USDA awards $2.88M contract for fresh apples to North Bay Produce Inc. for 135 days

Contract Overview

Contract Amount: $2,879,730 ($2.9M)

Contractor: North BAY Produce Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-17

End Date: 2026-01-30

Contract Duration: 135 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010973/4100033002/APPLES FRESH PKG-12/3 LB

Place of Performance

Location: BAILEY, MUSKEGON County, MICHIGAN, 49303

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.9 million to NORTH BAY PRODUCE INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010973/4100033002/APPLES FRESH PKG-12/3 LB Key points: 1. Contract value of $2.88M for perishable goods suggests a significant volume of apples required. 2. The contract duration of 135 days indicates a need for consistent supply over several months. 3. The award to a single vendor, North Bay Produce Inc., warrants scrutiny regarding price competitiveness. 4. The use of a Firm Fixed Price contract shifts cost risk to the contractor. 5. The geographic scope (Michigan) may influence distribution logistics and local economic impact. 6. The perishable nature of the commodity necessitates efficient supply chain management.

Value Assessment

Rating: fair

The contract value of $2.88M for approximately 135 days of fresh apple supply appears to be within a reasonable range for government food donation programs, considering potential volume and logistical costs. However, without specific details on the quantity of apples or the exact delivery locations, a precise value-for-money assessment is challenging. Benchmarking against similar USDA food procurement contracts for perishable goods would provide a clearer picture of whether this price reflects competitive market rates or a premium for specific sourcing or delivery requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while a broad competition was initially intended, specific circumstances led to the exclusion of certain sources before the final award. This procurement method can sometimes limit the number of responsive bidders, potentially impacting price discovery. Further details on the reasons for excluding sources are needed to fully assess the competitive landscape and its effect on the final price.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader, unrestricted full and open competition had been conducted. This procurement approach requires careful justification to ensure the government obtained the best possible value.

Public Impact

Beneficiaries include recipients of USG food donations, likely food banks and charitable organizations. Services delivered include the provision of fresh apples, a nutritious food staple. Geographic impact is primarily within Michigan, where the apples will be sourced and potentially distributed. Workforce implications may involve agricultural workers, logistics personnel, and administrative staff involved in the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced value for taxpayer dollars.
The 'after exclusion of sources' clause requires further investigation to understand the rationale and its impact on fairness.
Lack of detailed quantity and quality specifications makes it difficult to benchmark the value effectively.
The short contract duration for perishable goods might lead to less efficient planning and higher per-unit costs if not managed optimally.

Positive Signals

The contract utilizes a Firm Fixed Price, which provides cost certainty for the government.
The award is to a single, established vendor, potentially indicating reliability in supply.
The commodity is a healthy food item, aligning with nutritional goals for food assistance programs.

Sector Analysis

This contract falls within the broader agricultural commodities sector, specifically focusing on fresh produce procurement for federal food donation programs. The market for fresh apples is generally competitive, with numerous growers and distributors. However, government procurement processes, especially those involving specific sourcing or delivery requirements, can create unique market dynamics. Comparable spending benchmarks would involve analyzing other USDA contracts for similar quantities and types of fresh produce procured under various competition levels.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by this award for small businesses. The primary contractor, North Bay Produce Inc., is likely a larger entity, and its role in the broader agricultural ecosystem does not appear to be directly tied to small business subcontracting goals under this specific agreement.

Oversight & Accountability

Oversight for this contract would primarily fall under the USDA's Agricultural Marketing Service (AMS), which is responsible for procurement and contract management. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through public contract databases where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Lack of detailed specifications hinders value assessment.
Potential for spoilage or quality issues with perishable goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.9 million to NORTH BAY PRODUCE INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010973/4100033002/APPLES FRESH PKG-12/3 LB

Who is the contractor on this award?

The obligated recipient is NORTH BAY PRODUCE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2025-09-17. End: 2026-01-30.

What specific types and quantities of apples are being procured under this contract, and how do these details influence the overall value assessment?

The provided data specifies 'APPLES FRESH PKG-12/3 LB' but does not detail the exact quantity (e.g., total pounds or number of packages) or the specific varietals of apples. This lack of specificity makes a precise value-for-money assessment difficult. The unit price and total contract value are heavily dependent on the volume procured. For instance, if the $2.88 million covers a substantial tonnage of apples, the per-pound cost might be competitive. Conversely, if the quantity is relatively small, the price could be inflated. Understanding the exact quantity is crucial for benchmarking against market rates for fresh apples and determining if the contract represents a good deal for the government and, by extension, the taxpayers.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the number of bids received?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that an initial broad solicitation was made, but certain potential offerors were subsequently excluded before the final award decision. The specific reasons for these exclusions are not detailed in the provided data. Common justifications can include failure to meet minimum technical requirements, non-compliance with solicitation terms, late submissions, or specific national security or policy considerations. The impact on the number of bids is likely significant; excluding sources inherently reduces the pool of potential bidders. This reduction can lead to less robust price competition, potentially resulting in higher costs for the government compared to a scenario with a larger number of competing bids. A thorough review of the solicitation documents and award justification would be necessary to understand the precise reasons for exclusion and their effect on competition.

How does the $2.88 million contract value for 135 days of fresh apple supply compare to historical spending patterns for similar USDA food donation commodities?

To compare this $2.88 million contract for 135 days of fresh apples to historical spending, one would need to analyze past USDA procurements for similar perishable commodities. Key comparison points would include the total dollar amount, the quantity of goods procured (e.g., pounds of apples), the duration of the contract, and the competition level. For example, if historical contracts of similar duration and quantity were awarded for significantly less, it might indicate a potential issue with the current contract's value. Conversely, if market prices for apples have increased or if this contract includes premium services (like specialized packaging or delivery), the current value might be justified. Analyzing trends in USDA food donation spending over several fiscal years would provide the necessary context to determine if this award is an outlier or in line with established patterns.

What are the potential risks associated with procuring perishable goods like fresh apples under a Firm Fixed Price contract, and how are these mitigated?

Procuring perishable goods like fresh apples under a Firm Fixed Price (FFP) contract shifts the primary risk of cost overruns to the contractor, North Bay Produce Inc. However, for perishables, the main risks revolve around quality degradation, spoilage, and timely delivery. If the contractor faces unforeseen issues (e.g., adverse weather affecting harvest, transportation delays, or pest outbreaks) that impact their ability to supply the specified quality and quantity of apples within the contract period, they may incur losses. Mitigation strategies employed by the government typically include stringent quality inspection clauses, clear delivery schedules, and performance standards. The contract likely includes provisions for rejection of non-conforming goods and potential penalties for late or incomplete deliveries. The short 135-day duration might also be a strategy to limit the government's exposure to long-term price fluctuations and quality issues inherent in perishable commodities.

What is the track record of North Bay Produce Inc. in fulfilling government contracts, particularly for perishable food items?

Information regarding North Bay Produce Inc.'s specific track record with government contracts, especially for perishable food items, is not detailed in the provided data. A comprehensive assessment would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance history. This would include examining the number of government contracts awarded to them, their performance ratings on those contracts, any instances of contract disputes, terminations, or penalties. Understanding their experience with similar commodities, delivery requirements, and compliance with government regulations is crucial for evaluating their reliability and capability to fulfill this current $2.88 million contract effectively. Without this historical data, assessing their suitability relies heavily on the assumption that their selection implies they met the necessary qualifications.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0495

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: North BAY Produce, Inc.

Address: 1868 MC RAE HILL RD, TRAVERSE CITY, MI, 49685

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Small Agricultural Cooperative, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,879,730

Exercised Options: $2,879,730

Current Obligation: $2,879,730

Actual Outlays: $2,879,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline