USDA awards $3.26M contract for fruit juices to Cherry Central Cooperative under full and open competition

Contract Overview

Contract Amount: $3,265,609 ($3.3M)

Contractor: Cherry Central Cooperative, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-09

End Date: 2026-03-31

Contract Duration: 112 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011063/4100033359/APPLE JUICE PLST BTL-8/64 FL OZ,CHERRY APPLE JUICE PLST BTL-8/64 FL OZ,GRAPE CONCORD JUICE PLST BTL-8/64 FL OZ,CRANBERRYAPPLE JUICE PLST BTL-8/64 FL OZ

Place of Performance

Location: LUDINGTON, MASON County, MICHIGAN, 49431

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.3 million to CHERRY CENTRAL COOPERATIVE, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011063/4100033359/APPLE JUICE PLST BTL-8/64 FL OZ,CHERRY APPLE JUICE PLST BTL-8/64 FL OZ,GRAPE CONCORD JUICE PLST BTL-8/64 FL OZ,CRANBERRYAPPLE JUICE PLST BTL-8/64 FL OZ Key points: 1. The contract is for various fruit juices, including apple, cherry, and grape, in plastic bottles. 2. Cherry Central Cooperative, Inc. is the awardee, with the contract managed by the Agricultural Marketing Service. 3. The contract type is a Firm Fixed Price Definitive Contract with a duration of 112 days. 4. This award falls under the 'Fruit and Vegetable Canning' industry code.

Value Assessment

Rating: good

The total award amount is $3,265,609. Benchmarking against similar commodity contracts for food donations is difficult without more specific data on volume and exact product specifications. However, the price appears reasonable for a large quantity of juice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was used. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure goods at the best possible price for federal food donation programs.

Public Impact

Ensures availability of essential fruit juices for federal food donation programs. Supports agricultural producers and processors within the fruit and vegetable canning sector. Provides a consistent supply of nutritious beverages to beneficiaries of food assistance programs. The contract contributes to the Department of Agriculture's mission of supporting food security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting future procurements.
Logistical challenges in distribution of perishable goods across various locations.

Positive Signals

Clear product specifications ensure quality and suitability for donation.
Firm Fixed Price contract provides cost certainty for the government.
Defined contract period limits long-term financial commitment.

Sector Analysis

This contract falls within the Food and Beverage Manufacturing sector, specifically fruit and vegetable processing. Spending benchmarks for this specific type of commodity procurement are highly variable based on market conditions and volume. The USDA is a significant purchaser of agricultural commodities for various programs.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the awardee is Cherry Central Cooperative, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors or suppliers within the awardee's supply chain.

Oversight & Accountability

The contract is managed by the Agricultural Marketing Service, a division of the USDA, which has established procurement regulations. Oversight would involve monitoring contract performance, delivery schedules, and product quality to ensure compliance with the terms and conditions.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions affecting delivery.
Commodity price volatility impacting long-term cost-effectiveness.
Ensuring consistent quality across all delivered batches.
Logistical challenges in distributing to diverse donation points.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.3 million to CHERRY CENTRAL COOPERATIVE, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011063/4100033359/APPLE JUICE PLST BTL-8/64 FL OZ,CHERRY APPLE JUICE PLST BTL-8/64 FL OZ,GRAPE CONCORD JUICE PLST BTL-8/64 FL OZ,CRANBERRYAPPLE JUICE PLST BTL-8/64 FL OZ

Who is the contractor on this award?

The obligated recipient is CHERRY CENTRAL COOPERATIVE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

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

What is the historical pricing trend for these specific juice products procured by the USDA?

Historical pricing data for these specific fruit juice products procured by the USDA would provide valuable context for assessing the current award's value. Analyzing past contracts for similar quantities and specifications could reveal whether the current price of $3,265,609 represents an increase, decrease, or is in line with previous procurements, thus informing future negotiation strategies and budget allocations.

What are the specific quality control measures and testing protocols in place for the delivered juices?

Robust quality control measures and testing protocols are crucial to ensure the donated juices meet safety and nutritional standards. Understanding these procedures, including any third-party certifications or government inspections, helps mitigate the risk of receiving substandard products and ensures the effectiveness of the food donation program in providing safe and wholesome food to recipients.

How does the unit cost of this juice compare to commercially available products of similar size and quality?

Comparing the unit cost of this government-procured juice to similar commercially available products can offer insights into the efficiency of the procurement process and the value obtained. If the government price is significantly lower, it suggests effective negotiation and competition. Conversely, a higher price might indicate potential inefficiencies or unique product requirements that warrant further investigation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0040

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1771 N US 31 S, TRAVERSE CITY, MI, 49685

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: $3,265,609

Exercised Options: $3,265,609

Current Obligation: $3,265,609

Actual Outlays: $2,194,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline