USDA awards $5.16M contract for canned fruits, including applesauce and apricots, to Pacific Coast Producers

Contract Overview

Contract Amount: $5,156,865 ($5.2M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2025-02-28

End Date: 2025-12-31

Contract Duration: 306 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010630/4100031828/APPLESAUCE CAN-24/300,APRICOT HALVES CAN-24/300

Place of Performance

Location: LODI, SAN JOAQUIN County, CALIFORNIA, 95240

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.2 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010630/4100031828/APPLESAUCE CAN-24/300,APRICOT HALVES CAN-24/300 Key points: 1. Contract value of $5.16 million for canned fruit products. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. Contract duration of 306 days suggests a focused procurement for specific needs. 4. Firm fixed-price contract type mitigates cost overrun risks for the government. 5. The contract is managed by the Agricultural Marketing Service, part of USDA. 6. Awardee, Pacific Coast Producers, is a California-based entity. 7. The North American Industry Classification System (NAICS) code is 311421 for Fruit and Vegetable Canning.

Value Assessment

Rating: good

The contract value of $5.16 million for canned fruit products appears reasonable given the scope. While specific benchmarks for canned applesauce and apricot halves are not readily available, the firm fixed-price structure suggests that the government has secured a predictable cost. The award to a single, established producer implies a focus on quality and reliable supply chains for these essential food donation commodities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was generally open, there might have been specific reasons for excluding certain sources, possibly related to specialized capabilities or existing relationships. The presence of 8 bidders suggests a healthy level of competition, which typically leads to better price discovery and value for the government.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers by encouraging multiple suppliers to offer their best terms.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, ensuring access to essential canned fruits. Services delivered include the supply of canned applesauce and apricot halves. Geographic impact is national, supporting food distribution networks across the country. Workforce implications are primarily within the food processing and logistics sectors, supporting jobs at Pacific Coast Producers and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited product variety if the 'exclusion of sources' was overly restrictive.
Dependence on a single awardee for a critical food commodity.

Positive Signals

Firm fixed-price contract protects against cost escalation.
Multiple bidders (8) indicate a competitive market for these products.
Awardee is an established producer, suggesting reliability.

Sector Analysis

The canned fruit market is a segment of the broader food processing industry. This contract falls under the 'Fruit and Vegetable Canning' sector (NAICS 311421). The U.S. government is a significant purchaser of food products for various programs, including domestic food assistance and international aid. Spending in this sector is influenced by agricultural output, processing capabilities, and demand from government agencies.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is the awardee identified as a small business. The contract's value and nature suggest it is likely fulfilled by larger-scale producers. Subcontracting opportunities for small businesses are not explicitly detailed but could arise in areas like logistics or packaging if Pacific Coast Producers utilizes external services.

Oversight & Accountability

The contract is managed by the USDA's Agricultural Marketing Service. Oversight likely involves monitoring delivery schedules, product quality, and adherence to contract terms. The firm fixed-price nature simplifies financial oversight. Transparency is generally maintained through federal contract databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Bank Network Support

Risk Flags

Potential for supply chain disruption
Quality control of canned goods
Timeliness of delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.2 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000010630/4100031828/APPLESAUCE CAN-24/300,APRICOT HALVES CAN-24/300

Who is the contractor on this award?

The obligated recipient is PACIFIC COAST PRODUCERS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2025-02-28. End: 2025-12-31.

What is the track record of Pacific Coast Producers with USDA contracts?

Pacific Coast Producers has a history of supplying canned goods to government agencies. While specific details of past USDA contracts are not provided in this data snippet, their selection for this significant award suggests a demonstrated capability to meet government specifications and delivery requirements. Further analysis would involve reviewing their contract history for performance ratings, past issues, and the types of commodities previously supplied. Their established presence in the industry implies a level of experience and reliability that likely influenced their selection for this procurement.

How does the price per unit for these canned fruits compare to market rates?

Determining the exact per-unit cost is not possible without knowing the quantity of cans within the total award value. However, the contract is a firm fixed-price agreement, which means the price was set before performance began and is not subject to change based on the contractor's costs. To benchmark value, one would need to compare the price per pound or per standard can size against commercial wholesale prices for similar products at the time of award. Given the competitive bidding process involving 8 bidders, it is reasonable to assume the price secured is competitive within the market for government procurement.

What are the primary risks associated with this contract?

The primary risks include potential supply chain disruptions affecting Pacific Coast Producers, quality control issues with the canned goods, or delays in delivery impacting the food donation programs. Although the firm fixed-price contract mitigates financial risk for the government, any failure in performance by the contractor could lead to shortages in essential food items. The 'exclusion of sources' clause also presents a minor risk if it unduly limited competition, though the presence of 8 bidders suggests this was not a significant issue. Ensuring consistent quality and timely delivery will be key oversight areas.

How effective is the Agricultural Marketing Service in managing food procurement contracts?

The Agricultural Marketing Service (AMS) plays a crucial role in procuring agricultural products for various federal programs, including food donations. Their effectiveness is generally measured by their ability to secure high-quality products at competitive prices while ensuring reliable delivery. The successful award of this contract, with multiple bidders and a firm fixed-price structure, suggests effective management in this instance. AMS utilizes established procurement processes and works with a network of producers to meet diverse needs, contributing to the stability of food assistance programs.

What are the historical spending patterns for canned fruits by the USDA?

Historical spending patterns for canned fruits by the USDA typically fluctuate based on agricultural yields, program needs, and budget allocations. The USDA consistently procures large quantities of canned goods for domestic food assistance programs like the National School Lunch Program and the Emergency Food Assistance Program, as well as for international food aid. Annual spending can vary significantly year-over-year due to market prices, availability of surplus commodities, and specific policy initiatives. This $5.16 million contract represents a significant, but not necessarily unprecedented, investment in ensuring a supply of these essential items.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0214

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 631 N CLUFF AVE, LODI, CA, 95240

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Agricultural Cooperative, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,156,865

Exercised Options: $5,156,865

Current Obligation: $5,156,865

Actual Outlays: $5,154,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline