Agriculture Department awards $14.5M contract for frozen fish nuggets, highlighting a firm fixed-price agreement

Contract Overview

Contract Amount: $14,505,991 ($14.5M)

Contractor: Channel Fish Processing CO., Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-25

End Date: 2026-04-30

Contract Duration: 217 days

Daily Burn Rate: $66.8K/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: 2000010983/4100033039/FISH AK POLLOCK NUGGETS 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 $14.5 million to CHANNEL FISH PROCESSING CO., INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010983/4100033039/FISH AK POLLOCK NUGGETS FRZ PKG-20/2 LB Key points: 1. The contract utilizes a firm fixed-price structure, which transfers cost risk to the contractor. 2. Competition was full and open, suggesting a robust bidding process. 3. The award to Channel Fish Processing Co., Inc. indicates a single contractor for this specific commodity. 4. The duration of 217 days suggests a focused procurement for a defined period. 5. The contract falls under the Seafood Product Preparation and Packaging NAICS code. 6. The commodity specified is frozen fish nuggets, a key component for food donations.

Value Assessment

Rating: good

The contract value of $14.5 million for 217 days of frozen fish nugget supply appears reasonable given the nature of commodity procurement for federal programs. Without specific per-unit data or comparable contract benchmarks for this exact product, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a healthy level of interest and competition for this requirement. This competitive environment is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently by driving competitive pricing among multiple vendors.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The service delivered is the provision of frozen fish nuggets, a nutritious food item. The geographic impact is national, supporting food distribution networks across the United States. Workforce implications are primarily within the seafood processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of frozen food products requires consistent monitoring.
Fluctuations in raw material costs could impact contractor profitability under a fixed-price contract.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition suggests competitive pricing.
Contractor is a known entity in seafood processing.

Sector Analysis

This contract operates within the broader food manufacturing and distribution sector, specifically focusing on seafood processing. The market for government food procurement is substantial, with agencies like the Department of Agriculture regularly sourcing commodities for domestic and international aid programs. Benchmarking this spending against other large-scale commodity contracts would require detailed analysis of similar food items and quantities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract, nor is there explicit information on subcontracting to small businesses. The primary awardee, Channel Fish Processing Co., Inc., is not identified as a small business in this context. Further investigation would be needed to determine if any subcontracting opportunities were directed towards the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight, including review by the agency's contracting officer and potentially the Inspector General's office for any anomalies or performance issues. The firm fixed-price nature simplifies some aspects of financial oversight by establishing a set cost. Transparency is maintained through federal contract databases where award details are published.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Food Bank Network Support
Commodity Supplemental Food Program

Risk Flags

Potential for supply chain disruptions
Quality control of frozen products
Contractor profitability risk under FFP

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.5 million to CHANNEL FISH PROCESSING CO., INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010983/4100033039/FISH AK POLLOCK NUGGETS 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 $14.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-04-30.

What is the historical spending pattern for frozen fish nuggets by the Department of Agriculture?

Analyzing historical spending for frozen fish nuggets by the Department of Agriculture requires access to detailed procurement data over multiple fiscal years. While this specific contract is for $14.5 million, understanding the broader trend involves examining previous awards for similar commodities, quantities, and contract types. Factors such as changes in food donation program needs, commodity availability, and market prices can influence year-over-year spending. Without a comprehensive historical dataset, it's difficult to ascertain if this $14.5 million award represents an increase, decrease, or stable level of investment in this particular food item. However, the consistent need for nutritious food items for donation programs suggests a recurring requirement that the USDA aims to fulfill through competitive procurement.

How does the unit price of these fish nuggets compare to market rates for similar products?

Determining the precise unit price requires dividing the total contract value by the total quantity of fish nuggets procured. This information is not directly provided in the summary data. To compare with market rates, one would need to identify the exact specifications of the fish nuggets (e.g., weight per nugget, breading type, fish species origin) and then research wholesale prices for comparable products from commercial suppliers or other government contracts. Factors like bulk purchasing discounts, delivery logistics, and specific quality standards mandated by the USDA can cause deviations from standard retail or wholesale market prices. A preliminary assessment suggests the firm fixed-price contract aims to lock in a rate, but without the quantity data, a direct unit cost comparison is not feasible.

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

Channel Fish Processing Co., Inc. has a history of receiving federal contracts, as indicated by this award. A thorough review of their past performance would involve examining contract databases for previous awards, including their value, duration, and type. Key performance indicators such as on-time delivery, product quality compliance, and any history of contract disputes or terminations would be crucial. Understanding their experience with similar large-scale commodity procurements, particularly for food donation programs, would provide further insight into their capability to fulfill this current $14.5 million contract effectively. Their sustained engagement with government contracts suggests a level of established performance and familiarity with federal procurement requirements.

What are the potential risks associated with the firm fixed-price contract type for this commodity?

The primary risk associated with a firm fixed-price (FFP) contract for a commodity like frozen fish nuggets lies with the contractor, Channel Fish Processing Co., Inc. If the cost of raw materials (e.g., pollock) or production increases significantly beyond what was anticipated during the bidding process, the contractor's profit margin will be squeezed, potentially impacting their ability or willingness to maintain quality or delivery schedules. Conversely, if costs decrease, the contractor benefits from higher profits. For the government, the FFP structure offers budget certainty, but it might lead to higher initial bid prices compared to cost-reimbursement contracts, as contractors factor in potential cost escalations and risk premiums. Ensuring robust quality control measures remains paramount to mitigate risks related to product standards.

How does the competition level (3 bidders) impact the value for taxpayers?

A competition involving three bidders for this $14.5 million contract generally indicates a reasonably competitive market for this specific commodity. More bidders typically lead to lower prices as companies vie for the award. With three bidders, there is a good chance that the government secured a competitive price, as the awardee had to offer a compelling bid to win against two other offers. However, the ideal number of bidders can vary by industry and complexity. If the market for specialized frozen fish nuggets is limited, three bidders might represent a significant portion of the available qualified suppliers. Therefore, while three bidders are positive, a deeper analysis of the market size and the specific requirements would be needed to definitively state if this level of competition maximized value for taxpayers.

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: $14,505,991

Exercised Options: $14,505,991

Current Obligation: $14,505,991

Actual Outlays: $6,941,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline