USDA awards $9.88M contract for frozen pollock sticks, highlighting seafood procurement for food donations

Contract Overview

Contract Amount: $9,881,343 ($9.9M)

Contractor: Channel Fish Processing CO., Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-25

End Date: 2026-11-15

Contract Duration: 416 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010983/4100033037/FISH AK POLLOCK STICKS FRZ PKG-20/2 LB

Place of Performance

Location: BRAINTREE, NORFOLK County, MASSACHUSETTS, 02184

State: Massachusetts Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.9 million to CHANNEL FISH PROCESSING CO., INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010983/4100033037/FISH AK POLLOCK STICKS FRZ PKG-20/2 LB Key points: 1. Contract focuses on essential food commodities for federal donation programs. 2. Procurement method indicates a competitive bidding process. 3. Firm fixed-price structure aims to control costs for the government. 4. Contract duration of over a year suggests a consistent need for these supplies. 5. The awardee has experience in seafood processing. 6. This contract supports the Agricultural Marketing Service's role in food distribution.

Value Assessment

Rating: good

The contract value of $9.88 million for frozen pollock sticks appears reasonable given the quantity and duration. Benchmarking against similar large-scale seafood procurements for federal programs would provide a more precise value-for-money assessment. The firm fixed-price nature suggests cost predictability, which is a positive indicator for government spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method typically leads to a more competitive pricing environment and ensures the government can access a wide range of suppliers. The presence of 3 bids indicates a moderate level of competition for this specific commodity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives the best value for its expenditure on essential food items.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of frozen pollock sticks, a source of protein. Geographic impact is national, supporting the distribution of food aid across the United States. Workforce implications may include jobs in seafood processing, packaging, and logistics for the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the seafood market impacting long-term value.
Dependence on a single supplier for a critical food commodity could pose a risk if issues arise.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty for the duration.
Contract duration of over a year indicates a stable supply chain for essential goods.

Sector Analysis

The procurement of seafood products for federal food donation programs falls within the broader food manufacturing and distribution sector. This specific contract for pollock sticks highlights the government's role in supporting domestic fisheries and providing nutritional resources. Comparable spending benchmarks would involve analyzing other large-scale commodity procurements by the USDA for its food assistance initiatives.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary awardee is not specified as a small business, there is potential for subcontracting opportunities within the seafood processing and distribution chain that could benefit small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service, which is responsible for managing commodity purchases and distribution. Accountability measures are inherent in the firm fixed-price contract terms, requiring the contractor to deliver specified goods. Transparency is generally maintained through federal contract databases where award details are published.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement
National School Lunch Program
Supplemental Nutrition Assistance Program (SNAP)

Risk Flags

Potential for high unit cost compared to market rates.
Reliance on a specific commodity (pollock) with potential supply chain vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.9 million to CHANNEL FISH PROCESSING CO., INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010983/4100033037/FISH AK POLLOCK STICKS FRZ PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is CHANNEL FISH PROCESSING CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-11-15.

What is the historical spending pattern for similar seafood commodities procured by the USDA?

Analyzing historical spending for similar seafood commodities procured by the USDA would involve reviewing past contract awards for items like fish fillets, canned fish, or other frozen seafood products intended for donation programs. This would help establish a baseline for pricing trends, identify any significant year-over-year increases or decreases in expenditure, and understand the typical volume of such procurements. For instance, if past contracts for similar quantities of frozen fish averaged $8 million, the current $9.88 million award might warrant further investigation into market price changes or specific product enhancements. Understanding these patterns is crucial for assessing whether the current contract represents good value or a potential cost overrun compared to historical norms.

How does the price per pound of these pollock sticks compare to retail or wholesale market rates?

To compare the price per pound of these pollock sticks to retail or wholesale market rates, we would first need to calculate the total pounds being procured. The data indicates 20,000 units of 'FISH AK POLLOCK STICKS FRZ PKG-20/2 LB'. Assuming each package contains 2 lbs, this equates to 40,000 lbs of pollock sticks. With a contract value of $9,881,343.31, the price per pound is approximately $247.03. This figure appears exceptionally high when compared to typical wholesale or retail prices for frozen pollock sticks, which generally range from $3 to $10 per pound depending on quality, origin, and volume. This significant discrepancy suggests that either the unit description is incomplete (e.g., includes extensive packaging or processing costs not immediately apparent), or there may be a substantial overpayment. Further clarification on the exact product specifications and any value-added services is necessary.

What is the track record of Channel Fish Processing Co., Inc. with federal contracts, particularly with the USDA?

Channel Fish Processing Co., Inc. has a track record of securing federal contracts, including those with the Department of Agriculture. A review of federal procurement data would reveal the number and value of contracts awarded to this company over time. It's important to assess if they have consistently met performance requirements, delivered on time, and adhered to contract terms in previous engagements. Examining past performance evaluations, any instances of contract disputes, or corrective actions taken against the company would provide insight into their reliability and capability. For this specific contract, understanding their experience with large-scale commodity procurement for food donation programs is key to assessing the risk associated with their performance.

What are the specific nutritional and logistical requirements for these pollock sticks under the donation program?

The specific nutritional and logistical requirements for these pollock sticks are critical to understanding the contract's value and the contractor's obligations. Nutritionally, the specifications likely detail protein content, fat limits, and any required fortification, ensuring the product meets dietary guidelines for food assistance recipients. Logistically, the contract would outline precise packaging standards (e.g., freezer-grade, portion control), temperature control requirements during transport and storage (maintaining frozen integrity), delivery schedules, and designated distribution points. Adherence to these detailed specifications ensures the quality and safety of the food provided and impacts the overall cost of procurement and distribution, influencing whether the price paid is justified by the product's suitability for the program's objectives.

Are there any known supply chain risks associated with pollock fishing and processing that could impact this contract?

Yes, there are potential supply chain risks associated with pollock fishing and processing that could impact this contract. Pollock is a globally sourced commodity, and its availability can be affected by factors such as fishing quotas set by international bodies, environmental conditions impacting fish stocks (e.g., climate change, overfishing), and geopolitical stability in major fishing regions. Processing can also face challenges related to labor availability, energy costs, and compliance with food safety regulations. For this specific contract, reliance on pollock could be vulnerable to fluctuations in catch sizes or disruptions in the processing chain, potentially leading to delays or increased costs. The government's procurement strategy, including the number of bidders and contract duration, aims to mitigate some of these risks, but external factors remain a concern.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0503

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 COMMERCE DR, BRAINTREE, MA, 02184

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

Financial Breakdown

Contract Ceiling: $9,881,343

Exercised Options: $9,881,343

Current Obligation: $9,881,343

Actual Outlays: $1,576,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline