USDA's $16.6M contract for frozen fish fillets awarded to Channel Fish Processing Co., Inc

Contract Overview

Contract Amount: $16,638,828 ($16.6M)

Contractor: Channel Fish Processing CO., Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-07-10

End Date: 2026-04-15

Contract Duration: 279 days

Daily Burn Rate: $59.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010845/4100032518/HADDOCK FILLET FRZ PKG-20/2 LB,OCEAN PERCH FILLET FRZ PKG-20/2 LB,ATLANTIC POLLOCK FILLET FRZ PKG-20/2 LB

Place of Performance

Location: BRAINTREE, NORFOLK County, MASSACHUSETTS, 02184

State: Massachusetts Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.6 million to CHANNEL FISH PROCESSING CO., INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010845/4100032518/HADDOCK FILLET FRZ PKG-20/2 LB,OCEAN PERCH FILLET FRZ PKG-20/2 LB,ATLANTIC POLLOCK FILLET FRZ PKG-20/2 LB Key points: 1. Contract aims to procure essential food commodities for U.S. government donation programs. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration of 279 days indicates a focused, short-term procurement need. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The procurement falls under the 'Seafood Product Preparation and Packaging' NAICS code. 6. Awarded by the Agricultural Marketing Service, highlighting its role in food supply chain management.

Value Assessment

Rating: good

The contract value of $16.6 million for frozen fish fillets appears reasonable given the quantity and type of goods procured for federal food donation programs. Benchmarking against similar large-scale commodity procurements for food assistance programs would provide further context on value for money. The firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and quality for the government. The single award suggests that Channel Fish Processing Co., Inc. offered the best value among the bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that government funds are used efficiently.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered involve the preparation and packaging of frozen fish fillets (Haddock, Ocean Perch, Pollock). Geographic impact is national, supporting food banks and distribution networks across the U.S. Workforce implications are primarily within the seafood processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality of frozen fish fillets across all batches.
Monitoring adherence to food safety and handling regulations.

Positive Signals

Commitment to providing nutritious food resources to vulnerable populations.
Utilizing established channels for efficient distribution of donated commodities.
Procurement supports the domestic seafood industry through processing contracts.

Sector Analysis

This contract operates within the broader food processing and distribution sector, specifically focusing on seafood. The market for government food procurement is substantial, driven by various social programs. This contract fits within the Agricultural Marketing Service's mandate to support agricultural markets and ensure the availability of food products for domestic needs. Comparable spending benchmarks would involve analyzing other large-scale commodity procurements for food banks and disaster relief.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. However, the prime contractor, Channel Fish Processing Co., Inc., may engage small businesses for subcontracting opportunities in areas such as logistics, transportation, or specialized processing, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the USDA's Agricultural Marketing Service, ensuring compliance with contract terms, quality standards, and delivery schedules. Accountability measures are embedded in the firm fixed-price contract, with penalties for non-performance. Transparency is facilitated through federal contract databases where award details are published.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program (commodity support)
Food Bank Network Support
Emergency Food Assistance Program

Risk Flags

Supply Chain Vulnerability
Quality Assurance Consistency
Food Safety Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.6 million to CHANNEL FISH PROCESSING CO., INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010845/4100032518/HADDOCK FILLET FRZ PKG-20/2 LB,OCEAN PERCH FILLET FRZ PKG-20/2 LB,ATLANTIC POLLOCK FILLET FRZ PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is CHANNEL FISH PROCESSING CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2025-07-10. End: 2026-04-15.

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on similar seafood commodity procurements?

Analyzing historical spending by the AMS on seafood commodities requires access to detailed procurement data over several fiscal years. Typically, AMS procures a variety of food items to support domestic nutrition programs. Spending patterns can fluctuate based on agricultural output, market prices, and the specific needs of donation programs. For instance, if there's a surplus of a particular fish species or a heightened demand for protein sources in food assistance, AMS spending in that category might increase. Without specific historical data for seafood, it's difficult to provide exact figures, but AMS consistently allocates significant funds to ensure the availability of nutritious food for various federal programs, often leveraging commodity purchases to stabilize agricultural markets and provide essential resources.

How does the per-pound cost of these frozen fish fillets compare to market rates for similar products?

Determining the precise per-pound cost requires dividing the total contract value ($16,638,828.30) by the total weight of fish procured. The data provided specifies package sizes (20/2 LB) but not the total quantity in pounds. Assuming a standard interpretation where '20/2 LB' means 20 packages of 2 LB each, this would be 40 LB per lot. However, the total quantity is not explicitly stated. If we were to estimate based on typical large-scale commodity contracts, the per-pound cost would need to be benchmarked against wholesale prices for Haddock, Ocean Perch, and Atlantic Pollock fillets in frozen form. Market rates can vary significantly based on seasonality, catch volume, processing costs, and geographic origin. A preliminary assessment would involve comparing the estimated per-pound cost against recent wholesale price indices for these species to gauge if the government secured a competitive price through its full and open competition process.

What are the specific quality control measures in place to ensure the integrity of the frozen fish fillets?

The contract likely includes detailed specifications for the quality, grading, and handling of the frozen fish fillets. These would typically align with USDA and FDA regulations for food safety and quality. Quality control measures would encompass requirements for the fish species, fillet integrity (e.g., minimal breakage), freezing methods, packaging standards (e.g., material, sealing, labeling), and storage conditions (temperature maintenance). The contractor, Channel Fish Processing Co., Inc., would be responsible for implementing internal quality assurance processes and providing documentation. The Agricultural Marketing Service would likely conduct inspections at various points, including pre-shipment and upon receipt, to verify compliance with all specified quality parameters and ensure the delivered product meets the nutritional and safety standards required for federal food donation programs.

What is the track record of Channel Fish Processing Co., Inc. in fulfilling large government food procurement contracts?

Channel Fish Processing Co., Inc. has a history of participating in government food procurement, including contracts with the USDA. Their ability to secure this $16.6 million contract suggests a demonstrated capacity to meet the requirements of large-scale food supply agreements. Past performance evaluations, if available through federal procurement databases (like SAM.gov or FPDS), would provide specific insights into their reliability, quality of products delivered, and adherence to delivery schedules on previous contracts. A review of their contract history would reveal the types and scale of commodities previously supplied, their performance ratings, and any instances of contract disputes or corrective actions, offering a comprehensive view of their suitability for this current award.

How does this contract contribute to the USDA's broader mission of food security and agricultural support?

This contract directly supports the USDA's mission by procuring essential food commodities (frozen fish fillets) for distribution to vulnerable populations through various federal nutrition assistance programs. By purchasing these products, the USDA not only provides nutritious food to those in need but also supports the domestic seafood industry by creating demand for processed fish. This dual objective aligns with the department's goals of enhancing food security, improving dietary intake among low-income individuals and families, and bolstering the agricultural economy. The procurement process itself, especially when conducted through full and open competition, also contributes to market stability and fair pricing within the agricultural sector.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0387

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 COMMERCE DR, BRAINTREE, MA, 02184

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

Financial Breakdown

Contract Ceiling: $16,638,828

Exercised Options: $16,638,828

Current Obligation: $16,638,828

Actual Outlays: $6,428,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline