USDA awards $3.1M for canned goods to McCall Farms, highlighting firm fixed-price contract for food donations

Contract Overview

Contract Amount: $3,079,111 ($3.1M)

Contractor: Mccall Farms Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-07-11

End Date: 2025-12-31

Contract Duration: 173 days

Daily Burn Rate: $17.8K/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: 2000010863/4100032525/HOMINY CAN#12/300,SPINACH CAN-24/300,SWEET POTATOES W/ SYRUP CAN-24/300

Place of Performance

Location: EFFINGHAM, FLORENCE County, SOUTH CAROLINA, 29541

State: South Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to MCCALL FARMS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010863/4100032525/HOMINY CAN#12/300,SPINACH CAN-24/300,SWEET POTATOES W/ SYRUP CAN-24/300 Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a deliberate procurement process. 2. The firm fixed-price structure provides cost certainty for the government, transferring risk to the contractor. 3. McCall Farms, based in South Carolina, has secured this award, indicating potential regional economic impact. 4. The contract duration of 173 days suggests a focused need for specific commodity delivery. 5. The North American Industry Classification System (NAICS) code 311421 points to the fruit and vegetable canning sector. 6. This award is part of the government's broader food donation initiatives, likely supporting domestic or international aid programs.

Value Assessment

Rating: good

The contract value of $3.1 million for canned goods appears reasonable given the quantity and type of items specified. As a definitive contract with a firm fixed price, the pricing is set upfront, which is beneficial for budget predictability. Benchmarking against similar government contracts for food commodities would provide a more precise value-for-money assessment, but the fixed-price nature generally indicates a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, possibly related to prior performance, specific capabilities, or program requirements. The number of bidders (5) suggests a moderate level of competition, which is generally sufficient to achieve fair market prices.

Taxpayer Impact: The moderate competition level suggests that taxpayers are likely receiving a fair price, as multiple bidders had the opportunity to compete. However, the exclusion of sources warrants scrutiny to ensure it did not unduly limit competition and potentially inflate costs.

Public Impact

Beneficiaries include individuals and communities receiving food assistance through USG donation programs. Services delivered involve the supply of canned hominy, spinach, and sweet potatoes. The geographic impact is primarily focused on South Carolina, where the contractor is located, potentially supporting local jobs. Workforce implications may include employment opportunities within McCall Farms and its supply chain in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, which could impact price discovery.
Reliance on a single contractor for specific commodity types might pose supply chain risks if not managed effectively.

Positive Signals

Firm fixed-price contract provides cost certainty and transfers risk to the contractor.
Award to a domestic manufacturer supports the US economy and potentially domestic agricultural producers.
Clear specifications for canned goods ensure quality and suitability for donation purposes.

Sector Analysis

This contract falls within the food manufacturing sector, specifically fruit and vegetable canning. The market for government food procurement is substantial, driven by various agencies including the Department of Agriculture for domestic and international food aid programs. Comparable spending benchmarks would involve analyzing other large-scale procurements of canned goods for humanitarian or institutional use, which often involve significant volume discounts and competitive bidding processes.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) and the contractor is not identified as a small business (sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The focus is on larger-scale production capabilities required for fulfilling the commodity requirements.

Oversight & Accountability

Oversight for this contract will likely be managed by the USDA's Agricultural Marketing Service (AMS), which is responsible for procurement and contract administration. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by the deadline. Transparency is facilitated by the public nature of federal contract awards, allowing for public scrutiny of the details.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Supply chain vulnerability if contractor faces production issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to MCCALL FARMS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010863/4100032525/HOMINY CAN#12/300,SPINACH CAN-24/300,SWEET POTATOES W/ SYRUP CAN-24/300

Who is the contractor on this award?

The obligated recipient is MCCALL FARMS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2025-07-11. End: 2025-12-31.

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on canned food commodities for donation purposes?

Analyzing historical spending by the AMS on similar canned food commodities for donation requires access to detailed procurement data over several fiscal years. Generally, the AMS procures large quantities of food items to support various domestic and international feeding programs. Spending patterns can fluctuate based on agricultural output, global food prices, specific program needs, and congressional appropriations. Contracts are often awarded through competitive bidding processes, with firm fixed-price agreements being common to ensure cost control. The volume and types of commodities procured can vary annually, influenced by factors such as disaster relief needs or shifts in international aid requirements. A detailed analysis would involve examining contract awards, quantities, unit prices, and the specific programs these commodities are intended for.

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

Without specific unit pricing data for each canned item (hominy, spinach, sweet potatoes), a direct unit cost comparison is challenging. However, government contracts often aim to secure prices below commercial retail due to bulk purchasing power and competitive bidding. The firm fixed-price nature of this $3.1 million contract for 173 days suggests that the contractor, McCall Farms Inc., has factored in production, overhead, and profit margins to meet the government's price expectations. To benchmark effectively, one would need to compare the total contract value against the total quantity of each item procured and then compare these derived unit costs to wholesale or institutional pricing from other government contracts or large commercial distributors. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a competitive process that should yield fair market pricing, but the exclusion aspect warrants further investigation for potential price impacts.

What are the specific risks associated with relying on McCall Farms Inc. for these food donations?

The primary risks associated with relying on McCall Farms Inc. for these food donations include potential supply chain disruptions, quality control issues, and delivery delays. Given that this is a definitive contract for specific canned goods, any interruption in McCall Farms' production capacity (e.g., due to equipment failure, labor shortages, or raw material availability) could impact the timely delivery of essential food items. Quality control is another risk; while the contract specifies the items, ensuring consistent quality across all batches is crucial for food donations. Delivery delays could affect the distribution schedules of aid programs. Furthermore, the 'exclusion of sources' in the procurement process, if not fully justified, could represent a risk if it limited the pool of qualified suppliers, potentially leading to less competitive pricing or fewer options in future procurements.

What is the track record of McCall Farms Inc. in fulfilling government contracts, particularly for food commodities?

McCall Farms Inc. has a history of supplying food products, including canned goods, to various entities. Their track record with government contracts, specifically for food commodities, would need to be assessed through databases like the Federal Procurement Data System (FPDS) or the General Services Administration (GSA) Advantage. Key indicators of their track record would include on-time delivery performance, adherence to contract specifications, quality of goods provided, and any history of contract disputes, terminations, or penalties. A positive track record would demonstrate reliability and capability in meeting the demands of government procurement, while a negative history might raise concerns about performance risk for this current award.

How does the duration of this contract (173 days) align with typical needs for food donation commodities?

A contract duration of 173 days (approximately 5.7 months) for canned food commodities suggests a need for a specific, relatively short-term supply rather than an ongoing, indefinite requirement. This duration is common for fulfilling immediate or seasonal demands for food aid, or for specific projects with defined timelines. For instance, it could align with a particular phase of a food donation program, a response to a specific event requiring immediate food supplies, or a planned procurement cycle for certain commodities. Longer-term contracts might be used for sustained feeding initiatives, while shorter durations like this one allow for flexibility and periodic re-evaluation of needs and contractor performance.

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: 123J1425B0400

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6615 S IRBY ST, EFFINGHAM, SC, 29541

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

Financial Breakdown

Contract Ceiling: $3,079,111

Exercised Options: $3,079,111

Current Obligation: $3,079,111

Actual Outlays: $2,998,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline