USDA's $2.39M Contract for Fresh Grapefruit and Oranges Awarded to Wescott Agri Products

Contract Overview

Contract Amount: $2,390,819 ($2.4M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-06-24

Contract Duration: 160 days

Daily Burn Rate: $14.9K/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: 2000011099/4100033596/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 $2.4 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033596/GRAPEFRUIT FRESH CTN-34-39 LB,ORANGES CTN-34-39 LB Key points: 1. The contract focuses on perishable food items, specifically fresh citrus fruits. 2. Wescott Agri Products, Inc. is the sole awardee under this definitive contract. 3. The contract is for a firm-fixed price, indicating predictable costs for the government. 4. This procurement falls under the Agricultural Marketing Service within the Department of Agriculture.

Value Assessment

Rating: fair

The contract value of $2.39 million for perishable food items appears reasonable given the quantity and duration. Benchmarking against similar government food procurements would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for food donations, a program with social benefits. The limited competition aspect warrants scrutiny to ensure cost-effectiveness.

Public Impact

Ensures availability of fresh citrus for U.S. government food donation programs. Supports agricultural producers and distributors within the food supply chain. Provides essential nutritional resources to beneficiaries of food assistance programs. The contract's duration of approximately 5 months covers a specific period for these donations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Perishability of goods introduces logistical and waste risks.
Reliance on a single vendor for a critical commodity.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Supports federal food donation initiatives.
Clear awardee and contract type.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically focusing on fresh produce for federal food donation programs. Spending benchmarks for similar perishable food procurements are difficult to ascertain without more specific data on item types and quantities.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring delivery, quality, and adherence to the firm-fixed-price terms to ensure accountability.

Related Government Programs

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

Risk Flags

Limited competition
Perishability of goods
Potential for price inflation due to source exclusion
Lack of small business consideration noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.4 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011099/4100033596/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 $2.4 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-06-24.

What is the specific impact of excluding sources on the final price compared to a fully open competition?

Excluding sources in a procurement process can limit the pool of potential bidders, potentially reducing competitive pressure. This can lead to higher prices than might be achieved in a truly open competition where a wider range of suppliers can participate and offer their best pricing. The extent of this impact depends on the specific reasons for exclusion and the availability of alternative suppliers.

What are the primary risks associated with procuring perishable goods like fresh citrus for donation?

The primary risks include spoilage during transit and storage, leading to waste and financial loss. There are also logistical challenges in ensuring timely delivery to distribution points and maintaining quality standards. Furthermore, fluctuations in market prices for fresh produce can impact the value proposition if not adequately managed within the contract terms.

How effectively does this contract support the overall mission of federal food donation programs?

This contract directly supports the mission by procuring essential food items. The firm-fixed-price structure aims for cost predictability. However, the effectiveness is also tied to the efficiency of the distribution network and the actual need for these specific commodities, which are outside the scope of this contract alone.

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: $2,390,819

Exercised Options: $2,390,819

Current Obligation: $2,390,819

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline