USDA awards $5.3M for oranges to Wescott Agri Products under full and open competition

Contract Overview

Contract Amount: $5,344,875 ($5.3M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-11-14

End Date: 2025-10-02

Contract Duration: 322 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010388/4100031222/ORANGES CTN-34-39 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.3 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010388/4100031222/ORANGES CTN-34-39 LB Key points: 1. Contract awarded for 20,000 cases of oranges. 2. Wescott Agri Products is the sole awardee. 3. Contract duration is 322 days. 4. Firm Fixed Price contract type. 5. Small business participation is not indicated.

Value Assessment

Rating: fair

The contract value of $5.34M for 20,000 cases of oranges appears reasonable given market prices for bulk produce. However, without specific per-unit cost data or comparison to similar government food donation contracts, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, suggesting a competitive process was intended. This method aims to ensure fair pricing by allowing all eligible sources to bid.

Taxpayer Impact: Taxpayer funds are used for food donations, supporting food security programs. The competitive award aims to maximize the value of these funds.

Public Impact

Supports federal food assistance programs, potentially aiding low-income individuals and families. Ensures availability of nutritious food items for donation. Impacts agricultural producers and distributors involved in the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed per-unit cost data for benchmarking.
No explicit mention of small business participation.
Perishability of goods requires efficient logistics and distribution.

Positive Signals

Awarded under full and open competition.
Supports important federal food donation initiatives.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the food commodities sector, specifically for agricultural products destined for government food donations. Spending benchmarks for similar food procurement contracts vary widely based on commodity, quantity, and delivery terms.

Small Business Impact

The data does not indicate whether Wescott Agri Products is a small business, nor does it specify any small business subcontracting goals. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

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

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price fluctuations in perishable goods.
Logistical complexity of delivering fresh produce.
Limited visibility into small business participation.
Lack of detailed cost breakdown for granular analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.3 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010388/4100031222/ORANGES CTN-34-39 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 $5.3 million.

What is the period of performance?

Start: 2024-11-14. End: 2025-10-02.

What is the average cost per pound or per case of oranges under this contract, and how does it compare to market rates?

The contract value is $5,344,875.37 for 20,000 cases, each weighing 34-39 lbs. This averages to approximately $6.85-$7.93 per case, or $0.17-$0.23 per pound. This range appears competitive for bulk, fresh oranges, but precise market comparisons require current commodity pricing data.

What are the specific risks associated with procuring perishable goods like oranges for donation, and how are they mitigated?

Key risks include spoilage during transit and storage, price volatility, and logistical challenges in timely distribution. Mitigation strategies likely involve strict delivery schedules, quality control inspections upon receipt, and potentially buffer quantities or alternative sourcing clauses in the contract.

How effectively does this contract support the overall goals of the USG food donation program?

The contract directly supports the program by procuring a significant quantity of a nutritious food item. Its effectiveness hinges on the efficient distribution of these oranges to intended recipients, minimizing waste, and ensuring they meet quality standards upon arrival at donation points.

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: SEALED BID

Solicitation ID: 123J1425B0018

Offers Received: 15

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: $5,344,875

Exercised Options: $5,344,875

Current Obligation: $5,344,875

Actual Outlays: $5,338,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline