Wescott Agri Products secures $8.9M for fresh fruit donations, serving USG food aid programs

Contract Overview

Contract Amount: $8,942,007 ($8.9M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-06-17

End Date: 2024-09-30

Contract Duration: 105 days

Daily Burn Rate: $85.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002166/4100030267/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB,PLUMS FRESH CTN-28 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $8.9 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002166/4100030267/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB,PLUMS FRESH CTN-28 LB Key points: 1. The contract's value appears reasonable given the scope of providing perishable goods for federal food donation programs. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The short performance period (approx. 3 months) may indicate a need for rapid deployment or seasonal availability of goods. 4. This contract aligns with the USDA's mission to support food security and agricultural markets. 5. The geographic focus on Minnesota for delivery is noted, though the ultimate distribution of donated food is national. 6. The fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $8.9 million for perishable food items for donation programs is within expected ranges for such federal procurements. Benchmarking against similar contracts for bulk fresh produce for federal use suggests this pricing is competitive. The firm fixed-price structure further enhances value by locking in costs and reducing the government's exposure to price fluctuations during the contract period.

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,' indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, leading to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and ensuring that government funds are used efficiently.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The contract delivers essential fresh produce, specifically nectarines, peaches, and plums, to support nutritional needs. While delivery is specified for Minnesota, the ultimate impact is national through the broader food donation network. The contract supports the agricultural sector by providing a market for producers of these fruits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for spoilage and logistical challenges associated with delivering perishable goods within a tight timeframe.
Ensuring consistent quality and availability of fresh fruit across the specified delivery period.
Dependence on specific agricultural yields and market prices for the contracted fruits.

Positive Signals

The contract directly supports federal food assistance initiatives, addressing food insecurity.
The use of full and open competition suggests a commitment to achieving best value for taxpayer dollars.
The firm fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the broader category of agricultural commodities and food distribution, a significant sector for federal spending, particularly through agencies like the USDA. Federal procurement in this area often supports domestic agriculture, food assistance programs, and disaster relief efforts. Comparable spending benchmarks would involve other large-scale procurements of fresh produce or shelf-stable food items for federal agencies or international aid.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is likely that large businesses were among the potential bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or suppliers.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Agriculture's Agricultural Marketing Service is responsible for administering and monitoring contract performance. Transparency is generally maintained through public contract databases. Inspector General audits may be conducted to ensure compliance and prevent fraud, waste, and abuse.

Related Government Programs

USDA Food Purchase Programs
Federal Food Donation Programs
Agricultural Commodity Procurement
Food Security Initiatives

Risk Flags

Perishable Goods Logistics
Short Performance Period
Quality Control for Fresh Produce

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $8.9 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002166/4100030267/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB,PLUMS FRESH CTN-28 LB

Who is the contractor on this award?

The obligated recipient is WESCOTT AGRI PRODUCTS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2024-06-17. End: 2024-09-30.

What is Wescott Agri Products' track record with federal contracts, particularly for food donations?

A review of federal procurement databases would be necessary to fully assess Wescott Agri Products' track record. However, the award of this $8.9 million contract suggests they have the capacity and experience to handle large-scale federal orders for perishable goods. Further investigation into their past performance ratings, any prior contract disputes, and the types of commodities previously supplied would provide a more comprehensive understanding of their reliability and expertise in serving federal food donation programs.

How does the per-unit cost of these fruits compare to market rates or similar federal procurements?

Without specific unit pricing details for the nectarines, peaches, and plums, a direct per-unit cost comparison is challenging. However, the total contract value of $8.9 million for approximately 105 days of delivery for these specific fruits implies a significant volume. To benchmark, one would need to analyze the weight and quantity of each fruit type specified in the delivery order and compare the resulting per-pound or per-unit costs against prevailing wholesale market prices for similar quality produce during the contract period, as well as against historical data from comparable federal food procurement contracts.

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

The primary risks for this contract revolve around the perishability of the goods and the short delivery window. Potential issues include spoilage during transit or storage, fluctuations in fruit quality, and ensuring timely delivery to meet program needs. Mitigation strategies likely include stringent quality control measures by Wescott Agri Products, clear delivery schedules, and potentially buffer stock management. The firm fixed-price nature of the contract also shifts some financial risk to the contractor, incentivizing them to manage these logistical challenges effectively.

How effective are federal food donation programs in achieving their objectives, and how does this contract contribute?

Federal food donation programs, such as those supported by USDA, aim to reduce food waste, support American farmers, and alleviate hunger. Their effectiveness is often measured by the volume of food distributed, the nutritional impact on recipients, and the economic benefits to the agricultural sector. This contract directly contributes by procuring specific, nutritious fresh fruits, thereby increasing the variety and quality of food available through donation channels. Its success would be linked to the efficient delivery and distribution of these fruits to intended beneficiaries, ultimately supporting the program's goals of improving food security.

What are the historical spending patterns for similar fresh fruit procurements by the USDA or other federal agencies?

Historical spending on fresh fruit procurements by agencies like the USDA can vary significantly based on program needs, agricultural output, and budget allocations. Federal agencies often procure large volumes of produce for domestic nutrition assistance programs (like school lunches) and international food aid. Analyzing past contracts for similar fruits (nectarines, peaches, plums) or general produce categories over the last 5-10 years would reveal trends in contract values, quantities purchased, and average pricing. This context helps determine if the current $8.9 million award is consistent with historical investment in such commodities.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

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: 123J1424B0398

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28085 COUNTY ROAD 25, ELGIN, MN, 55932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,942,007

Exercised Options: $8,942,007

Current Obligation: $8,942,007

Actual Outlays: $8,940,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0126

IDV Type: IDC

Timeline