USDA's $4.2M Contract for Fresh Apples Awarded to Horizon Marketing, Inc

Contract Overview

Contract Amount: $4,247,183 ($4.2M)

Contractor: Horizon Marketing, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-17

End Date: 2026-02-02

Contract Duration: 138 days

Daily Burn Rate: $30.8K/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: 2000010973/4100033014/APPLES FRESH PKG-12/3 LB

Place of Performance

Location: VISALIA, TULARE County, CALIFORNIA, 93277

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.2 million to HORIZON MARKETING, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010973/4100033014/APPLES FRESH PKG-12/3 LB Key points: 1. Contract awarded to Horizon Marketing, Inc. for fresh apples. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Contract duration is 138 days. 4. The contract is for food donations. 5. The sector is related to perishable food manufacturing.

Value Assessment

Rating: fair

The contract value is $4.2 million for fresh apples. Benchmarking against similar contracts for perishable goods is difficult due to market fluctuations and specific quality requirements for food donations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources', suggesting an initial limited approach that was then opened. This method can impact price discovery if not managed carefully to ensure broad market participation.

Taxpayer Impact: Taxpayer funds are used for food donations, aiming to support food security programs. The cost-effectiveness depends on the efficiency of the supply chain and the negotiated price.

Public Impact

Supports federal food donation programs, potentially aiding food banks and vulnerable populations. Ensures availability of fresh produce for nutritional assistance. Impacts the agricultural sector by providing a market for apple producers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires efficient logistics and timely delivery.
Market price volatility for fresh produce can affect cost.
Competition method 'after exclusion of sources' warrants scrutiny for full market access.

Positive Signals

Supports a vital federal program for food security.
Utilizes a competitive bidding process.
Contract duration aligns with typical seasonal availability of fresh produce.

Sector Analysis

This contract falls within the perishable food manufacturing and agricultural commodities sector. Spending benchmarks for fresh produce procurement can vary significantly based on seasonality, quality, and volume.

Small Business Impact

Analysis of small business participation is not directly available from the provided data. The contract type and competition method do not inherently favor or exclude small businesses without further information on subcontracting or prime contractor size.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would focus on delivery, quality, and adherence to terms, especially given the perishable nature of the goods.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Perishability risk
Price volatility
Logistical challenges
Potential for limited initial competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.2 million to HORIZON MARKETING, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010973/4100033014/APPLES FRESH PKG-12/3 LB

Who is the contractor on this award?

The obligated recipient is HORIZON MARKETING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2025-09-17. End: 2026-02-02.

What is the primary objective of these food donations and how is success measured?

The primary objective is to support federal food donation programs, likely aimed at alleviating food insecurity. Success is typically measured by the quantity of food distributed, the reach of the program to intended beneficiaries, and the nutritional impact on recipients. Metrics may include pounds of food delivered and number of individuals served.

What are the specific risks associated with procuring perishable goods like fresh apples under this contract?

Key risks include spoilage during transit or storage, leading to waste and financial loss. Price volatility of fresh produce is another significant risk, potentially impacting the government's cost. Ensuring consistent quality and timely delivery to meet program needs also presents logistical challenges.

How does the 'Full and Open Competition After Exclusion of Sources' method impact the overall value for taxpayers?

This method can potentially limit initial competition, possibly leading to higher prices if the excluded sources were the most competitive. However, if the subsequent 'full and open' phase attracts sufficient bidders, it could still result in a fair market price. The effectiveness depends on the breadth of participation in the open phase.

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

Address: 536 W VICTOR AVE, VISALIA, CA, 93277

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,247,183

Exercised Options: $4,247,183

Current Obligation: $4,247,183

Actual Outlays: $4,203,895

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline