USDA awards $2.49M for frozen apple juice cups to Peterson Brands, LLC under full and open competition

Contract Overview

Contract Amount: $2,489,076 ($2.5M)

Contractor: Peterson Brands, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-12-08

End Date: 2026-03-31

Contract Duration: 113 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011064/4100033289/APPLE JUICE SINGLE FRZ CUP-96/4 OZ

Place of Performance

Location: AKRON, SUMMIT County, OHIO, 44314

State: Ohio Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.5 million to PETERSON BRANDS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011064/4100033289/APPLE JUICE SINGLE FRZ CUP-96/4 OZ Key points: 1. Contract value appears reasonable for the quantity and type of goods procured. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type may limit cost overruns for the government. 4. Contract duration of approximately 113 days is relatively short-term. 5. Procurement falls within the frozen fruit, juice, and vegetable manufacturing sector. 6. Awardee has a track record with government contracts, though specific performance details require further analysis.

Value Assessment

Rating: good

The contract value of $2.49 million for 200,000 units of frozen apple juice cups seems aligned with market expectations for bulk food procurement. Benchmarking against similar government food donation contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the initial pricing was competitive.

Cost Per Unit: $12.45 per unit

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders would typically lead to better price discovery, the fixed-price nature of the contract and the specific commodity may have influenced the number of interested parties.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage efficient service delivery.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered involve the provision of 4 oz frozen apple juice cups. Geographic impact is likely nationwide, supporting the distribution of food aid. Workforce implications are minimal, primarily related to the manufacturing and distribution of the product.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting future procurements.
Dependence on a single awardee for a specific commodity could pose supply chain risks if not managed proactively.

Positive Signals

Firm fixed-price contract limits government exposure to cost increases.
Full and open competition suggests a robust bidding process.
Short contract duration allows for flexibility in future procurement needs.

Sector Analysis

This contract falls within the broader food manufacturing sector, specifically focusing on frozen fruit and juice products. The market for government food procurement is substantial, with agencies like the USDA regularly purchasing commodities for various domestic and international assistance programs. Comparable spending benchmarks would involve analyzing other USDA procurements for similar juice products or other frozen goods intended for donation.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, Peterson Brands, LLC, is not explicitly identified as a small business. Therefore, this specific award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver goods at the agreed-upon price. Transparency is maintained through public contract databases where award details are published. The Inspector General of the Department of Agriculture would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential for supply chain disruption
Quality control of perishable goods

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to PETERSON BRANDS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011064/4100033289/APPLE JUICE SINGLE FRZ CUP-96/4 OZ

Who is the contractor on this award?

The obligated recipient is PETERSON BRANDS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-12-08. End: 2026-03-31.

What is Peterson Brands, LLC's track record with federal contracts, particularly for food commodities?

A review of federal procurement data indicates that Peterson Brands, LLC has been awarded multiple contracts across various agencies, including the Department of Agriculture and the Defense Logistics Agency. These contracts often involve the supply of food items, including juices and other commodities. While the volume and nature of past awards suggest experience in government contracting, a detailed analysis of past performance, including any instances of late delivery, quality issues, or contract disputes, would be necessary for a comprehensive assessment. The current award for apple juice cups represents a continuation of their involvement in supplying food products to federal agencies.

How does the per-unit cost of $12.45 for these frozen apple juice cups compare to similar government procurements?

The per-unit cost of $12.45 for 4 oz frozen apple juice cups appears to be within a reasonable range for bulk government food procurement, especially considering the costs associated with freezing, packaging, and distribution. However, a precise comparison requires access to data on identical or highly similar procurements. Factors such as the specific type of apple juice (e.g., 100% juice vs. blend), packaging requirements (e.g., individual cups vs. larger containers), delivery locations, and the exact time frame of the comparison procurement can significantly influence unit costs. Without direct comparative data from recent, similar USDA or DoD food solicitations, this benchmark remains an estimate.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions affecting the availability of raw materials or finished goods, and quality control issues with the frozen apple juice. Given the short contract duration (approximately 113 days), the risk of significant price escalation during the performance period is somewhat mitigated by the firm fixed-price structure. The USDA's mitigation strategies likely involve vetting the contractor's capacity and quality control processes during the bidding phase and potentially through contract oversight. The limited number of bidders (two) could also represent a risk if the primary awardee faces unforeseen issues, though the government could potentially turn to the second bidder if terms allow.

How effective is the firm fixed-price contract type in ensuring value for money for this specific procurement?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for procurements where the scope of work is well-defined and risks are manageable, such as the supply of a standardized commodity like frozen apple juice cups. Under an FFP contract, the contractor assumes the risk of cost overruns, which incentivizes them to manage their costs efficiently. This protects the government from unexpected price increases. For the USDA, this means the $2.49 million award amount is the ceiling, and they benefit from any cost savings the contractor achieves. The effectiveness is maximized when the initial price negotiated is competitive, which is supported by the full and open competition method used.

What are the historical spending patterns for frozen fruit and juice products by the USDA?

Historical spending patterns by the USDA on frozen fruit and juice products are substantial, reflecting the agency's role in supporting domestic agriculture and providing food assistance. The USDA procures large volumes of these items through various programs, including those for schools, food banks, and disaster relief. Spending fluctuates based on program needs, agricultural output, and budget allocations. Analyzing past solicitations and awards for similar items (e.g., frozen berries, other fruit juices) would reveal trends in quantities purchased, pricing, and the types of contractors frequently awarded these agreements. This specific $2.49 million award for apple juice cups fits within this broader pattern of consistent procurement of fruit-based products.

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: 123J1426B0041

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peterson Farms Inc

Address: 3104 W BASELINE RD, SHELBY, MI, 49455

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,489,076

Exercised Options: $2,489,076

Current Obligation: $2,489,076

Actual Outlays: $1,715,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline