USDA's $5.46M contract for fruit juices awarded to Cherry Central Cooperative, Inc

Contract Overview

Contract Amount: $5,458,504 ($5.5M)

Contractor: Cherry Central Cooperative, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-08-08

End Date: 2025-12-31

Contract Duration: 145 days

Daily Burn Rate: $37.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010870/4100032689/APPLE JUICE PLST BTL-8/64 FL OZ,CHERRY APPLE JUICE PLST BTL-8/64 FL OZ,GRAPE CONCORD JUICE PLST BTL-8/64 FL OZ,CRANBERRYAPPLE JUICE PLST BTL-8/64 FL OZ

Place of Performance

Location: LUDINGTON, MASON County, MICHIGAN, 49431

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.5 million to CHERRY CENTRAL COOPERATIVE, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010870/4100032689/APPLE JUICE PLST BTL-8/64 FL OZ,CHERRY APPLE JUICE PLST BTL-8/64 FL OZ,GRAPE CONCORD JUICE PLST BTL-8/64 FL OZ,CRANBERRYAPPLE JUICE PLST BTL-8/64 FL OZ Key points: 1. Contract focuses on essential fruit juice commodities for U.S. government food donation programs. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract duration of 145 days suggests a short-term need for these specific items. 4. The fixed-price nature of the contract helps in managing budget predictability. 5. This procurement supports agricultural producers and distributors within the fruit and vegetable sector.

Value Assessment

Rating: good

The contract value of $5.46 million for fruit juices appears reasonable given the quantity and type of goods procured for federal food donation programs. Benchmarking against similar large-scale food commodity contracts would provide a more precise value-for-money assessment. The fixed-price structure suggests that the government has secured a set cost for these items, mitigating potential overruns.

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,' which implies that the solicitation was broadly advertised, and multiple responsible bidders were allowed to submit proposals. The presence of 10 bids suggests a healthy level of competition for this procurement, which typically leads to more favorable pricing for the government.

Taxpayer Impact: The competitive bidding process for this fruit juice contract likely resulted in a more cost-effective outcome for taxpayers by driving down prices through market forces.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. Services delivered include the provision of various fruit juice products in plastic bottles. The geographic impact is national, supporting the distribution of food aid across the United States. Workforce implications include support for jobs in agricultural production, processing, and distribution within the food industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of essential food items.
Ensuring consistent quality and nutritional value across all delivered juice products.
Managing the logistics of distributing perishable or semi-perishable goods nationwide.

Positive Signals

Supports domestic agricultural producers and food processing industries.
Contributes to food security initiatives by providing nutritious food options.
The competitive award process suggests a commitment to achieving good value.

Sector Analysis

This contract falls within the broader food and beverage manufacturing sector, specifically focusing on fruit and vegetable processing. The U.S. government is a significant purchaser of food commodities for various programs, including domestic food assistance and international aid. The market for fruit juices is competitive, with numerous domestic and international suppliers. This procurement represents a substantial, albeit short-term, demand within this segment.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The award to Cherry Central Cooperative, Inc., a cooperative, suggests a structure that may involve multiple agricultural producers. Further analysis would be needed to determine the extent of small business participation through subcontracting or as members of the cooperative.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. 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

Supply Chain Vulnerability
Quality Control Assurance
Logistical Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 million to CHERRY CENTRAL COOPERATIVE, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010870/4100032689/APPLE JUICE PLST BTL-8/64 FL OZ,CHERRY APPLE JUICE PLST BTL-8/64 FL OZ,GRAPE CONCORD JUICE PLST BTL-8/64 FL OZ,CRANBERRYAPPLE JUICE PLST BTL-8/64 FL OZ

Who is the contractor on this award?

The obligated recipient is CHERRY CENTRAL COOPERATIVE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-08-08. End: 2025-12-31.

What is the historical spending pattern for fruit juice procurement by the USDA?

Historical spending data for fruit juice procurement by the USDA reveals a consistent need for these commodities to support various food assistance programs. While specific annual figures fluctuate based on program needs, budget allocations, and market prices, the USDA has regularly awarded contracts for fruit juices. For instance, in recent fiscal years, spending on similar food items has ranged from several million to tens of millions of dollars annually. These procurements are often part of larger initiatives aimed at supporting domestic agriculture and ensuring food security for vulnerable populations. The current contract's value of approximately $5.46 million aligns with typical procurement volumes for such essential food items, suggesting a sustained demand rather than an anomaly.

How does the per-unit cost of this fruit juice contract compare to market rates?

A precise per-unit cost comparison is challenging without detailed specifications of the juice types, packaging, and delivery locations. However, the total contract value of $5.46 million for an estimated 145-day duration suggests a significant volume of product. If we assume a rough estimate of the total quantity procured, the per-unit cost would need to be benchmarked against wholesale prices for bulk fruit juice in similar packaging (8/64 fl oz plastic bottles). Factors such as transportation costs, specific fruit varieties (e.g., Concord grape vs. cranberry-apple), and any special processing requirements would influence the final price. Generally, government contracts aim for competitive pricing, but large-volume purchases can sometimes secure lower per-unit costs than retail or smaller wholesale transactions.

What is the track record of Cherry Central Cooperative, Inc. in fulfilling government contracts?

Cherry Central Cooperative, Inc. has a history of engaging with government procurement, particularly within the agricultural sector. As a cooperative, its track record involves aggregating products from its member producers. Information available through federal procurement databases indicates past awards for various food commodities. Assessing their specific performance on similar large-scale food donation contracts would require a deeper dive into past contract performance reports, on-time delivery rates, and quality compliance. However, their repeated success in securing government contracts suggests a capability to meet federal requirements and standards.

What are the potential risks associated with the supply chain for these fruit juices?

The primary risks associated with the supply chain for these fruit juices include potential disruptions in agricultural output due to weather events, crop diseases, or pest infestations affecting fruit availability. Processing and manufacturing can be impacted by labor shortages, equipment failures, or regulatory changes. Transportation and logistics present risks such as delays due to weather, fuel price volatility, or carrier availability, especially given the national distribution scope. Furthermore, maintaining the quality and shelf-life of the juices throughout the supply chain, from production to final distribution point, is critical and can be affected by storage conditions and handling.

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

This contract directly supports the USDA's mission by procuring essential food items, like fruit juices, for domestic food donation programs. These programs aim to alleviate food insecurity among vulnerable populations, including low-income families, children, and the elderly. By purchasing these commodities, the USDA also provides a vital market for U.S. agricultural producers and food processors, thereby supporting the agricultural economy. The cooperative structure of the awardee, Cherry Central Cooperative, Inc., further emphasizes support for agricultural producers by providing them with a reliable outlet for their products.

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: 123J1425B0405

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1771 N US 31 S, TRAVERSE CITY, MI, 49685

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

Financial Breakdown

Contract Ceiling: $5,458,504

Exercised Options: $5,458,504

Current Obligation: $5,458,504

Actual Outlays: $5,453,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline