USDA awards $2.28M for canned fruit to Pacific Coast Producers under full and open competition

Contract Overview

Contract Amount: $2,281,716 ($2.3M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2025-11-24

End Date: 2026-02-06

Contract Duration: 74 days

Daily Burn Rate: $30.8K/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: 2000011077/4400002435/4100033191/MIXED FRUIT CAN-24/300

Place of Performance

Location: OROVILLE, BUTTE County, CALIFORNIA, 95965

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.3 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011077/4400002435/4100033191/MIXED FRUIT CAN-24/300 Key points: 1. The contract focuses on canned fruit for food donations, a critical component of federal nutrition programs. 2. Pacific Coast Producers, a California-based entity, is the awardee. 3. The contract was awarded using full and open competition after exclusion of sources, suggesting a deliberate evaluation process. 4. The fixed-price with economic price adjustment structure aims to mitigate cost fluctuations in the commodity market.

Value Assessment

Rating: good

The award amount of $2.28M for canned fruit appears reasonable given the quantity and nature of the goods. Benchmarking against similar USDA food procurement contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'full and open competition after exclusion of sources' method indicates that while some sources may have been initially excluded, the remaining pool was subject to open competition. This approach can lead to competitive pricing by ensuring multiple qualified bidders can participate.

Taxpayer Impact: The use of competitive bidding is intended to secure the best value for taxpayer dollars, ensuring that food donation programs are provisioned efficiently.

Public Impact

Ensures availability of essential food items for federal nutrition assistance programs. Supports domestic agricultural producers and food processing industries. Provides a stable supply of canned fruit for vulnerable populations. The economic price adjustment clause may lead to higher costs if commodity prices rise significantly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment.
Dependence on a single awardee for a specific commodity.

Positive Signals

Utilizes competitive procurement to ensure value.
Supports domestic food supply chain.
Addresses critical food security needs.

Sector Analysis

This contract falls within the broader agricultural and food processing sector. Spending benchmarks for commodity procurement by the USDA's Agricultural Marketing Service are typically driven by program needs and market prices.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or if the prime contractor is a small business. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Agricultural Marketing Service is responsible for overseeing these procurement contracts to ensure compliance with federal regulations and program objectives. The use of full and open competition suggests a degree of oversight in the selection process.

Related Government Programs

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

Risk Flags

Economic price adjustment may increase costs.
Limited visibility into small business participation.
Potential for price volatility in the commodity market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000011077/4400002435/4100033191/MIXED FRUIT CAN-24/300

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 $2.3 million.

What is the period of performance?

Start: 2025-11-24. End: 2026-02-06.

What is the historical pricing trend for canned fruit procured by the USDA, and how does this award compare?

Analyzing historical USDA procurement data for canned fruit would reveal average prices paid over time and identify any significant deviations. This contract's pricing, especially with the economic price adjustment, should be compared against these historical benchmarks to assess if it represents a fair market value and to understand the potential impact of price fluctuations on future spending.

What specific criteria led to the exclusion of certain sources prior to the full and open competition?

Understanding the reasons for excluding specific sources is crucial for assessing the integrity of the competition. If exclusions were based on objective qualifications or past performance issues, it strengthens the validity of the subsequent competition. However, if the exclusions were arbitrary or appeared to favor certain bidders, it could raise concerns about fairness and potentially limit price discovery.

How effectively does the economic price adjustment clause protect the government from excessive cost increases in a volatile market?

The effectiveness of the economic price adjustment (EPA) clause depends on the specific indexation methodology and the volatility of the canned fruit market. While EPA is designed to account for legitimate cost changes, poorly structured clauses can expose the government to significant price hikes. Monitoring the actual price adjustments against market trends is essential to gauge its effectiveness.

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: $2,281,716

Exercised Options: $2,281,716

Current Obligation: $2,281,716

Actual Outlays: $2,192,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0037

IDV Type: IDC

Timeline