USDA Awards $1.9M for Canned Beans to Packers Canning Co. Under Full and Open Competition

Contract Overview

Contract Amount: $1,945,709 ($1.9M)

Contractor: Packers Canning CO Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-12-09

End Date: 2026-03-31

Contract Duration: 112 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011065/4100033342/BEANS LIGHT RED KIDNEY CAN-24/300,BEANS BLACK TURTLE CAN-6/10,BEANS GARBANZO CAN-6/10,BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300,BEANS GARBANZO CAN-24/300,BEANS PINTO CAN-6/10,BEANS BABY LI

Place of Performance

Location: LAWTON, VAN BUREN County, MICHIGAN, 49065

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.9 million to PACKERS CANNING CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011065/4100033342/BEANS LIGHT RED KIDNEY CAN-24/300,BEANS BLACK TURTLE CAN-6/10,BEANS GARBANZO CAN-6/10,BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300,BEANS GARBANZO CAN-24/300,BEANS PINTO CAN-6/10,BEANS BABY LI Key points: 1. Contract awarded to Packers Canning Co. Inc. for canned beans, a staple commodity. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 112 days, with an award value of $1,945,708.92. 4. The sector is agricultural commodities, vital for food donation programs.

Value Assessment

Rating: good

The contract value of $1.9M for 112 days of canned beans appears reasonable given the quantity and nature of the goods. Benchmarking against similar large-scale commodity purchases would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically drives competitive pricing. The award to a single vendor suggests they offered the best value.

Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing for taxpayers, ensuring funds are used efficiently for food donation programs.

Public Impact

Ensures supply of essential food items for USG food donation programs. Supports agricultural sector through procurement of canned goods. Provides nutritional resources to beneficiaries of food assistance programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Clear contract end date
Defined commodity type

Sector Analysis

This contract falls within the agricultural commodities sector, specifically focusing on canned vegetables. Spending in this area is crucial for federal food assistance and donation programs, with benchmarks varying based on commodity type and volume.

Small Business Impact

The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to assess small business inclusion.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Standard oversight for commodity procurement should apply, ensuring quality and timely delivery.

Related Government Programs

Fruit and Vegetable Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price volatility in commodity markets
Dependence on a single supplier for this specific award
Logistical challenges in distribution of donated food

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.9 million to PACKERS CANNING CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011065/4100033342/BEANS LIGHT RED KIDNEY CAN-24/300,BEANS BLACK TURTLE CAN-6/10,BEANS GARBANZO CAN-6/10,BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300,BEANS GARBANZO CAN-24/300,BEANS PINTO CAN-6/10,BEANS BABY LI

Who is the contractor on this award?

The obligated recipient is PACKERS CANNING CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.9 million.

What is the period of performance?

Start: 2025-12-09. End: 2026-03-31.

What is the historical pricing trend for these specific canned bean varieties purchased by the USDA?

Analyzing historical pricing data for light red kidney, black turtle, garbanzo, black, and pinto beans over the past several years would reveal any significant price fluctuations or trends. This context is crucial for determining if the current award price of $1.9M represents a fair market value or if it deviates from established patterns, potentially indicating overpayment or a favorable deal.

What are the specific quality control and inspection measures in place for these canned goods?

Given the nature of food donations, robust quality control is paramount. Understanding the inspection protocols, testing procedures for spoilage or contamination, and adherence to food safety standards (e.g., FDA regulations) is essential. This ensures the donated food is safe and meets nutritional requirements for recipients.

How does the unit cost compare to commercially available canned beans of similar size and quality?

Benchmarking the per-unit cost against major commercial retailers or food distributors for comparable canned beans (e.g., 15oz cans) would provide a direct comparison. While government contracts may have different cost structures, a significant deviation could signal potential inefficiencies or opportunities for cost savings in future procurements.

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: SEALED BID

Solicitation ID: 123J1426B0042

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 72100 M 40, LAWTON, MI, 49065

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

Financial Breakdown

Contract Ceiling: $1,945,709

Exercised Options: $1,945,709

Current Obligation: $1,945,709

Actual Outlays: $20,318

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline