USDA awards $6.77M for canned fruit to Pacific Coast Producers via full and open competition

Contract Overview

Contract Amount: $6,774,801 ($6.8M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2024-05-30

End Date: 2024-08-31

Contract Duration: 93 days

Daily Burn Rate: $72.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010121/4400001767/4100030206/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT EX LT CAN-6/10

Place of Performance

Location: LODI, SAN JOAQUIN County, CALIFORNIA, 95240

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.8 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010121/4400001767/4100030206/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT EX LT CAN-6/10 Key points: 1. Spending focuses on canned peaches and mixed fruit for food donations. 2. Pacific Coast Producers is the sole awardee, indicating potential market concentration. 3. The contract utilizes fixed-price with economic price adjustment, posing some cost risk. 4. This award falls under the 'Fruit and Vegetable Canning' sector.

Value Assessment

Rating: good

The award amount of $6.77M for canned fruit appears reasonable given the quantity and type of goods. 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 After Exclusion of Sources,' suggesting a competitive process was initiated but potentially narrowed. The price discovery mechanism is a fixed price with economic price adjustment, which allows for some fluctuation based on market conditions.

Taxpayer Impact: Taxpayer funds are being used to procure essential food commodities for donation programs, supporting food security initiatives.

Public Impact

Ensures availability of nutritious food options for federal donation programs. Supports agricultural producers and the canning industry within California. Contributes to food assistance efforts for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment introduces potential for cost overruns.
Limited information on the specific exclusion of sources process.

Positive Signals

Supports critical food donation programs.
Awarded through a competitive process.

Sector Analysis

This procurement falls within the broader food manufacturing and agricultural sector, specifically fruit and vegetable canning. Spending benchmarks for similar commodity procurements by the USDA would be relevant for a deeper analysis.

Small Business Impact

The data indicates the awardee is Pacific Coast Producers, a large entity. There is no explicit mention of small business participation or subcontracting in this award notice.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, quality standards, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for cost increases due to economic price adjustment.
Limited transparency on the 'exclusion of sources' process.
Awardee is a large corporation, with no explicit small business set-aside.
Contract duration is relatively short (93 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.8 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000010121/4400001767/4100030206/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT EX LT CAN-6/10

Who is the contractor on this award?

The obligated recipient is PACIFIC COAST PRODUCERS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2024-05-30. End: 2024-08-31.

What was the rationale for excluding sources before the full and open competition phase, and how did this impact the final price?

The specific rationale for excluding sources prior to the full and open competition phase is not detailed in the provided data. This exclusion could potentially limit the number of bidders, thereby impacting price discovery and potentially leading to a less competitive outcome than a purely open solicitation from the outset. Further investigation into the justification for source exclusion is warranted.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for these canned goods?

The primary risk with 'Fixed Price with Economic Price Adjustment' is the potential for increased costs to the government if market prices for raw materials or production inputs rise significantly during the contract period. While it offers some protection against inflation for the contractor, it shifts some of the price volatility risk to the government, potentially exceeding initial budget estimates.

How effectively does this procurement support the USDA's food donation program goals, considering the specific commodities and awardee?

This procurement directly supports USDA food donation goals by securing essential canned fruit commodities. The award to Pacific Coast Producers, a known entity in this space, suggests a reliable supply chain. However, the long-term effectiveness would depend on the nutritional value, shelf-life, and distribution efficiency of these specific products to the intended recipients.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1423R0373

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 631 N CLUFF AVE, LODI, CA, 95240

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

Financial Breakdown

Contract Ceiling: $6,774,801

Exercised Options: $6,774,801

Current Obligation: $6,774,801

Actual Outlays: $6,770,980

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0051

IDV Type: IDC

Timeline