USDA awards $4.9M for canned peaches, highlighting agricultural support and food donation commodities

Contract Overview

Contract Amount: $4,916,440 ($4.9M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2025-09-16

End Date: 2026-02-15

Contract Duration: 152 days

Daily Burn Rate: $32.3K/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: 2000011006/4400002485/4100032990/PEACHES CLING SLICES CAN-24/300

Place of Performance

Location: LODI, SAN JOAQUIN County, CALIFORNIA, 95240

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.9 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011006/4400002485/4100032990/PEACHES CLING SLICES CAN-24/300 Key points: 1. Contract supports essential food donation programs by procuring canned fruit. 2. Procurement method indicates a competitive bidding process was utilized. 3. Fixed-price contract type aims to control costs for the government. 4. Contract duration of 152 days suggests a focused, short-term need. 5. Awardee is a US-based producer, potentially supporting domestic agriculture. 6. Geographic location of awardee in California may influence logistics and sourcing.

Value Assessment

Rating: good

The contract value of $4.9 million for canned peaches appears reasonable given the quantity and nature of the commodity. Benchmarking against similar government food procurements for canned goods suggests this price falls within expected ranges. The firm fixed-price structure provides cost certainty for the government, indicating good value for money in managing the budget for food donations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a moderate level of competition for this specific food commodity procurement. While not an extremely high number of bidders, it suggests that the market for this product is not overly concentrated and that price discovery occurred through a competitive process.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices for essential goods like canned peaches for donation programs.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered involve the procurement and supply of canned peaches for distribution. Geographic impact is national, as donated food reaches various communities across the US. Workforce implications are primarily within the agricultural processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the agricultural market impacting future procurements.
Dependence on a limited number of bidders could reduce competitive pressure over time.

Positive Signals

Supports domestic agricultural producers and food processing industries.
Ensures availability of nutritious food items for federal nutrition assistance programs.
Firm fixed-price contract provides budget predictability.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on processed fruit procurement. The market for canned goods is mature, with established producers. Government procurements like this are a significant component of demand for certain agricultural products, supporting the stability of domestic food supply chains and ensuring availability for federal programs.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. However, the prime contractor, Pacific Coast Producers, is a large agricultural cooperative. Subcontracting opportunities may exist within the agricultural supply chain, potentially benefiting small businesses involved in farming, processing, or logistics, though this is not explicitly detailed.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which oversees procurement and distribution of agricultural commodities. Oversight is inherent in the competitive bidding process and the firm fixed-price terms. Transparency is maintained through public contract awards. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

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

Risk Flags

Potential for price volatility in agricultural markets.
Moderate competition level may warrant monitoring future solicitations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.9 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000011006/4400002485/4100032990/PEACHES CLING SLICES CAN-24/300

Who is the contractor on this award?

The obligated recipient is PACIFIC COAST PRODUCERS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2025-09-16. End: 2026-02-15.

What is the historical spending trend for canned peaches by the USDA?

Analyzing historical spending data for canned peaches by the USDA requires access to detailed procurement databases over multiple fiscal years. While this specific contract award is for $4.9 million, understanding the trend involves looking at the total annual expenditure on this commodity. Factors influencing historical spending include changes in agricultural output, program needs, budget allocations, and the availability of alternative food sources. A consistent or increasing trend might indicate sustained reliance on canned peaches for donation programs, while a decreasing trend could suggest shifts towards fresh produce or other processed items. Without access to a comprehensive historical database, it's difficult to provide precise figures, but such analysis would reveal the long-term commitment to this specific food item.

How does the number of bidders (3) compare to similar USDA food procurements?

A competition level with 3 bidders for a USDA food procurement like canned peaches is generally considered moderate. For highly standardized, widely available commodities, one might expect a larger number of bidders, potentially 5 or more, especially if the contract value is substantial. However, for specialized processed goods or those with specific regional sourcing requirements, 3 bidders can represent a healthy competitive landscape. The Agricultural Marketing Service (AMS) often manages procurements where the number of qualified bidders might be naturally limited by production capacity or specific product specifications. A lower number of bidders (1-2) would raise more significant concerns about market concentration or barriers to entry, while a significantly higher number might indicate intense price competition.

What are the potential risks associated with a firm fixed-price contract for agricultural commodities?

Firm fixed-price (FFP) contracts offer cost certainty to the government, which is a significant advantage. However, for agricultural commodities, there are inherent risks. The primary risk is that market prices for raw agricultural inputs (like peaches) or processing costs could rise significantly after the contract is awarded, potentially squeezing the contractor's profit margins. If the price increase is substantial, the contractor might face financial distress, potentially leading to delivery delays, quality issues, or even contract default. Conversely, if market prices fall, the contractor benefits from higher-than-expected profits, but the government misses an opportunity to secure a lower price. The USDA mitigates some of this risk by carefully estimating market conditions during the solicitation phase and potentially including clauses for unforeseen circumstances, though FFP generally places the cost risk on the contractor.

What is the typical role of the Agricultural Marketing Service (AMS) in such procurements?

The Agricultural Marketing Service (AMS), an agency within the USDA, plays a crucial role in procuring agricultural commodities for federal programs, including food donations. AMS is responsible for developing specifications for the food products, soliciting bids from potential suppliers, evaluating proposals, and awarding contracts. They work to ensure that the procured items meet quality standards and are acquired at competitive prices, leveraging their expertise in agricultural markets. For food donations, AMS acts as a vital link between agricultural producers and the distribution networks that supply food to those in need, managing the logistical and financial aspects of these large-scale purchases.

How does this contract contribute to the USDA's mission regarding food security and agricultural support?

This contract directly supports the USDA's mission in multiple ways. Firstly, by procuring canned peaches, it provides a nutritious food product that can be distributed through various federal food assistance programs, thereby contributing to food security for vulnerable populations. Secondly, it supports the agricultural sector by creating demand for domestically grown peaches and the associated processing industry (Pacific Coast Producers). This demand helps stabilize markets for farmers and ensures the viability of agricultural businesses. The procurement process itself, especially when conducted competitively, aims to achieve this support efficiently, ensuring taxpayer dollars are used effectively to meet both nutritional needs and agricultural economic goals.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0481

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 631 N CLUFF AVE, LODI, CA, 95240

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

Financial Breakdown

Contract Ceiling: $4,916,440

Exercised Options: $4,916,440

Current Obligation: $4,916,440

Actual Outlays: $4,214,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0072

IDV Type: IDC

Timeline