USDA awards $6.7M contract for dried cranberries to Stutz Packing Company under full and open competition

Contract Overview

Contract Amount: $6,700,755 ($6.7M)

Contractor: Stutz Packing Company

Awarding Agency: Department of Agriculture

Start Date: 2025-09-26

End Date: 2026-03-31

Contract Duration: 186 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011015/4100033085/CRANBERRIES DRIED PKG-300/1.16 OZ

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.7 million to STUTZ PACKING COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011015/4100033085/CRANBERRIES DRIED PKG-300/1.16 OZ Key points: 1. Contract awarded for dried cranberries, a specific food commodity. 2. Competition method: Full and Open Competition after Exclusion of Sources. 3. Risk: Moderate, given the specific nature of the commodity and single awardee. 4. Sector: Food Manufacturing and Distribution.

Value Assessment

Rating: good

The contract value of $6.7M for dried cranberries appears reasonable for 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 utilized full and open competition after exclusion of sources, indicating a broad solicitation. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure goods at the best possible price for federal food donation programs.

Public Impact

Ensures availability of food items for federal donation programs. Supports the agricultural sector by purchasing processed food products. Provides nutritional resources to recipients of food assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets.
Logistical challenges in distribution of food donations.

Positive Signals

Clear contract type (Firm Fixed Price) for cost certainty.
Defined period of performance ensures timely delivery.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically for processed agricultural products. Spending benchmarks for similar commodity procurements would be relevant for comparison.

Small Business Impact

The data indicates that small businesses were not specifically prioritized or excluded in this procurement. Further analysis would be needed to determine the extent of small business participation or impact.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring quality, timely delivery, and adherence to contract terms.

Related Government Programs

Dried and Dehydrated Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Single awardee for a specific commodity.
Potential for commodity price volatility.
Logistical complexity of food distribution.
Dependence on supplier's production capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.7 million to STUTZ PACKING COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000011015/4100033085/CRANBERRIES DRIED PKG-300/1.16 OZ

Who is the contractor on this award?

The obligated recipient is STUTZ PACKING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-03-31.

What is the unit cost of the dried cranberries and how does it compare to market rates?

The total contract value is $6.7M for an unspecified quantity of dried cranberries. To determine the unit cost, the total quantity procured would be needed. A comparison to prevailing market rates for bulk dried cranberries would be essential to assess value for money and ensure taxpayers are not overpaying for these essential food commodities.

What are the risks associated with relying on a single awardee for this specific commodity?

While competition was full and open, the award went to a single entity, Stutz Packing Company. Risks include potential supply chain disruptions if the sole awardee faces production issues, quality control challenges if oversight is insufficient, and limited recourse if performance falters. Diversification of suppliers for critical commodities could mitigate these risks.

How effectively does this contract support the goals of federal food donation programs?

This contract directly supports federal food donation programs by procuring a specific commodity. Its effectiveness hinges on the quality and timely delivery of the dried cranberries, and their suitability for the intended recipients. The contract's success is measured by its contribution to food security and nutritional support for those served by these programs.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Dried and Dehydrated Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0530

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 82689 AVENUE 45, INDIO, CA, 92201

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

Financial Breakdown

Contract Ceiling: $6,700,755

Exercised Options: $6,700,755

Current Obligation: $6,700,755

Actual Outlays: $179,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline