USDA's $7.6M Peanut Butter Contract Awarded to Algood Food Co. Under Full and Open Competition
Contract Overview
Contract Amount: $7,597,777 ($7.6M)
Contractor: Algood Food CO
Awarding Agency: Department of Agriculture
Start Date: 2025-08-12
End Date: 2026-01-06
Contract Duration: 147 days
Daily Burn Rate: $51.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010919/4100032724/PEANUT BUTTER SMOOTH JAR-12/16 OZ,PEANUT BUTTER SMOOTH JAR-6/5 LB,K PEANUT BUTTER SMOOTH JAR-12/16 OZ,PEANUT BUTTER SMOOTH PKG-120/1.1 OZ
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40258
State: Kentucky Government Spending
Plain-Language Summary
Department of Agriculture obligated $7.6 million to ALGOOD FOOD CO for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010919/4100032724/PEANUT BUTTER SMOOTH JAR-12/16 OZ,PEANUT BUTTER SMOOTH JAR-6/5 LB,K PEANUT BUTTER SMOOTH JAR-12/16 OZ,PEANUT BUTTER SMOOTH PKG-120/1.1 OZ Key points: 1. The contract is for peanut butter commodities for U.S. food donations. 2. Algood Food Co. is the sole awardee for this contract. 3. The contract value is approximately $7.6 million. 4. The contract duration is 147 days. 5. The contract is firm-fixed-price, indicating price certainty.
Value Assessment
Rating: good
The contract value of $7.6 million for peanut butter commodities appears reasonable given the quantity and duration. Benchmarking against similar food commodity contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely resulted in a fair market price. The award to Algood Food Co. indicates they were the most advantageous offer.
Taxpayer Impact: The use of taxpayer funds for food donations is a social program expenditure. Competitive procurement aims to maximize the value of these funds.
Public Impact
Ensures availability of peanut butter for U.S. food donation programs. Supports domestic food assistance initiatives. Provides a nutritious food staple to recipients. Contributes to agricultural sector stability through commodity purchases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Short contract duration may limit long-term supplier relationships.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract provides cost certainty.
- Supports critical food donation programs.
Sector Analysis
This contract falls within the food manufacturing and distribution sector, specifically for agricultural commodities. Spending benchmarks for similar food donation contracts would be relevant for comparison.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis could explore if opportunities were missed or if the nature of the requirement favored larger entities.
Oversight & Accountability
The contract was awarded by the Department of Agriculture's Agricultural Marketing Service, suggesting established oversight for food commodity procurement. The firm-fixed-price structure also aids in cost control.
Related Government Programs
- Roasted Nuts and Peanut Butter Manufacturing
- Department of Agriculture Contracting
- Agricultural Marketing Service Programs
Risk Flags
- No small business participation.
- Short contract duration.
- Limited public information on specific performance metrics.
- Potential for price fluctuations in commodity markets not fully mitigated by FFP over longer terms.
Tags
roasted-nuts-and-peanut-butter-manufactu, department-of-agriculture, ky, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $7.6 million to ALGOOD FOOD CO. COMMODITIES FOR USG FOOD DONATIONS: 2000010919/4100032724/PEANUT BUTTER SMOOTH JAR-12/16 OZ,PEANUT BUTTER SMOOTH JAR-6/5 LB,K PEANUT BUTTER SMOOTH JAR-12/16 OZ,PEANUT BUTTER SMOOTH PKG-120/1.1 OZ
Who is the contractor on this award?
The obligated recipient is ALGOOD FOOD CO.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Marketing Service).
What is the total obligated amount?
The obligated amount is $7.6 million.
What is the period of performance?
Start: 2025-08-12. End: 2026-01-06.
What is the typical unit cost for peanut butter in similar government food donation contracts?
Without specific unit cost data for this contract, a precise benchmark is unavailable. However, typical government contracts for peanut butter often aim for competitive pricing based on bulk purchasing power. Factors like jar size, packaging, and delivery logistics influence the final unit cost. Comparing this contract's total value against the total volume of peanut butter procured would offer an estimated unit cost for comparison with historical data or industry averages.
What are the potential risks associated with a short contract duration of 147 days for food commodities?
A short contract duration like 147 days for food commodities can pose risks such as potential supply chain disruptions if the supplier faces unforeseen issues and cannot fulfill orders within the limited timeframe. It may also limit the government's ability to secure more favorable pricing through longer-term commitments or bulk discounts. Furthermore, it necessitates a quicker re-procurement process, potentially increasing administrative burden and the risk of a gap in supply.
How does the firm-fixed-price contract type impact the effectiveness of this procurement for food donations?
The firm-fixed-price (FFP) contract type is generally effective for procuring food commodities as it shifts the risk of cost overruns to the contractor, Algood Food Co. This provides the Department of Agriculture with cost certainty, ensuring the $7.6 million budget is adhered to. For food donations, where predictable costs are crucial for program planning and resource allocation, the FFP structure enhances accountability and simplifies financial management, contributing to the overall effectiveness of the program.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: 123J1425B0450
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7401 TRADE PORT DR, LOUISVILLE, KY, 40258
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,597,777
Exercised Options: $7,597,777
Current Obligation: $7,597,777
Actual Outlays: $7,465,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-12
Current End Date: 2026-01-06
Potential End Date: 2026-01-06 00:00:00
Last Modified: 2026-01-06
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