USDA's $3.8M Peanut Butter Contract Awarded to American Blanching Company for Food Donations
Contract Overview
Contract Amount: $3,802,457 ($3.8M)
Contractor: American Blanching Company, LLC
Awarding Agency: Department of Agriculture
Start Date: 2025-12-09
End Date: 2026-03-31
Contract Duration: 112 days
Daily Burn Rate: $34.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011071/4100033348/PEANUT BUTTER SMOOTH JAR-12/16 OZ,K PEANUT BUTTER SMOOTH JAR-12/16 OZ
Place of Performance
Location: TROY, PIKE County, ALABAMA, 36079
State: Alabama Government Spending
Plain-Language Summary
Department of Agriculture obligated $3.8 million to AMERICAN BLANCHING COMPANY, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011071/4100033348/PEANUT BUTTER SMOOTH JAR-12/16 OZ,K PEANUT BUTTER SMOOTH JAR-12/16 OZ Key points: 1. The contract focuses on smooth peanut butter jars for U.S. food donations. 2. American Blanching Company, LLC is the sole awardee. 3. The contract is for a firm fixed price, with a duration of 112 days. 4. This procurement falls under the Roasted Nuts and Peanut Butter Manufacturing sector.
Value Assessment
Rating: good
The contract value of $3.8M for peanut butter seems reasonable given the quantity and duration. Benchmarking against similar large-scale food commodity contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process. This method aims to ensure fair pricing and access for qualified vendors.
Taxpayer Impact: The use of taxpayer funds for food donations is intended to support vulnerable populations, with the contract value reflecting the cost of goods for this program.
Public Impact
Ensures a supply of essential food items for U.S. food donation programs. Supports agricultural producers and manufacturers within the peanut butter industry. Contributes to food security initiatives for domestic beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in commodity markets impacting future procurements.
- Reliance on a single manufacturer for a significant quantity of a key food item.
Positive Signals
- Supports a vital government program for food assistance.
- Awarded through a competitive process, suggesting fair market pricing.
- Contract duration aligns with program needs.
Sector Analysis
This contract falls within the food manufacturing sector, specifically roasted nuts and peanut butter. Spending benchmarks for similar government food commodity procurements would be relevant for a deeper analysis.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if this is a specialized requirement.
Oversight & Accountability
The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Standard oversight procedures for government contracts should apply, including performance monitoring and payment verification.
Related Government Programs
- Roasted Nuts and Peanut Butter Manufacturing
- Department of Agriculture Contracting
- Agricultural Marketing Service Programs
Risk Flags
- Potential for supply chain disruption with a single awardee.
- Lack of small business participation noted.
- Dependence on commodity market prices.
- Limited duration may require follow-on contracts.
Tags
roasted-nuts-and-peanut-butter-manufactu, department-of-agriculture, al, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $3.8 million to AMERICAN BLANCHING COMPANY, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011071/4100033348/PEANUT BUTTER SMOOTH JAR-12/16 OZ,K PEANUT BUTTER SMOOTH JAR-12/16 OZ
Who is the contractor on this award?
The obligated recipient is AMERICAN BLANCHING COMPANY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Marketing Service).
What is the total obligated amount?
The obligated amount is $3.8 million.
What is the period of performance?
Start: 2025-12-09. End: 2026-03-31.
What is the historical pricing trend for peanut butter procured by the government for donation programs?
Historical pricing data for government-procured peanut butter for donation programs is crucial for assessing value. Analyzing past contracts can reveal trends, identify potential cost savings, and highlight any significant price increases or decreases over time. This context helps determine if the current $3.8M award represents a fair market price or if there are opportunities for negotiation or alternative sourcing.
What are the risks associated with relying on a single supplier for a critical food commodity like peanut butter?
Relying on a single supplier, even after a competitive bid, carries risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues, or the supplier's financial instability). This could lead to shortages in the food donation program. Additionally, it may limit future competition and potentially lead to higher prices in subsequent procurements if the incumbent supplier faces no direct market pressure.
How effectively does this contract support the U.S. food donation program's objectives?
This contract directly supports the U.S. food donation program by securing a significant quantity of peanut butter, a nutritious and popular food item. The firm fixed price and defined delivery period suggest a structured approach to meeting program needs. The effectiveness hinges on the timely delivery of quality products and their successful distribution to intended beneficiaries, contributing to food security goals.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: TWO STEP
Solicitation ID: 123J1426B0048
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Post Holdings, Inc.
Address: 155 RIP WILEY RD, FITZGERALD, GA, 31750
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,802,457
Exercised Options: $3,802,457
Current Obligation: $3,802,457
Actual Outlays: $856,721
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-09
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-29
More Contracts from American Blanching Company, LLC
- Commodities for USG Food Donations: 2000011171/4100033840/Peanut Butter Smooth JAR-12/16 OZ,K Peanut Butter Smooth JAR-12/16 OZ — $7.1M (Department of Agriculture)
View all American Blanching Company, LLC federal contracts →
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