USDA awards $2.17M contract to Knouse Foods for canned apple products for food donations

Contract Overview

Contract Amount: $2,168,173 ($2.2M)

Contractor: Knouse Foods, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-09

End Date: 2026-03-31

Contract Duration: 112 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011074/4100033373/APPLE SLICES CAN-6/10,APPLESAUCE UNSWEETENED CAN-6/10

Place of Performance

Location: PEACH GLEN, ADAMS County, PENNSYLVANIA, 17375

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.2 million to KNOUSE FOODS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011074/4100033373/APPLE SLICES CAN-6/10,APPLESAUCE UNSWEETENED CAN-6/10 Key points: 1. Contract awarded to a single vendor, Knouse Foods, Inc. 2. The contract is for canned apple slices and applesauce, a common commodity. 3. The award value is $2,168,172.71. 4. The contract duration is 112 days. 5. This is a firm-fixed-price contract.

Value Assessment

Rating: fair

The contract value of $2.17M for canned fruit products appears to be within a reasonable range for bulk food donations. However, without specific volume data or detailed product specifications, a precise benchmark is difficult.

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'. This suggests that while competition was sought, specific circumstances may have led to the exclusion of certain potential bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used to procure food for donation programs, which serves a public good. The efficiency of the procurement process and the final price paid will determine the ultimate taxpayer impact.

Public Impact

Ensures availability of essential food items for federal donation programs. Supports agricultural producers and food processing companies. Contributes to food security initiatives within the US.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition despite 'full and open' designation.
Lack of detailed cost breakdown for unit pricing.
Short contract duration may limit long-term supplier engagement.

Positive Signals

Supports a clear public good through food donations.
Utilizes a firm-fixed-price contract, providing cost certainty.
Awarded to a known entity in the food processing sector.

Sector Analysis

This contract falls within the food processing and distribution sector, specifically for agricultural commodities. Spending benchmarks for similar canned goods can vary widely based on volume, quality, and packaging.

Small Business Impact

The data indicates that the award was not made to a small business (sb: false). Therefore, this specific contract does not directly benefit small businesses.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, product quality, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Limited competition despite 'full and open' designation.
Lack of detailed cost breakdown for unit pricing.
Short contract duration may limit long-term supplier engagement.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.2 million to KNOUSE FOODS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011074/4100033373/APPLE SLICES CAN-6/10,APPLESAUCE UNSWEETENED CAN-6/10

Who is the contractor on this award?

The obligated recipient is KNOUSE FOODS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

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

What specific criteria led to the exclusion of sources in this 'full and open competition after exclusion of sources' award, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical requirements, past performance, or unique capabilities are needed that only a limited number of vendors can meet. Without further details on the exclusion criteria, it's difficult to definitively state the price impact. However, reduced competition generally leads to higher prices compared to a truly open market scenario.

How does the unit cost of these canned apple products compare to commercially available equivalents or historical government purchases of similar items?

A direct comparison of unit cost is challenging without knowing the exact quantity per can (e.g., 6/10 size) and the total number of units procured. Government bulk purchases can sometimes achieve lower prices than retail, but the 'exclusion of sources' might have inflated this specific price. Historical data or commercial pricing for similar bulk canned fruit would be needed for a robust benchmark.

What is the anticipated impact of these food donations on food insecurity metrics in the recipient areas?

The impact on food insecurity metrics depends on the quantity of food distributed, the efficiency of the distribution network, and the specific needs of the recipient populations. While this contract provides a significant volume of food, its ultimate effect is tied to the broader success of the USDA's food donation programs in reaching vulnerable communities and supplementing existing food assistance efforts.

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: 123J1426B0051

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 PEACH GLEN IDAVILLE RD, PEACH GLEN, PA, 17375

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

Financial Breakdown

Contract Ceiling: $2,168,173

Exercised Options: $2,168,173

Current Obligation: $2,168,173

Actual Outlays: $1,403,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline