USDA's Agricultural Marketing Service awards $7.08M contract for canned salmon to Silver Bay Seafoods

Contract Overview

Contract Amount: $7,077,272 ($7.1M)

Contractor: Silver BAY Seafoods, L.L.C.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-06-30

Contract Duration: 201 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011088/4100033423/SALMON PINK CAN-24/14.75 OZ (33630),K SALMON PINK CAN-24/14.75 OZ (33630)

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.1 million to SILVER BAY SEAFOODS, L.L.C. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011088/4100033423/SALMON PINK CAN-24/14.75 OZ (33630),K SALMON PINK CAN-24/14.75 OZ (33630) Key points: 1. Contract awarded for canned pink salmon, a key commodity for USG food donations. 2. Silver Bay Seafoods, L.L.C. is the sole awardee. 3. The contract runs from December 2025 to June 2026. 4. This award falls under the Seafood Product Preparation and Packaging NAICS code.

Value Assessment

Rating: good

The contract value of $7.08 million for approximately 200,000 cans of salmon appears reasonable given the quantity and market prices for canned seafood. Benchmarking against similar government food donation procurements would provide further validation.

Cost Per Unit: $35.21 per unit (can)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices for the government.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential food donation programs.

Public Impact

Ensures continued supply of essential food items for federal food donation programs. Supports the agricultural sector, specifically seafood processing in Alaska. Provides a stable source of protein for vulnerable populations through government assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in seafood commodities.
Logistical challenges in distributing canned goods nationwide.

Positive Signals

Supports domestic food security initiatives.
Utilizes competitive procurement for cost-effectiveness.
Awarded to a US-based company.

Sector Analysis

This procurement falls within the broader food manufacturing sector, specifically seafood processing. Government contracts for food commodities are crucial for supporting domestic agriculture and ensuring food security programs are adequately supplied.

Small Business Impact

While the awardee is Silver Bay Seafoods, L.L.C., the data does not indicate if they are a small business. Further analysis would be needed to determine the impact on small business participation in this specific contract.

Oversight & Accountability

The Agricultural Marketing Service is responsible for this procurement, ensuring compliance with federal regulations and program objectives. Oversight would focus on contract performance, delivery schedules, and product quality.

Related Government Programs

Seafood Product Preparation and Packaging
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for supply chain disruptions affecting delivery.
Dependence on a single supplier for a critical commodity.
Market volatility impacting long-term cost-effectiveness.
Ensuring consistent quality across all delivered units.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.1 million to SILVER BAY SEAFOODS, L.L.C.. COMMODITIES FOR USG FOOD DONATIONS: 2000011088/4100033423/SALMON PINK CAN-24/14.75 OZ (33630),K SALMON PINK CAN-24/14.75 OZ (33630)

Who is the contractor on this award?

The obligated recipient is SILVER BAY SEAFOODS, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.1 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-06-30.

What is the historical pricing trend for canned pink salmon procured by the government?

Analyzing historical pricing data for similar canned pink salmon contracts over the past 3-5 years would reveal any significant price escalations or reductions. This context is vital for assessing the current $35.21 per-unit cost and determining if it aligns with market trends or represents an outlier due to specific contract terms or market conditions.

What are the specific quality and nutritional standards required for the canned salmon?

The contract likely specifies detailed quality control measures, including standards for salmon species, processing methods, canning integrity, and nutritional content. Adherence to these standards is critical to ensure the donated food is safe, palatable, and meets the nutritional needs of recipients in federal food donation programs.

How does the duration of this contract align with typical food donation program needs?

The contract's duration, from December 2025 to June 2026 (approximately 7 months), needs to be assessed against the ongoing demand cycles of federal food donation programs. A shorter duration might necessitate frequent re-procurement, while a longer one could risk price volatility or supply chain disruptions.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0064

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 208 LAKE STREET SUITE 2E, SITKA, AK, 99835

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,077,272

Exercised Options: $7,077,272

Current Obligation: $7,077,272

Actual Outlays: $2,153,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline