USDA Awards $5.3M for Canned Pears to Neil Jones Food Company Under Full and Open Competition

Contract Overview

Contract Amount: $5,323,278 ($5.3M)

Contractor: THE Neil Jones Food Company

Awarding Agency: Department of Agriculture

Start Date: 2024-05-30

End Date: 2024-08-31

Contract Duration: 93 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010121/4400001761/4100030207/PEARS SLICES EX LT CAN-6/10,PEARS DICED EX LT CAN-6/10,PEARS HALVES EX LT CAN-6/10

Place of Performance

Location: VANCOUVER, CLARK County, WASHINGTON, 98660

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.3 million to THE NEIL JONES FOOD COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010121/4400001761/4100030207/PEARS SLICES EX LT CAN-6/10,PEARS DICED EX LT CAN-6/10,PEARS HALVES EX LT CAN-6/10 Key points: 1. The contract focuses on canned pears (slices, diced, halves) for U.S. government food donations. 2. Neil Jones Food Company secured the award, indicating established capabilities in this niche. 3. The fixed-price contract with economic price adjustment introduces some cost fluctuation risk. 4. This procurement falls under the 'Fruit and Vegetable Canning' sector, supporting agricultural programs.

Value Assessment

Rating: good

The award price of $5,323,278.36 for canned pears appears reasonable given the quantity and fixed-price with economic adjustment structure. Benchmarking against similar government food donation contracts for canned fruits 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, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The use of full and open competition is taxpayer-favorable, as it encourages multiple bids and drives down costs for essential goods like food donations.

Public Impact

Ensures supply of essential food items for domestic food assistance programs. Supports the agricultural sector by purchasing processed fruit products. Provides a consistent source of nutritious food for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may lead to cost overruns if commodity prices rise significantly.
Limited duration of the contract (93 days) may not guarantee long-term supply stability.
No small business participation noted, potentially missing opportunities for smaller enterprises.

Positive Signals

Awarded under full and open competition, ensuring fair market pricing.
Procurement supports critical food donation programs.
Contract awarded to a known entity in the food processing industry.

Sector Analysis

This procurement falls within the Fruit and Vegetable Canning sector, specifically for processed fruits. Government spending in this area typically supports food assistance programs and agricultural commodity purchases.

Small Business Impact

The data indicates no small business participation in this contract. While the procurement was full and open, there's an opportunity to explore avenues for engaging small businesses in future similar solicitations.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service managed this procurement. Standard oversight for delivery orders under existing agreements would apply, focusing on timely delivery and product quality.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to EPA
Limited contract duration
Lack of small business participation
Dependence on a single supplier for this specific order

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.3 million to THE NEIL JONES FOOD COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000010121/4400001761/4100030207/PEARS SLICES EX LT CAN-6/10,PEARS DICED EX LT CAN-6/10,PEARS HALVES EX LT CAN-6/10

Who is the contractor on this award?

The obligated recipient is THE NEIL JONES FOOD COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

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

What is the historical pricing trend for canned pears purchased by the government for food donations?

Historical pricing data for government food donations of canned pears would be crucial for a thorough value assessment. Analyzing past awards, including quantities, types of pears, and contract terms (e.g., fixed-price vs. cost-plus), can reveal price fluctuations and identify potential cost-saving opportunities or areas where prices have increased due to market conditions or inflation.

What are the specific risks associated with the economic price adjustment (EPA) clause in this contract?

The primary risk of the EPA clause is potential cost escalation for the government if the market prices of raw materials (like pears) or processing costs increase significantly during the contract period. This could lead to the final cost exceeding initial projections, impacting the overall budget for food donations. Conversely, if prices fall, the government benefits.

How effectively does this contract meet the nutritional and logistical needs of the food donation program?

The contract's effectiveness hinges on the quality and suitability of the canned pears for the intended recipients and the efficiency of the delivery logistics. Ensuring the product meets specific nutritional guidelines for food assistance and that the delivery schedule aligns with the program's distribution needs are key performance indicators to monitor.

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: 123J1423R0373

Offers Received: 5

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

Evaluated Preference: NONE

Contractor Details

Address: 1701 W 16TH ST, VANCOUVER, WA, 98660

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: $5,323,278

Exercised Options: $5,323,278

Current Obligation: $5,323,278

Actual Outlays: $5,317,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0050

IDV Type: IDC

Timeline