USDA awards $6M for fresh fruit, with 16 delivery orders for nectarines and peaches

Contract Overview

Contract Amount: $5,999,206 ($6.0M)

Contractor: RJB Produce, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-06-14

End Date: 2024-09-30

Contract Duration: 108 days

Daily Burn Rate: $55.5K/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: 2000010152/4400002151/4100030273/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB

Place of Performance

Location: REEDLEY, FRESNO County, CALIFORNIA, 93654

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.0 million to RJB PRODUCE, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002151/4100030273/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB Key points: 1. Value for money appears reasonable given the perishable nature of the goods and the short delivery window. 2. Competition dynamics indicate a full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate due to the short shelf-life of the products and potential supply chain disruptions. 4. Performance context is a delivery order under a larger contract, implying established processes. 5. Sector positioning is within agricultural commodities procurement for federal food donation programs.

Value Assessment

Rating: good

The contract value of approximately $6 million for fresh fruit over a 3-month period seems aligned with market rates for bulk produce procurement. The firm fixed-price structure helps manage cost certainty for the government. Benchmarking against similar federal procurements for perishable goods suggests this pricing is competitive, considering factors like origin, quality specifications, and delivery logistics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of 16 delivery orders suggests a robust bidding process for this specific requirement. The competitive nature of the award is expected to drive favorable pricing for the government.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market for these essential food items.

Public Impact

Beneficiaries include recipients of USG food donation programs, likely food banks and charitable organizations. Services delivered include the provision of fresh nectarines and peaches. Geographic impact is primarily within the United States, with potential distribution to various domestic food assistance networks. Workforce implications are likely minimal, primarily related to the logistics and distribution of the produce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires strict adherence to delivery schedules and quality control.
Potential for supply chain disruptions affecting availability and price of fresh produce.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market for these goods.
Short performance period minimizes long-term commitment risk.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically the procurement of fresh fruits for federal food assistance programs. The market for fresh produce is dynamic, influenced by seasonality, weather, and agricultural yields. Comparable spending benchmarks would involve other federal agencies procuring similar perishable goods, such as the Department of Defense's food service contracts or other USDA programs distributing food.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. However, the nature of produce procurement may involve smaller, regional suppliers participating in the broader competition. Subcontracting opportunities could exist for logistics and distribution services, potentially benefiting small businesses in those areas.

Oversight & Accountability

Oversight is managed by the Agricultural Marketing Service (AMS) within the USDA. The firm fixed-price contract type provides a degree of accountability. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Federal Food Donation Programs
Agricultural Commodity Procurement

Risk Flags

Perishability of Goods
Short Delivery Window
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.0 million to RJB PRODUCE, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002151/4100030273/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB

Who is the contractor on this award?

The obligated recipient is RJB PRODUCE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2024-06-14. End: 2024-09-30.

What is the historical spending pattern for similar fresh fruit procurements by the USDA?

Historical spending data for similar fresh fruit procurements by the USDA would reveal trends in volume, pricing, and types of fruits acquired for donation programs. Analyzing past contracts can identify fluctuations in market prices due to seasonality, supply chain issues, or changes in demand. For instance, comparing the per-pound cost of nectarines and peaches in this award to previous years' contracts could highlight any significant price deviations. This historical context is crucial for assessing whether the current $6 million award represents a fair market value and for forecasting future budgetary needs for such procurements. Without specific historical data, it's challenging to definitively state if this award is an outlier or in line with typical spending.

How does the unit price of these fruits compare to commercial retail prices?

Comparing the unit price of nectarines and peaches in this federal contract to commercial retail prices requires detailed cost breakdowns not fully available in the provided data. Federal contracts often procure in bulk, which can lead to lower per-unit costs than retail. However, federal procurement also includes administrative overhead, delivery, and specific quality assurance requirements that might increase costs. To perform a precise comparison, one would need to know the exact weight per bag, the quality grade specified, and the delivery locations. Generally, bulk government purchases aim to achieve prices at or below wholesale market rates, which are typically lower than retail. If the contract price per pound significantly exceeds average wholesale or retail prices, it could indicate a potential value concern.

What are the specific quality standards and specifications for the nectarines and peaches?

The provided data snippet does not detail the specific quality standards or specifications for the nectarines and peaches procured under this contract. Federal procurement of food items, especially for donation programs, typically includes stringent quality requirements. These often encompass factors such as size, ripeness, absence of defects (bruising, mold, pests), packaging integrity, and origin. The Agricultural Marketing Service (AMS) likely has established grading standards that the procured produce must meet. Understanding these specifications is crucial for assessing the value proposition, as higher quality standards can command higher prices. Without these details, it's difficult to fully evaluate if the $6 million award is commensurate with the quality of goods received.

What is the track record of RJB PRODUCE, INC. in fulfilling federal food contracts?

RJB PRODUCE, INC.'s track record in fulfilling federal food contracts is a key indicator of their reliability and performance. A review of their past performance, including on-time delivery rates, quality compliance, and any history of contract disputes or terminations, would provide valuable insight. Federal agencies typically maintain performance records for contractors. Examining these records can help determine if RJB PRODUCE, INC. has a history of successful execution of similar perishable food procurements. A positive track record suggests a lower risk of performance issues, while a history of problems might warrant closer scrutiny of this current award and potentially impact future contracting decisions.

What are the potential risks associated with the short delivery period (June 14 - September 30)?

The short delivery period of approximately 3.5 months for fresh fruit presents several potential risks. Firstly, it compresses the window for sourcing and delivery, increasing the urgency and potentially leading to higher costs if supply is tight or logistics are complex. Secondly, it limits the flexibility to adapt to unforeseen market fluctuations or supply shortages; if a particular crop faces issues, finding replacements within the tight timeframe could be challenging. Thirdly, it requires precise coordination between the supplier and the distribution network to ensure the produce is delivered and utilized before spoilage. The government bears the risk of non-delivery or substandard quality if the contractor faces unexpected challenges in meeting these condensed timelines.

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: 5421 W DELAWARE AVE, VISALIA, CA, 93291

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,999,206

Exercised Options: $5,999,206

Current Obligation: $5,999,206

Actual Outlays: $5,999,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0121

IDV Type: IDC

Timeline