USDA Awards $1.4M Contract for Canned Soups to Campbell Foodservice

Contract Overview

Contract Amount: $1,436,490 ($1.4M)

Contractor: Campbell Foodservice CO

Awarding Agency: Department of Agriculture

Start Date: 2026-02-05

End Date: 2026-06-30

Contract Duration: 145 days

Daily Burn Rate: $9.9K/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: 2000011139/4100033679/SOUP CREAM OF MUSHROOM CAN-24/1,SOUP CREAM OF CHICKEN CAN-24/1

Place of Performance

Location: PARIS, LAMAR County, TEXAS, 75460

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.4 million to CAMPBELL FOODSERVICE CO for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011139/4100033679/SOUP CREAM OF MUSHROOM CAN-24/1,SOUP CREAM OF CHICKEN CAN-24/1 Key points: 1. Contract awarded to Campbell Foodservice for canned cream of mushroom and chicken soup. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price. 4. The sector is primarily food commodities, supporting federal food donation programs.

Value Assessment

Rating: good

The contract value of $1,436,490 for canned soup appears reasonable given the quantity and duration. Benchmarking against similar large-scale food commodity contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive process for essential food commodities.

Public Impact

Ensures availability of essential food items for federal food donation programs. Supports domestic food producers and the food manufacturing industry. Provides a consistent supply of nutritious food for beneficiaries of donation programs.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract mitigates cost overrun risk.
Contract supports vital federal food donation programs.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically for canned goods. Spending benchmarks for similar commodity procurements by the USDA would be relevant for comparison.

Small Business Impact

While the awardee is Campbell Foodservice, a large entity, the procurement process itself allows for broad participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or suppliers.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which is responsible for ensuring fair and efficient markets for agricultural products. Oversight would focus on delivery and quality.

Related Government Programs

Fruit and Vegetable Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential supply chain disruptions.
Lack of specific unit cost data for detailed price benchmarking.
Limited insight into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.4 million to CAMPBELL FOODSERVICE CO. COMMODITIES FOR USG FOOD DONATIONS: 2000011139/4100033679/SOUP CREAM OF MUSHROOM CAN-24/1,SOUP CREAM OF CHICKEN 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 $1.4 million.

What is the period of performance?

Start: 2026-02-05. End: 2026-06-30.

What is the unit cost per can of soup and how does it compare to market prices?

The total contract value is $1,436,490 for an unspecified quantity of canned soup, with a duration of 145 days. To determine the unit cost per can, the total number of cans procured would be needed. Without this information, a direct comparison to market prices is not possible. However, the firm fixed price suggests the government has locked in a price.

What are the risks associated with the supply chain for these canned goods?

Potential risks include disruptions in raw material availability (e.g., mushrooms, chicken), manufacturing delays, or transportation issues. The firm fixed price contract may incentivize the contractor to manage these risks efficiently. However, unforeseen events could still impact delivery timelines or product quality.

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

This contract directly supports federal food donation programs by ensuring a supply of essential, shelf-stable food items. The full and open competition aims to secure these goods at a competitive price, maximizing the impact of federal funds. The specific types of soup chosen likely align with nutritional guidelines and recipient preferences.

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: $1,436,490

Exercised Options: $1,436,490

Current Obligation: $1,436,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline