USDA awards $2.7M for fresh grapefruit and oranges for food donations, contract ends March 2026

Contract Overview

Contract Amount: $2,717,643 ($2.7M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-03-27

Contract Duration: 71 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033587/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.7 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033587/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB Key points: 1. Contract awarded to Wescott Agri Products, Inc. for $2.7M. 2. Commodities include fresh grapefruit and oranges for food donations. 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Contract duration is 71 days. 5. Sector: Agriculture/Food Commodities.

Value Assessment

Rating: fair

The contract value of $2.7M for perishable food items over a short duration appears reasonable, but a direct per-unit cost comparison is difficult without more detailed commodity specifications and market data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized Full and Open Competition after Exclusion of Sources, suggesting an attempt to broaden the bidding pool. However, the specific reason for excluding sources needs further examination to ensure maximum price discovery.

Taxpayer Impact: Taxpayers are funding essential food donations, with the cost reflecting market prices for the specified commodities.

Public Impact

Ensures availability of fresh produce for federal food donation programs. Supports agricultural producers and distributors within the supply chain. Addresses food security needs through government-backed initiatives. Provides nutritional benefits to recipients of food donations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term price stability.
Perishability of goods requires efficient logistics and distribution.
Potential for price fluctuations in fresh produce markets.

Positive Signals

Supports critical food donation programs.
Utilizes competitive bidding process.
Procurement of essential nutritional items.

Sector Analysis

This contract falls within the agricultural and food commodities sector, specifically for perishable goods used in federal food donation programs. Benchmarks for similar large-scale commodity procurements would be necessary for a more precise comparison.

Small Business Impact

Analysis of small business participation is not directly available from the provided data. Further investigation into subcontracting opportunities and Wescott Agri Products' own size status would be needed.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would focus on delivery, quality, and adherence to the firm fixed price agreement.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Limited contract duration.
Perishability of goods.
Potential for market price volatility.
Need for detailed justification of source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.7 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033587/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB

Who is the contractor on this award?

The obligated recipient is WESCOTT AGRI 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 $2.7 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-03-27.

What was the specific rationale for excluding sources in the 'Full and Open Competition after Exclusion of Sources' method, and did this exclusion impact the final price?

The rationale for excluding sources needs to be documented by the agency. Typically, such exclusions are based on specific technical requirements, existing contracts, or national security concerns. Without this documentation, it's impossible to definitively state if the exclusion impacted price discovery, though it inherently limits the competitive pool and could potentially lead to higher prices than a truly unrestricted open competition.

How does the per-unit cost of these grapefruit and oranges compare to current market rates for similar quality produce intended for donation or bulk purchase?

A precise per-unit cost comparison is not feasible with the provided data alone. To assess value, one would need to obtain current market prices for bulk quantities of grapefruit and oranges (specifying size, grade, and origin) from agricultural market reports or other government procurement data. This would allow for a benchmark against the $2.7M contract value over its 71-day period.

Given the short 71-day duration and the perishable nature of the goods, what measures are in place to ensure efficient distribution and minimize waste?

The short duration and perishability necessitate a robust logistics and distribution plan. Measures likely include pre-established agreements with distribution centers, timely delivery schedules coordinated with recipient agencies, and potentially contingency plans for rapid redistribution or alternative use if immediate distribution is challenged. The contract terms should specify delivery windows and quality upon arrival.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0075

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28085 COUNTY ROAD 25, ELGIN, MN, 55932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,717,643

Exercised Options: $2,717,643

Current Obligation: $2,717,643

Actual Outlays: $1,382,532

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline