USDA awards $3.65M for frozen strawberries, highlighting a competitive market for food donations

Contract Overview

Contract Amount: $3,652,012 ($3.7M)

Contractor: INN Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-08-13

End Date: 2026-05-15

Contract Duration: 275 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010943/4400002427/4100032734/STRAWBERRY SLICES FRZ CTN-30 LB,STRAWBERRY WHOLE UNSWT IQF CTN-6/5 LB,STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB

Place of Performance

Location: OXNARD, VENTURA County, CALIFORNIA, 93033

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.7 million to INN FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010943/4400002427/4100032734/STRAWBERRY SLICES FRZ CTN-30 LB,STRAWBERRY WHOLE UNSWT IQF CTN-6/5 LB,STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB Key points: 1. Value for money appears reasonable given the scale and nature of the commodity. 2. The contract was awarded under full and open competition, suggesting a healthy market. 3. Risk indicators are low, with a fixed-price contract and clear delivery terms. 4. Performance context is within the Agricultural Marketing Service's mandate for food assistance. 5. Sector positioning is within food manufacturing and distribution for government programs.

Value Assessment

Rating: good

The contract value of $3.65 million for frozen strawberries is benchmarked against similar USDA food donation procurements. While specific per-unit costs are not detailed here, the fixed-price nature of the award suggests that the pricing was determined through competitive bidding. The volume and specifications of the strawberries (e.g., IQF, unsweetened) are critical factors in assessing value, and these appear to align with typical requirements for food donation programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple vendors were solicited and allowed to bid. With 11 bids received, the level of competition was robust. This suggests that the government received a range of pricing and product offerings, likely leading to a fair market price for the frozen strawberries.

Taxpayer Impact: A high number of bidders ensures that taxpayer dollars are used efficiently by driving down prices through market competition.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA programs. Services delivered include the provision of essential frozen fruit for nutritional support. Geographic impact is national, as donated food reaches various distribution points across the US. Workforce implications are indirect, supporting jobs in food processing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Fixed-price contract type limits cost uncertainty.
Multiple bids received (11), indicating market interest.
Contract duration aligns with program needs.

Sector Analysis

The food manufacturing sector, specifically frozen fruit, juice, and vegetable production, is a key supplier to government programs like food donations. The USDA's Agricultural Marketing Service plays a significant role in procuring these commodities to support domestic nutrition assistance. Market size for such specialized government procurement can be substantial, though it's a niche within the broader food industry. This contract fits within the established framework of government food purchasing for aid.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific procurement is likely minimal unless the prime contractor engages them for fulfillment.

Oversight & Accountability

Oversight is provided by the Department of Agriculture's Agricultural Marketing Service. Accountability measures are inherent in the fixed-price contract terms and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Pantries and Shelters

Risk Flags

Potential for price fluctuations in commodity markets.
Logistical challenges in maintaining cold chain integrity.
Ensuring consistent quality across large volumes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.7 million to INN FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010943/4400002427/4100032734/STRAWBERRY SLICES FRZ CTN-30 LB,STRAWBERRY WHOLE UNSWT IQF CTN-6/5 LB,STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB

Who is the contractor on this award?

The obligated recipient is INN FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2025-08-13. End: 2026-05-15.

What is the historical spending trend for frozen strawberries by the USDA?

Analyzing historical spending data for frozen strawberries by the USDA requires access to detailed procurement records over multiple fiscal years. While this specific contract is for $3.65 million, understanding the trend involves looking at the volume and value of similar awards in prior years. Factors influencing trends include changes in appropriation levels, shifts in program needs, availability of domestic produce, and fluctuations in market prices. A consistent or increasing trend might indicate sustained demand for these commodities in food assistance programs, while a decreasing trend could suggest program adjustments or alternative sourcing strategies. Without historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending.

How does the unit price of these frozen strawberries compare to commercial market rates?

Determining the precise unit price requires dividing the total contract value by the total quantity of strawberries procured (e.g., pounds or kilograms). This contract is for 20,000,00010943/4400002427/4100032734 units, which are specified as 'STRAWBERRY SLICES FRZ CTN-30 LB', 'STRAWBERRY WHOLE UNSWT IQF CTN-6/5 LB', and 'STRAWBERRY SLICES UNSWT IQF CTN-6/5 LB'. To compare with commercial rates, one would need to find the average price per pound for similar quality frozen strawberries (e.g., IQF, unsweetened) sold in bulk to food service providers or retailers. Government contracts often achieve economies of scale, potentially leading to lower unit prices than retail, but higher than direct farm gate sales. A detailed comparison would involve calculating the per-pound cost from the contract and benchmarking it against industry price indices or wholesale market data for the relevant period and region.

What are the specific quality control and inspection measures for these donated food commodities?

The USDA, through its Agricultural Marketing Service (AMS), typically implements stringent quality control and inspection measures for food commodities procured for donation programs. These measures often include adherence to specific grade standards (e.g., U.S. Grade A for frozen fruits), inspection at the point of origin or destination, and verification of proper handling, packaging, and storage conditions throughout the supply chain. The contract specifications would detail the required quality attributes, such as Brix levels, absence of defects, and processing methods (like IQF - Individually Quick Frozen). Compliance is usually verified through pre-award inspections of facilities and ongoing product testing. Failure to meet quality standards can result in rejection of the goods and potential penalties for the contractor.

What is the typical shelf life and storage requirement for these frozen strawberries?

Frozen strawberries, particularly those processed using the IQF (Individually Quick Frozen) method, are designed for extended shelf life when stored under appropriate conditions. Typically, the recommended storage temperature is 0°F (-18°C) or below. Under these conditions, the shelf life can range from 18 to 24 months, sometimes longer, while maintaining optimal quality. The contract specifications would likely stipulate these storage requirements to ensure the product remains safe and palatable for distribution through food assistance programs. Proper rotation of stock (First-In, First-Out) is crucial at distribution points to ensure that older inventory is used before its quality degrades significantly.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method differ from standard full and open competition?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) method is a specific type of competitive procurement used by federal agencies. It differs from standard 'Full and Open Competition' in that it involves excluding certain sources from the competition *after* an initial exclusion period or determination. This typically occurs when an agency initially intends to award a contract on a sole-source or limited-source basis, but then decides to open it up to broader competition among eligible sources. However, the 'exclusion of sources' phrasing can also imply that certain types of entities or specific previously considered sources might still be excluded based on prior decisions or regulatory requirements. In essence, it's a competitive process, but with a potentially narrower, pre-defined pool of eligible bidders compared to unrestricted full and open competition.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Fruit, Juice, and Vegetable Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0360

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 WALKER ST, WATSONVILLE, CA, 95076

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

Financial Breakdown

Contract Ceiling: $3,652,012

Exercised Options: $3,652,012

Current Obligation: $3,652,012

Actual Outlays: $3,536,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0041

IDV Type: IDC

Timeline