USDA awards $5.4M for frozen strawberries, highlighting firm fixed-price contracts for food donations

Contract Overview

Contract Amount: $5,427,650 ($5.4M)

Contractor: RJB Produce, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-06-14

End Date: 2025-01-31

Contract Duration: 231 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010154/4400002124/4100030295/STRAWBERRY WHOLE UNSWT IQF CTN-12/2.5 LB

Place of Performance

Location: WOODLAND, COWLITZ County, WASHINGTON, 98674

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.4 million to RJB PRODUCE, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010154/4400002124/4100030295/STRAWBERRY WHOLE UNSWT IQF CTN-12/2.5 LB Key points: 1. The contract utilizes a firm fixed-price structure, which transfers cost overrun risk to the contractor. 2. Awarded under full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. The delivery order is for a significant quantity of frozen strawberries, indicating substantial demand for food donation programs. 4. The contract duration of 231 days suggests a focused procurement for a specific period or event. 5. The awarding agency, Agricultural Marketing Service, plays a key role in managing agricultural commodity procurements for federal programs. 6. The North American Industry Classification System (NAICS) code 311411 points to the frozen fruit, juice, and vegetable manufacturing sector.

Value Assessment

Rating: good

The contract value of $5.4 million for frozen strawberries appears reasonable given the quantity implied by a delivery order for food donations. Without specific volume data, direct per-unit cost comparison is difficult. However, the firm fixed-price nature suggests the government secured a predictable cost for the specified goods, transferring potential market volatility risk to RJB Produce, Inc. This pricing strategy is common for commodity procurements where stable supply is prioritized.

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.' This indicates that while the competition was broad, there was a specific reason for excluding certain sources, possibly related to specialized capabilities or prior performance. The fact that it was competed at all suggests multiple vendors were considered, which generally promotes competitive pricing. The number of bidders (10) is a healthy sign of market interest.

Taxpayer Impact: A competitive bidding process, even with exclusions, is beneficial for taxpayers as it encourages vendors to offer their best prices to secure the contract, potentially leading to cost savings.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The service delivered is the provision of 2.5 lb cartons of whole, unsweetened, individually quick frozen (IQF) strawberries. The geographic impact is national, supporting food banks and distribution networks across the United States. This contract supports the agricultural sector by providing a market for frozen fruit products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the frozen fruit market impacting future procurements.
Reliance on a single contractor for a specific commodity could pose supply chain risks if not managed proactively.

Positive Signals

Firm fixed-price contract insulates the government from cost increases.
Awarded through a competitive process, indicating potential for good value.
The contract supports federal food donation initiatives, aligning with public service goals.

Sector Analysis

This contract falls within the food manufacturing sector, specifically frozen fruit, juice, and vegetable manufacturing (NAICS 311411). The market for frozen produce is substantial, driven by both consumer demand and government procurement for programs like food assistance and military rations. Comparable spending benchmarks would involve analyzing other USDA procurements for similar commodities or other federal agencies purchasing frozen food items for distribution.

Small Business Impact

The contract does not indicate a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, RJB Produce, Inc., is likely a larger entity. There is no explicit information on subcontracting requirements for small businesses within this award. The impact on the small business ecosystem is indirect, primarily through the overall demand generated for agricultural products, which may include inputs from smaller farms or processors.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS). The firm fixed-price structure provides a degree of accountability by fixing the cost. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or fulfillment process.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential supply chain disruption risk
Quality control monitoring required
Market price volatility for agricultural commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.4 million to RJB PRODUCE, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010154/4400002124/4100030295/STRAWBERRY WHOLE UNSWT IQF CTN-12/2.5 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 $5.4 million.

What is the period of performance?

Start: 2024-06-14. End: 2025-01-31.

What is the historical spending pattern for frozen strawberries by the USDA or similar agencies?

Analyzing historical spending for frozen strawberries by the USDA requires access to detailed procurement data over multiple fiscal years. Typically, such procurements fluctuate based on program needs, agricultural output, and budget allocations. For instance, the USDA's Food Purchase Programs, which include donations, often see varying levels of spending on commodities like frozen fruits depending on surplus availability and program targets. Comparing the current $5.4 million award to previous years would reveal trends in volume, pricing, and contractor participation. Without specific historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending for this particular commodity.

How does the price per pound of these frozen strawberries compare to market rates or similar government contracts?

Determining the exact price per pound requires knowing the total quantity of strawberries procured under this $5.4 million contract. The data indicates 12/2.5 LB cartons, suggesting a total of 30 lbs per case. If, for example, the contract was for 180,000 lbs (5.4M / $30 per lb), the price per pound would be approximately $30. This figure needs to be benchmarked against current wholesale prices for IQF strawberries and other government contracts for similar items. Factors like quality (e.g., grade A), origin, and specific processing methods influence market rates. A firm fixed-price contract aims to lock in a price, which may be higher or lower than spot market rates at the time of delivery, depending on market dynamics.

What are the specific criteria used to exclude certain sources in this 'full and open competition after exclusion of sources' award?

The 'exclusion of sources' clause in a full and open competition typically implies that while the solicitation was broadly advertised, specific vendors were intentionally excluded based on predefined criteria. These criteria could include requirements for specialized production capabilities, specific certifications (e.g., organic, food safety standards), past performance records, or geographic proximity to distribution points. The USDA's Agricultural Marketing Service likely established these exclusion criteria to ensure the procured strawberries met stringent quality and logistical requirements essential for food donation programs. Without the specific solicitation documents, the exact reasons for exclusion remain unstated, but they are generally tied to ensuring the best value and suitability for the government's needs.

What is the track record of RJB Produce, Inc. in fulfilling government contracts, particularly for agricultural commodities?

RJB Produce, Inc. has a history of receiving federal contracts, as indicated by this award. A comprehensive assessment of their track record would involve reviewing their past performance ratings on similar contracts, including delivery timeliness, quality compliance, and adherence to contract terms. Databases like the Federal Procurement Data System (FPDS) can provide insights into the volume and types of contracts awarded to RJB Produce, Inc. by various government agencies. Examining their performance on previous USDA contracts, especially those involving food donations or commodity procurement, would be crucial to gauge their reliability and capability in fulfilling this current $5.4 million order for frozen strawberries.

What are the potential risks associated with relying on a single contractor for a significant quantity of frozen strawberries?

Relying on a single contractor, even one selected through competition, carries inherent risks. These include potential supply chain disruptions due to unforeseen events affecting the contractor (e.g., natural disasters, labor issues, financial instability), quality control issues if the contractor's standards slip, and a lack of competitive pressure on pricing for future procurements if the contractor becomes entrenched. For this specific contract, the USDA's Agricultural Marketing Service would likely mitigate these risks through robust contract management, including performance monitoring, quality assurance checks, and contingency planning. However, the long-term risk of market concentration remains a consideration.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Fruit, Juice, and Vegetable 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: 123J1424B0394

Offers Received: 10

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: $5,427,650

Exercised Options: $5,427,650

Current Obligation: $5,427,650

Actual Outlays: $5,340,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0084

IDV Type: IDC

Timeline