, to support federal food assistance initiatives. The contract is being fulfilled in Minnesota (MN), indicating a specific geographic focus for this particular delivery order. The procurement supports the agricultural sector by providing a market for canned pea producers and distributors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of essential food items.
Reliance on a single commodity (canned peas) may not fully address diverse nutritional needs in food assistance programs.
Fluctuations in raw material costs for peas could impact future contract pricing if not adequately managed.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition likely resulted in competitive pricing and a wide selection of potential suppliers.
Awarding to Lakeside Foods Inc. suggests a known entity in the food supply chain, potentially indicating reliability.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on canned vegetables. The market for canned goods is mature, with established players like Lakeside Foods Inc. The Agricultural Marketing Service frequently procures commodities for various federal programs, including food donations, school lunches, and disaster relief. Spending in this area is driven by federal mandates to support domestic agriculture and address food insecurity.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the large dollar value and the nature of commodity procurement, it is likely that larger food manufacturers and distributors were the primary participants in the bidding process. There is no explicit information on subcontracting plans with small businesses, but the scale of the award suggests potential opportunities if the prime contractor engages in such practices.

Oversight & Accountability

The contract is subject to standard federal procurement oversight, including review by the agency's procurement officials and potentially the Government Accountability Office (GAO) if protests arise. The firm fixed-price nature of the contract simplifies financial oversight compared to cost-reimbursement contracts. Transparency is maintained through contract award databases like FPDS. 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
Food Bank Assistance Programs
Federal Food Donation Programs

Risk Flags

Potential for quality variations in canned goods.
Supply chain vulnerability for large-volume commodity procurement.
Reliance on specific agricultural outputs can be subject to crop yields.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.1 million to LAKESIDE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009711/4400001937/4100028677/PEAS 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 $4.1 million.

What is the period of performance?

Start: 2023-11-17. End: 2024-07-02.

What is the historical spending pattern for canned peas by the Department of Agriculture?

Analyzing historical spending data for canned peas by the Department of Agriculture (USDA) is crucial for understanding procurement trends and establishing benchmarks. While specific figures for canned peas alone are not readily available without deep database dives, the USDA's Agricultural Marketing Service (AMS) consistently procures large quantities of various food commodities to support domestic nutrition assistance programs. These programs, such as the National School Lunch Program and food donation initiatives, often rely on shelf-stable items like canned vegetables. Past awards for similar canned goods (e.g., canned corn, green beans) can provide context for the current $4.1 million award for canned peas. Factors influencing historical spending include fluctuating commodity prices, changes in program needs, and the availability of appropriations. A review of previous years' solicitations and awards for canned vegetables would reveal average quantities, unit prices, and the number of bidders, offering insights into price stability and competitive dynamics over time.

How does the unit price of these canned peas compare to market rates or similar government contracts?

Determining the precise unit price requires knowing the exact quantity (e.g., number of cans or cases) procured under this $4.1 million contract. However, the contract specifies 200,000 cases. If we assume a standard case size, we can estimate a per-case cost. Comparing this estimated per-case cost to commercial wholesale prices for canned peas and to prices paid in other federal food procurement contracts is essential for value assessment. Government contracts often achieve lower prices due to bulk purchasing power and competitive bidding. However, factors like specific quality standards, packaging requirements, and delivery logistics can influence the final price. If the per-case cost significantly deviates from established benchmarks, it could indicate either an exceptional deal for the government or potential overpricing, warranting further investigation into the specific terms and market conditions at the time of award.

What are the specific quality and nutritional standards required for these canned peas?

The contract likely specifies detailed quality and nutritional standards to ensure the canned peas meet the requirements for federal food donation programs. These standards typically align with federal specifications, such as those outlined by the Food and Drug Administration (FDA) for canned goods and potentially specific USDA guidelines for nutritional content and safety. Requirements often include factors like the type of peas (e.g., sweet peas, early peas), drained weight, absence of defects, Brix level (sugar content), and packaging integrity. Nutritional information, such as calories, protein, carbohydrates, and sodium content per serving, would also be detailed. Compliance with these standards is critical for ensuring the food is safe, palatable, and provides adequate nutrition to recipients of federal assistance. The Agricultural Marketing Service would verify compliance through inspection and testing.

What is the track record of Lakeside Foods Inc. in fulfilling government contracts, particularly for food commodities?

Lakeside Foods Inc. has a history of supplying food commodities to government agencies, including the USDA. Examining their past performance on similar contracts is vital for assessing reliability and capability. This involves reviewing contract databases for previous awards, delivery performance, and any instances of contract disputes, terminations, or quality issues. A positive track record suggests a lower risk of performance failure for this current contract. Conversely, any history of late deliveries, non-compliance with specifications, or financial instability could raise concerns. Information on their capacity to handle large-volume orders and their established quality control processes would further inform the assessment of their suitability as a contractor for this significant procurement.

What is the potential impact of this contract on the broader food donation supply chain?

This $4.1 million contract for canned peas contributes significantly to the supply chain for federal food donation programs. By securing a large quantity of a staple item, the USDA ensures that food banks and other distribution points have adequate resources to serve beneficiaries. The procurement supports agricultural producers by creating demand for peas and processors like Lakeside Foods Inc. The timely delivery of these goods is critical for maintaining consistent food availability for vulnerable populations. Furthermore, the contract's success can influence future procurement strategies, potentially encouraging more competitive bidding or highlighting the importance of specific commodity types in meeting nutritional needs within the food assistance network.

Are there any specific risks associated with procuring canned peas compared to other food commodities?

Procuring canned peas, while generally low-risk, does carry some specific considerations. Shelf stability is a major advantage, reducing spoilage risks compared to fresh or frozen items. However, risks can include potential quality defects (e.g., under-processing leading to spoilage, damage during canning or transport), variations in taste or texture, and the presence of excessive sodium if not managed. Competition dynamics can also be a factor; if the market for canned pea suppliers is limited, prices might be higher. Furthermore, ensuring the peas meet specific nutritional targets for food assistance programs requires adherence to strict quality control measures. Supply chain disruptions, though less critical than for perishable goods, can still impact delivery schedules. The firm fixed-price nature mitigates financial risk for the government but places the cost risk on the contractor.

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: $4,104,300

Exercised Options: $4,104,300

Current Obligation: $4,104,300

Actual Outlays: $4,101,990

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0172

IDV Type: IDC

Timeline