USDA Awards $7.5M for Canned Peaches and Fruit to Pacific Coast Producers

Contract Overview

Contract Amount: $7,567,263 ($7.6M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2025-11-13

End Date: 2026-02-06

Contract Duration: 85 days

Daily Burn Rate: $89.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011027/4400002435/4100033135/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT EX LT CAN-6/10

Place of Performance

Location: OROVILLE, BUTTE County, CALIFORNIA, 95965

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.6 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011027/4400002435/4100033135/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT EX LT CAN-6/10 Key points: 1. Contract awarded to Pacific Coast Producers for canned fruits. 2. Full and open competition was utilized after excluding sources. 3. Potential risk associated with fixed-price contracts with economic price adjustments. 4. Spending falls within the broader 'Food and Agriculture' sector.

Value Assessment

Rating: good

The total award amount is $7,567,262.50. Benchmarking against similar contracts for canned goods is difficult without more specific data on quantity, packaging, and delivery locations. However, the price appears reasonable for a large-scale government food donation program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating an attempt to maximize competition. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential food donations.

Public Impact

Ensures availability of nutritious canned fruits for U.S. government food donation programs. Supports domestic agricultural producers and the canning industry in California. Provides a consistent supply of shelf-stable food items for various needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may lead to cost overruns if commodity prices rise significantly.
Reliance on a single awardee for a specific set of products.

Positive Signals

Full and open competition utilized.
Supports domestic agriculture and food security initiatives.

Sector Analysis

This contract falls under the Food and Agriculture sector, specifically focusing on processed fruits for government programs. Spending benchmarks for canned goods vary widely based on product type, volume, and packaging.

Small Business Impact

The data indicates the awardee is Pacific Coast Producers, a large agricultural cooperative. There is no explicit information on small business participation in this specific award, but the nature of the award suggests it may not directly benefit small businesses as prime contractors.

Oversight & Accountability

The contract is a delivery order under a larger agreement, suggesting it has undergone initial review. Oversight will focus on delivery timeliness, product quality, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for cost increases due to economic price adjustment.
Limited competition if 'exclusion of sources' significantly narrows the bidder pool.
Dependence on canned products may not offer the freshest nutritional value.
Contract duration and delivery schedule require careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.6 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000011027/4400002435/4100033135/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT EX LT CAN-6/10

Who is the contractor on this award?

The obligated recipient is PACIFIC COAST PRODUCERS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2025-11-13. End: 2026-02-06.

What is the projected cost impact of the economic price adjustment clause given current commodity market trends?

The economic price adjustment (EPA) clause allows for price changes based on an index, typically tied to commodity prices. Without specific index details and current market forecasts for canned peaches and mixed fruit, a precise cost impact is hard to determine. However, if inflation in agricultural inputs or processing costs rises significantly, the final cost to the government could exceed the initial fixed price, potentially increasing taxpayer burden.

How does the 'exclusion of sources' in the competition method affect overall price competitiveness?

The 'exclusion of sources' clause, while still allowing for full and open competition among remaining eligible sources, can limit the pool of potential bidders. If the exclusion was based on specific capabilities or certifications, it might reduce the number of competitive offers received. This could potentially lead to less aggressive pricing compared to a scenario with unrestricted full and open competition, though the extent depends on the number and competitiveness of the excluded entities.

What is the long-term effectiveness of using canned fruits in food donation programs compared to fresh or frozen alternatives?

Canned fruits offer significant advantages in terms of shelf stability and long-term storage, making them ideal for donation programs where immediate consumption is not guaranteed. While fresh fruits offer higher nutrient density and frozen fruits retain more texture, canning provides a cost-effective and logistically simpler solution for widespread distribution and emergency food supplies. Their effectiveness lies in providing essential vitamins and minerals reliably over extended periods.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0359

Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 631 N CLUFF AVE, LODI, CA, 95240

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

Financial Breakdown

Contract Ceiling: $7,567,263

Exercised Options: $7,567,263

Current Obligation: $7,567,263

Actual Outlays: $7,330,622

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0037

IDV Type: IDC

Timeline