USDA awards $2.58M contract for fresh grapefruit, highlighting perishable food manufacturing needs

Contract Overview

Contract Amount: $2,579,501 ($2.6M)

Contractor: Bushmans' Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-05-13

Contract Duration: 118 days

Daily Burn Rate: $21.9K/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: 2000011099/4100033594/GRAPEFRUIT FRESH CTN-34-39 LB

Place of Performance

Location: GRAND MARSH, ADAMS County, WISCONSIN, 53936

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.6 million to BUSHMANS' INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033594/GRAPEFRUIT FRESH CTN-34-39 LB Key points: 1. Contract value of $2.58M for fresh grapefruit suggests significant demand for essential food commodities. 2. The award to Bushmans' Inc. indicates a competitive procurement process for food supply. 3. A definitive contract type with a firm fixed price suggests predictable costs for the government. 4. The short performance period (118 days) implies a need for timely delivery of perishable goods. 5. Geographic focus on Wisconsin for distribution points to specific regional food security efforts. 6. The contract's classification under perishable prepared food manufacturing underscores supply chain complexities.

Value Assessment

Rating: good

The contract value of $2.58M for 20,000 cases of fresh grapefruit appears reasonable given market prices for agricultural commodities. Benchmarking against similar USDA food donation contracts would provide a more precise value-for-money assessment. The firm fixed price structure helps mitigate cost overruns, contributing to predictable spending.

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 robust bidding process where multiple vendors were considered. The presence of 12 bids suggests a healthy level of competition, which typically drives down prices and ensures fair market value.

Taxpayer Impact: This level of competition is beneficial for taxpayers as it likely resulted in a more cost-effective award compared to a sole-source or limited competition scenario.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of fresh grapefruit, a nutritious food item. Geographic impact is focused on Wisconsin, supporting regional food distribution networks. Workforce implications may involve logistics, transportation, and handling of perishable goods within the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires stringent supply chain management to prevent spoilage and waste.
Reliance on a single supplier for a specific commodity could pose risks if supply is disrupted.
Transportation logistics for fresh produce can be complex and costly, impacting final delivery.

Positive Signals

The firm fixed price contract provides cost certainty for the government.
Full and open competition indicates a competitive market for this commodity.
The contract specifies a clear end date, ensuring defined project scope and timeline.

Sector Analysis

This contract falls within the broader agricultural and food distribution sector, specifically focusing on the procurement of fresh produce for federal food donation programs. The market for agricultural commodities is vast and subject to seasonal variations, global supply, and trade policies. Comparable spending benchmarks would involve analyzing other USDA procurements for similar food items and quantities.

Small Business Impact

While the contract details do not explicitly mention small business set-asides or subcontracting goals, the 'Full and Open Competition' framework allows for participation by small businesses. The overall impact on the small business ecosystem would depend on whether small businesses were among the 12 bidders or are involved in the supply chain of the awarded contractor.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) within the USDA, responsible for procurement and contract management. Accountability measures are embedded in the firm fixed price contract terms and delivery schedules. Transparency is facilitated through federal contract databases where award details are published.

Related Government Programs

USDA Food Purchase and Distribution Programs
Commodity Supplemental Food Program
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
National School Lunch Program

Risk Flags

Perishability Risk
Supply Chain Disruption
Timely Delivery Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to BUSHMANS' INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033594/GRAPEFRUIT FRESH CTN-34-39 LB

Who is the contractor on this award?

The obligated recipient is BUSHMANS' INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-05-13.

What is the historical spending pattern for fresh grapefruit procurement by the USDA for donation programs?

Analyzing historical spending data for fresh grapefruit procurement by the USDA for donation programs would reveal trends in volume, pricing, and supplier consistency. This analysis would help determine if the current award of $2.58M is in line with previous investments or represents a significant increase or decrease. Understanding past spending patterns can also highlight any recurring issues with specific suppliers or commodity availability, informing future procurement strategies and risk assessments. For instance, a review might show fluctuating prices due to seasonal availability or a consistent reliance on a few key suppliers, indicating potential market concentration.

How does the per-unit cost of this grapefruit contract compare to market rates or similar federal contracts?

A detailed comparison of the per-unit cost for the fresh grapefruit in this contract against prevailing market rates and similar federal procurements is crucial for assessing value for money. If the contract price per case or per pound is significantly higher than market averages or comparable government contracts, it could indicate potential overpayment or inefficiencies in the procurement process. Conversely, a price below market rates might suggest favorable negotiation or a highly competitive bidding environment. This analysis requires access to current commodity market data and historical contract databases to establish a reliable benchmark for evaluation.

What are the specific quality control and inspection procedures for the fresh grapefruit to ensure it meets USDA standards?

The contract likely includes detailed specifications regarding the quality, size, grade, and condition of the fresh grapefruit to be supplied. The USDA's Agricultural Marketing Service (AMS) typically employs stringent quality control measures, which may involve pre-shipment inspections by the supplier and post-delivery inspections by government representatives or third-party inspectors. These procedures ensure that the produce is free from defects, meets freshness standards, and is suitable for distribution to beneficiaries. Non-compliance with quality standards could lead to contract penalties or termination, underscoring the importance of robust quality assurance protocols.

What is the track record of Bushmans' Inc. in fulfilling federal food supply contracts, particularly for perishable goods?

Investigating the track record of Bushmans' Inc. in fulfilling federal food supply contracts, especially for perishable items, is essential for assessing performance risk. This involves reviewing past performance evaluations, any history of contract disputes, delivery timeliness, and compliance with quality specifications in previous government awards. A history of successful, on-time deliveries and adherence to quality standards would indicate a reliable contractor. Conversely, past issues could signal potential risks for this current contract, prompting closer monitoring and contingency planning by the USDA.

What are the potential risks associated with the short performance period and the perishable nature of the goods?

The short performance period of 118 days for perishable goods like fresh grapefruit introduces several potential risks. These include the possibility of delivery delays due to unforeseen logistical challenges, weather disruptions, or supplier capacity issues, which could compromise the freshness of the produce. There's also a risk of spoilage if the supply chain is not managed efficiently from harvest to distribution. The USDA must ensure robust contingency plans are in place to mitigate these risks, such as having backup transportation options or alternative sourcing strategies, to guarantee timely delivery of quality produce.

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: 621 E GRAND AVE, ROSHOLT, WI, 54473

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

Financial Breakdown

Contract Ceiling: $2,579,501

Exercised Options: $2,579,501

Current Obligation: $2,579,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline