Campbell Foodservice Co. awarded $691,988 for canned tomato soup, with 3932 units

Contract Overview

Contract Amount: $691,988 ($692.0K)

Contractor: Campbell Foodservice CO

Awarding Agency: Department of Agriculture

Start Date: 2026-02-05

End Date: 2026-07-31

Contract Duration: 176 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011139/4100033678/SOUP TOMATO CAN-24/1

Place of Performance

Location: MAXTON, ROBESON County, NORTH CAROLINA, 28364

State: North Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $691,988 to CAMPBELL FOODSERVICE CO for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011139/4100033678/SOUP TOMATO CAN-24/1 Key points: 1. Value for money assessed through unit price against market benchmarks. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include firm fixed-price contract type. 4. Performance context is a short-term delivery requirement. 5. Sector positioning within food commodities for government donations.

Value Assessment

Rating: good

The contract value of $691,988 for 3932 units of canned tomato soup suggests a unit price of approximately $176. This price needs to be benchmarked against similar government procurements and commercial market rates for canned goods to fully assess value. The firm fixed-price structure provides cost certainty for the government, but the specific unit price will be the primary determinant of value for money.

Cost Per Unit: $176 per unit

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3932 units suggests a potentially significant quantity, and the competitive process should have driven a fair market price. The number of bids received would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods.

Public Impact

Beneficiaries include recipients of USG food donations. Services delivered involve the provision of canned tomato soup. Geographic impact is likely nationwide, supporting food assistance programs. Workforce implications are minimal, primarily related to food processing and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting long-term cost-effectiveness.
Dependence on a single supplier for a specific commodity could pose supply chain risks if not managed.

Positive Signals

Firm fixed-price contract provides budget certainty.
Award to a known entity suggests established quality and delivery capabilities.
Full and open competition generally leads to competitive pricing.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on canned goods for government use. The market for food commodities procured by government agencies is substantial, driven by various programs including food assistance and disaster relief. Benchmarking this contract against other government procurements for similar canned goods would provide further context on pricing and volume.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation in fulfilling this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's Agricultural Marketing Service. Accountability measures are inherent in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.

Related Government Programs

USG Food Donations
Agricultural Commodity Procurement
Food Assistance Programs

Risk Flags

Potential for price volatility in agricultural commodities.
Supply chain disruptions affecting delivery timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $691,988 to CAMPBELL FOODSERVICE CO. COMMODITIES FOR USG FOOD DONATIONS: 2000011139/4100033678/SOUP TOMATO CAN-24/1

Who is the contractor on this award?

The obligated recipient is CAMPBELL FOODSERVICE CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $691,988.

What is the period of performance?

Start: 2026-02-05. End: 2026-07-31.

What is the historical spending pattern for canned tomato soup by the Department of Agriculture?

Analyzing historical spending data for canned tomato soup by the Department of Agriculture would reveal trends in contract values, quantities procured, and pricing over time. This analysis could identify periods of increased or decreased demand, potential shifts in supplier base, and whether current pricing aligns with historical averages or shows significant deviations. Understanding these patterns is crucial for forecasting future needs and budgeting effectively, as well as for identifying any anomalies that might warrant further investigation into market conditions or procurement strategies.

How does the unit price of $176 compare to similar government contracts for canned goods?

Comparing the unit price of approximately $176 for canned tomato soup to similar government contracts for canned goods requires access to a broader dataset of federal procurements. Factors such as the specific type of canned good (e.g., vegetables, fruits, meats), can size, quantity ordered, delivery location, and contract type (e.g., firm fixed-price, cost-plus) can significantly influence unit prices. A higher unit price might be justified by smaller order quantities, specialized packaging, or expedited delivery requirements. Conversely, a lower unit price could indicate bulk purchasing efficiencies or a more competitive bidding environment for that specific item.

What are the potential risks associated with a firm fixed-price contract for food commodities?

While firm fixed-price contracts offer budget certainty, they can pose risks for both the government and the contractor when dealing with food commodities. For the contractor, unforeseen increases in raw material costs (e.g., tomatoes, packaging), labor, or transportation can erode profit margins, potentially leading to performance issues or contract disputes if the contractor struggles to meet obligations. For the government, if the initial price was set too high due to optimistic contractor projections or insufficient competition, taxpayers may overpay. Additionally, if market prices drop significantly after the contract is awarded, the government is locked into the higher price.

What is the typical duration and value of contracts for food commodities under the Agricultural Marketing Service?

The typical duration and value of contracts for food commodities under the Agricultural Marketing Service can vary widely depending on the specific commodity, the program it supports (e.g., domestic nutrition assistance, international food aid), and the procurement strategy. Contracts can range from short-term, spot purchases to multi-year agreements. Values are similarly diverse, from small orders for specific needs to large-scale procurements involving millions of dollars. This particular contract, with a duration of approximately 5 months and a value of $691,988, falls within a moderate range for a specific commodity delivery.

How does the Agricultural Marketing Service ensure the quality and safety of procured food commodities?

The Agricultural Marketing Service (AMS) employs several mechanisms to ensure the quality and safety of procured food commodities. This includes establishing detailed product specifications in solicitations, requiring vendors to meet specific grading standards (e.g., USDA grades), and often mandating inspections by accredited third-party laboratories or government inspectors. Contracts typically include clauses for acceptance and rejection of goods that do not meet specifications. Furthermore, AMS may conduct audits of suppliers and their facilities to ensure compliance with food safety regulations and quality control processes throughout the supply chain.

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

Solicitation Procedures: TWO STEP

Solicitation ID: 123J1426B0110

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Campbell Soup Company

Address: 1 CAMPBELL PL, CAMDEN, NJ, 08103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $691,988

Exercised Options: $691,988

Current Obligation: $691,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline