USDA awards $52.8M for canned salmon to OBI SEAFOODS, LLC, supporting food donation programs

Contract Overview

Contract Amount: $52,848,818 ($52.8M)

Contractor: OBI Seafoods, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-03-26

End Date: 2025-02-15

Contract Duration: 326 days

Daily Burn Rate: $162.1K/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: 2000009982/4400002054/4100029646/SALMON PINK CAN-24/14.75 OZ (33630)

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $52.8 million to OBI SEAFOODS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009982/4400002054/4100029646/SALMON PINK CAN-24/14.75 OZ (33630) Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for canned seafood procurement. 3. Risk indicators appear low given the fixed-price contract and established supplier. 4. Performance context is tied to the critical mission of USG food donations. 5. Sector positioning places this within the broader food supply chain for government programs.

Value Assessment

Rating: good

The contract value of $52.8 million for canned salmon appears reasonable given the quantity and duration. Benchmarking against similar government procurements for shelf-stable seafood products would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bidders indicates a healthy level of competition for this specific requirement, which typically leads to more competitive pricing for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price for the canned salmon.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. Services delivered involve the procurement and supply of canned salmon for distribution. Geographic impact is national, supporting food banks and relief organizations across the United States. Workforce implications are primarily within the seafood processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type limits cost uncertainty.
Contract duration is well-defined with specific start and end dates.
Supplier is an established entity in the seafood industry.

Sector Analysis

The procurement of canned salmon falls within the broader food processing and agricultural commodities sector. This contract supports the government's role in ensuring food security and providing nutritional assistance. Comparable spending benchmarks would involve analyzing other large-scale food procurement contracts for charitable or governmental distribution.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Further analysis would be needed to determine if OBI SEAFOODS, LLC is a large business and if subcontracting opportunities exist for small businesses within its supply chain.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through public contract databases.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement
Food Assistance Programs

Risk Flags

Potential for supply chain disruptions impacting seafood availability.
Ensuring consistent product quality and adherence to specifications.
Timeliness of delivery to meet program needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $52.8 million to OBI SEAFOODS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000009982/4400002054/4100029646/SALMON PINK CAN-24/14.75 OZ (33630)

Who is the contractor on this award?

The obligated recipient is OBI SEAFOODS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52.8 million.

What is the period of performance?

Start: 2024-03-26. End: 2025-02-15.

What is the historical spending pattern for canned salmon procurement by the USDA?

Historical spending data for canned salmon procurement by the USDA is not directly available in this dataset. However, analyzing past solicitations and awards for similar food commodities within the Agricultural Marketing Service (AMS) or other relevant USDA agencies could reveal trends in volume, pricing, and supplier engagement. This would involve searching federal procurement databases for contracts with similar Product Service Codes (PSCs) or North American Industry Classification System (NAICS) codes related to seafood processing and preservation over the past several fiscal years. Understanding historical spending would provide context for the current $52.8 million award, indicating whether it represents an increase, decrease, or stable level of investment in this specific commodity for donation purposes.

How does the per-unit cost of this canned salmon compare to market rates or similar government contracts?

A precise per-unit cost comparison is challenging without knowing the exact quantity of cans procured. The contract value is $52,848,817.85 for 336,300 units (cases of 24 cans). This equates to approximately $157.14 per case, or roughly $6.55 per can. Benchmarking this against current retail prices for canned salmon (which can range from $3-$7 per can depending on brand and type) and against historical government contract prices for similar items would be necessary. Given the large volume and potential for bulk purchasing discounts, this price point may be competitive. However, a detailed analysis would require access to specific market data and historical government procurement records for canned seafood.

What is the track record of OBI SEAFOODS, LLC in fulfilling government contracts?

OBI SEAFOODS, LLC is a known entity in the seafood industry. Information regarding their specific track record with government contracts, including past performance on similar USDA or other federal agency procurements, would typically be available through federal contract databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A review of these systems would reveal their history of on-time delivery, quality compliance, and overall performance ratings on previous awards. This information is crucial for assessing the reliability of the contractor in meeting the requirements of this $52.8 million award for food donations.

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

Potential risks for this contract include supply chain disruptions affecting seafood availability, quality control issues with the canned product, and delivery delays. Mitigation strategies are inherent in the contract structure: the firm fixed-price (FFP) nature shifts cost overrun risk to the contractor. The defined delivery period (March 2024 to February 2025) and specific product requirements (pink salmon, 14.75 oz cans) provide clear performance standards. Furthermore, the USDA's Agricultural Marketing Service likely has quality assurance protocols and inspection processes in place to ensure the delivered product meets specifications, minimizing quality-related risks.

How does this contract align with the USDA's broader mission regarding food security and nutrition assistance?

This contract directly aligns with the USDA's mission to combat food insecurity and improve nutrition assistance. By procuring essential food items like canned salmon, the USDA supports its various food donation programs, such as those administered by the Food and Nutrition Service (FNS) or the Commodity Credit Corporation (CCC). These programs provide vital resources to food banks, shelters, and other organizations serving vulnerable populations. The provision of shelf-stable, protein-rich foods like canned salmon contributes to the nutritional well-being of recipients and helps alleviate hunger across the nation.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1424B0254

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 W EWING ST, SEATTLE, WA, 98119

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,848,818

Exercised Options: $52,848,818

Current Obligation: $52,848,818

Actual Outlays: $41,859,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0035

IDV Type: IDC

Timeline