USDA Awards $7M Contract to Inn Foods for Frozen Broccoli, Ensuring Food Donation Supply

Contract Overview

Contract Amount: $7,060,840 ($7.1M)

Contractor: INN Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-12-05

End Date: 2026-06-30

Contract Duration: 207 days

Daily Burn Rate: $34.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011031/4100033265/BROCCOLI FRZ CTN-30 LB

Place of Performance

Location: NEWMAN, STANISLAUS County, CALIFORNIA, 95360

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.1 million to INN FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011031/4100033265/BROCCOLI FRZ CTN-30 LB Key points: 1. Contract awarded to Inn Foods Inc. for frozen broccoli, a key commodity for USG food donations. 2. The contract utilizes full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to provide cost certainty for the government. 4. The Agricultural Marketing Service is overseeing this procurement to support food assistance programs.

Value Assessment

Rating: good

The contract value of $7.06 million for 207 days of supply appears reasonable given the quantity and nature of the commodity. Benchmarking against similar large-scale food procurement contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, as it allows multiple vendors to bid, potentially driving down costs. This method is generally preferred for maximizing value.

Taxpayer Impact: This contract ensures the availability of essential food commodities for donation programs, directly impacting the accessibility of nutritious food for vulnerable populations.

Public Impact

Ensures continued availability of frozen broccoli for federal food donation programs. Supports agricultural producers and the frozen vegetable manufacturing sector. Contributes to food security initiatives by providing essential food items to those in need.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Potential for price fluctuations in the commodity market impacting long-term affordability.
Logistical challenges in distribution of frozen goods across various donation sites.

Positive Signals

Utilizes full and open competition, promoting fair pricing.
Firm fixed price contract provides budget predictability.
Supports critical food donation programs.

Sector Analysis

This procurement falls within the food manufacturing sector, specifically frozen fruit, juice, and vegetable manufacturing. Spending in this area is crucial for supporting federal nutrition assistance and donation programs.

Small Business Impact

While this contract was awarded to Inn Foods Inc., it's important to assess if subcontracting opportunities exist for small businesses within the supply chain or distribution network.

Oversight & Accountability

The Agricultural Marketing Service's oversight ensures that the procured commodities meet quality standards and are distributed effectively to intended recipients, maintaining accountability in the food donation process.

Related Government Programs

Frozen Fruit, Juice, and Vegetable Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility impacting long-term cost.
Logistical complexities of frozen food distribution.
Dependence on a single awardee for a critical commodity.
Ensuring consistent quality of frozen product over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.1 million to INN FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011031/4100033265/BROCCOLI FRZ CTN-30 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 $7.1 million.

What is the period of performance?

Start: 2025-12-05. End: 2026-06-30.

What is the historical pricing trend for frozen broccoli procured by the government, and how does this contract's price compare?

Analyzing historical USDA procurement data for frozen broccoli would reveal average prices per pound or per case over the past several years. This contract's price of approximately $235 per 30lb carton ($7.83/lb) should be compared against these benchmarks. Factors like market volatility, specific quality requirements, and contract duration influence price deviations, but significant differences warrant further investigation into cost-effectiveness.

What are the potential risks associated with the firm fixed price contract type for frozen commodities?

A firm fixed price contract offers budget certainty but can expose the contractor to risks if commodity prices or production costs increase significantly beyond projections. Conversely, if prices fall, the government might be overpaying. For frozen goods, risks also include spoilage, supply chain disruptions, and meeting specific quality standards throughout the contract period, which could lead to delivery failures or increased costs for the contractor.

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

This contract directly supports federal food donation programs by securing a consistent supply of a nutritious commodity. By ensuring the availability of frozen broccoli, it contributes to meeting the dietary needs of recipients and bolstering food security initiatives. The full and open competition method suggests an effort to maximize the value of taxpayer dollars spent on these vital programs.

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

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0012

Offers Received: 1

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: $7,060,840

Exercised Options: $7,060,840

Current Obligation: $7,060,840

Actual Outlays: $5,162,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline