USDA awards $13.9M contract for frozen strawberries to INN FOODS INC, highlighting agricultural supply chain needs

Contract Overview

Contract Amount: $13,889,710 ($13.9M)

Contractor: INN Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-05-15

End Date: 2025-12-31

Contract Duration: 230 days

Daily Burn Rate: $60.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010776/4100032240/STRAWBERRY FRZ CUP-96/4.5 OZ,STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB,STRAWBERRY WHOLE UNSWT IQF CTN-12/2.5 LB

Place of Performance

Location: SANTA MARIA, SANTA BARBARA County, CALIFORNIA, 93458

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.9 million to INN FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010776/4100032240/STRAWBERRY FRZ CUP-96/4.5 OZ,STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB,STRAWBERRY WHOLE UNSWT IQF CTN-12/2.5 LB Key points: 1. Contract value of $13.9M for frozen strawberries indicates significant demand for processed agricultural products. 2. The award to INN FOODS INC suggests a competitive landscape for food commodity suppliers. 3. A definitive contract type with a firm fixed price suggests predictable costs for the government. 4. The duration of 230 days points to a focused, short-term need for these specific food items. 5. The contract's focus on frozen strawberries addresses specific nutritional and logistical requirements for food donations. 6. Geographic focus on California for INN FOODS INC may indicate regional sourcing strengths.

Value Assessment

Rating: good

The contract value of $13.9M for frozen strawberries appears reasonable given the quantity and type of goods specified. Benchmarking against similar large-scale food procurement contracts for donations or institutional use would provide further context. The firm fixed price structure suggests the government has secured pricing in advance, mitigating potential cost overruns for this specific purchase.

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,' indicating that while the competition was broad, specific reasons led to the exclusion of some potential bidders. With 11 bidders, the competition level was robust, which typically drives better pricing and value for the government. This suggests that INN FOODS INC offered a competitive bid among several interested parties.

Taxpayer Impact: A high number of bidders generally leads to more competitive pricing, potentially saving taxpayer dollars compared to a less competitive procurement.

Public Impact

Beneficiaries of this contract are likely recipients of USG food donation programs, receiving essential nutritional components. The services delivered include the provision of high-quality frozen strawberries in various forms (cups, slices, whole). The geographic impact is primarily through the distribution of donated food, potentially reaching underserved communities nationwide. Workforce implications may include employment at INN FOODS INC and its supply chain partners involved in processing and packaging the strawberries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of frozen produce is critical to ensure nutritional value and safety.
Dependence on specific agricultural yields for strawberry availability and pricing.

Positive Signals

Firm fixed price contract provides cost certainty.
Robust competition among 11 bidders suggests a healthy market for these commodities.
Clear product specifications ensure the government receives the desired quality and form of strawberries.

Sector Analysis

The food manufacturing sector, particularly frozen fruit, juice, and vegetable processing, is a significant part of the broader agricultural industry. This contract fits within the government's role in supporting food security and agricultural markets through procurement. Comparable spending benchmarks would involve looking at other large-scale commodity purchases by agencies like USDA or WFP.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem would depend on whether INN FOODS INC utilizes small business suppliers or subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would likely fall under the Agricultural Marketing Service (AMS) within the USDA. Accountability measures are inherent in the firm fixed price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards, though detailed performance monitoring data may not be publicly available.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions.
Quality control of frozen produce.
Dependence on agricultural yields.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.9 million to INN FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010776/4100032240/STRAWBERRY FRZ CUP-96/4.5 OZ,STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB,STRAWBERRY WHOLE UNSWT IQF CTN-12/2.5 LB

Who is the contractor on this award?

The obligated recipient is INN FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2025-05-15. End: 2025-12-31.

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

Analyzing historical spending data for frozen strawberries and comparable processed fruits by the USDA would reveal trends in demand, pricing fluctuations, and the typical scale of such procurements. For instance, examining contracts from previous fiscal years could show if this $13.9M award is an outlier or consistent with past purchasing volumes. It would also highlight which specific forms (e.g., IQF slices, whole, cups) are most frequently procured and for what programs (e.g., food donations, school lunches). Understanding these patterns helps assess whether the current award represents a significant increase or decrease in government reliance on these specific commodities and informs future budget planning and market analysis for agricultural products.

How does the unit cost of these frozen strawberries compare to commercial market rates or other government contracts?

To assess the value for money, a comparison of the per-unit cost of these frozen strawberries against prevailing commercial market rates and similar government contracts is essential. This involves calculating the price per pound or per ounce based on the contract's total value and specified quantities. If the contract specifies different types of frozen strawberries (e.g., whole vs. sliced, sweetened vs. unsweetened), each should be benchmarked. A higher cost than market rates might indicate specific quality requirements, specialized packaging, or less competitive bidding, while a lower cost could signal excellent negotiation or a highly competitive award. Benchmarking against contracts from other federal agencies or even state-level procurements can provide a broader perspective on fair pricing for these agricultural commodities.

What are the specific quality and nutritional standards required for these frozen strawberries?

The contract likely specifies detailed quality and nutritional standards to ensure the suitability of the frozen strawberries for their intended purpose, such as USG food donations. These standards typically cover aspects like Brix level (sugar content), absence of defects (e.g., mold, foreign material), color consistency, texture, and microbiological safety limits. For IQF (Individually Quick Frozen) products, the degree of freezing and the integrity of individual pieces are also critical. Understanding these specifications is important because higher quality or specific nutritional profiles often command higher prices. Compliance with these standards is a key performance indicator for the contractor, INN FOODS INC, and ensures that the procured food meets the health and dietary needs of the recipients.

What is the track record of INN FOODS INC in fulfilling government contracts, particularly for food commodities?

INN FOODS INC's track record in fulfilling government contracts, especially for food commodities, is a crucial indicator of their reliability and performance capability. A review of their past performance, including on-time delivery rates, quality compliance, and any history of contract disputes or terminations, would provide insight into their operational strengths and weaknesses. Federal procurement systems often maintain past performance databases that agencies consult during source selection. For this specific contract, understanding if INN FOODS INC has previously supplied similar frozen fruit products to the USDA or other government entities, and how successfully they performed, helps assess the risk associated with this award and provides context for the $13.9M value.

What are the implications of the 'Exclusion of Sources' clause in this full and open competition award?

The 'Exclusion of Sources' clause within a 'Full and Open Competition' award signifies that while the competition was broadly solicited, certain potential offerors were intentionally excluded from bidding. This exclusion typically occurs for specific, documented reasons, such as national security concerns, proprietary information limitations, or if a source was previously debarred or suspended. Understanding the rationale behind the exclusion is important because it can impact the overall competitiveness and potentially the final price. If a significant number of capable vendors were excluded, it might suggest a less robust competition than initially perceived, potentially leading to higher costs for the government. Conversely, exclusions might be justified to ensure specific technical capabilities or compliance requirements are met.

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: SEALED BID

Solicitation ID: 123J1425B0326

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 WALKER ST, WATSONVILLE, CA, 95076

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

Financial Breakdown

Contract Ceiling: $13,889,710

Exercised Options: $13,889,710

Current Obligation: $13,889,710

Actual Outlays: $13,870,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline