USDA awards $2.5M for fruit juices, with Mayer Bros. Apple Products Inc. securing the contract

Contract Overview

Contract Amount: $2,545,475 ($2.5M)

Contractor: Mayer Bros. Apple Products Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-09

End Date: 2026-03-31

Contract Duration: 112 days

Daily Burn Rate: $22.7K/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: 2000011063/4100033366/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: BARKER, NIAGARA County, NEW YORK, 14012

State: New York Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.5 million to MAYER BROS. APPLE PRODUCTS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011063/4100033366/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 focuses on essential food commodities for U.S. government donations, highlighting a critical supply chain function. 2. Competition was robust, indicating potential for favorable pricing and a wide selection of qualified suppliers. 3. The firm-fixed-price structure provides cost certainty for the government, mitigating budget risks. 4. The contract duration spans over a year, ensuring consistent supply for donation programs. 5. The award to Mayer Bros. Apple Products Inc. suggests a strong performance history or competitive advantage in this specific market segment.

Value Assessment

Rating: good

The total award of $2.5 million for fruit juices appears reasonable given the quantity and duration. Benchmarking against similar commodity contracts for food donations is challenging without more granular data on specific product types and volumes. However, the number of bids received (10) suggests a competitive environment that likely drove pricing towards market rates. The firm-fixed-price contract type further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. Ten bids were received, demonstrating a healthy level of competition for this requirement. This broad competition is a positive sign for price discovery and ensures the government can select the most advantageous offer.

Taxpayer Impact: The extensive competition suggests that taxpayer dollars were used efficiently, as multiple companies vied to provide the best value, likely leading to more competitive pricing than a sole-source or limited competition award.

Public Impact

Beneficiaries include individuals and families receiving U.S. government-donated food products, particularly those in need of nutritional supplements. The services delivered involve the procurement and supply of various fruit juices, contributing to the diversity and nutritional content of food aid. The geographic impact is national, supporting food distribution networks across the United States. Workforce implications are primarily within the food processing and distribution sectors, supporting jobs in manufacturing, logistics, and supply chain management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw fruit commodities impacting long-term cost-effectiveness if not managed through contract terms.
Dependence on a single contractor for a significant volume of essential food items could pose supply chain risks if the contractor faces operational issues.

Positive Signals

Firm-fixed-price contract provides budget certainty and protects against cost overruns.
Full and open competition ensures a competitive marketplace and potentially better pricing.
Contract duration of over a year provides supply chain stability for critical food donation programs.

Sector Analysis

The food and beverage manufacturing sector is a significant part of the U.S. economy. This contract falls within the fruit and vegetable canning sub-sector, which involves processing and preserving fruits and vegetables. Spending in this area supports agricultural producers and contributes to the availability of shelf-stable food products for various uses, including government programs. Comparable spending benchmarks would typically be found within the broader category of commodity procurement for federal food assistance programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Mayer Bros. Apple Products Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future procurements of this nature.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the USDA is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, quality control checks of the delivered products, and financial audits to ensure compliance with the contract terms. Transparency is generally maintained through contract award databases, though specific operational details may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Bank Network Support

Risk Flags

Potential supply chain disruption risk
Commodity price volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to MAYER BROS. APPLE PRODUCTS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011063/4100033366/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 MAYER BROS. APPLE PRODUCTS INC..

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

What is the historical spending pattern for fruit juice procurement by the USDA for donation programs?

Analyzing historical spending for fruit juice procurement by the USDA for donation programs requires access to detailed procurement data over several fiscal years. While this specific contract award is for $2.5 million, understanding the broader trend involves looking at the total value of similar contracts awarded annually, the number of contractors involved, and the types of juices procured. Historically, the USDA procures large quantities of various food commodities, including juices, to support domestic and international food assistance initiatives. Fluctuations in spending can be influenced by factors such as appropriations, changes in program needs, agricultural market prices, and global supply chain conditions. A comprehensive review would likely show variability year-over-year, with significant investments made to ensure food security and nutritional support through these donation channels.

How does the per-unit cost of this apple juice contract compare to market rates or similar government contracts?

Determining the precise per-unit cost and comparing it to market rates or similar government contracts is challenging without specific details on the volume and exact product specifications (e.g., organic, fortified, specific varietals) for the $2.5 million award. The contract covers multiple types of juices (apple, cherry-apple, grape, cranberry-apple) in 8/64 fl oz plastic bottles. To perform a robust comparison, one would need to isolate the cost per bottle or per fluid ounce for each juice type and then benchmark this against current wholesale prices for similar products and against historical USDA contract data for comparable items. The fact that 10 bids were received suggests competitive pricing, but without the unit cost data, a definitive value-for-money assessment relative to the market is not possible from the provided summary.

What is Mayer Bros. Apple Products Inc.'s track record with USDA or other federal agencies for similar commodity contracts?

Mayer Bros. Apple Products Inc. has a history of supplying products to government entities, as evidenced by this award. To assess their track record thoroughly, one would need to examine their past performance on federal contracts, specifically those involving the USDA or other agencies procuring food commodities. This would involve reviewing contract databases for previous awards, looking for any performance issues, contract modifications, or disputes. A positive track record with consistent delivery, quality compliance, and adherence to contract terms would indicate reliability. Conversely, any history of performance failures or significant contract disputes would raise concerns about their capacity to fulfill this current $2.5 million award effectively.

What are the potential risks associated with the supply chain for these donated fruit juices?

Potential risks in the supply chain for these donated fruit juices include disruptions in the availability of raw agricultural products (fruits), fluctuations in commodity prices, transportation and logistics challenges (e.g., weather, fuel costs, driver shortages), and potential quality control issues during processing and packaging. The reliance on a single prime contractor, Mayer Bros. Apple Products Inc., for this significant volume introduces concentration risk; if the contractor experiences production issues, financial instability, or other operational problems, it could lead to delays or shortages in the supply of these essential juices to donation programs. Furthermore, geopolitical events or natural disasters could impact the sourcing of ingredients or the distribution network.

How does the 'full and open competition after exclusion of sources' method impact the government's ability to secure competitive pricing?

The 'full and open competition after exclusion of sources' method is designed to maximize competition while allowing for specific, justified exclusions. In this case, it means the solicitation was broadly advertised, but certain sources might have been excluded based on pre-defined criteria (though the provided data doesn't specify these criteria). The key benefit for the government is that it still encourages a wide range of potential bidders to participate. With 10 bids received, this approach appears to have been successful in fostering a competitive environment. A higher number of bidders generally leads to more aggressive pricing as companies strive to win the contract, thereby enhancing the government's ability to secure competitive pricing and achieve better value for taxpayer money compared to sole-source or more restricted competition methods.

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: 3300 TRANSIT RD, WEST SENECA, NY, 14224

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

Financial Breakdown

Contract Ceiling: $2,545,475

Exercised Options: $2,545,475

Current Obligation: $2,545,475

Actual Outlays: $1,287,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline