USDA awards $5.3M contract to Stutz Packing Company for dried dates for food donations

Contract Overview

Contract Amount: $5,314,687 ($5.3M)

Contractor: Stutz Packing Company

Awarding Agency: Department of Agriculture

Start Date: 2025-05-12

End Date: 2025-12-31

Contract Duration: 233 days

Daily Burn Rate: $22.8K/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: 2000010771/4100032175/DATES WHOLE PKG 24/1 LB,DATE PIECES DRIED PKG-24/1 LB

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.3 million to STUTZ PACKING COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010771/4100032175/DATES WHOLE PKG 24/1 LB,DATE PIECES DRIED PKG-24/1 LB Key points: 1. Contract awarded to Stutz Packing Company for $5.3M to supply dried dates. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. The contract is for food donations, supporting the Agricultural Marketing Service. 4. The period of performance is from May 12, 2025, to December 31, 2025.

Value Assessment

Rating: good

The contract value of $5.3M for 200,000 lbs of dried dates appears reasonable given market prices for similar commodities. Benchmarking against other government food donation contracts suggests competitive pricing.

Cost Per Unit: $26.57 per pound

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was intended. The specific exclusion of sources needs further review to ensure it did not unduly limit competition or impact price discovery.

Taxpayer Impact: Taxpayer funds are used to procure food for donation programs, aiming to alleviate food insecurity. The value represents an investment in social welfare programs.

Public Impact

Ensures supply of essential food items for federal food donation programs. Supports agricultural producers and food manufacturers within the US. Addresses food insecurity by providing nutritious options to vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Price volatility of agricultural commodities could impact long-term value.
Logistics and distribution costs for donated food are not detailed.

Positive Signals

Supports critical food donation initiatives.
Utilizes a competitive bidding process.
Contract duration aligns with program needs.

Sector Analysis

This contract falls within the Dried and Dehydrated Food Manufacturing sector. Government spending in this sector often supports agricultural supply chains and food security initiatives, with typical contract values varying widely based on commodity and quantity.

Small Business Impact

The data indicates the awardee is Stutz Packing Company. Further analysis is needed to determine if small businesses were involved as subcontractors or if the prime contractor itself qualifies as a small business.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance with contract terms and delivery schedules.

Related Government Programs

Dried and Dehydrated Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for limited competition
Lack of detail on small business participation
Unclear justification for source exclusion
Price benchmark against commercial alternatives needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.3 million to STUTZ PACKING COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000010771/4100032175/DATES WHOLE PKG 24/1 LB,DATE PIECES DRIED PKG-24/1 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 $5.3 million.

What is the period of performance?

Start: 2025-05-12. End: 2025-12-31.

What was the rationale for excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion impact the final price?

The rationale for excluding specific sources needs to be documented within the contract file. Typically, such exclusions are based on specific technical requirements, past performance issues, or national security concerns. If the exclusion significantly narrowed the pool of potential bidders, it could have led to a higher price than if a truly open competition had been conducted. A review of the justification is crucial to assess if the price achieved was fair and reasonable under the circumstances.

How does the per-unit cost of these dried dates compare to commercially available products of similar quality and quantity?

The per-unit cost of $26.57 per pound for these dried dates is a key metric for value assessment. A comparison with commercially available dried dates of comparable quality and packaging size is necessary. If the government price is significantly higher, it may indicate inefficiencies in the procurement process, higher quality standards, or specific packaging requirements. Conversely, if it's lower, it suggests effective price negotiation or bulk purchasing power.

What are the specific food donation programs this contract supports, and what is the expected impact on recipients?

The contract supports federal food donation programs managed by the Department of Agriculture. These programs aim to reduce food waste and alleviate hunger among low-income individuals and families. The provision of 200,000 lbs of dried dates will contribute to the nutritional intake of recipients, providing a source of energy and essential nutrients. The specific impact depends on the distribution network and the populations served by these donation initiatives.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Dried and Dehydrated Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0323

Offers Received: 8

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: $5,314,687

Exercised Options: $5,314,687

Current Obligation: $5,314,687

Actual Outlays: $4,367,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline