Tabatchnick Fine Foods secures $11.1M contract for frozen fruit cups, serving USG food donation needs

Contract Overview

Contract Amount: $11,127,873 ($11.1M)

Contractor: Tabatchnick Fine Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-08-13

End Date: 2025-10-31

Contract Duration: 79 days

Daily Burn Rate: $140.9K/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: 2000010943/4400002429/4100032739/STRAWBERRY FRZ CUP-96/4.5 OZ,PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.1 million to TABATCHNICK FINE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010943/4400002429/4100032739/STRAWBERRY FRZ CUP-96/4.5 OZ,PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract value of $11.1M for frozen fruit cups suggests a significant volume of goods procured. 3. Delivery orders indicate flexibility in fulfilling specific needs within the contract period. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The contract duration of 79 days points to a short-term, immediate need for these commodities. 6. The procurement is managed by the Agricultural Marketing Service, highlighting its role in food distribution.

Value Assessment

Rating: good

The contract value of $11.1M for frozen fruit cups appears reasonable given the quantity implied by multiple delivery orders. Benchmarking against similar large-scale food procurements for government programs would provide further context on value for money. The fixed-price structure helps control costs, but the absence of detailed unit pricing makes a precise value assessment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 10 bids indicates a healthy level of competition, which typically drives better pricing and value for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders generally leads to more favorable pricing for taxpayers by encouraging vendors to offer their best terms.

Public Impact

Beneficiaries include recipients of USG food donations, likely vulnerable populations or disaster relief efforts. Services delivered involve the provision of essential frozen fruit commodities for nutritional support. The geographic impact is national, as these donations are part of a federal program. Workforce implications are primarily within the food manufacturing and distribution sectors supplying the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of essential food items.
Ensuring consistent quality and nutritional value across all delivered frozen fruit products.
Managing the logistics of distributing perishable goods to various donation points.

Positive Signals

Contract awarded through a competitive process, suggesting fair market pricing.
Fixed-price contract provides budget certainty for the procuring agency.
Delivery order mechanism allows for responsive fulfillment of immediate needs.

Sector Analysis

This contract falls within the Food Manufacturing sector, specifically the production of frozen fruits and vegetables. The market for government food procurement is substantial, driven by programs like food donations, school lunches, and military rations. This specific procurement supports the government's role in ensuring food security and nutritional assistance through its various agencies.

Small Business Impact

The contract does not indicate a small business set-aside. However, the prime contractor, Tabatchnick Fine Foods Inc., may engage small businesses for subcontracting opportunities in areas such as logistics, transportation, or specialized food processing, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) through contract performance monitoring and adherence to delivery schedules and product specifications. Accountability measures would include performance reviews and potential penalties for non-compliance. Transparency is facilitated by the public nature of federal contract awards.

Related Government Programs

USDA Food Donation Programs
Federal Food Procurement
Emergency Food Assistance Programs
Commodity Supplemental Food Program

Risk Flags

Short contract duration may indicate urgent need or potential for service gaps.
Need for detailed unit cost analysis to fully benchmark value for money.
Potential supply chain vulnerabilities for perishable goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.1 million to TABATCHNICK FINE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010943/4400002429/4100032739/STRAWBERRY FRZ CUP-96/4.5 OZ,PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ

Who is the contractor on this award?

The obligated recipient is TABATCHNICK FINE 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 $11.1 million.

What is the period of performance?

Start: 2025-08-13. End: 2025-10-31.

What is the historical spending pattern for similar frozen fruit commodity contracts by the Department of Agriculture?

Analyzing historical spending for similar frozen fruit commodity contracts by the Department of Agriculture (USDA) is crucial for contextualizing the current $11.1M award. While specific historical data for this exact commodity and contract vehicle isn't provided, the USDA's Agricultural Marketing Service (AMS) regularly procures large quantities of food items for various domestic and international food assistance programs. These procurements often involve multi-year contracts with significant dollar values, fluctuating based on program needs, commodity prices, and available appropriations. Past contracts for frozen fruits have varied in size, with some exceeding tens of millions of dollars annually, depending on the specific types of fruit, packaging, and delivery requirements. Understanding the average price per unit or per pound from previous solicitations would allow for a more robust comparison to assess if the current contract represents a favorable price point or if there are significant deviations that warrant further investigation into market conditions or specific contract terms.

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

Determining the precise unit price for these frozen fruit cups requires detailed information on the exact quantity per delivery order and the specific type of fruit and packaging. However, given the contract value of $11.1M and the nature of government procurement, it's reasonable to assume the unit price is negotiated to be competitive, potentially at or below typical wholesale commercial rates due to bulk purchasing power. Commercial rates for frozen fruit cups can vary widely based on brand, fruit type (e.g., strawberries, peaches, mixed berries), cup size (4.0-4.5 oz), and packaging (e.g., 96-count cases). Factors like seasonality, agricultural yields, and processing costs influence market prices. Government contracts, especially those awarded through full and open competition, aim to leverage economies of scale. Without specific unit cost data from the contract, a direct comparison is difficult, but the government's objective is typically to achieve cost efficiencies that align with or surpass commercial bulk purchasing.

What are the potential risks associated with the short contract duration (79 days)?

The short contract duration of 79 days for this $11.1M procurement of frozen fruit cups presents several potential risks. Firstly, it could indicate an urgent or unforeseen need, such as responding to a natural disaster or a sudden shortfall in existing supplies, which might imply less time for thorough planning and potentially higher costs due to expedited production or delivery. Secondly, a short duration may limit the contractor's ability to optimize production schedules or secure long-term supply agreements, potentially leading to less favorable pricing. For the government, it necessitates a rapid procurement cycle, increasing the risk of overlooking critical contract details or potential issues. Furthermore, if this is a recurring need, the short duration implies frequent re-solicitation, adding administrative burden and potential for service interruptions between contract periods. Finally, it might signal a temporary program requirement or a stop-gap measure, leaving the long-term supply chain for these commodities uncertain.

What is the track record of Tabatchnick Fine Foods Inc. in fulfilling government food contracts?

Tabatchnick Fine Foods Inc. has a history of fulfilling government food contracts, particularly with agencies like the Department of Agriculture. Their experience often involves providing a range of food commodities, including frozen items, for various federal programs. Publicly available contract data indicates they have been awarded numerous contracts over the years, suggesting a capacity to meet government requirements. Assessing their track record involves reviewing past performance evaluations, on-time delivery rates, product quality compliance, and any instances of contract disputes or terminations. While specific details on past performance for this exact type of frozen fruit cup procurement are not detailed here, their continued success in securing government contracts implies a generally satisfactory performance history in meeting the logistical and quality demands of federal food sourcing.

How does the Agricultural Marketing Service (AMS) ensure the quality and safety of donated food commodities?

The Agricultural Marketing Service (AMS) employs several mechanisms to ensure the quality and safety of donated food commodities. This includes establishing detailed product specifications in solicitations that outline required nutritional content, physical characteristics, packaging standards, and shelf-life requirements. Contractors are expected to adhere strictly to these specifications. AMS may conduct pre-award inspections of facilities and post-award quality assurance checks, including sampling and laboratory testing of delivered products. Furthermore, compliance with USDA regulations and relevant food safety standards (e.g., HACCP principles) is typically a contractual requirement. The agency also relies on contractor self-certification and may conduct audits to verify compliance. In cases of non-compliance, AMS has the authority to reject shipments, impose penalties, or terminate contracts, thereby incentivizing adherence to quality and safety protocols.

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: 1230 HAMILTON ST, SOMERSET, NJ, 08873

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

Financial Breakdown

Contract Ceiling: $11,127,873

Exercised Options: $11,127,873

Current Obligation: $11,127,873

Actual Outlays: $11,126,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0045

IDV Type: IDC

Timeline