USDA awards $22.8M for nuts and peanut butter, with 5 bidders competing for firm-fixed-price contract

Contract Overview

Contract Amount: $22,821,181 ($22.8M)

Contractor: Stutz Packing Company

Awarding Agency: Department of Agriculture

Start Date: 2025-05-06

End Date: 2025-12-12

Contract Duration: 220 days

Daily Burn Rate: $103.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010778/4100032121/PECAN PIECES PKG-24/1 LB,HAZELNUTS PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-25/1 LB

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $22.8 million to STUTZ PACKING COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010778/4100032121/PECAN PIECES PKG-24/1 LB,HAZELNUTS PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-25/1 LB Key points: 1. Contract value appears reasonable given the quantity and type of commodities procured. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The number of bidders (5) indicates a healthy level of market interest. 4. Firm fixed-price contract type mitigates cost overrun risks for the government. 5. Contract duration of 220 days is standard for this type of commodity purchase. 6. Geographic location of the awardee (California) may influence logistics and delivery.

Value Assessment

Rating: good

The contract value of approximately $22.8 million for food commodities, specifically nuts and peanut butter, seems aligned with market prices for bulk food items. Benchmarking against similar government procurements for food donations would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the government has secured a defined cost, which is a positive indicator for budget predictability.

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 intended to be broad, there was a specific reason for excluding certain sources prior to the final solicitation. With five bidders participating, the competition level appears adequate, suggesting that multiple vendors were able to meet the requirements and submit proposals, which generally aids in price discovery.

Taxpayer Impact: The competitive nature of this award, despite the initial exclusion of sources, is beneficial for taxpayers as it likely led to a more competitive pricing structure than a sole-source award.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered involve the procurement and supply of essential food items: pecan pieces, hazelnuts, and roasted pistachios. Geographic impact is national, as donated food items are distributed across the United States. Workforce implications are indirect, supporting jobs within the agricultural marketing and food processing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of perishable food items requires diligent oversight.
Fluctuations in commodity prices could impact future contract renewals.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Multiple bidders suggest a robust and responsive market.
Clear product specifications likely ensure quality of goods.

Sector Analysis

This contract falls within the broader food manufacturing and agricultural products sector. The market for commodity food procurement by government agencies is substantial, driven by various programs like food assistance and disaster relief. Comparable spending benchmarks would involve analyzing other large-scale food procurement contracts by agencies such as the Department of Defense or FEMA. The specific focus on nuts aligns with niche agricultural markets.

Small Business Impact

The contract details do not indicate a specific small business set-aside. Given the nature of commodity procurement in bulk, it is possible that larger food distributors and processors are the primary participants. Subcontracting opportunities for small businesses might exist within the supply chain, such as in transportation or specialized processing, but are not explicitly detailed in this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

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 disruptions
Quality control of perishable goods
Market price volatility for commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $22.8 million to STUTZ PACKING COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000010778/4100032121/PECAN PIECES PKG-24/1 LB,HAZELNUTS PKG-24/1 LB,PISTACHIO ROASTED IN SHELL PKG-25/1 LB

Who is the contractor on this award?

The obligated recipient is STUTZ PACKING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2025-05-06. End: 2025-12-12.

What is the historical spending pattern for similar nut and peanut butter procurements by the USDA?

Analyzing historical spending for similar nut and peanut butter procurements by the USDA would involve reviewing past contract awards from the Agricultural Marketing Service (AMS) and other relevant USDA agencies. This would entail identifying contracts with similar commodity descriptions (pecans, hazelnuts, pistachios, peanut butter) and contract types (firm-fixed-price, full and open competition). Data from previous years would reveal trends in contract values, quantities procured, and pricing. For instance, if past contracts for similar quantities were awarded at significantly lower prices, it might indicate an increase in market prices or a less competitive bidding environment for this specific award. Conversely, consistent pricing would suggest market stability. Understanding these historical patterns is crucial for assessing whether the current $22.8 million award represents good value for money and for forecasting future budgetary needs.

How does the per-unit cost of these nuts compare to commercial market rates?

To compare the per-unit cost of these nuts to commercial market rates, we would need to calculate the quantity of each specific nut type procured and divide the allocated contract value by that quantity. For example, if the contract specifies exact weights for each type of nut, we could determine a price per pound. This calculated government price per pound would then be compared against average wholesale and retail prices for the same types of nuts in similar packaging (e.g., bulk bags). Factors such as quality grades, origin, and seasonality can influence market prices. If the government's per-unit cost is substantially lower than commercial rates, it suggests effective price negotiation or economies of scale. If it's higher, it may warrant further investigation into the procurement process, specifications, or market conditions at the time of award.

What are the specific quality standards and specifications for the nuts being procured?

The specific quality standards and specifications for the nuts procured under this contract are critical for ensuring they meet the requirements for food donation programs. These details are typically outlined in the contract's Statement of Work (SOW) or technical specifications. They would likely include requirements related to grade (e.g., U.S. Fancy, U.S. Extra No. 1), size (e.g., specific kernel sizes for pecans, halves vs. pieces), moisture content, absence of defects (e.g., foreign material, insect damage, mold), packaging (e.g., type of bag, labeling requirements), and shelf life. Adherence to these standards is paramount for food safety and nutritional value. The Agricultural Marketing Service (AMS) often plays a role in setting or verifying these quality standards, drawing from established industry practices and regulatory requirements.

What is the track record of Stutz Packing Company in fulfilling government food contracts?

Assessing the track record of Stutz Packing Company in fulfilling government food contracts requires reviewing their past performance on similar awards. This involves searching federal procurement databases (like SAM.gov or FPDS) for previous contracts awarded to Stutz Packing Company, particularly those involving the USDA or other agencies procuring food commodities. Key performance indicators to examine would include on-time delivery rates, adherence to quality specifications, contract modifications (and reasons for them), and any past performance evaluations or disputes. A history of successful contract completion suggests reliability and capability. Conversely, a pattern of late deliveries, quality issues, or contract disputes might raise concerns about their ability to meet the current contract's demands effectively, potentially impacting the supply chain for food donations.

What are the potential risks associated with procuring perishable food items like nuts?

Procuring perishable food items like nuts involves several inherent risks that the government must manage. Key risks include spoilage due to improper storage or transportation, leading to financial loss and inability to distribute the food. There's also the risk of contamination (bacterial, chemical, or physical) if handling and processing standards are not rigorously maintained throughout the supply chain. Quality degradation over time, even if not fully spoiled, can reduce the nutritional value and palatability. Furthermore, supply chain disruptions, whether from weather events affecting harvests, transportation issues, or global market volatility, can impact availability and delivery schedules. The firm-fixed-price contract helps mitigate cost risks, but managing the physical risks of perishability requires robust quality assurance and logistical oversight from the contracting agency.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0328

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 82689 AVENUE 45, INDIO, CA, 92201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,821,181

Exercised Options: $22,821,181

Current Obligation: $22,821,181

Actual Outlays: $22,612,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline