Agriculture Department awards $2.6M for perishable food, including pears, with 61-day performance period

Contract Overview

Contract Amount: $2,604,408 ($2.6M)

Contractor: Horizon Marketing, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-03-27

End Date: 2026-05-27

Contract Duration: 61 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011217/4100033914/PEARS DANJOU FRESH CTN-40 LB,PEARS FRESH PKG-12/3 LB,PEARS BOSC FRESH CTN-40 LB

Place of Performance

Location: VISALIA, TULARE County, CALIFORNIA, 93277

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.6 million to HORIZON MARKETING, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011217/4100033914/PEARS DANJOU FRESH CTN-40 LB,PEARS FRESH PKG-12/3 LB,PEARS BOSC FRESH CTN-40 LB Key points: 1. Contract focuses on essential food commodities, indicating a need for consistent supply chains. 2. The award was made under full and open competition, suggesting a competitive market for these goods. 3. A short performance period suggests a need for immediate or seasonal supply. 4. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 5. The contractor, Horizon Marketing, Inc., has a history of performing government contracts. 6. The geographic focus is California, potentially indicating regional demand or sourcing.

Value Assessment

Rating: good

The total award of $2.6 million for a 61-day period for perishable food items, specifically including various types of pears, appears reasonable given the nature of the goods. Perishable items often command higher prices due to handling, storage, and transportation requirements. Benchmarking against similar contracts for bulk food donations or emergency food supplies would provide a more precise value assessment, but the price seems within expected ranges for specialized food procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of competition for this specific food commodity procurement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The robust competition indicates that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide the goods at the best possible price.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. Services delivered include the provision of essential food commodities, specifically perishable fruits like pears. The geographic impact is primarily California, suggesting this contract addresses regional needs or sourcing. Workforce implications are likely within the agricultural and food distribution sectors in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires strict logistical management to avoid waste.
Potential for price fluctuations in agricultural commodities impacting long-term supply stability.
Ensuring equitable distribution of donated food items to intended recipients.

Positive Signals

Contract awarded through full and open competition, indicating market responsiveness.
Firm Fixed Price contract structure provides cost certainty for the government.
Contractor has a track record, suggesting reliability in performance.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on the procurement and distribution of perishable commodities for government donation programs. The market for agricultural products is vast and subject to seasonal variations, global supply chain dynamics, and specific commodity demands. Government procurement in this area often supports domestic agricultural producers and ensures food security initiatives. Comparable spending benchmarks would involve analyzing other large-scale food procurement contracts for humanitarian aid or domestic feeding programs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract, as 'sb' is false. However, the presence of 9 bidders in a full and open competition means that small businesses could have participated if they were capable and competitive. Further analysis would be needed to determine if any small businesses were subcontractors or if the prime contractor has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract would likely be managed by the Agricultural Marketing Service (AMS) within the Department of Agriculture. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications for perishable goods. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Food Assistance Programs
Agricultural Commodity Procurement
Emergency Food Aid

Risk Flags

Perishability Risk
Supply Chain Volatility
Quality Assurance for Fresh Produce
Timely Delivery Logistics

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to HORIZON MARKETING, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011217/4100033914/PEARS DANJOU FRESH CTN-40 LB,PEARS FRESH PKG-12/3 LB,PEARS BOSC FRESH CTN-40 LB

Who is the contractor on this award?

The obligated recipient is HORIZON MARKETING, 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: 2026-03-27. End: 2026-05-27.

What is Horizon Marketing, Inc.'s track record with government contracts, particularly for food commodities?

Horizon Marketing, Inc. has a history of receiving federal contracts, primarily within the Department of Agriculture and other agencies requiring food supplies. Their awards often involve various food items, including produce and other commodities, for domestic and international feeding programs. Analyzing their past performance ratings, any past performance issues, and the volume/value of previous contracts would provide a clearer picture of their reliability and experience. For instance, reviewing FPDS data for prior awards to Horizon Marketing, Inc. would reveal the types of goods procured, the agencies involved, and the contract values, offering insights into their capacity and consistency in fulfilling government requirements.

How does the price per unit for these pears compare to market rates or similar government procurements?

Without specific unit pricing data for the 'PEARS DANJOU FRESH CTN-40 LB', 'PEARS FRESH PKG-12/3 LB', and 'PEARS BOSC FRESH CTN-40 LB' within the $2.6 million award, a direct per-unit cost comparison is challenging. However, the contract's firm fixed-price nature suggests that Horizon Marketing, Inc. has factored in market rates, including agricultural commodity prices, packaging, transportation, and profit margins. To benchmark, one would need to compare the average price per pound or per case for similar pear varieties procured by government agencies or purchased commercially in the specified region (California) during the contract period. Factors like seasonality, specific varietal demand, and bulk purchasing discounts would influence these comparisons.

What are the primary risks associated with this contract, considering the perishable nature of the goods?

The primary risks associated with this contract revolve around the perishability of the food items, specifically the pears. These include spoilage during transit or storage, leading to potential waste and financial loss for the contractor, and impacting the availability of goods for intended recipients. Other risks involve supply chain disruptions (e.g., weather affecting harvests, transportation delays), quality control issues (ensuring the pears meet specified standards), and timely delivery to designated locations. The short 61-day performance period also implies a need for rapid logistics and potentially higher per-unit costs to accommodate expedited handling and delivery.

How effective are USDA food donation programs in meeting nutritional needs, and how does this contract contribute?

USDA food donation programs are a critical component of the nation's food security infrastructure, aiming to alleviate hunger and improve nutritional outcomes for vulnerable populations. These programs often procure a variety of food items, including fresh produce like pears, to provide balanced diets. This specific contract contributes by ensuring a supply of perishable fruits, which are essential for vitamins and minerals, to recipients through donation channels. The effectiveness of these programs is often measured by the reach of distribution, the nutritional quality of the food provided, and the reduction in food insecurity rates among participating households or communities.

What is the historical spending pattern for similar perishable food procurements by the Department of Agriculture?

Historical spending patterns for perishable food procurements by the Department of Agriculture, particularly for donation programs, can vary significantly based on appropriations, specific program needs, and market conditions. Agencies like the Agricultural Marketing Service (AMS) regularly procure commodities to support various initiatives. Analyzing past contract awards for similar items (e.g., fruits, vegetables) over several fiscal years would reveal trends in contract values, quantities procured, and the types of contractors involved. This contract's $2.6 million value for a 61-day period for specific pear types should be viewed within the context of these broader historical spending trends to assess its relative scale and significance.

What are the implications of a 'Firm Fixed Price' contract type for this perishable food procurement?

A 'Firm Fixed Price' (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. For perishable food procurement, this structure transfers the primary risk of cost overruns due to market fluctuations, spoilage, or logistical challenges to the contractor, Horizon Marketing, Inc. This provides the government, specifically the Department of Agriculture, with cost certainty. However, it may also lead the contractor to price higher initially to account for potential risks. For perishable goods, the FFP structure necessitates careful specification of quality and delivery timelines to mitigate the contractor's risk while ensuring the government receives acceptable goods.

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: 123J1426B0178

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 536 W VICTOR AVE, VISALIA, CA, 93277

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,604,408

Exercised Options: $2,604,408

Current Obligation: $2,604,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline